Beginning February 25th, individuals and organizations around the country, including the Kentucky Cooperative Extension Service, will participate in “America Saves Week.” This annual event was started by the nonprofit America Saves, which works to raise awareness of how best to save money.
America Saves Week
encourages you to find ways to make your money grow faster. One of the best
ways to save money is to make your savings accumulate interest. When the
interest compounds, it accrues interest on top of previously earned interest,
so it grows more quickly. Putting your money into a mutual fund is another way to
make your money earn you more money. A mutual fund is a diversified portfolio
of stocks managed by an investment company. The risk of loss is small because
the funds hold stock in many diverse industries, yet the returns can be very
beneficial. Savings bonds are another choice. These are certificates that
attest that a company or government will pay you back the bond price plus
interest once the bond matures. Both of these options reward you just for
saving and are great choices for new investors. However, putting your money in
the stock market, mainly through mutual funds, will earn you money much faster
than savings bonds and interest earned in savings accounts. To be fully
diversified, you will want money in various types of savings and investments.
READERS,
what do you think?
Do events like this
encourage you to become more involved in your finances?
Reference:
America Saves. (n.d.).
America Saves Week. Retrieved from http://www.americasavesweek.org/home-2.
