Investing is not a game. It can be a high stakes gamble, or a low risk guaranteed money. How do you know which it will be? Enjoy today's lesson and find out.
Below I have listed a few different types of investments you might come across. Please take a few minutes in your tables to match up the types of accounts (in purple) with the descriptions (in red). We will discuss them as a table.
1. Savings account
2. Stocks
3. Bonds
4. Mutual Funds
5. Land (property)
a. Pooling money to have experts select stocks for you
b. A great long term investment
c. You can not lose money. The government makes sure of that
d. You own the company
e. Let's borrow some money from the government
After you are done matching them up, take a look at these three questions and see if you can come up with some responses.
What is risk?
What does it mean to take a risk?
What can happen if you take on some risk?