Course / 6200/6600 Principles of Business and Finance / Unit B / Principles of Finance
Essential Standard / 4.00 / B2 / 31% / Understand the role of finance in business.
Objective / 4.03 / B2 / 12% / Understand saving and investing options for clients.
Essential
Questions /
  • How do investors determine appropriate saving and investing options?
  • What factors should be considered in evaluating saving and investing options?

UNPACKED CONTENT

  1. Appropriatesaving and investingoptionsdepend on the investors’ time and risk tolerance.Saving and investing optionsare:
  2. Savings plans
  3. Savings account
  4. Certificate of deposit (CD)
  5. Money market account
  6. Securities include stock investments, bond investments, mutual funds, and exchange-traded funds.
  7. Stock investmentsinclude:
  8. Preferred stock
  9. Common stock
  10. Bond investments include:
  11. Government bonds
  12. Municipal bonds
  13. U.S. savings bonds
  14. Other Federal Securities
  15. Corporate bonds
  16. Mutual funds
  17. Exchange-traded funds

6200/6600 Principles of Business and Finance Summer 2010 Page1

  1. Alternative investments optionsare:
  2. Real estate
  3. Commoditiesand futures
  4. Agricultural
  5. Gold, silver, and precious metals
  6. Currency and financial instruments
  7. Collectibles
  1. Factors investors may consider in evaluating saving and investingoptionsare:
  2. Safety and risk
  3. Potential yield
  4. Liquidity
  5. Taxes

INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
1 / Saving and Investing Basics Introduction
  • Have students read Focus on Real Life on page 480 in Intro to Business, 6e, Thomson South-Westerntextbook.
  • Facilitate a discussion about saving or investing money using these discussion questions:
  1. Is anyone saving or investing money? If so, why?
  2. What are some benefits of saving and investing money?
/ Helps students UNDERSTAND (B2) reasons why money is saved or invested. / Textbook
2 / Wealthy Individuals
  • Have students complete Forbes 400 Wealthiest Individuals Activity.
  • Facilitate students sharing thoughts about the people they researched and other information obtained obtain them.
  • NOTE:Give the link located in the resource column to students. Students will need access to a computer in order to complete this activity.
/ Helps students begin toUNDERSTAND (B2) the relationship between wealth and investing / Forbes 400 Wealthiest Individuals Activity
Website:(NOTE: Check for most current link)

3 / Saving and Investing Basics
  • Facilitate students completing the Saving and Investing Basics Organizer. Students may obtain information by readingpages 480-481 in Intro to Business, 6e Thomson South-WesterntextbookOR participating during the presentation ofPowerPoint Presentation 4.03, slides 1-7.
  • During the next task, students may add notes to their organizer. Review the following points:
  1. Reasons individuals, businesses, and government borrow money
  2. Main goals of saving and investing
  3. Impact on growth of saving due to the frequency of compounding interest
/ Helps students UNDERSTAND (B2) the basics of saving and investing. / Textbook
Saving and Investing Basics Organizer
PowerPoint Presentation 4.03, slides 1-7
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
4
/ Saving and Investing Basics Terms
Have students complete Saving and Investing Basics Terms section of Very Important Business Terms Activity. / Helps students UNDERSTAND (B2) terms associated with saving and investing / Saving and Investing Basics section of
Very Important Business Terms Activity
5 / Saving OptionsIntroduction
  • Facilitate students completing Saving OptionsOrganizer. Students may obtain information by reading page 482 in theIntro to Business, 6e, Thomson South-WesterntextbookOR participating during the presentation ofPowerPoint Presentation4.03, slides 8-9.
  • Facilitate a discussion about possible situations for when each type of savings plan may be used. Note: Students should record examples on the organizer.
  • Collect organizers, and then sort to check who did and did not complete one. Check for whether students provided examples of each type of savingsplan. Examples will help students to classify savings plans.
  • Based on results of the previous task, facilitate a discussion onexamples for classifying savings plans.NOTE: This activity is a formative assessment.
/ Helps students CLASSIFY (B2) saving options / Textbook
PowerPoint Presentation 4.03, slides 8-9
Saving OptionsOrganizer
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
6
/ How Savings Grow
  • Demonstrate how to calculate interest for the first item oneach section of the How Savings Grow Activity using the below formulas:
  • Simple interest rate formula: P=Principal, R=Rate, T=Time and I=Interest
I=P * R * T.
  • Compound interest formula: A=Amount, P=Principal amount (the initial amount you borrow or deposit), r=Annual rate of interest (as a decimal), and n=Number of times interest is compounded
A=P(1+r/n)nt
  • For examples of calculating compound interest refer to website listed in resources column.
  • Facilitate students completing How Savings GrowActivity.
  • Have students retrieve Saving Options Organizer to record additional notes during the next tasks.
  • Facilitate a discussion to compare the growth between simple and compound interests using these discussion questions:
  1. How much difference does a few percentage points make over time? Why?
  2. Does it matter how often interest is compounded? Why?
/ Helps students APPLY (C3) procedures for calculating simple and compound interests. / How Savings Grow Activity
How Savings Grow Activity Key
Website:

