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Unit 3 - Investing: Making Money Work for You. Agenda Overview of Unit 3- Investing Activity from the curriculum Optional activities, supplementary materials.

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Presentation on theme: "Unit 3 - Investing: Making Money Work for You. Agenda Overview of Unit 3- Investing Activity from the curriculum Optional activities, supplementary materials."— Presentation transcript:

1 Unit 3 - Investing: Making Money Work for You

2 Agenda Overview of Unit 3- Investing Activity from the curriculum Optional activities, supplementary materials Website suggestions Questions

3 Unit 3 Target Competency Propose a personal saving and investing plan

4 Learning Objectives A.Differentiate between saving and investing B.Assess the time value of money C.Compare investment options D.Compare the relationship between risks and returns related to saving and investments E.Recommend ways to integrate savings and investing strategies into financial planning

5 3-A Savings and Investments UniqueSavingsFeatures UniqueInvestmentFeatures CommonFeatures What are some features common to both investments and savings?

6 In Unit 3 Time Value of MoneyTime Value of Money Key Investments PrinciplesKey Investments Principles Saving and Investment ChoicesSaving and Investment Choices

7 Time Value of Money page 30 Student Manual Compounding --Albert Einstein Compounding is the 8 th wonder of the world Exercise 3B: The Power of Compounding

8 Investing Weekly at 5% Interest 3-B Amount Saved Per Week Value After 10 Years $ 7.00 $ $ $ $ $ 4,720 $ 9,440 $ 14,160 $ 18,880 $ 23,600 1

9 Rule of 72 3-H 72 Interest Rate = Years Needed to Double Investment 72 Interest Rate Required = Years Needed to Double Investment Page 32- Student Manual

10 Key Investment Principle Time is money More timeMore time More moneyMore money More interestMore interest More Money

11 Page 29 of Student Manual Page 67 of the Teacher Manual Who has the most?

12 Key Investment Principle Diversification Dont have all your eggs in one basket

13 Financial Planning Pyramid Penny Stock Commo- dities Collectibles Speculative Stock / Bonds / Mutual Funds Real Estate Blue-Chip Common Stock Growth Mutual Funds High-Grade Convertible Bonds High-Grade Preferred Stock Balanced Mutual Funds High-Grade Corporate Bonds or Mutual Funds High-Grade Municipal Bonds or Mutual Funds Money Market Accounts or Mutual Funds Certificates of Deposit U.S. Savings Bonds Insured Savings / Checking Accounts Treasury Issues Highest Risk Highest Earnings Lower Risk Lower Earnings 3-J

14 Activity Exercise 3D: Risk vs. Reward Page 78 Instructor ManualPage 78 Instructor Manual Page 34 Student ManualPage 34 Student Manual Page 79 Answer key Instructor ManualPage 79 Answer key Instructor Manual

15 An Array of Investment Options Income InvestmentsIncome Investments –Lenders Savings at 4% vs. Investments at 7.5%

16 An Array of Investment Options An Array of Investment Options Growth InvestmentsGrowth Investments –Ownership StocksStocks Real EstateReal Estate CollectiblesCollectibles

17 An Array of Investment Options An Array of Investment Options Mutual FundsMutual Funds –Income –Growth

18 Dollar Cost Averaging AmountInvested Share Price ($) Shares Purchased $1,000.00$ AmountInvested Share Price ($) Shares Purchased $100.00$ $ $19.50 $19.25 $19.75 $19.20 $18.90 $18.00 $18.60 $ $1,000.00$ $19.39*51.66 $100.00$ One-Time InvestmentDollar-Cost Averaging$1, L * Average Share Price 4321

19 Optional Activities Instructor Manual Unit 3 SM3-1-Dollars and Sense SM3-2-Are You a Risk-Taker? Students talk with an adult about investment experiences

20 Taking It Home Students take home a newsletter ( on CD) to readStudents take home a newsletter ( on CD) to read Students will ask their parents what they've learned about investingStudents will ask their parents what they've learned about investing

21 Student site

22 Websites U.S Securities Exchange Commission

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26 7% $ a month

27 10% $57.72 a month or $14.43 weekly or $2.06 a day

28 Assessment 3-1: My Investing Plan Create a personal savings and investing plan


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