1. Investing in Your future
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

2. Learning Outcomes
Students will learn how their money can make money with time and a good interest rate.
Students will understand that their money can grow through investments.
Students will investigate the major components of investing.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

3. Lesson Tasks
Discuss investing early and how their money can grow over time
Discuss diversification and its benefits
Watch the Mellody Hobson TED Talk and complete the questions
Review investing terminology and apply it to a scenario
Learn about simple and compound interest and apply it to investments and scenarios
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

4. Investing in your future

5. Investing Early
Examine the infographic about investing What do you notice? What questions do you have? What terms do you need to know?
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

6. Video: “No One Is Coming”
You will watch the TED Talk video by Mellody Hobson, addressing the issue of investing and why you should do it sooner than later. Link: Mellody Hobson TED Talk
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

7. Video: “No One Is Coming”
Watch the video and complete the Investing in Your Future Video Questions activity.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

8. Investing Terms

9. Investing Terminology
Diversification: Having your money in more than one place or investing in more than one asset. For example, think about the risk faced by two investors. Both of them own two businesses on a beach. One investor owns a sunglasses stand and a rain umbrella business. The other investor owns two sunglasses stands. Which one of these investors is diversified? Why is that a good idea?
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

10. Investing Terminology
Long-term and short-term investments: typically longer-term investments can face greater highs and lows than short-term investments. Long-term investments are important for retirement and any investments held for a long period of time, stocks, bonds, real estate or cash. Short-term investments will most likely be sold and include stocks or bonds that can be liquidated quickly. You should be in a “strong cash position,” meaning you have plenty of extra cash to invest, before investing short term.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

11. Investing Terminology
High risk and low risk investments: High-risk investments are those with great risk but also the potential for great reward. Examples include a company’s first sale of its stock to the public or IPO (Initial Public Offering) or investing in real estate funds such as flipping houses. Low risk investments are those that are a safer investment option, and are better for short-term investments or as you near retirement. Examples include mutual funds or corporate bonds.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

12. Investigating Investments
Think about the Investing Terminology as you read the following scenario and answer the question with a partner, small group, or discuss as a class. How would you go about investing the $10,000, knowing you will not plan to touch it until you’re 65?
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

13. Additional Investing Tips
This table outlines common investments and looks at the risk as well as pros and cons.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

14. Investment Scenarios

15. Investigating Investments Scenario
You have worked hard for the last 10 years to stay out of debt, to build up your savings, and to stay within your budget. You have a healthy emergency savings account and are putting back money for a down payment. You have a good job and you have decided to continue renting instead of buying at this time in your life. As a result, you now have over $10,000 saved (in addition to your down payment and emergency savings) at the age of 35. Way to go! You want your money to make you money, though, so you look into investing.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

16. Investigating Investments
Now answer the question with a partner, small group, or discuss as a class based on the scenario. How would you go about investing the $10,000, knowing you will not plan to touch it until you’re 65?
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

17. What is interest?

18. Simple vs. Compound Interest
Simple Interest is money you can earn by initially investing some money (the principal). A percentage (the interest) of the principal is added to the principal, making your initial investment grow!
Compound Interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

19. What’s My Interest?
If you could earn $100 or $10 for doing the same job, which would you take? Chances are, you’d take the $100. While that seems like an easy choice, understanding how you can earn $100 versus $10 when investing money means mastering interest and rate of return. Learn how different rates, interest types, and investment strategies can impact and maximize your earnings.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

20. What’s My Interest?
Complete the table and questions for the activity Investing in Your Future Interest.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

21. Let’s Review…

22. Review
How can investing early help your money grow over time? What are some ways you can diversify your investments? How can simple and compound interest help you earn money?
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

23. Review Answers What are some ways you can diversify your investments?
How can investing early help your money grow over time?
Possible answers may include:
Allows you to invest in multiple assets (diversify)
Lets your money accrue interest
You can invest in both long/short-term investments
What are some ways you can diversify your investments?
Long-term and short-term investments
High risk and low risk investments
How can simple and compound interest help you earn money?
Based on the different rates, interest types and investment strategies you can maximize your earnings.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10

24. Complete the Lesson…
Now complete the Investing in Your Future Reflection.
2015 Educurious Partners--All rights reserved UNIT 3 LESSON 10