php
Saving Options Organizer
7 / Main Types of Stocks
  • Have students read Focus on Real Life on page 486 in Intro to Business, 6e, Thomson South-Westerntextbook.
  • Facilitate a discussion about stock investments using these discussion questions:
  1. What is a benefit of investing in stock?
  2. What is important to know about companies’ growth potential related to stock investments?
  3. What should you do when you are ready to invest in stock?
/ Helps students UNDERSTAND (B2) stock as an investment option. / Textbook
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
8
/ Stock Options Terms
Have students complete the Stock Options section of Very Important Business Terms Activity. / Helps students UNDERSTAND (B2) terms associated with stock options / Stock Options section of
Very Important Business Terms Activity
9
/ Main Types of Stock Options
  • Facilitate students completing the Stock Options Organizer. Students may obtain information by reading pages 486-490 in theIntro to Business, 6e, Thomson South-WesterntextbookOR during the presentation ofPowerPoint Presentation 4.03, slides 10-15.
  • During the next task, students may add notes to their organizer. Review the following points:
  1. The differences between common and preferred stock
  2. Major role of stockbrokers
  3. Major activities that take place at the stock exchange
  4. Market value of stock defined
  5. How to read a stock market table
  6. Factors that may influence the selection of stock
  • Inform students about bull and bear markets using the following information:
Bull market refers to prices of securities rising for a long period of time.
Bear market refers to prices of securities falling for a long period of time.
  • Facilitate a discussion on what type of market exists today.
  • Collect organizers, and then sort to check who did and did not complete one. Completion of the organizer will help students with classifying stock investment options.
/ Helps students COMPARE (B2) the two main types of stock and become more familiar with trading stock activities. / Textbook
Stock Options Organizer
PowerPoint Presentation 4.03, slides 10-15
Calculator (optional)
Key:
Stock A-11%
Stock B-2%
Stock C-7%
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
10 /
  • Comparing Stock
  • Display website in resources column and demonstrate how to use the site’s features. Note: All users will have to set up an account in order to use website features. The Help Menu contains the topic Getting Started.NOTE: Students will need to have access to a computer lab.
  • Facilitate students completing Comparing Stocks Activity.
  • Assign students to groups. Consider grouping students by industry such as electronics, automobiles, or stores.
  • Facilitate students as they present to each other their stock value of companies, value influences, and desire to trade or keep stocks.
  • Facilitate groups as they presenttheir suggestions for trading or keeping the stocks to the class.
/ Helps students COMPARE (B2) stock value of companies in order to make trade decisions / Comparing Stocks Activity
Website:
11 / Bonds and Mutual Funds Investments Introduction
  • Have students read Focus on Real Life on page 491 in Intro to Business, 6e, Thomson South-Westerntextbook.
  • Facilitate a discussion about bonds and mutual funds investments using these discussion questions:
  1. What is a benefit of investing in bonds?
  2. What are some concerns associated with investing in bonds and mutual funds?
  3. What are mutual funds?
  4. How do stated interest rates impact the value of a bond?
/ Helps students UNDERSTAND (B2) bonds and mutual funds as investment options / Textbook
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
12 / Classifying Bonds and Mutual Funds
  • Facilitate students completing the Bonds and Funds Organizer. Students may obtain information by reading pages 491-494 in theIntro to Business, 6e, Thomson South-WesterntextbookOR participating during the presentation ofPowerPoint Presentation4.03, slides 16-18.
Note:The description of exchange-traded fund (ETF) is not included in the textbook. A description is in the PowerPoint presentation. The description included in the presentation is that ETF is a portfolio of stocks, bonds or other investments that trade on a stock exchange like regular stock.
  • During the next task, students may add notes to their organizer. Review the following points:
  1. Reason bonds are issued
  2. Main types of government bonds
  3. Difference between investing in company stocks and bondsas it relates to being an owner versus being a lender
  4. Impact of stated interest rate on bond values
  5. Companies’ major tasks in assisting investors of mutual funds
  • Collect organizers, and then sort to check who did and did not complete one. Completion of the organizer will help the students with classifying bonds and mutual funds.
/ Helps students CLASSIFY (B2) different types of bonds and mutual funds / Textbook
Bonds and Funds Organizer
PowerPoint Presentation 4.03, slides 16-18
13
/ Bonds and Funds Terms
Have students complete the Bonds and Mutual Fundssection of Very Important Business TermsActivity. / Helps students UNDERSTAND (B2) terms associated bonds and funds / Bonds and Funds section of Very Important Business Terms Activity
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
14 / Comparison ofMutual and Exchange-Traded Funds
  • Have students complete Comparing Mutual and Exchange-Traded FundsActivity
  • Allow students to post their organizers and other students do a gallery walk of the organizers.Note: While students are viewing the organizers point out the similarities and differences of the funds.
/ Helps students COMPARE(B2) mutual and exchange-traded funds / Comparing Mutual and Exchange-Traded Funds Activity
Comparing Mutual and Exchange-Traded Funds Activity Key
15 / Comparing Bond Investments
  • Demonstrate how to calculate current yield of a bond investment using the following formula:
Formula:
Dollar Amount of Annual Interest Income = Current Yield
Current Market Value of
a Bond
Example: Annual Interest Income = $80
Current Market Value = $998
Current Yield = 8%
Note: Students will not have to calculate yield of a bond. The formula may help with interpreting table information on website needed to complete the next task.
  • Facilitate students completing Comparing Bond Investments Activity.
  • Assign students to groups and facilitate as they present to each other their findings about researched performances of bonds.
  • Facilitate groupsas they present their findings to the class.
/ Helps students COMPARE (B2) bond investments / Comparing Bond Investments Activity
Website:
16 / Time to Invest in Mutual Funds
  • Have students complete The Right Type of Mutual Fund Activity.
  • Assign students to groups of four to six.
  • Assign each group one of the main types of mutual funds.
  • Facilitate students discussing how the mutual fund could meet the various investment goals.
/ Helps students UNDERSTAND (B2) the different types of mutual funds / The Right Type of Mutual Fund Activity
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
17 / Other Investment Options
Facilitate students completing the Other Investment Options (real estate, commodities, and collectibles) Organizer. Students may obtain information by reading pages 495-503 in theIntro to Business, 6e, Thomson South-WesterntextbookOR as teacher presents and facilitates a discussion usingPowerPoint Presentation 4.03, slide 19.
  • Collect organizers, and then sort to check who did and did not complete one. Especially look for examples of other investment options. Examples will help students to classify other investment options.
  • Based on results of the previous task, facilitate a discussion about examples for classifying other investment options.NOTE: This activity is a formative assessment.
/ Helps students CLASSIFY (B2) other types of investments such as real estate, commodities, and collectibles / Other Investment Options Organizer
PowerPoint Presentation
4.03, slide 19
18
/ Other Investments Options Terms
Have students complete the Other InvestmentsOptionssectionVery Important Business Terms. / Helps students UNDERSTAND (B2) terms associated with other investments / Other Investments Options section of Very Important Business Terms
19 / Financial News
Note: Prior to introducing this objective, select a recent news article,relevant financial video, or news show segment such as CNBC, Kudlow and Company, Lou Dobbs’ Moneywatch, etc.
  • Facilitate students viewing the segment and journalize the main topic covered, major issues about the topic, and how the issues about the topic may affect saving and investing options.
/ Helps students UNDERSTAND (B2) issues that may affect saving and investment options. / Video or news segment of financial news
Possible websites for videos:


