Define investing and distinguish it from saving and trading
Identify reasons for investing, including outpacing inflation
Analyze how compounding builds wealth over time
Experience making a variety of investment decisions through an interactive simulation
WARM-UP
What do you think of when you hear the word investing? (Who does it? Why do they do it? Where does it happen? What does it involve?)
What is the advantage of starting to invest at a young age?
Why is investing a more powerful tool to build long-term wealth than saving?
According to the video, traders and investors differ in terms of time frame, activity, and risk management. Explain these differences.
The stock market fluctuates in the short-term but tends to increase in the long term, with an average projected growth of approximately 6% per year. Based on what you know about trading and investing, which approach is higher risk? Why?
What are two disadvantages of putting your money into savings accounts, compared to investing?
Which reason to invest resonates the most with you? Why?
Which option resulted in having more money? Explain the role compound interest played in making this possible.
What recommendations would you give someone who wants to take advantage of compound interest but is not able to put away large sums of money on a regular basis?
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All of the following are reasons to invest, EXCEPT…
Which of the following statements BEST describes investing?
An investor can best harness the power of compounding by doing all of the following, EXCEPT…