Attention: Money 101 will no longer be available after May 31, 2021. After that time the Enrich financial literacy tool will be available at https://cwdc.enrich.org moving forward.
5. Types of Accounts
There are several types of accounts that people use to save and invest their money. One way to categorize accounts is by the type of financial institution which offers the account: banks/credit unions, brokerage firms, mutual fund companies and others.
Another way to categorize accounts is by how they are taxed: either taxable or tax-advantaged or the deposits and/or earnings may or may not be taxable by states and the federal government. Most people have taxable accounts for their emergency funds and other short-term savings and investing. They have tax-advantaged accounts for their retirement or other long-term savings including college savings accounts. College savings accounts are explained in the Paying for College course.
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