3.1 Savings and Investments

• Meaning of savings and investments in financial management
• Importance of savings and investments for the individual, the business and the economy
• Methods of saving for effective financial management
• Methods of investing for effective financial management
• Factors influencing savings and investment decisions in an economy
• Risk and expected return in savings and investments
• Risk mitigation strategies in savings and investments
• Ethical issues in savings and investment decisions in the country
• Preparing a savings and investment plan for self-development

• analyse the importance of savings and investments in financial management
• assess the methods of savings and investments for effective financial management
• examine the factors influencing savings and investment decisions in an economy
• evaluate the risk mitigation strategies in savings and investments
• identify ethical issues in savings and investment decisions in the country
• prepare a savings and investment plan for self-development
• embrace the need for savings and investments for self development

“Why do people save and invest?”

“What are the ways of saving and investing?”

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1. The meaning of savings and investments
   40 min · 1 practice tasks · quiz
   Distinguish saving from investing and explain what a return means.
2. The importance of savings and investments
   40 min · 1 practice tasks · quiz
   Explain why savings and investments matter to the individual, the business and the economy.
3. Methods of saving
   40 min · 1 practice tasks · quiz
   Describe the main methods of saving and when each is suitable.
4. Methods of investing
   40 min · 1 practice tasks · quiz
   Describe the main methods of investing and what each involves.
5. Savings accounts and fixed deposits
   40 min · 1 practice tasks · quiz
   Compare a bank savings account with a fixed deposit.
6. SACCOs and chamas
   40 min · 1 practice tasks · quiz
   Explain how a SACCO and a chama help members save and borrow.
7. Government securities: bills and bonds
   40 min · 1 practice tasks · quiz
   Explain treasury bills and treasury bonds as ways of investing.
8. Investing in shares
   40 min · 1 practice tasks · quiz
   Explain how shares earn dividends and capital gains.
9. Insurance and pension schemes
   40 min · 1 practice tasks · quiz
   Explain insurance and pension schemes as forms of protection and long term saving.
10. Factors influencing savings and investments decisions
    40 min · 1 practice tasks · quiz
    Examine the factors that shape saving and investment decisions.
11. Risk and expected return
    40 min · 1 practice tasks · quiz
    Explain the relationship between risk and expected return.
12. Risk mitigation strategies
    40 min · 1 practice tasks · quiz
    Evaluate the strategies used to reduce risk in savings and investments.
13. Ethical issues in savings and investments
    40 min · 1 practice tasks · quiz
    Identify ethical and unethical practices in saving and investing.
14. Preparing a savings and investment plan
    40 min · 1 practice tasks · quiz
    Prepare a simple savings and investment plan for self-development.