SAMPLE PROGRAM
Based on the new Commerce Course for New South Wales
Option Topic 1: Investing
Using page references and examples from
New Concepts in Commerce
S. Chapman, M. Freak
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 1
Prepared by S. Chapman
Option 1
Timing: 15-25 indicative hours
Investing
Focus: Students learn about the range of investment options and how to make wise investment decisions.
Syllabus outcomes
A student:
5.1
applies consumer, financial, business, legal and employment concepts and terminology in a variety of contexts
5.4
analyses key factors affecting commercial and legal decisions
5.5
evaluates options for solving commercial and legal problems and issues
5.6
monitors and modifies the implementation of plans designed to solve commercial and legal problems and issues
5.7
researches and assesses commercial and legal information using a variety of sources
5.8
explains commercial and legal information using a variety of forms
5.9
works independently and collaboratively to meet individual and collective goals within specified timelines.
Resources: New Concepts in Commerce, Chapman & Freak: John Wiley
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 2
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investing

investment decisions

analyse the reasons why
individuals and businesses
invest
-
Discuss: ‘What are some ways, other than savings accounts, in which
people may invest their savings’.
-
Complete missing word exercise on page 135 to introduce the reasons why
individuals and business invest.
-
Examine the illustrations on pages 134-35. Use a word processing
application to write a short story, poem or rap song highlighting the
reasons why individuals and businesses invest.
-
Student to write out their own short term, medium term and long term
financial goals. Compare their responses.
-
Discuss the personal nature of investment decisions. Brainstorm the
personal factors that influence an individual’s investment decisions.
-
Read ‘Funds for the travel bug’ on pages 134-35 and complete activity 4.
Discuss answers as a class.
-
Group work. Create a collage showing advertisements for investment
products. Display the collages in the classroom.
-
Discuss what all the advertisements have in common.
-
Debate: ‘There is no such thing as a perfect investment’.
-
Read a selection of ‘Noel Whittaker – Your questions’ from the ‘Money’
section of the SMH. www.moneymanager.com.au.
(Spread 5.1)
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 3
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investing (cont)

financing investment
-
savings and
borrowings

identify a range of ways to
finance investment
-
Discuss the two main ways of financing an investment: savings and
borrowings.
-
Using a ‘T’ table brainstorm the advantages and disadvantages of savings
and borrowings as a source of investment funds.
-
Read the Skill booster on page 137. Complete questions 1-3 which relate
to the income and expenditure account for Jamie Craig on page 136.
-
Outline the purpose of an income and expenditure account.
-
Copy and complete the income and expenditure account for Lyn Smart,
activity 4. Access the Excel spreadsheet on the CD-ROM.
-
Outline the difference between fixed and variable interest rates. Provide
examples. DollarSmart package from the Financial Planners’ Association.
-
Extension activity. Research margin lending. Discuss its potential risks
and rewards.
-
ICT activity. Research the tax advantages of borrowing to invest. Present
the findings as a PowerPoint presentation. Use CD-ROM to access the
PowerPoint template.
-
Internet activity. Go to www.jaconline.com.au/commerce to access
weblinks for the main banks. Compare the advice they offer regarding
investing.
(Spread 5.2)
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 4
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investing (cont)

ethical investments

investigate the issues relating to
ethical investments
-
Read ‘Making your money work ethically’ on page 138.
-
Discuss the meaning of ethics-moral standards to behaviour.
-
Extension activity. Access the St. James Ethical Centre website –
www.ethics.org.au - for excellent case studies of ethical issues.
-
Investigate the issue of child labour. Access the New Internationalist
website – www.newint.org - for relevant statistics and case studies.
-
Students to create a poem, picture or rap song expressing how they feel
about child labour.
-
Debate the following statement: ‘Individuals should not invest in
businesses that act unethically.’
-
Case Study 1: ‘SPC Ardoma Limited – the company with a soul’
Case Study 2: ‘Canon and the environment’ on page 139.
Identify the ethical practices adopted by these two companies.
-
Discuss what students think motivates companies to act (i) ethically, (ii)
unethically.
-
Investigate the role played by Australian Ethical Investments Limited:
www.austethical.com.au.
-
Complete worksheet 5.1 ‘Ethical investment – company research’.
(Spread 5.3)
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 5
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment options

the range of
investment options
(Spread 5.4)

