Investing Basics for 10th Class

The process of putting money into something with the hope of making a profit over time.

The rate at which prices for goods and services increase over time.

The idea that investment returns generate more returns, creating a snowball effect.

Investing helps you build wealth, outpacing inflation and potentially securing a financially comfortable future.

The difference in wealth accumulation between individuals or groups, often linked to investment opportunities and access to resources.

Investing is about long-term growth, while saving is for short-term goals and security.

The return an investment generates over a specific period, usually expressed as a percentage.

The potential for an investment to lose value. All investments carry some level of risk.

Saving is intended for short-term goals and involves low-risk strategies like savings accounts.

Investing is for long-term goals, using higher-risk assets like stocks and bonds for potential higher returns.

Saving typically involves lower returns and protects your money from short-term losses.

Investing involves higher risk, but with the potential for greater returns over time.

Inflation is the steady increase in the price of goods and services over time.

Inflation can reduce the purchasing power of your money.

Investing can help you 'beat' inflation by growing your money faster than the rate of inflation.

Compound interest is when interest earned on your investment also earns interest, creating exponential growth.

The ability of an investment to generate returns on both the initial principal AND the accumulated interest earned over time.

Investing early allows your money to benefit from compounding for a longer period, leading to significantly higher returns over time.

Earnings from your investment are reinvested, generating more returns, creating a snowball effect.

Not everyone has equal access to investment opportunities. This disparity can lead to wealth inequalities between different groups.

It's crucial to understand the potential risks associated with each investment decision.

Inflation can erode the value of money over time, making investing essential to maintain purchasing power.

Inflation reduces the value of money over time. Investing can help mitigate its impact and grow your wealth.

By investing early, reinvesting earnings, and avoiding excessive risk, you can harness the power of compounding to grow your wealth exponentially.

The ability to invest and grow wealth over generations, passing it down to future family members.

The increase in the value of an investment over time, where returns earn further returns, generating a snowball effect.

The difference between the rate of return on an investment and the rate of inflation.

Earnings generated from an investment, typically expressed as a percentage of the original investment amount.

The relationship between income and wealth distribution, where those with higher incomes may have greater opportunities and resources to invest.