Section 4.2: Saving Basics
Section 4.2 Focus
This section focuses on the importance of savings and creating an emergency fund, the rule of thumb for savings behavior, APY (Annual Percentage Yield), types of savings products, and inflation and real interest rates.
Read
- The Index Card Rule #1: Strive to Save 10 to 20 Percent of Your Income: (pages 17 - 39)
- Your Spending, Your Savings, Your Future Part Two. Your Savings (pages 26 - 33)
- Money Market vs. CD: What’s Better? Links to an external site.
- Real Interest Rate: Definition, Formula, and Example Links to an external site.
Watch
To understand important concepts related to savings behavior, interest rates, inflation, and the difference between saving and investing, watch the following videos.
Resources
- APY Calculator Links to an external site.
- US Inflation Rate by Year From 1929 to 2023 Links to an external site.
- Consumer Price Index, 1913-Present Links to an external site.
- Best Online Savings Accounts for April 2023 Links to an external site.
- Best CD Rates for April 2023 Links to an external site.
- 5 Best Money Market Accounts for April 2023 Links to an external site.