org/
Instructional Activities continue on next page.
INSTRUCTIONAL ACTIVITIES / RELEVANCE TO OBJECTIVE / RESOURCES
20 / Factors for Evaluating Saving and Investing Options
  • Demonstrate to the students how to start the next task.
  • Facilitate students developing an organizer of factors to consider for evaluating saving and investing options. NOTE: A guidefor content to be included in the organizeris available since answers will vary.
  • Have students read pages 483-485 in Intro to Business, 6e, Thomson South-WesterntextbookOR participating during the presentation ofPowerPoint Presentation4.03, slides 20-21.
/ Helps students UNDERSTAND(B2) factors to consider for evaluating saving and investing options / Textbook
Saving and Investing Evaluation Factors Organizer Guide
PowerPoint Presentation 4.03, slides 20-21
21
/ Factors for Evaluating Saving and Investing Terms
Have students complete Factors for Evaluating Saving and Investing section of Very Important Business Terms. / Helps students UNDERSTAND (B2) terms associated with classifying economic conditions / Factors for Evaluating Saving and Investing section of Very Important Business Terms
22 / Assisting Clients in Evaluating Saving and Investing Options
  • Divide students into teams of three or four.
  • Facilitate teams completing Which Option is Best? Activity. Teams may use Intro to Business, 6e, Thomson South-Western textbook,completed organizers and activitiesto obtain information.
  • Present the Scoring Rubric for Which Option is Bestand use it for providing feedback to students about visual presentations. NOTE: Use discretion in determining points or letter grade value for proficient, progressing, and beginning levels.
  • Facilitate the groups as they present their portfolios to the class. During the presentation, facilitate a discussion, as appropriate, to point out how closely the selected investment options would meet or not meet the expectations of the clients.
/ Helps students COMPARE (B2) factors to consider when deciding among saving and investing options / Which Option Is Best? Activity
Scoring Rubric for Which Option is Best? Activity
Material and equipment to complete and present investment portfolios
Instructional Activities continue on next page.

