1. Intro to Investing

2. Pop Quiz
Get out a half sheet of paper for your journal. When I reveal the questions, you will have 7 minutes.
What is the difference between gross and net income? Which is which?
Describe the difference between a savings and a checking account
Define the term “scarcity”
What does the Fed control (generally) and what 3 tools does it have to do its job?
You leave 20 dollars at a bank with 2% annual interest.
How much money will you have in 4 years?
How long does it take to have 40 dollars in the bank?

3. Pop Quiz
Swap papers with someone sitting next to you. Grade their paper and sign your name at the bottom.
Net- amount you earn after taxes/costs. Gross- Total before costs
Money in a checking account is meant to be spent. Not so in a savings account
Limited resources in a world of unlimited wants
Influence the money supply. Tools: interest rates, reserve requirement, and treasury bonds
A.) B.)36 years
When the paper gets to you, tally the questions you got WRONG. That will let me see how we’re doing as a class and what we need to spend a little more time on.

4. Managing a Checking Account
Checks- documents that transfer money out of a checking account, either to cash or to another account
Reconciliation- the act of making sure that your records match the bank
Why should we track our expenses?
Debit Cards- a card that allows for the electronic transfer of money out of a checking account

5. Debit v. Credit Cards
Credit Card- a card issued by a bank or institution that allows consumers to buy goods on credit
Debit cards are buying things with money you already have
Credit cards are buying things with money you don’t have

6. Investing!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

7. Terms 4 Days
On the front side of your note sheet (labelled “Practice”), try to match each term to its definition. You’ve most likely heard many of these terms before, just in everyday life.
You’ve got 6 minutes, GO!

8. Terms 4 Days
Now, on the back side of your note sheet (conveniently labelled “Notes”), write the definition for each of the terms.
Stock
Stock Exchange
Shareholder

9. Terms 4 Days Portfolio Stock Broker Public Corporation
Private Corporation
Initial Public Offering (IPO)
Sector

10. How does making money in the stock market work?

11. Story Time
The Story:
Fred and Barney both decide that they want to invest in the stock market. Barney buys stock in McDonald’s, JCW’s, Wendy’s and Five Guys’. Fred buys stock in Five Guys’, Twitter, and Tyco Toys (the company that produces the hit classic, Tickle Me Elmo). In a cruel twist of fate, mad cow disease returns and runs rampant, devastating half the cow population.
Who’s portfolio loses the most value?
What went wrong?

12. Diversification
Diversification- Having many different types of investments in your portfolio to minimize risk.
Invest in multiple “sectors”
Should we put all our investment money in the stock market?

13. Risk v. Reward High Risk v. Low Risk stocks
Penny stocks- low cost stocks that are highly variable in price
High risk v. low risk investing

14. What Are Some Brands We’re Familiar With?
The Basics:
The Luxuries:
The Entertainment:

15. The Stock Market Game!
Over the next month, you will be in charge of your own investment portfolio, using the website howthemarketworks.com.
This is a simulation that uses fake money to invest in the stock market, at real prices. You can see how much money you would have made if you invested this way in real life.
At the end of the game, the person with the most money is the winner!

16. Stock Market Game
How to join the contest  Register and Join:  Register (use your name in your login, somehow) to howthemarketworks.com and once you log-in, you can go to Join Contests, and look up the contest: Mr Bird AFHS Fin Lit via the search bar.
The password is: mrbirdafhs

17. How “How the Market Works” Works
Researching
Buying
Selling

18. Stock Market Game
Look at different stocks that you find interesting, that you may want to invest in. Look at their history and expected performance.
We’ll go over investing strategies in a future class, so you may want to save some of your money until you have a better idea of what to do with it!