Chapter 21 Summary

Saving your money in an internet-bearing account puts it to work for you. When interest is compounded, your savings will grow even more quickly.You can save money by depositing it in a savings account or money market account or fund. You can also buy savings bonds and certificates of deposit.You should start saving for your retirement as soon as possible. Participating in a pension plan is a good way to begin. In addition, you will probably want to contribute to an individual retirement account (IRA) or a 401(k) plan. For self-employed people, Keogh plans and simplified employee pension (SEP) plans allow tax-deferred savings.Chapter 21 section 2 summaryWith a checking account, you deposit money and then write checks on your balance.Track your account with a check register. Reconcile it monthly against your statement.Electronic funds transfer and banking online make banking more convenient.Chapter 21 section 3 summaryCredit through credit cards, charge accounts, and loans, allow you to buy something and pay for it later.Disadvantages of credit include finance charges and the possibility of taking on too much debt.The costs of credit include fees and finance charges.A credit bureau tracks how timely debts are paid