INVEST YOURSELF!
An Investor Education Program for High School Students
Funded by the Investor Protection Trust
OBJECTIVES
FOR
TODAY
Provide tools and information for you to use to
make good decisions for your financial future
 Important concepts – self-control and delayed
gratification
 Learn investing terms so that you can
participate in smart investing

BUILDING WEALTH
Technical
Musical
IS
ASSET BUILDING
Culinary
Mechanical
Literary
Inventive
Leadership
Artistic
Athletic
Mathematical
Entrepreneurial
Fashion
Public Speaking
EDUCATION !
EXPERIENCE !
NETWORKS!

College
Teams
Clubs

Military
Volunteer
Mentors

Trade School
Summer Jobs
Beta/FBLA

Apprenticeships
Internships
Community

Online classes
Travel
Virtual
SETTING FINANCIAL GOALS

It’s like reading a map …
Know where you are – Personal balance sheet
 Know where you’re going – Exciting “real” goals!

Short-term goals = 2 or 3 years
 Medium-term goals = 5 to 10 years
 Long-term goals = More than 10 years

S.M.A.R.T. OBJECTIVES
Financial goals should be:
 S – Specific
 M – Measurable
 A – Attainable
 R – Realistic
 T – Timeline (specific time frame)
DECISION MAKING MODEL - PACED
Define the Problem
 List your Alternatives
 State your Criteria
 Evaluate your alternatives
 Make a Decision

BASICS OF SAVING
PART 1
AND INVESTING
–
What is the difference between saving and
investing?
 Five Keys to Investing Success

1.
2.
3.
4.
5.
Pay yourself first (make investing a habit)
Set exciting goals
Don’t take unnecessary risks
Keep time on your side (time value of money)
Diversify
Stocks
Bonds
Mutual Funds
Savings & CDs
TIME VALUE
OF
MONEY
NOTE: Assumes a 9%
fixed rate of return,
compounded
monthly. All interest is
left in the account to
be compounded.
TIME VALUE
OF
MONEY (CONTINUED)
… if she continues each year …
… if he continues each year …
BASICS OF SAVING
PART 2
AND INVESTING
–
Market myths about investment planning
 Risk and reward go hand-in-hand …
 Investment products

Stocks
 Bonds
 Mutual funds
 Retirement accounts

PYRAMID
OF INVESTMENT
High
Risk
RISK
Futures
Stocks
Medium
Risk
Mutual Funds
Bonds
Low
Risk
Treasury Bills
Bonds
Money Market Funds
Certificates of Deposit
Cash
Savings Accounts
KENTUCKY’S BLUE CHIP 25
Look at your name tag – you are a stock!
 Which companies do you know?
 Which stocks would you like to hold?

MUTUAL FUND ACTIVITY
Note the color on your name tag
 “Fund Manager” controls the yarn in their color
 “Stocks” of that color form a circle around their
manager

Pass the yarn
back and forth
between Stock,
Manager, Stock,
Manager, etc.
until you form a
web
 Stop and Hold!!!

MUTUAL FUNDS

A Mutual Fund is -
a pool of $$$$$
-
invested by a manager
-
the goal is to increase the value of
each share of the fund for its investors

Why more American invest through mutual funds than directly
in the stock, bond or money markets?

Professional management

Diversification

Liquidity

Investment objective

“mix and match”
Always consider: Cost, Performance and Convenience
RULE
OF
72
Use the Rule of 72 to calculate how long it will
take your money to double at a given interest
rate if you reinvest the earnings
 72  Percentage rate of return = Number of
years needed to double your money
 Examples:

At 8% interest, it would take 9 years for the money
to double (72  8 = 9)
 At 10% interest, it would take 7.2 years for the
money to double (72  10 = 7.2)

PRACTICE

THE
RULE
OF
72
How long would it take the following
investments to double?
Investment
Rate of Return
Years to Double
CD
3%
24
Common Stock
10%
7.2
Money Market
1.7%
42.35
U.S. Treasury Note
2.66%
27
INTEREST CAN WORK FOR YOU
Save $60/month for
40 years
 Assume 8% interest
rate
 Principal Invested =
$28,800
 Interest Earned =
$182,058
 Final Amount Saved
= $210,858

INTEREST CAN WORK AGAINST YOU
Carry a balance of
$3,000 on a credit
card
 Assume interest rate
(APR) of 19.8%
 Make minimum
payment of 2% each
month
 Time to Pay it Off = 32
years
 Interest Paid = $9,483

REVIEW
Three Rules for Building Wealth:
1. Start early
Give money time to grow
2.
Buy and hold
Keep your money invested
3.
Diversify
Don’t put all your eggs in one basket
DOING IT RIGHT
MoneyTrack Video Clip – Damon Williams
 http://moneytrack.org/videos-2/top-stories/

TWEET!
Come up with one best tip you learned today
 Create a poster displaying the tip as a “Tweet” you
might see on Twitter


“Tweet” Tips:
140 characters or less (counting spaces and punctuation)
 Answers the question “What’s happening?”
 Use “#” (hash tag) before words you want to mark as
keywords – they become search topics/categories
 Use “@” (reply or mention) with a username to recognize
someone else involved with your tweet topic
