AZ Investor

Basics of Saving and Investing

When saving, you use financial instruments to safeguard and accumulate funds for short term spending goals. Saving instruments typically earn interest, have minimal or no risk to principal, emphasize safety and liquidity, but are subject to inflation risk.

When investing, you use financial instruments to grow your money for long term goals such as retirement. Investing products allow you to gain a profit through interest, dividends, and/or increase in value, but your principal is at risk of loss. Each type of investment carries a certain level of risk. Understand how the investment works and if it's right for your age, investment objectives, and risk tolerance.

Before you even think about investing, it is recommended to maintain a "rainy day fund," an emergency fund with money that is liquid (easily accessible) and the principal is not at risk. Read more about getting started on the path to saving and investing.

Financial Empowerment for Women

Many women face money challenges during their lifetime— marriage, divorce, job loss, retirement, sending kids off to college, and other changes to their own or their family’s financial circumstances.  And generally speaking, a woman's longevity presents another challenge of not outliving her nest egg. Knowing how to prepare for these life transitions and challenges is important. 

According to the North American Securities Administrators Association (NASSA), common mistakes that people make in regards to their finances include:

-Not having open conversations about money with a loved one or an investment professional

-Getting into debt

-Not having a financial plan

-Not periodically reviewing their financial status and plan  

-Failing to verify license status of an investment promoter with a securities regulator

To help you begin to take control of your financial future, review this Financial Empowerment for Women information.  

For important tips for women about their retirement savings, read this handy resource by the U.S. Department of Labor.

A Reading Guide for Parents

This guide will help you teach your child money management skills while reading“Count on Pablo” by Barbara de Rubertis. It will do this by:

--Giving you things to think about before reading the book with your child. These can help you spot key points in the book or spark ideas to discuss later. with your child. 

--Helping you prepare for an enjoyable reading time with your child.

--Providing questions to talk about with your child.

--Suggesting activities that help your child put ideas and lessons into action.

The Story

Pablo is happy to go to the market with Grandma.  He counts the fruits and vegetables to sell at the market. Pablo also uses his problem-solving skills to help Grandma sell all the food at her booth.

How to Raise a Money-Smart Child:

 A Parents Guide

This resource discusses how to raise a child who is savvy about money; includes age-appropriate, family activity ideas. Important topics include:

           Ages 2 to 8                                                                  Ages 13 to 18

           -Allowances...or Work...or Both?                                -How to Reconcile Your Checking Account

           -Helping Kids Understand: Needs and Wants          -Credit for the First-time Borrower

           Ages 9 to 12                                                                -Build a Positive Credit History

           -Piggy Banks to Real Banks                                        -Next Generation: Insuring Your Future

           -How to Create a Budget                                             -Eight Ways to Finance College

           -What is a Mutual Fund?

Smart Saving for College: Better Buy Degrees

529 Plans and Other College Saving Options

This guide, published by FINRA (Financial Industry Regulatory Authority), discusses your options to saving and investing wisely for college. Some important topics include:

• College Costs are Rising--Are You Keeping Pace?
• Loans--Know the Cost
• Education Benefits for Service members--Post 9/11 GI Bill
• College Saving While Saving Taxes
• Tips for Choosing College Savings Options

Youth Money Matter$

Kids, money does matter! Check out these online games and videos to learn important stuff about saving, investing and becoming a fraud fighter.