Long-Term
Range
Money goes away and comes back bigger another day.
Last summer, Jeannie sent her pet monkey Fred to summer
camp for a few months. When he came back to her in August,
he was not only tanned and more fit – he’d
grown five inches, too. So when she received a total
of $500 on her 15th birthday, she wanted to do something
similar with all that money: send it away for a while
so it could grow.
So, she put her $500 into a savings account that she
decided not to touch for several years. She knows that
if she doesn’t touch that account, her money will
keep growing and earning interest.
Jeannie also could have put her money into a certificate
of deposit, or a CD. When you put your money into a
CD, you agree to leave your money in an account for
a fixed amount of time. Your money will earn interest
while it’s in that account, and you won’t
be able to spend it while it’s there.
So make sure you have enough money in another account
to cover your other expenses, like Sneaker Town sneakers
and spelunking adventures, in the meantime.
