1. Investing in the Stock Market
Gr. 4 Financial Literacy
Investing in the Stock Market
SS.4.FL.5.1Explain that after people have saved some of their income, they must decide how to invest their savings so that it can grow over time.
SS.4.FL.5.2 Explain that a financial investment is the purchase of a financial asset such as stock with the expectation of an increase in the value of an asset and/or increase in future income.

2. Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Vocabulary
Capital Gains: difference purchase price and selling price Dividend: profit from stock paid in the form of additional shares not cash Liquidity: how easily can you get money out of the investment Safety: how risky something is Return on Investment: what is your earning potential Savings: putting money aside to use at a later date, accrues interest if saved at a bank Stocks/Share/Equity: partial share of ownership in a company company Trading: term used to refer to buying and selling stock
Do: Briefly introduce some of the vocabulary from the lesson (as needed)

3. What information can be gained by analyzing the proverb and cartoon?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
What information can be gained by analyzing the proverb and cartoon?
(LAFS.4.RI.3.6, LAFS.4.RI.3.7)
Do: Have students analyze the proverb and cartoon about saving and investing. Select volunteers to share.
Closing: Revisit this slide at the end of the lesson and have students discuss how their initial interpretations have changed. Encourage students to support their answers with evidence from the lesson.
Say: We can all agree of the necessity of having money set aside for emergencies. By saving money you are able to provide your family with financial stability even if temporarily find yourself without a job, if someone in your family has a medical emergency, if your car breaks down, your home is damaged, etc. Having money is your security blanket.
Say: The cartoon pokes humor at the fact that most of us cannot afford to retire, even if we invest and save wisely. Most Americans retire at age 65, however the cartoon implies they won’t be able to afford to retire until they turn 80. Yikes!
Image Source:

4. What’s the difference between saving and investing?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Essential Questions
What’s the difference between
saving and investing?
Say: Today we are going to learn about saving and financial investments. By the end of the lesson you will understand the difference between saving and investing and learn the basics of the stock market so that you can make your money grow over time.
Do: Select volunteers to share answers. Create a brainstorming web on board with student ideas.
How does investing in the stock market make your money grow over time?

5. Saving versus Investing
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Saving versus Investing
Saving involves:
setting aside a portion of your income (usually in a savings account)
Interest rates range from 1-3% (smaller returns over time)
typically for short term goals (going on vacation)
Investing involves:
purchasing assets with the intent of it accumulating value over time (such as stocks)
involves more risk but usually has higher return
typically for long term goals (saving for college, retirement, etc.)
Do: Explain the difference between saving and investing. Saving involves setting aside a portion of income and letting it accumulate over time, returns on savings are minimal. Investing involves purchasing assets with the intent of it accumulating value over time, involves more risk but usually greater return over time.

6. What is the stock market?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
What is the stock market?
Stocks are units of ownership in a company.
The goal is to buy the stock, hold it for a time, and then sell the stock for more than you paid for it.
How it Works
When you buy stock, you become a shareholder, which means you now own a "part" of the company.
If the company's profits go up, you "share" in those profits. If the company's profits fall, so does the price of your stock.
Say: So how does the stock market work? There are two types of companies private and public. Public companies are owned in part by the public through the trading of stocks – or units of ownerships referred to as shares. People buy stocks with the expectation of an increase in its value over time, then resell it to make a profit.
When a company’s profits go up, so does your “share” in those profits. When a company’s profits decrease, so does the price of your stock. In the stock market, prices rise and fall every day. When you invest in the stock market, you are hoping that over the years, the stock will become much more valuable than the price you paid for it.
If you sold your stock on a day when the price of that stock falls below the price you paid for it, you would lose money.
In the stock market, prices rise and fall every day. When you invest in the stock market, you are hoping that over the years, the stock will become much more valuable than the price you paid for it.

