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:
Unit 3 - Investing: Making Money Work for You
Agenda Overview of Unit 3- Investing Activity from the curriculum Optional activities, supplementary materials Website suggestions Questions
Unit 3 Target Competency Propose a personal saving and investing plan
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
3-A Savings and Investments UniqueSavingsFeatures UniqueInvestmentFeatures CommonFeatures What are some features common to both investments and savings?
In Unit 3 Time Value of MoneyTime Value of Money Key Investments PrinciplesKey Investments Principles Saving and Investment ChoicesSaving and Investment Choices
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
Investing Weekly at 5% Interest 3-B Amount Saved Per Week Value After 10 Years $ 7.00 $ 14.00 $ 21.00 $ 28.00 $ 35.00 $ 4,720 $ 9,440 $ 14,160 $ 18,880 $ 23,600 1
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
Key Investment Principle Time is money More timeMore time More moneyMore money More interestMore interest More Money
Page 29 of Student Manual Page 67 of the Teacher Manual Who has the most?
Key Investment Principle Diversification Dont have all your eggs in one basket
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
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
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