Podcast
Questions and Answers
Which of the following is a primary reason for investing?
Which of the following is a primary reason for investing?
Investing and saving are the exact same thing?
Investing and saving are the exact same thing?
False (B)
What financial concept is demonstrated by earning interest on both the initial investment and the accumulated interest?
What financial concept is demonstrated by earning interest on both the initial investment and the accumulated interest?
compounding
One key aspect of investing over time is that it can help to build ______.
One key aspect of investing over time is that it can help to build ______.
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According to the text why is compound interest beneficial?
According to the text why is compound interest beneficial?
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If you invested $1000 in Netflix stock 10 years ago it would now be worth $1,000
If you invested $1000 in Netflix stock 10 years ago it would now be worth $1,000
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Match the descriptions with the correct concept:
Match the descriptions with the correct concept:
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What is one way investing can be used to address wealth inequality?
What is one way investing can be used to address wealth inequality?
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Which of the following is primarily associated with saving rather than investing?
Which of the following is primarily associated with saving rather than investing?
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Investing typically involves very little risk.
Investing typically involves very little risk.
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What is the main reason investing is considered a more powerful tool for building long-term wealth than saving?
What is the main reason investing is considered a more powerful tool for building long-term wealth than saving?
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When price levels increase, purchasing power ___________.
When price levels increase, purchasing power ___________.
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Besides the price of goods and services, what else can be impacted by inflation?
Besides the price of goods and services, what else can be impacted by inflation?
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If your savings account earns 1% interest and inflation is at 2%, your money will be worth...
If your savings account earns 1% interest and inflation is at 2%, your money will be worth...
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Why is it important to consider inflation when planning long-term investments?
Why is it important to consider inflation when planning long-term investments?
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Match the following descriptions with their corresponding terms:
Match the following descriptions with their corresponding terms:
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What is a key benefit of investing for long-term goals?
What is a key benefit of investing for long-term goals?
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Compounding occurs when you earn returns only on your initial investment.
Compounding occurs when you earn returns only on your initial investment.
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Besides investing early, what are two other strategies to harness the power of compounding?
Besides investing early, what are two other strategies to harness the power of compounding?
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If an investor starts with $10,000 and ends with $74,500 after 30 years, they would have needed to save an additional $ ______ each year to reach the same amount had they not invested.
If an investor starts with $10,000 and ends with $74,500 after 30 years, they would have needed to save an additional $ ______ each year to reach the same amount had they not invested.
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What is the advantage of starting to invest early?
What is the advantage of starting to invest early?
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Match the following investment concepts with their descriptions:
Match the following investment concepts with their descriptions:
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How much does an investment of $10,000 grow in the first 15 years, if it compounds at 7% each year?
How much does an investment of $10,000 grow in the first 15 years, if it compounds at 7% each year?
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Based on the provided content, everyone has equal opportunities to build wealth through investing.
Based on the provided content, everyone has equal opportunities to build wealth through investing.
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According to the provided information, what percentage of wealth in the United States is held by the top 10% of families?
According to the provided information, what percentage of wealth in the United States is held by the top 10% of families?
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Families who are able to invest are less likely to pass down wealth to the next generation.
Families who are able to invest are less likely to pass down wealth to the next generation.
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How can income inequality affect the ability of some people to invest?
How can income inequality affect the ability of some people to invest?
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Wealth inequality _________ over time.
Wealth inequality _________ over time.
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All of the following are reasons to invest, EXCEPT…
All of the following are reasons to invest, EXCEPT…
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Children in families where investing is not common are more likely to begin investing at an earlier age.
Children in families where investing is not common are more likely to begin investing at an earlier age.
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Match the following concepts with their descriptions:
Match the following concepts with their descriptions:
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Study Notes
Lesson Objectives and Standards
- Compare exponential investment growth to other accounts.
- Connect to Common Core Math Standards.
- Define investing and distinguish it from saving.
- Identify motivations for investing (e.g., outpacing inflation, building wealth).
- Analyze how compounding builds wealth over time.
- Reflect on investing's role in wealth inequality.
- Understand the impact of inflation on prices.
- Explain the advantages of compound interest over simple interest.
- Demonstrate how earned interest in savings accounts grows over time.
Introduction
- Question of the Day: If $1,000 was invested in Netflix stock ten years ago, what would its current value be?
- Students should answer this question and then compare their answer with the correct answer in the lesson.
Learning Information
- Investing is distinct from saving.* Investing involves putting money into an asset, expecting its value to increase over time (e.g., stocks, bonds). Saving typically focuses on accumulating funds in a simple or low-risk account.
Simple Introduction to Investing
- Students should review an infographic to identify whether activities are saving (S) or investing (I).
Understanding Investment vs Saving
- Investing is a more effective wealth-building strategy than saving, due to compound interest.
- Inflation erodes purchasing power if not properly accounted for.
- Inflation impacts wages, debts, and savings.
Comparing Savings and Investments
- Calculate how much an investment, earning compound interest within a certain time, would be worth,
- Compare to how much money would be needed to save over time to achieve the same goal.
Activity: Inequalities in Investing
- Explore wealth distribution among various families in the United States.
- Consider wealth disparities and whether they are fair.
Math Connection - Exponential Growth
- Use Desmos to examine the exponential growth of savings and investment accounts over time.
Exit Ticket
- Answer questions about reasons for investing, comparing rates of return, and the impacts of early investments.
Studying That Suits You
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Description
This quiz covers fundamental concepts of investing, comparing it to saving, and exploring the impact of compounding on wealth over time. Students will analyze motivations for investing and learn about inflation's effects on investment returns. The quiz also addresses Common Core Math Standards related to financial literacy.
