3 TYPES OF INSTITUTIONS 1. COMMERCIAL BANKS - OFFER A VARIETY OF SERVICES AND RUN FOR A PROFIT 2. SAVINGS AND LOAN ASSOCIATIONS - MOSTLY DO SAVINGS ACCOUNTS AND LOANS 3. CREDIT UNIONS - NONPROFIT INSTITUTION OWNED & OPERATED BY MEMBERS
WHY SAVE? 1. IT WILL BE AVAILABLE FOR FUTURE NEEDS 2. SAVINGS CAN BE A DIRECT PATH TO SOME LONG TERM GOALS 3. IT CAN BE CONSIDERED AN EMERGENCY FUND 4. IT CAN GIVE YOU A RETIREMENT CUSHION
5 FACTORS IN DECIDING HOW TO SAVE 1. SAFETY - SHOULD BE PROTECTED FROM LOSS (FIRE, THEFT, LOST) 2. RATE OF RETURN - INVESTIGATE THE INSTITUTION THAT GIVE YOU THE MOST BACK FOR THE USE OF YOUR MONEY
3. LIQUIDITY - HOW QUICKLY YOU CAN GET CASH IS IMPORTANT FOR EMERGENCIES 4. PURCHASING POWER - IT SHOULD BE PROTECTED AGAINST INFLATION (STOCKS, BONDS, REAL ESTATE) 5. CONVENIENCE - NEEDS TO BE NEAR YOUR HOME OR BUSINESS