7. Investors follow stocks carefully over time.
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Investors follow stocks carefully over time.
Current price per share
change in share price at day’s closing
price per share over time
Say: Most stocks in the U.S. are traded on the New York Stock Exchange and what is commonly called the NASDAQ (National Association of Securities and Dealers Automated Quotations). Trading at the New York Stock Exchange happens in an actual place, a building on Wall Street in New York. There are exchanges too such as the NASDAQ , Dow Jones, and S&P 500.
Do: Have students analyze a graph that shows a stocks value over a five year period. What trends are noted? Ask students if this would be a good stock to invest in. Have them explain why or why not. (LAFS.4.RI.3.7)
After analyzing the stock’s five year trends, would you consider
investing in this stock? Explain reasoning. (LAFS.4.RI.3.7)

8. Ready to invest in the stock market?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Ready to invest in the stock market?
You have just been given $ to invest in one of
the following stocks. Let’s find out which stock will yield the greatest return in a three month period.
Corporate Stock
Corporate Stock
Facebook
NYSE: $106.80
(0.46)(0.42%)
Apple
NYSE: $107.71
(1.03)(0.95%)
Disney
NYSE: $106.54
(0.54)(0.50%)
McDonalds
NYSE: $119.70
(0.37)(0.31%)
Do: Guide students in selecting one of the following six stocks to invest $1000 in. You may randomly assign a stock per student or have students select a stock of preference. If students select a stock of preference, probe students to explain the rationale for selecting stock. Was price per share a factor in their decision, how about brand?
Do: Distribute optional handout - Investing in the Stock Market
Chevron
NYSE: $90.69
(0.55)(0.60%)
Amazon
NYSE: $688.50
(5.47)(0.79%)

9. How many shares of your stock can you purchase with $1,000?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
How many shares of your stock can you purchase with $1,000?
Corporate Stock
Shares Purchased
Facebook
NYSE: $106.80
(0.46)(0.42%)
$1000 / = 9.36
9 shares
McDonalds
NYSE: $119.70
(0.37)(0.31%)
$1000 / = 8.35
8 shares
Do: Show students the maximum number of shares of each stock they can purchase with $1,000. If time permits students can solve the math equation, otherwise provide answers from slide.
Chevron
NYSE: $90.69
(0.55)(0.60%)
$1000 / = 11.02
11 shares

10. How many shares of your stock can you purchase with $1,000?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
How many shares of your stock can you purchase with $1,000?
Corporate Stock
Shares Purchased
Apple
NYSE: $107.71
(1.03)(0.95%)
$1000 / = 9.28
9 shares
Disney
NYSE: $106.54
(0.54)(0.50%)
$1000 / = 9.38
9 shares
Do: Show students the maximum number of shares of each stock they can purchase with $1,000. If time permits students can solve the math equation, otherwise provide answers from slide.
Amazon
NYSE: $688.50
(5.47)(0.79%)
$1000 / = 1.45
1 share

11. Let’s monitor your stock over a three month period.
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Let’s monitor your stock over a three month period.
Stock
# of Shares
& Price
Month 1
Month 2
Month 3
Sale 9
(0.46)
(0.32)
(0.14)
$ x 9 shares = $961.20
$0.00
$106.80
$107.26
$106.94
$106.80
$ x 9 shares = $961.20 8
(0.37)
(0.75)
(0.50)
$ x 8 shares = $957.60
$16.56
$119.70
$119.33
$118.13
$117.63
$ x 8 shares = $941.04 11
(0.55)
(1.85)
(0.33)
$90.69 x 11 shares = $997.59
$10.67
$90.69
$90.14
$91.99
$91.66
$91.66 x 11 shares = $
Do: Guide students through monitoring the increases and decreases of each stock’s price over a three month period. If time permits have students fill in chart with their selected stock to determine if there is a profit or loss when the stock is sold three months later. Encourage students to compare the initial price with the final price in determining if there is a profit or loss.
Do: Have students answer the following questions:
Given $1000, which stock allows you to purchase the most shares? (Chevron, the least expensive, 11 shares)
What stock resulted in a loss after three months? (McDonalds)
What stock resulted in no gains? (Facebook)
What stock yielded the greatest gains? Was this a surprise? (Amazon, yes – as only one share was purchased.)
Ask: What did you learn about investing in the stock market? 9
(1.03)
(2.17)
(3.49)
$ x 9 shares = $969.39
$41.67
$107.71
$106.68
$108.85
$112.34
$ x 9 shares = $ 9
(0.54)
(2.15)
(0.47)
$ x 9 shares = $958.86
$19.98
$106.54
$107.08
$109.23
$108.76
$ x 9 shares = $978.86 1
(5.47)
(22.35)
(31.85)
$ x 1 share = $688.50
$48.73
$688.50
$683.03
$705.38
$737.23
$ x 1 share = $717.23

