Chapter 5. Grow Your Wealth

Now that we have created our budget, created our emergency fund, considered our debts, and planned for our future, we can move onto the final step on our financial wellness ladder, Growing Your Wealth.

 

This step involves investing your money in assets that will beat inflation and grow over time, namely: stocks, bonds, and real estate. It is the last step on the ladder because it is important to build a secure financial foundation before investing beyond retirement. This step is for those that already contribute to retirement through an IRA or an employer-sponsored plan and still have excess savings to invest. Money in your savings account can provide a sense of security, but once you have your savings goals met and an emergency fund in place, excess savings can be detrimental. Investing in stocks, bonds, and real estate can be an effective strategy to grow your personal wealth.

 

Practice

Now that you have learned why you should invest, think of paying if forward and discuss why and how you should invest with a friend or a family member.

Want to learn more about Saving and Investing? Click here for our Saving and Investing module in our MoneyCounts Series.

 

Congratulations! Now Test your Knowledge about Financial Literacy Overview (FLO)!

Would you like to review again? You can start over at Introduction.

 

To review the full module on Financial literacy overview (FLO), click here. 

 

This was made possible in partnership with The Singleton Foundation for Financial Literacy and Entrepreneurship. This video and more videos like this can be found on Millionstories.com Links to an external site..

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The Penn State Sokolov-Miller Family Financial and Life Skills Center hopes you have enjoyed this module in the MoneyCounts: A Penn State Financial Literacy Series. Please tell us how we can serve you better, leave us  feedback, ask a question, or request additional information at: finlit@psu.edu