You will also want to think about what kind of saving _1_
instrument to use or what king of investment to make．By putting your money in some kind of savings instrument or investment, you can set side small amount of money regularly _2_
and the money will earn interest or dividends．Interest refers to the amount what your money earns when it is kept in a savings _3_
instrument．Dividends are payments of part of a company’s to people hold stock in the company．A savings instrument has _4_
an “interest rate” associated with it; this refers to the rate which _5_
the money in the instrument increases during a certain period of time．Principal refers to the facial value or the amount of money_6_
you place in the savings instrument on which the interest is earned.
Every type of savings or investment has some risk that the return will be less than needed or expected．Federally insured savings accounts are safe and guaranteed up to $100,000 by the U.S．Government．Therefore, they may have lower_7_ interest rates, making it hard to save large amount of money _8_
for college．Bonds and stocks often have higher returns than savings accounts or EE savings bonds but are more riskier．You _9_
can reduce the risks of these kinds of investments by starting to save early．The earlier we begin the less money you will have _10_
to put aside each month and the more total savings you will accumulate.