12. How Fourth Graders Beat the Stock Market
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
How Fourth Graders Beat the Stock Market
What two stocks did Timothy and Ethan invest in? What percentage return did they earn on their investments in one year? (LAFS.4.RI.3.7, LAFS.4.RI.3.8)
Do: Tell students they will be watching a brief video segment which highlights how two fourth graders earned big playing a fantasy stock market for one school year. Encourage students to take notes.
Have students discuss the video by answering the following questions:
What two stocks did Timothy and Ethan invest in? (Apple and Macy’s)
What was their largest holding? (Apple)
What percentage return did they earn on their $100,000 investment? (50%, or $50,000)
Do you think Timothy and Ethan will make wise financial choices in the future? What evidence from the video clip supports your inference? (The boys mention saving their earnings to help pay for college someday rather than spending it now.)
Say: Investing in the stock market is one way of making your money grow over time. There are risks involved with all investments, however, over the long term the return is far exceeds the risk.
Click to view video outside of PPT.

13. The Truth About Millionaires
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
The Truth About Millionaires
Think you know what millionaires are really like?
Take this short quiz and see if you are right.
True or False
Most millionaires inherited their money.
FALSE
Only 19% of millionaires were given any money or wealth from family.
Millionaires don’t actually work. They have people who work for them.
FALSE
Most work more than 45 hours a week.
Ask: Who would like to have a million dollars someday? Here’s a fun true and false quiz to see if you know the truth about millionaires. Ready?
Question 1: Most millionaires inherit their money. (False, only 19% were given any money or wealth from family.)
Question 2: Millionaires don’t actually work. They have people who work for them. (False, most work more than 45 hours a week.)
Question 3: Most millionaires are college graduates. (True, 4 out of 5 are college graduates. 24% have a masters or doctoral degrees and 14% have earned medical or law degrees.)
Question 4: There is a good possibility that you can be a millionaire. (True, if you stick to a savings plan – let’s say you invest $3000 each year from age 21 to 64 when you want to retire and earn 8% you will retire with a million bucks!)
Question 5: Many poor people become millionaires by winning the lottery. (False, the chances of winning the lottery are 1 in 17 billion, you have a better chance of being struck by lightening – chances of that are 1 in 9 million.)
Most millionaires are college graduates.
TRUE
4 out of 5 millionaires are college graduates. 24% have earned masters or doctoral degrees. Another 14% have earned medical or law degrees. They are well educated.
Adapted from:

14. The Truth About Millionaires
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
The Truth About Millionaires
Think you know what millionaires are really like?
Take this short quiz and see if you are right.
True or False
There is a good possibility that you can be a millionaire.
It is not that hard if you stick to a saving plan. Let say you invest $3,000 each year from age 21 to age 64 when you want to retire and earn 8%. You will retire with a million bucks!
TRUE
Many poor people become millionaires by winning the lottery.
Ask: Who would like to have a million dollars someday? Here’s a fun true and false quiz to see if you know the truth about millionaires. Ready?
Question 1: Most millionaires inherit their money. (False, only 19% were given any money or wealth from family.)
Question 2: Millionaires don’t actually work. They have people who work for them. (False, most work more than 45 hours a week.)
Question 3: Most millionaires are college graduates. (True, 4 out of 5 are college graduates. 24% have a masters or doctoral degrees and 14% have earned medical or law degrees.)
Question 4: There is a good possibility that you can be a millionaire. (True, if you stick to a savings plan – let’s say you invest $3000 each year from age 21 to 64 when you want to retire and earn 8% you will retire with a million bucks!)
Question 5: Many poor people become millionaires by winning the lottery. (False, the chances of winning the lottery are 1 in 17 billion, you have a better chance of being struck by lightening – chances of that are 1 in 9 million.)
FALSE
The chances of winning the Powerball Lottery are 1 in 17 billion. You have a better chance of being struck by lightning. Your chances of that are 1 in 9 million.
Adapted from:

