Daily Information 6/9 Objectives: 1.Explain how credit effects your buying decisions. 2.Identify techniques to save money and get out of debt. Warm Up: Check your grade in infinite campus. Agenda: 1.Warm up 2.Final exam review packet 3.Bottom Line

Daily Information 6/6 Objectives: 1.Explain how credit effects your buying decisions. 2.Identify techniques to save money and get out of debt. Warm Up: Check your grade in infinite campus. Agenda: 1.Warm up 2.Make-up work 3.Final exam review packet 4.Bottom Line

Daily Information 6/5 Objectives: 1.Explain different types of bankruptcy. 2.Identify basic investing tools and tips. Warm Up: Test Today!! Agenda: 1.Warm up 2.Unit 3 Test 3.Investing 101 P.P. 4.Investing activity 5.Investing video

Daily Information 6/5 Unit 3 Test: Jordan, Mark, Rachael, Adolfo, Rashon, Matt, Peter, Brody, Vickey, Makayla Unit 3 Test Make-Up: Saina, Brie

Daily Information 6/5 Objectives: 1.Explain different types of bankruptcy. 2.Identify basic investing tools and tips. Warm Up: What is the difference between saving and investing? Agenda: 1.Warm up 2.Investing 101 P.P. 3.Investing activity 4.Investing video

Daily Information 6/5 Objectives: 1.Explain different types of bankruptcy. 2.Identify basic investing tools and tips. Warm Up: What is the difference between saving and investing? Agenda: 1.Warm up 2.Investing 101 P.P. 3.Investing activity 4.Investing video

What is investing? The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit. It is putting your money to work for you Investing is not gambling

Investing 101 Life Situation: what stage are you at in your life? Compound interest: earning interest on interest Investment tools: stocks, bonds, mutual funds, real estate, starting your own business Portfolios Diversification

Life Situation 75 year old widow vs. 30 year old business executive –Widow: preserve value (Lower risk) –Business executive: more aggressive (Higher risk) Millionaire vs. Newlyweds –Millionaire: invest $100,000 –Newlyweds: invest $1,000

Compound Interest Highly powerful income-generating tool Requires two things: the re-investment of earnings and time More time = More income potential Start Early: Pam InformedSam Uninformed Start at 25Start at 35 Invest 15, % interest $57, at age 50$33, at age 50

Both investments start slow and then accelerate. Pam's line becomes steeper as she nears her 50s because she has accumulated more interest and because this accumulated interest is itself accruing more interest.

Pam's line gets even steeper (her rate of return increases) in another 10 years. At age 60 she would have nearly $100,000 in her bank account, while Sam would only have around $60,000, a $40,000 difference!

Partner Activity Read the handout (Investing 101) and discuss your response with a partner –In the “W” drive

Investment Tools: Bonds Lend your money to a company or government. In return, they agree to give you interest on your money and eventually pay you back the amount you lent out.  Relatively safe: government is risk-free Little risk = little potential return **The rate of return on bonds is generally lower than other securities.

Investment Tools: Stocks Part owner of the business Vote at the shareholders' meeting May allow you to receive company profits/dividends **Higher potential returns, however, higher risk of losing some or all of your investment.

Investment Tools: Mutual Fund A collection of stocks and bonds Pool your money with other investors to pay a professional manager to select specific securities for you Focus: large stocks, small stocks, bonds from governments, bonds from companies, stocks and bonds, stocks in certain industries, stocks in certain countries, etc. **Allows you to invest money without time and experience

Portfolios A combination of different investment assets (mixed and matched) The asset mix you choose will determine the risk and expected return of your portfolio.

Diversification Don’t put all your egg’s in one basket Different securities perform differently at any point in time, so your entire portfolio does not suffer the impact of a decline of any one security with diversification. **When your stocks go down, you may still have the stability of the bonds in your portfolio.

Video Chapter 2 –Part 1 and 2