Unit 3 Investing:

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Unit 3 - Investing Making Money Work for You
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Agenda

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

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

• Differentiate between saving and investing
• Assess the time value of money
• Compare investment options
• Compare the relationship between risks and
  returns related to saving and investments
• Recommend ways to integrate savings and investing
  strategies into financial planning

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Savings and Investments
Unique Savings Features
Unique Investment Features
Common Features
What are some features common to both investments
and savings?
3-A
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In Unit 3

• Time Value of Money
• Key Investments Principles
• Saving and Investment Choices

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Time Value of Moneypage 30 Student Manual

• Compounding
• --Albert Einstein
• Compounding is the 8th wonder of the world
• Exercise 3B The Power of Compounding

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Investing Weekly at 5 Interest
7.00
4,720
14.00
9,440
21.00
14,160
28.00
18,880
35.00
23,600
3-B
1
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Rule of 72
Page 32- Student Manual
3-H
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Key Investment Principle

• Time is money
• More time
• More money
• More interest
• More Money

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Page 29 of Student Manual Page 67 of the Teacher
Manual
Who has the most?
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Key Investment Principle Diversification

• Dont have all your eggs in one basket

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FinancialPlanningPyramid
Highest Risk Highest Earnings
Lower Risk Lower Earnings
3-J
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Activity

• Exercise 3D Risk vs. Reward
• Page 78 Instructor Manual
• Page 34 Student Manual
• Page 79 Answer key Instructor Manual

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An Array of Investment Options

• Income Investments
• Lenders

Savings at 4 vs. Investments at 7.5
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An Array of Investment Options

• Growth Investments
• Ownership
• Stocks
• Real Estate
• Collectibles

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An Array of Investment Options

• Mutual Funds
• Income
• Growth

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Dollar Cost Averaging
One-Time Investment
Dollar-Cost Averaging
Shares Purchased
Shares Purchased
Amount Invested
Share Price ()
Amount Invested
Share Price ()
1,000.00
20.00
50.00
100.00
20.00
5.00
100.00
19.50
5.13
100.00
19.25
5.19
100.00
19.75
5.06
100.00
19.20
5.21
100.00
18.90
5.29
100.00
18.00
5.56
100.00
18.60
5.38
100.00
19.78
5.06
100.00
20.90
4.78
3-L
Average Share Price
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3
2
1
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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

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Taking It Home

• Students take home a newsletter ( on CD) to read
• Students will ask their parents what they've
  learned about investing

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http//hsfpp.nefe.org Student site
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Websites

• U.S Securities Exchange Commission
• http//www.sec.gov/investor/teachers.shtml

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(No Transcript)
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www.smgww.org
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www.tcalc.com
www.tcalc.com/millionaire-calculator.html
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7
183.55 a month
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10
57.72 a month or 14.43 weekly or 2.06 a day
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Assessment 3-1 My Investing Plan

• Create a personal savings and investing plan

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Questions