The Basics of Saving and Investing:
Investor Education 2020
BRINGING INVESTOR
EDUCATION AND PROTECTION
TO THE CLASSROOM
Event Title
Date
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About IPI and IPT
 The Investor Protection Institute protects all
investors by undertaking and supporting
unbiased investor research and
groundbreaking investor education programs.
 The Investor Protection Trust works to
provide the independent, objective investor
education needed by all Americans to make
informed investment decisions.
Why teach investor education?
 Most Americans have to invest, but are unprepared to do
so. While some Americans have defined-benefit
contribution plans, most do not.
 A survey by the Center for Retirement Studies at Boston
College shows the danger:
 Most Americans are not eligible for a pension and must
fend for themselves to finance their golden years.
 Most Americans will not have enough saved to maintain
their standard of living in retirement.
 20% of eligible workers do not participate in the company
offered 401(k).
 30% cash out of their 401(k) when they change
jobs.
Now Updated: The Basics
Thousands of changes
made for new 2015
edition.
Many more online
resources featured.
Updated discussion of
investment swindles.
3 Questions About The Basics
 What is The Basics? The Basics is a teaching
guide focusing solely on “investor education” –
what people need to know about saving and
investing in a savvy way.
 Why investor education as a focus?
Americans need to fully understand investing in
order to prepare for a financially secure future.
 What is different about The Basics? The
Basics features a unique section on spotting and
avoiding fraud – encouraging individuals to
sharpen their critical thinking skills.
Why You Can Trust The Basics
 The Basics was written by IPT and IPI in collaboration
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with 15 expert educators and State Securities
Regulators.
The Basics is 100 percent independent. No industry
money was used to create it.
The Basics was extensively updated in 2015 to keep it
current and relevant.
The Basics has been used in over 450 teacher training
sessions, covering nearly all 50 states.
More than 50,000 U.S. educators use IPT and IPI
publications, including three earlier editions of The
Basics.
Inside a The Basics Unit …
Key Terms/Standards Up Front …
Compound
Interest
Investing
Market
Returns
Savings
Trade-Offs
Source: The Basics Unit 1 – Page 1.1
Unit Objectives Spelled Out …
 Discuss why people
save and invest.
 Learn how to think
about financial
decisions.
 Understand key
concepts of saving and
investing (including
the “time value of
money”).
Source: The Basics Unit 1 – Page 1.1
Handouts in Every Unit …
Source: The Basics Unit 1 – Page 1.2
Clear Outlines for Every Lesson …
Source: The Basics Unit 1 – Page 1.12
Illustrations for Overheads …
Source: The Basics Unit 1 – Page 1.18
Pop Quiz: Try This Out!
Can you place the following?
• Futures
• Real Estate
• High Quality Stocks
• Aggressive Growth Bonds
• Corporate Bonds
• Government Securities/Bonds
Source: The Basics Unit 1 – Page 1.19
Pop Quiz: Your Answers!
Can you place the following?
Futures
Real Estate
High Quality Stocks
Aggressive Growth Bonds
Corporate Bonds
Government Securities/ Bonds
Source: The Basics Unit 1 – Page 1.19
Printable Quiz Forms/Clear Keys
Source: The Basics Unit 1 – Page 1.20
Close-up: A Unit 1 Lesson …
Why people save and invest
 Preparing for a career, often by going to college or a
technical/vocational school.
 Saving for major purchases and expenses (such as a
college education, a family and a first home).
 Building up a “rainy day” fund for emergencies
(possible job lay off, etc.).
 Developing a personal financial/investment plan.
 Starting a savings and investment program.
Another Unit 1 Lesson …
Key Concepts of Saving and Investing
 Pay yourself first
 Set goals that inspire success (short,
medium and long term)
 Don’t take unnecessary risks
 Put time to work for you
 Diversify! Diversify! Diversify!
Unit 1 Overview – Getting Started
 Defining “Investor Education”
 Why people save and invest
 How to think about making financial decisions
 Key concepts of saving and investing
Unit 2 Overview – Intro to Financial
Markets
 Understanding risk and reward
 How financial markets work
 Savings, stocks, bonds, mutual funds and other
investments
 Regulation of financial markets
Unit 3 Overview – Financial/Investment
Plan
 Introduction to financial/investment plans and
core concepts
 Framing a plan to meet students’ financial goals
 Selecting financial professionals
Unit 4 Overview – Investment Fraud
 Introduction to investment scams
 How telemarketing fraud works: Inside a “Boiler
Room”
 Teach your students to become “Victim Proof”:
Self-defense tips against fraud
 How regulators protect investors
Other Great The Basics Tools
 Resources – updated inventory of the best online
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and in print!
Materials – emphasis on free content.
Organizations – an expanded list of the experts
you can trust.
Agencies – learn about the state officials are
standing by to help you as an educator.
Glossary of terms – expanded list of key
investor education concepts.
Additional Resources for Educators
IPT Investor Education Booklets
Video on the IPT Website
Contact Us for More Information!
 Presenter Contact Information
 Investor Protection Institute
www.iInvest.org
 Investor Protection Trust
www.investorprotection.org