Day 12

Lesson Objectives

• Identify the Five Foundations of personal finance.
• Understand the purpose of having an emergency fund.
• Explain the three basic reasons for saving money.
• Understand the importance of saving for both long-term and short-term goals.
• Describe what a sinking fund is and identify purchases for which you would use a sinking fund.
• Demonstrate how compound interest works and understand the impact of annual interest rate.
• Describe the difference between simple and compound interest.
• Understand the importance of beginning to save now.

Assignment 2.R.1

1. Obtain a partner from your teacher.
2. Make a copy of this Google Document and share it with your partner. Name the file Rate of Return-(Your Initials).  Please it in your Chapter 2 folder.  Complete the document as instructed.

Chapter 2 Folder

• Your Chapter 2 folder should have the following files in it:
  • Personal Finance Journal-C2
  • Five Foundations (poster)
  • Saving A Way to Build Wealth
  • 3 Reasons to Save
  • Short Answer 2
  • Case Studies 2
  • Rate of Return
  • Investment 2