Log inSign up for FREE
Library

3.12 Modern Investing

Last updated 2 months ago
20 questions
Note from the author:
Warm-Up
1

Would you be comfortable with a computer algorithm managing your investment portfolio? Why or why not?

EDPUZZLE: Should I Use a Robo-Advisor? 📷12 min

Investing today looks a lot different than it did just a few decades ago due to rapid developments in technology. Robo-advisors are becoming an increasingly popular tool that many people are turning to to manage their investment portfolios. Watch this video and follow your teacher's directions to answer the questions either in your student activity packet or within the EdPuzzle itself.
1

What is meant by the term "robo-advisor?"

2

What advantages do robo-advisors have over their human counterparts? (Choose TWO)

1

TRUE or FALSE Robo-advisors are not a good choice because they just match the market and most professional managers are able to beat the average market returns.

1

Which of these investors might want to choose a human over a robo-advisor?

1

Which of these statements about robo-advised investing is TRUE?

INFOGRAPHIC: How Micro-investing Works 📷4 min

Like robo-advising, micro-investing is a popular way to bring new investors into the market. Review the infographic to learn more about how it works, then answer the questions.
1
On average, how many purchases would you say you make on a normal day?_______
5
Given that number of daily purchases and if your average round-up was $0.50, how much would you end up investing…
Per day?_______
Per Month?_______
Per Year?_______
Does this amount seem high or low to you? _______ And does that affect your opinion of whether or not you might use micro-investing apps?_______

ARTICLE: Pros and Cons of Spare Change Investing Apps 📷9 min

Micro-investing can be a good way to introduce someone to investing, but their needs could potentially outgrow the strategy quite quickly. Review the article to learn more about the pros and cons of micro-investing. Then, answer the questions.
1

When it comes to fees, micro-investing apps are beneficial because:

1

Since you’re usually investing less than a dollar at a time, one of the downfalls of micro-investing apps is…

2
Your friend Ravi wants to start investing. Would you recommend using a micro-investing app? _______ Why or why not?_______

ARTICLE: How Artificial Intelligence is Revolutionizing Stock Investing 📷6 min

Artificial intelligence (AI) is also shaping the world of investing. Read this article to learn how. Then, answer the questions.
1

In your own words, explain how AI is impacting the world of investing.

1

Why is it important to use AI as a tool rather than fully allow it to make all investing decisions?

ACTIVITY: RESEARCH: Online Tools and Apps 📷35 min

Now that you’ve taken a look at some of the technology that fuels modern investing, let’s do some research and analyze investing apps available in the market. Follow the directions on the worksheet to complete the activity.

RESEARCH: Online Tools and Apps

35 min

  • Teacher Tip: This activity is designed to be functional across multiple units, including Checking, Saving, Budgeting, and Investing. Students will complete this activity depending on what unit you are in.
The rise of online tools and apps has provided us with the ability to manage our finances like never before. Whether you’re trying to budget smarter or put more away towards retirement, there’s an app for all kinds of financial goals you want to meet. In this activity, you will conduct research on some of these online tools to discover their features and determine which one(s) you like best!

Part I: Determine Your Unit Category

  1. Follow your teacher’s instructions on which category of apps you will be researching from the table below. Circle or highlight the category.
Checking
  • Top Peer-to-Peer Payment Apps - Nerdwallet
  • Make Paying Easier with the Best Payment Apps - Money Under 30
Saving
  • The Best Money Saving Apps - Bankrate
  • Struggle to Save Regularly? Tools That Turn Loose Change into Savings - The Penny Hoarder
Budgeting
  • Buy Side Awards: Best Budgeting Apps - Wall Street Journal
  • The Best Budget Apps - Nerdwallet
Investing
  • Best Investment Apps - NerdWallet
  • 10 Best Investment Apps - Bankrate
Part II: Research
  1. Use the resources listed above for your category to select 3 apps you want to research in more detail. Then, conduct your own research to access additional resources and fill out the table for each app. While doing your research, think about the following questions:
  • Is there an age requirement to use this tool?
  • Is there a minimum amount of money or accounts you must have to use this tool?
  • Does the tool work with specific banks/accounts only or can you use it regardless of your bank?
  • Is the tool online only, mobile only, or does it work on both computers and mobile devices?
  • Who owns the tool? How long has the tool existed? What is the tool’s reputation?
  • Who is the target customer for using this tool? How many customers, clients, or users does this tool have?
  • What security or anti-fraud measures does this company take to protect their users?
6
App #1 Name:_______
Primary Purpose & How the App Works:_______
Requirements you must meet
to use this app:_______
How does the company
make money?_______
Pros:_______
Cons:_______
6
App #2 Name:_______
Primary Purpose & How the App Works:_______
Requirements you must meet
to use this app:_______
How does the company
make money?_______
Pros:_______
Cons:_______
6
App #3 Name:_______
Primary Purpose & How the App Works:_______
Requirements you must meet
to use this app:_______
How does the company
make money?_______
Pros:_______
Cons:_______
8

Part III: What Do You Think?

  1. Which of the apps you researched would you use? _______ Why this one/these ones?_______
  2. Compare your answer to #1 with a partner. Which app(s) did they choose and why?_______
  3. What top 3 criteria would you recommend someone use to evaluate an app they are thinking of using?_______ _______ _______ Explain your reasoning._______
  4. Why do you think online financial tools and apps have become so popular?_______
1

Investors report this as being one of the biggest downfalls of robo-advisors when compared to human managers:

1

Which of the following BEST explains how a spare-change app works to invest your money?

1

With micro-investing, you are...