Saving and Investing for Students

Financial Planner
—
An investment professional who typically 
prepares financial plans for his or her clients. The kinds of services 
financial planners offer can vary widely. Some financial planners 
assess every aspect of a client’s financial life—including saving, in-
vestments, insurance, taxes, retirement, and estate planning—and 
helps the client develop a detailed strategy or financial plan. Other 
professionals call themselves financial planners, but they may only 
be able to recommend investments in a narrow range of products 
that may or may not include securities.

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U.S. SECURITIES AND EXCHANGE COMMISSION
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Financial Security
—
Having an appropriate financial plan and 
enough financial resources to adequately fulfill any needs or most 
wants of an individual or business.
 
Inflation
—
A general upward movement in the price of goods or 
services is known as inflation. Supply and demand and the amount 
of money in circulation can increase inflation. Over time, inflation 
erodes the purchasing power of a currency, making the currency 
worth less. It also erodes the value of fixed payments to bondhold-
ers, one of the risks of investing in fixed-income securities. 
Interest
—
The price paid for borrowing money. It is expressed as 
a percentage rate over a period of time. Interest rates may be fixed, 
meaning the rate is set and will not change, or may be variable or 
“floating,” meaning the rate may move higher or lower over time. 
Invest
—
To engage
in
any activity in which money is put at risk 
in the hope of making a profit.
Investment Adviser
—
An investment professional who gives ad-
vice to clients about investing in stocks, bonds, mutual funds or 
other assets. Some investment advisers also manage portfolios of 
securities. By law, investment advisers are required to act in the 
best interest of their customers.
Liability/Debt
—
An amount owed to a person or organization 
for borrowed funds. Loans, notes, bonds and mortgages are forms 
of debt
.
These different forms all call for borrowers to pay back the 
amount they owe, typically with interest, by a specific date, which 
is set forth in the repayment terms.