Lesson 1: Money Smart Choices (6-8)
Handout 4

Two Types of Investing

“LOAN  IT” "OWN IT"
You let someone else use your money for a period of time to receive interest, like receiving “rent” You exchange your money for something else to own.  You can sell it later, but no promise or guarantee of return.
 
  • Savings accounts
  • Some checking accounts
  • Money market accounts
  • Certificates of Deposit (“CD’s”)
  • U.S. Treasury bills, notes, and bonds
  • Corporate and Municipal bonds “OWN IT”
  • Owning stock in a company
  • Owning shares of a mutual fund (a collection of company stocks organized into a fund and sold to investors)
  • Owning real estate property
  • Owning gold or other collectibles, such as rare coins, baseball cards, etc.