Daily Information 6/9
Objectives:
Warm Up:
1. Explain how
Check your
credit effects
grade in infinite
your buying
campus.
decisions.
2. Identify
techniques to
save money and
get out of debt.
Agenda:
1. Warm up
2. Final exam
review
packet
3. Bottom Line
Daily Information 6/6
Objectives:
Warm Up:
1. Explain how
Check your
credit effects
grade in infinite
your buying
campus.
decisions.
2. Identify
techniques to
save money and
get out of debt.
Agenda:
1. Warm up
2. Make-up
work
3. Final exam
review
packet
4. Bottom Line
Daily Information 6/5
Objectives:
Warm Up:
Agenda:
1. Explain different
types of
bankruptcy.
2. Identify basic
investing tools
and tips.
Test Today!!
1. Warm up
2. Unit 3 Test
3. Investing 101
P.P.
4. Investing
activity
5. Investing
video
Daily Information 6/5
Unit 3 Test:
• Jordan, Mark, Rachael, Adolfo, Rashon,
Matt, Peter, Brody, Vickey, Makayla
Unit 3 Test Make-Up:
• Saina, Brie
Daily Information 6/5
Objectives:
Warm Up:
Agenda:
1. Explain different
types of
bankruptcy.
2. Identify basic
investing tools
and tips.
What is the
difference
between saving
and investing?
1. Warm up
2. Investing 101
P.P.
3. Investing
activity
4. Investing
video
Daily Information 6/5
Objectives:
Warm Up:
Agenda:
1. Explain different
types of
bankruptcy.
2. Identify basic
investing tools
and tips.
What is the
difference
between saving
and investing?
1. Warm up
2. Investing 101
P.P.
3. Investing
activity
4. Investing
video
What is investing?
The act of committing money or capital to
an endeavor with the expectation of
obtaining an additional income or profit.
• It is putting your money to work for you
• Investing is not gambling
Investing 101
• Life Situation: what stage are you at in
your life?
• Compound interest: earning interest on
interest
• Investment tools: stocks, bonds, mutual
funds, real estate, starting your own
business
• Portfolios
• Diversification
Life Situation
75 year old widow vs. 30 year old business
executive
– Widow: preserve value (Lower risk)
– Business executive: more aggressive (Higher risk)
Millionaire vs. Newlyweds
– Millionaire: invest $100,000
– Newlyweds: invest $1,000
Compound Interest
• Highly powerful income-generating tool
• Requires two things: the re-investment
of earnings and time
• More time = More income potential
• Start Early:
Pam Informed
Sam Uninformed
Start at 25
Start at 35
Invest 15,000
Invest 15,000
5.5% interest
5.5% interest
$57,200.89 at age 50
$33,487.15 at age 50
Both investments start slow and then accelerate. Pam's line
becomes steeper as she nears her 50s because she has
accumulated more interest and because this accumulated
interest is itself accruing more interest.
Pam's line gets even steeper (her rate of return increases) in
another 10 years. At age 60 she would have nearly
$100,000 in her bank account, while Sam would only have
around $60,000, a $40,000 difference!
Partner Activity
Read the handout (Investing 101) and
discuss your response with a partner
– In the “W” drive
Investment Tools: Bonds
Lend your money to a company or government.
In return, they agree to give you interest on your
money and eventually pay you back the amount
you lent out.
 Relatively safe: government is risk-free
Little risk = little potential return
**The rate of return on bonds is generally lower
than other securities.
Investment Tools: Stocks
• Part owner of the business
• Vote at the shareholders' meeting
• May allow you to receive company
profits/dividends
**Higher potential returns, however, higher risk
of losing some or all of your investment.
Investment Tools: Mutual Fund
• A collection of stocks and bonds
• Pool your money with other investors to pay a
professional manager to select specific
securities for you
• Focus: large stocks, small stocks, bonds from
governments, bonds from companies, stocks
and bonds, stocks in certain industries, stocks
in certain countries, etc.
**Allows you to invest money without time
and experience
Portfolios
• A combination of different investment
assets (mixed and matched)
• The asset mix you choose will determine
the risk and expected return of your
portfolio.
Diversification
• Don’t put all your egg’s in one basket
• Different securities perform differently at
any point in time, so your entire portfolio
does not suffer the impact of a decline of
any one security with diversification.
**When your stocks go down, you may still
have the stability of the bonds in your
portfolio.
Video
• Chapter 2
– Part 1 and 2