1. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Investing: Making Money Work for You Investing: Making Money Work for You NORTH DAKOTA PERSONAL FINANCE EDUCATION

2. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Savings and Investments Unique Savings Features Unique Investment Features Common Features Common Features What are some features common to both investments and savings?

3. Rule of 72 72 Interest Rate = Years Needed to Double Investment 72 Interest Rate Required = Years Needed to Double Investment

4. Rule of 72: $10,000 Invested 6 12 18 24 Year3%6%12% INTEREST RATE $20,000$40,000$160,000 $20,000 $40,000 $80,000 $20,000

5. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Financial Planning Pyramid Penny Stock Com- modities Collectibles Speculative Stock / Bonds / Mutual Funds Real Estate Blue-Chip Common Stock Growth Mutual Funds High-Grade Convertible Bonds High-Grade Preferred Stock Balanced Mutual Funds High-Grade Corporate Bonds or Mutual Funds High-Grade Municipal Bonds or Mutual Funds Money Market Accounts or Mutual Funds Certificates of Deposit U.S. Savings Bonds Insured Savings / Checking Accounts Treasury Issues Highest Risk Highest Earnings Lower Risk Lower Earnings

6. Interest Rate 3% 24 Yrs. $800 4% 6% 8% 12% 6 Yrs.9 Yrs.12 Yrs.18 Yrs. $400 $200 Impact of Higher Returns on Savings and Investments Rule of 72: The approximate frequency with which $100 doubles at specific interest rates 21

7. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Investment Options

8. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Options Include Savings accounts U.S. savings bonds Certificates of deposit Money market deposit accounts

9. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Options Include Money market mutual funds Corporate and government bonds Growth investments

10. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Options Include Stocks Real estate Collectibles Mutual funds

11. Dollar Cost Averaging Amount Invested Share Price ($) Shares Purchased $1,000$2050 Amount Invested Share Price ($) Shares Purchased $100$20.005.00 $100 $19.50 $19.25 $19.75 $19.20 $18.90 $18.00 $18.60 $19.78 5.13 5.19 5.06 5.21 5.29 5.56 5.38 5.06 $1,000$2050$19.39*51.66 $100$20.904.78 One-time InvestmentDollar-cost Averaging $1,000 * Average Share Price 4321

12. NEFE High School Financial Planning Program Unit Three – Investing: Making Money Work for You Ready Set Go