Where Should I Put My Money?: More For Your Money - University of Illinois Extension

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When you’re saving money for a future goal think about where is the best place to put it. Is it a short-term or long-term goal? When will you need the money? Where is the safest place for it?

	Savings Account	Stock Mutual Fund
Money for down payment on car Savings account Saving for a car is usually a short-term goal so this is a good place for your money. Stock mutual fund A savings account is probably a better place for your money. The stock market is unpredictable in the short term.
Gift from a relative for a child's college expenses Savings account If 3-5 year or less before child enters college, a savings account is a safe place to keep their money. Stock mutual fund If it's at least 5 and perhaps 10 years before your child starts college, then a savings account's interest may not keep up with inflation. Using a stock mutual fund will likely allow your money to grow over time.
$10 extra to be used for a winter coat Savings account Put small amounts in savings to accumulate. Stock mutual fund Most investments require at least $25 minimum. Also, this is a very short term goal, which means a stock mutual fund is very risky.
When changing jobs, small amount of money from retirement plan at work Savings account A savings account interest is not likely to keep up with inflation in the long term. Stock mutual fund Small amounts make large amounts over time. A stock mutual fund will give you the growth you need to keep ahead of inflation for a retirement 10 years or more years away. Keep your money in the retirement plan at work or roll it into an IRA if you change jobs.
Money for down payment on a house Savings account Depends on how long you have to save. If there's any chance you'll need this money in 5 years or less, keep it in a savings account or CD. Stock mutual fund If you have over 5 years before you can make a down payment, consider a mutual fund that changes value slowly.

More For Your Money - University of Illinois Extension

http://MoreForYourMoney.extension.uiuc.edu

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Where Should I Put My Money?

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