Allocation is the distribution of your money in different types of investments. Using the College Fund Calculator, you can invest your money in stocks, mutual funds, bonds, and certificate of deposits (CD's).

In terms of math applications, allocation of money is like dividing a dollar bill into a percentage of a pie.  For example:

Conservative investors may invest their money in CD's and bonds. The pie chart will show 40% in CD's and 60% in bonds.

Moderate investors will invest in stocks, mutual funds, bonds, and CD's.  The pie chart will show 50% in stocks, 20% in CD's, 10% in bonds, and 20% in mutual funds.

Aggressive investors may invest most of their money in stocks and little in other investments. The pie chart will show 90% in stocks and 10% in CD's.

Sorry, we are no longer accepting entries to this email.