RCSC 150B2 Lecture Notes - Lecture 13: Consumerism, United States Department Of The Treasury, Credit Union

• School: University of Arizona
• Department: Retailing & Consumer Science
• Course: RCSC 150B2
• Professor: Richardrosen

Document Summary

The key is in two words: risk and liquidity. Savings are low risk funds that must be liquid (available) when you need them. The purpose of saving money is so you can have it for a speci c purpose within a short time frame. Will not be needed for many years. Yield much greater returns when left alone long enough to ride out turbulence in a market. De ned as a sustained increase in the general level of prices for goods and services. As in ation rises, every dollar you own buys a smaller percentage of a good service. Savings: retain your purchasing power by having your interest rate remain the same or higher than the in ation rate. Investments: beat the in ation rate and grow your value in real terms. To put aside as a store or reserve: accumulate (saving money for emergencies)