15. Don’t see a webpage on the slide
Don’t see a webpage on the slide? Your version of PowerPoint may not have the LiveWeb add-in enabled. Click here for link to Millionaire Calculator website.
November 27, 2018
Say: Now we are going to use this millionaire calculator to determine how many years it will take you to become a millionaire by investing.
Do: If time permits, try a few scenarios.
Scenario 1: $1,000 per year, invest in a savings account
Scenario 2: $1,000 per year , invest in the stock market
Scenario 3: $3,000 per year, invest in the stock market
Note: If you do not see a webpage embedded on your slide, a link to the website has been provided at the top.
Next Slide

16. Let’s Review What is the difference between saving and investing?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Let’s Review
What is the difference between saving and investing?
How does the stock market work?
3. What fact did you find most interesting about millionaires?
When you save you put money aside and it grows over time, because you put it there, not the bank. When you invest you use some of your money to try to make it grow for you. Investing is riskier than saving but it provides greater return for your money.
When you invest in the stock market, you purchase shares in a company with the hope that it will accumulate value over time. You make a profit by selling your stock at a higher rate.
Say: Let’s find out what you have learned saving and investing in the stock market by answering the following questions:
Question 1: What is the difference between saving and investing?
Say: When you save you put money aside and it grows over time, because you put it there, not the bank. When you invest you use some of your money to try to make it grow for you. Investing is riskier than saving but it provides greater return for your money.
Question 2: How does the stock market work?
Say: When you invest in the stock market, you purchase shares in a company with the hope that it will accumulate value over time. You make a profit by selling your stock at a higher rate.
Question 3: What fact did you find most interesting about millionaires?
Say:
Most didn’t inherit their wealth.
Most work hard for their money.
Most are very well educated.
If you save/invest wisely, you can have 1 million in the bank by retirement.
Don’t count on winning the lottery to become a millionaire.
Most didn’t inherit their wealth.
Most work hard for their money.
Most are very well educated.
If you save/invest wisely, you can have 1 million in the bank by retirement.
Don’t count on winning the lottery to become a millionaire.

17. What information can be gained by analyzing the proverb and cartoon?
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
What information can be gained by analyzing the proverb and cartoon?
(LAFS.4.RI.3.6, LAFS.4.RI.3.7)
Do: Have students analyze the proverb and cartoon about saving and investing. Select volunteers to share.
Closing: Revisit this slide at the end of the lesson and have students discuss how their initial interpretations have changed. Encourage students to support their answers with evidence from the lesson.
Say: We can all agree of the necessity of having money set aside for emergencies. By saving money you are able to provide your family with financial stability even if temporarily find yourself without a job, if someone in your family has a medical emergency, if your car breaks down, your home is damaged, etc. Having money is your security blanket.
Say: The cartoon pokes humor at the fact that most of us cannot afford to retire, even if we invest and save wisely. Most Americans retire at age 65, however according to the cartoon you won’t be able to afford retirement until the age of 80. Yikes!
Image Source:

18. Sources Lesson adapted from The Mint Lesson Plan: Investing
Grade 4 Financial Literacy
SS.4.FL.5.1, SS.4.FL.5.2 , SS.4.FL.3.4
Sources
Lesson adapted from The Mint Lesson Plan: Investing
YouTube Video: CNN Report: How Fourth Graders Beat the Stock Market
US Securities and Exchange Commission Website: How to Save and Invest