research the range of options
and identify appropriate options
for individuals in different
situations
-
List the six main investment options:
1. investment accounts
2. shares
3. property
4. managed funds
5. superannuation
6. debentures and unsecured notes.
-
Construct a mind map highlighting the main features of the six main
investment options.
-
Investment accounts:
(a) Explain the difference between a cash management account and a
normal savings account.
(b) Collect a number of advertisements for cash management accounts and
compare and contrast their offerings.
(c) Internet activity: use www.jaconline.com.au/commerce to access the
websites of the main financial institutions. Create a database showing the
different interest rates offered for term deposits. Examine the relationship
between term and rate.
(d) Brainstorm the advantages and disadvantages investment accounts as a
form of investment.
-
Property
(a) Explain the difference between investing in your own home and an
investment property.
(b) Discuss the tax advantage of negative gearing and implications of
capital gains tax.
(c) Conduct a classroom auction of a fictitious property.
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 6
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment options (cont.)

the range of
investment options
(cont.)

research the range of options
and identify appropriate options
for individuals in different
situations (cont.)
-
Shares:
(a) Explain why companies issue shares and individual purchase them.
(b) Outline the two ways a person can earn an income from owning shares:
(i) capital growth and (ii) dividends.
(c) Play a word game using the Com Fact on page 140.
(d) Interpret a table using the Skillbooster on page 141.
(e) Flow chart. Read the case study ‘Steps to follow when investing in
shares’ on page 142.
(f) Complete a portfolio of shares by completing activity 12 on page 143.
(g) Participate in the ASX’s Share Market Game. Alternatively use the
simplified version supplied on the CD-ROM spreadsheet (activity 15) on
page 143 and www.asx.com.au.
(h) Internet activity. Compare the advantages and disadvantages of trading
online using www.commsec.com.au.
(i) Collect a folio of newspaper reports dealing with the reporting of the
movement in share prices.
(j) Record and watch part of a stock market report.
(k) Collect and display stock market indices from other countries. E.g.
NASDAQ (National Association of Securities Dealers Automated
Quotation System), Nikkei Index, etc.
(l) Display a picture of a bull and bear. Discuss the market conditions in a
bull and bear market.
-
Superannuation
(a) Outline the purpose of superannuation.
(b) Discuss the advantages and disadvantages of superannuation as an
investment option. (Refer back to page 129).
(Spread 5.4)
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 7
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment options (cont.)

the range of
investment options
(cont.)

Superannuation (cont).
(c) Collect and display advertisements for superannuation products.
(d) Survey. Students conduct a survey of family members to determine the
range of superannuation products available.
research the range of options
and identify appropriate options
for individuals in different
situations (cont.)
-
Managed funds
(a) Explain the purpose of a managed fund.
(b) Discuss the advantages and disadvantages of using a managed fund as
an investment option.
-
Debentures and unsecured notes.
(a) Examine ‘Sample interest rates for debentures and unsecured notes’ on
page 141.
(b) Discuss the advantage of a debenture compared to unsecured notes.
-
Complete worksheet 5.2 ‘Clueless crossword’.
-
Refer to ‘Investment planning’
(Spread 5.4)

construct an investment plan for
an individual
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 8
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment options (cont)

risk and return

assess the relationship between
risk and return for a range of
investment options.

Examine expenses arising from
particular investment options.
-
Starter question:
(a) When is an investment considered to be ‘safe’?
(b) What is a ‘risky’ investment?
(c) Why are some people willing to invest in risky options?
(d) ‘Your first investment be those that provide the greatest safety for your
money.’ Agree or disagree.
-
Define the term ‘rate of return’. Use examples such as shown on page 144
plus activity 5 on page 145.
-
Describe the relationship between risk and return
-
Explain the concept of an investment portfolio.
-
Read the case study on pages 144-45. Students to:
(a) prepare a report on the different investment options available to the
Costellos.
(b) recommend investment options to the Costellos.
-
Create a collage that shows various investment products offered by the
major financial institutions.
-
Compile a folio of case studies from the ‘Money’ section of the SMH.
-
ICT activity. Students are to prepare a newspaper or video report on the
pitfalls unwary investors may experience.
-
Complete worksheet 5.3 ‘Investment ups and downs’.
(Spread 5.5)
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 9
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment planning

selecting a mix of
investments
-

identify the diversity of
possible investments
spreading the risk
(Spread 5.6)


