Introduce the advantages and disadvantages of common savings and investment vehicles, and show the short and long term effects of various savings and investment choices.
Teaching Objectives:
- List and prioritize some of your short- and long-term budget goals
- List and explain some of the advantages of saving money
- Understand the concept of “pay yourself first” and list some ways to encourage this habit
- List and explain the differences among the most common saving methods
- Understand the advantages and disadvantages of popular investment vehicles
- Understand what investment fraud is, and list some of the ways you can protect yourself against investment swindlers
- Compare and contrast the short and long term consequences of investment decisions
Suggested Grade Level
7th Grade – 12th Grade
Lesson Excerpt:
Saving just 35 cents a day will result in more than $125 in a year. Small amounts saved and invested can easily grow into larger sums. However, a person must start to save.
This lesson provides students with a basic knowledge of saving and investing. The process starts with setting financial goals. Next, a commitment to saving is discussed.
Various savings plans are available to consumers. These include regular savings accounts, money market accounts, and certificates of deposit (CD). Then, students will analyze factors to consider when selecting a savings account. These include interest rates, fees, balance requirements, and deposit insurance. Investing takes saving one step further in a person’s financial plan. Bonds, stocks, mutual funds, real estate, and retirement accounts are covered in the next section of this lesson.
Finally, students are made aware of potential investment frauds. The variety of these swindles increases each year as con artists look for new opportunities to separate people from their money.
Teacher’s Guide
Presentation Slides
