Standard 6

Objective: Students will recognize investment options.

Evidence:

A. Illustrate a comparison of high risk versus low risk investment options. Include a minimum of six different investment options. (Note: www.themint.org "tips for teens" might be helpful!)

Reflection (should include the following):

A. Explain the importance of having a diverse investment portfolio.

B. Explain the rule of 72.

C. Explain how saving is needed for investing.

D. Explain the relationship between investing and potential entrepreneurship goals.

Investment Options: Stocks, bonds, CDs, bank, international, and either small, large, or middle companies. Risk is almost always a risk in investing. For example, stock is a very high risk, high reward option in investing, as making a savings account is low risk, but low reward.

Reflection: It is important to have a diverse investment portfolio because it is just a better way to invest. If you put all your money in stocks you could lose it all, but if you but 1/4 in stocks, 1/4 in a mid cap organization, 1/4 in bonds, and 1/4 in CDs you will be a lot safer and might make money.The rule of 72 is if you divide 72 by the interest rate then in that many years your money invested will be doubled. For example, if I invest 5 cents into a 3% interest bank, then if I divide 72 by 3 I get 24, so in 24 years I will have 10 cents. Saving is needed in investing so you don't lose all of your money, most professionals prefer to have up to 6 months in bills saved before considering investing. Investing could open up entrepreneurship opportunities because investing in a company could give you some ideas or you could become part of that business.