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Tip of the Day Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account

Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account - Because we need to rely on our emergency funds during time...

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Maturity

Definition: When referring to bonds, it's the length of time that you have to wait until you get your money back.

TeenAnalyst Advice: This is the date the borrower has to repay the lender the principal (amount borrowed before interest).

Bonds with maturity dates in the very near future (a year or so) typically pay less interest than bonds with maturity dates further in the future.  The reason is because investors take on added risk with bonds that don't mature for a long time, so the yield compensates for this.

 

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