select an appropriate mix of
investments for individuals in
different situations
use a spreadsheet to construct a
hypothetical investment plan
with an appropriate mix of
investments
-
Using a basket with some ‘fake’ eggs discuss the advantages of
diversifying investment options. ‘Don’t put all your eggs in one basket’.
-
Statistical interpretation. Complete activity 3 on page 147.
-
Interpreting a document. Examine the Skillbooster on page 146 and
complete the questions.
-
Read the case study ‘Greg and Gary’ on page 147. Complete activity 5 on
page 147.
-
Select an appropriate mix of investments for the following individuals:
Individual 1- single, 38, high-income earner, high-risk taker, wants high
returns in the short term.
Individual 2 – married, 68, pensioner, low risk taker, wants security over
the long term.
Individual 3 – single, 24, average income, moderate risk taker, wants a
reasonable return to use as a deposit for a house within three years.
-
ICT activity. .Present the information in a spreadsheet using the CDROM.
-
Role play an interview with an investment adviser for each of the
individuals.
-
Complete worksheet 5.4 ‘Your investment tips’.
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 10
Option Topic 1
Investing
Students learn about:
Students learn to:
Teaching/Learning Activities
Investment planning
(cont.)

maintaining records
and monitoring
investments

construct and maintain an
effective procedure to
monitor investments
-
Discuss the importance of carefully monitoring an investment portfolio.
Compare the monitoring to how student progress, sports results etc are
monitored to show performance.

modifying
investments to
maximise long-term
gains

research information using
the Internet and other
sources, to select
appropriate investment
options
-
Introduce the investment tracker mechanism as shown on page 148.
-
ICT activity. Students are to create their own investment tracker based on
either (a) the portfolio of shares they have been trading since commencing
this option or (b) a fictitious set of investment options as shown in activity
6 on page 149. Use the CD-ROM to create a spreadsheet.
select investment options to
maximise long-term returns
-
modify investment plans in
relation to changing
personal/economic
conditions
Internet activity. Use www.jaconline.com.au/commerce to access the
websites of the main financial institutions. Examine the advice they
provide regarding investing.
-
Internet activity. Access the Australian Securities and Investment
Commission’s website – www.asic.gov.au - to research the advice ASIC
provides regarding investing. FIDO provides excellent resources.
-
Discuss how investment options need to be modified in relation to
changing personal/economic conditions. The business cycle and life cycle
diagrams could be used to reveal economic and personal changes over
time.
-
Conduct a ‘Who wants to be a Millionaire’ quiz based on the information
presented in the spreads 5.1 to 5.7.
-
Complete worksheet 5.5 ‘Topic test – investing’.
(Spread 5.7)


Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 11
STAGES 4 AND 5 COMMERCE REGISTER
OPTION TOPIC 1: INVESTING
AREAS OF STUDY:
Investing
Investment options
Teacher’s Name ______________________________
Date commenced _________________
Content examined:
Investment planning
Date completed _______________
Outcomes achieved:
Teaching/Learning activities used
Mind maps
Discussion
Locating information
Accessing websites
ICT applications
Point summary
Individual research
Group research
Explanation
Brainstorm
Cloze exercise
Debate
Role play
Statistical analysis
Graph interpretation
Cartoon interpretation
Diagram
Mathematical computation
Video/DVD
Oral presentation
Reading
Comprehension
Model construction
Case study
Media article
Note taking
Text exercise
Topic summary
Pre/post tests
Guest speaker
Excursion
Problem solving
Simulation exercise
Graph construction
CD-ROM
Analysing information
Lecturette
Commerce quiz
Test item
Survey
Evaluation of program:
Additional resources:
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 12
Some useful Internet sites

www.fed.gov.au (go to consumer protection)

www.industrialrelations.nsw.gov.au

www.consumer.gov.au (Ministerial Council on

www.asx.com.au
Consumer Affairs)

www.choice.com.au

www.consumeronline.gov.au

www.dollarsandsense.com.au

www.asic.gov.au (go to fido)

www.infochoice.com.au

www.scamwatch.gov.au

www.fpa.asn.au

www.legalaid.nsw.gov.au

www.wesleycreditline.org

www.liac.sl.nsw.gov.au (Legal Information Access

www.notgoodenough.org
Centre)

www.fairtrading.nsw.gov.au
www.ombo.nsw.gov.au (Ombusman)

www.accc.gov.au

Commerce is an interesting, exciting and highly relevant subject. I wish you well for the new course.
Stephen Chapman
Sample Work Program: New Concepts in Commerce (Option Topics) Chapman & Freak: John Wiley (Jacaranda)
Page 13