Career Exploration Module – DAY FOUR
Financial and Investment Planning
Lesson Title
Securing Your
Future
Cluster
Pathways
Financial and
Investment
Planning
Essential
Question
What careers
are within the
Finance cluster
that heavily use
goal setting?
TEKS
Career Portals:
1.A, 2.A, 2.B,
4.F
Prior Student
Learning
Students should
have already
been presented
the Career
Module
Introduction
Estimated time
45 minutes
Objectives
- Identify and explore career opportunities within the Finance Cluster
(Personal Financial Advisor, Stock Broker, Investment Analyst, Credit
Counselor, Investment Fund Managers, Commodities Traders)
Materials/Equipment/Handouts Needed
- Handout: Blank Investment Risk Pyramid
- Handout: Investment Risk Pyramid Key
- Handout: Goal Setting Worksheet
Introduction/Engage
- Instruct students to retrieve Vocabulary Lists
- Introduce the lesson by reviewing the Finance presentation
- Ask students if they have heard of the stock market; get their
responses on what they think it is. Look up a couple of well-known
companies’ stock prices and tell the students that if they purchase
one share of stock, they are part owner of that company
Activities
- Review vocabulary terms and definitions relevant to today’s lesson
- Distribute and review corresponding handout
- Activity: Goal Setting Activity
Lesson Closure
- Review details of the Finance pathways using questioning techniques
- Instruct students to complete the vocabulary list for homework
- Discuss upcoming career module experiences and expectations
Assessment
- Verbal responses to questions
- Results of Investment Risk Pyramid
Extension
- Students can interview a financial advisor and record the responses
to questions about the best financial advice he/she would give to a
student to help their financial future
Accommodations for Learning Differences
- Accommodations Manual
- Guidelines and Procedures for Adapting Instructional Materials
- Sample Curriculum Customizations for Learning Differences
- Lesson Plan/Curriculum Modification Checklist
- Instructor Format for Curriculum Customization for Learning
Differences
Copyright © Texas Education Agency, 2014. All rights reserved
Day 4 of 10
Page 1
VOCABULARY LIST
Financial and Investment Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Risk
Return
Investing
Inflation
Rule of 72
Diversification
Portfolio
Speculative investing
Investing risk
Discount brokers
Full-service brokers
Financial advisers
Certified Financial Planners (CFPs)
Annual report
Bond
Savings bond
Treasury securities
Stock
Mutual funds
Annuity
Real estate
Commodities
Futures
Option
Penny stocks
Collectibles
Copyright © Texas Education Agency, 2014. All rights reserved
Day 4 of 10
Page 2
VOCABULARY LIST
Financial and Investment Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Risk – chance of loss
Return (also called return on investment or ROI)--a way of evaluating the efficiency of
an investment, calculated as profit/original investment x 100; for example if you bought
a stock for $35 and it is now $40, your profit is $5, so 5/35 = .14 x 100 = 14% return
Investing – the use of long-term savings to earn a financial return
Inflation – a rise in the general level of prices
Rule of 72 – a technique to estimate the number of years required to double your
investment given a certain rate of return, computed as 72/the interest rate; for example
72/6 (if the interest rate being earned was 6%) = 12, meaning 12 years to double your
money
Diversification – spreading the risk among many types of investments
Portfolio – a collection of investments
Speculative investing – making high-risk investment choices
Investing risk – the chance that an investment’s value will decrease
Discount brokers – buy and sell securities for clients at a reduced commission or fee
but offer no investment advice
Full-service brokers – provide analysis and opinions for their clients
Financial advisers – trained to give investment advice as well as manage your
investments
Certified Financial Planners (CFPs) – completed education requirements, passed a
certification exam, and have at least three years’ experience
Annual report – summary of a corporation’s financial results and future projections
Bond – a debt obligation of a corporation (corporate bond) or local government
(municipal bond), sold to an investor and uses the money for different purposes but
repays the money back to the investor on a maturity date; considered safe investments
Savings bond – backed by the U.S. government; considered safe investments
Treasury securities – also backed by the U.S. government but are exempt from state
and local income taxes; considered safe investments
Stock – a share of ownership in a corporation; considered medium risk
Mutual funds – pooling of money from many investors to buy a large selection of
securities; considered medium risk
Annuity – regular payments that you make which will earn interest that can be paid out
regularly, usually after retirement; considered medium risk
Real estate – buildings and land; considered medium risk
Commodities – products that are mined or grown, purchased with a futures contract;
considered high risk
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Day 4 of 10
Page 3
23. Futures – a contract to purchase commodities in the future for a specified price;
considered high risk
24. Option – the right to buy or sell stock in the future for a specified price; considered high
risk
25. Penny stocks – low-priced stocks of small companies generally with no proven track
record, considered high risk
26. Collectibles – any asset that increases in value over time because it is rare or desired
by many
Ryan, J., & Ryan, C. (2016, 2010). Managing Your Personal Finances (7th ed.). Boston, MA:
Cengage Learning.
Copyright © Texas Education Agency, 2014. All rights reserved
Day 4 of 10
Page 4
INVESTMENT RISK PYRAMID
Directions:
On the pyramid below write the following investments in the appropriate section of the
pyramid according to its risk and return level:











Treasury bill
Stocks
Savings bonds
Collectibles
Futures
Municipal bond
Option
Real estate
Annuity
Penny stocks
Mutual fund
Risk
High
Return
High
Medium
Medium
Low
Copyright © Texas Education Agency, 2014. All rights reserved
Low
Day 4 of 10
Page 5
INVESTMENT RISK PYRAMID KEY
Materials Needed:
Handouts of the directions and the blank investment risk pyramid.
TEKS:
§127.4.(c)(1)(A)
§127.4(5)(B)(C)
Approximate Time:
30 minutes
Directions:
On the pyramid below write the following investments in the appropriate section of the
pyramid according to its risk and return level:











Treasury bill
Stocks
Savings bonds
Collectibles
Futures
Municipal bond
Option
Real estate
Annuity
Penny stocks
Mutual fund
Risk
Return
Futures
Collectibles
Options
Penny stocks
Stocks
Real Estate
Annuity
Mutual fund
Treasury bill
Savings bond
Municipal bond
Copyright © Texas Education Agency, 2014. All rights reserved
Day 4 of 10
Page 6
GOAL SETTING ACTIVITY
Materials needed:
Goal Setting Worksheet
TEKS:
§127.4.(c)(1)(A)
§127.4.(c)(2)(B)
Approximate time:
15 to 20 minutes
Directions:
1. Provide a copy of the Goal Setting Worksheet for each student.
2. Review the worksheet with the students giving them examples and ideas.
3. After students have had a chance to complete item #1 of the worksheet, begin to monitor
the students to make certain the goal is within the scope of an occupation.
4. After students are finished with the worksheet, call on several students to share the
results of their worksheet
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Day 4 of 10
Page 7
GOAL SETTING WORKSHEET
Directions:
For the following questions, first write a goal for your life that is in some way related to one of
your top three occupations. Then answer the questions as they relate to that goal.
My goal:
Questions:
1. What are two ways you can measure if the goal has been reached?
a.
b.
2. Is it really possible? How?
3. How will your world change after you achieve that goal?
4. What are you doing now that will help you achieve that goal?
5. After you achieve that goal, what will you do then?
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Day 4 of 10
Page 8