1. Economics

2. What is investing? Simply put, investing is saving money in a way that earns income. The purpose of investments in to earn additional income, however…. Some investments may decline in value/ lose money.

3. Types of Investments Savings Accounts Certificate of Deposit (CD’s) Money Market Accounts (MMA) Savings Bonds Stock Market

4. Risk vs. Return The higher the risk, the higher the return Return= the income you earn on an investment. No Risk Investments Savings accounts, bonds Mid Risk Investments Mutual Fund (low, med, high) High Risk Investments Stock Market

5. What is diversification? “Don’t put all of your eggs in one basket.” Limits risk of investments If you invest your money in multiple places, you may lose $ on one investment but not all. Some investments can be low risk while others are high risk.