Embedded Files
Lesson 4-1 Put Savings to Work
Lesson 4-1 Put Savings to Work
Overview
Overview
Do you want to be rich? Who doesn’t! But remember: Being wealthy isn’t about how much you earn—it’s about how much you keep and what you do with it.
Think of your money as a 24-7 “employee”— expecting it to make more money for you while you go about your daily activities. You do that by saving and also investing your money. The sooner you get started, the sooner you start growing your money.
LEARNING OUTCOMES
LEARNING OUTCOMES
In this lesson students explore how saving and investing can be used to build wealth. Along the way they will do the following:
Make a distinction between saving and investing.
Demonstrate how to calculate compound interest.
Compare types of savings investments.
Students will use what they learn today to select savings investment options.
Student Activity
Student Activity
Lesson 4-2 How Investing Works
Lesson 4-2 How Investing Works
Overview
Overview
The best reason for investing is that your money has the potential to make more money for you. When you invest, you buy something that you believe will increase in value or earn money for you. There’s no guarantee that the investment will grow, but in the long run, investments have the potential to earn more than you can usually earn in interest from a savings account.
You may not think that you have much money to invest right now, but you are missing opportunities to grow wealth by not starting when you are young. In this lesson explore reasons to start investing now to get a jumpstart on achieving your financial goals.
LEARNING OUTCOMES
LEARNING OUTCOMES
In this lesson students explore how investing works. Along the way they will do the following:
Summarize how the time value of money impacts saving and investing.
Explain how to buy stocks.
State fundamental investing guidelines.
Students will use what they learn to make decisions about stock investments.
Student Activity
Student Activity
Lesson 4-3 Choosing Investments
Lesson 4-3 Choosing Investments
Overview
Overview
When you invest, you are putting your money into something you believe will increase in value or earn more money for you. You put money into a bank savings account to earn interest, and you have peace of mind because the account is insured from loss. But not every type of investment is guaranteed to increase in value. In some instances, investments might decrease in value.
Any investment involves some degree of risk, but you might think the potential rewards are worth taking some degree of risk. In this lesson, you will explore those risks and measure your willingness to accept investment risks.
LEARNING OUTCOMES
LEARNING OUTCOMES
In this lesson, students will explore the risks and rewards of several investment options. Along the way they will:
Give examples of types of investments.
Describe the risk-to-reward principle.
Discuss how risk tolerance impacts investment decisions.
Explain how diversification is used as an investment strategy.
Students will use what they learn to set up their own personal rules for investing.
Student Activity
Student Activity
Lesson 4-4 Investing Strategy
Lesson 4-4 Investing Strategy
Overview
Overview
Think you can’t build wealth from your current situation? Think again. It is possible with planning and sound decisions. Warren Buffett is an example of someone who built his wealth, not from luck or an inheritance, but by strategically planning his actions to gradually accumulate assets. Before his teen years he methodically saved and invested his modest earnings from odd jobs. His investment philosophy has paid off over time. In 2008 he was ranked the richest man in the world and is also known for his frugal style and generous charity donations.
What is your investment philosophy? This lesson will provide you with guidelines that will help you to immediately start putting your money to work for you.
LEARNING OUTCOMES
LEARNING OUTCOMES
In this lesson, students learn about strategies to use when investing.
Summarize guidelines for investing.
Describe the benefits of dollar cost averaging.
Discuss rights and responsibilities related to investing.
Students will use what they learn to set goals for saving and investing.
Student Activity
Student Activity
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