PFA-Budgeting-12-1-2025

It helps you achieve financial goals and avoid debt

It guarantees you will become wealthy

It eliminates all financial risks

It allows you to spend without planning

It has a fixed maturity date

It pays interest and allows a limited number of checks each month

It is more liquid than a checking account

It does not require a minimum balance

They have maturities of one year or less

They are purchased at a premium

They result in capital gains when sold at a higher price

Their prices can be found online and in financial news publications

To provide loans to account holders

To automatically invest unused balances into money market investments

To consolidate multiple accounts into one statement

To pay higher interest rates on checking accounts

Savings account

Certificate of deposit (CD)

Treasury bill

Asset management account

Three-Month CD

Three-Month T-bill

Savings Account

Checking Account

Current stock prices

Updated interest rates on CDs

Loan approval status

Credit card offers

Credit risk

Interest rate risk

Liquidity risk

Inflation risk

Anticipate bills and have sufficient liquidity to pay them

Estimate additional funds you might need soon and invest funds to cover them in very liquid assets

Use remaining funds to generate higher returns based on your risk tolerance

Spend all available funds immediately to avoid holding cash

Ensuring you can pay anticipated bills on time

Maintaining adequate liquidity for unanticipated expenses

Investing remaining funds among money market investments

Ignoring liquidity needs

$200

$400

$600

$1,000

To earn higher interest than certificates of deposit

To ensure liquidity for unanticipated expenses

To invest in long-term assets

To avoid paying taxes

Treasury bills

Certificates of deposit

Corporate bonds

Money market mutual funds