6200/6600 Principles of Business and Finance Summer 2010 Page1

23 / Supplemental
Investors and Investments
  • Introduce the concept that investors’demands to invest impact employment opportunities.
  • Have students read Planning a Career in Investments on page 479in Intro to Business, 6e, Thomson South-Westerntextbook.
  • Facilitate a discussion using these questions/points:
  1. How do investors’ demands impact the economy?
  2. Point out how student’s responses relate to the economic conditions.
  • Schedule guest speaker(s) to present on topics covered in this objective.
/ Helps students UNDERSTAND(B2) how investors’ demands to invest money may be impacted by economic conditions / Textbook
L - –Literacy Strategy: The very important business termsactivity is a writing assessment that allows students to write statements about why each term is important to the content for which it is being used. Students are able to reflect on the terms in order to process their own thoughts and learning of how the terms are important to the content area.
  • –Numeracy Strategy: To make a Math-to-Life Connection is to see a relationship between a math concept and a real-life situation. Finding math-to-life connections greatly increase the relevance of new information and skills being learned.

Instructional Support Material

Textbook / Websites
Intro to Business, 6e, Thomson South-Western /
/compound-interest/formula-calculate.Php




Handouts (included) / Other
  • Forbes 400 Wealthiest Individuals Activity
  • Saving and Investing Basics Organizer
  • Very Important Business Terms Activity
  • Saving Options Organizer
  • How Savings Grow Activity
  • How Savings Grow Activity Key
  • Stock Options Organizer
  • Comparing Stocks Activities
  • Bonds and Funds Organizer
  • Comparing Mutual and Exchange-Traded Funds Activity
  • Comparing Mutual and Exchange-Traded Funds Activity Key
  • Comparing Bond Investments Activity
  • The Right Type of Mutual Fund Activity
  • Other Investment Options Organizer
  • Saving and Investing Evaluation Factors Organizer Guide
  • Which Option Is Best? Activity
  • Scoring Rubric for Which Option is Best?Activity
/
  • PowerPoint Presentation 4.03 (separate file)
  • Calculator (optional)
  • Part of Stock Options Organizer Key:
  • Stock A-11%
  • Stock B-2%
  • Stock C-7%
  • Video or news segment of financial news
  • Material and equipment to complete and present investment portfolios of Which Option is Best? Activity
  • Assessment Prototypes (included)

6200/6600 Principles of Business and Finance Summer 2010 Page1