CAREER PREPAREDNESS

UNIT TOPIC: SAVING AND INVESTINGLESSON PLAN #:1/1

Title of Lesson:
To Save or To Invest / Total Time on Task: 150minutes
Content Standard:
17.Distinguish differences between the purpose of saving and the objectives associated with investing.
a.Explain how using the principles of compound interest and the Rule of 72 in investing builds wealth to meet financial needs.
b.Evaluate various ways to buy and sell investments, including mutual funds, exchange trade funds (ETFs), stocks, bonds, certificates of deposit (CDs), real estate, and commodities.
Lab Access:Required for Students☐
Optional for Students☒
Not Needed for Students☐
Overview/Annotation:
In this lesson students will understand the difference between saving money and investing money for their future. They will be able to distinguish the different types of saving and investing methods. They will be able to demonstrate how the Rule of 72 builds wealth in an allotted amount of time.
Essential Question(s):
Why do we need to save money?
When do I need to start saving money?
What type of investor will I be (aggressive or reserved)?
Learning Objective(s): The students will
  1. Distinguish between saving and investing.
  2. Apply the Rule of 72.
  3. Evaluate the different saving and investing methods.

Conceptual Outline:
  1. Saving Money
  1. Types of interest
  2. SMART plan
  3. Rule of 72
  1. Investing Money
  1. Evaluate investment options

Materials, Equipment, and Technology Resources:
Materials:
  1. PowerPoint #1: Saving and Investing
  2. Assignment #1: My SMART Plan
  3. Assignment #2: Investing Your Money
  4. Key #1 for Assignment #2: Investing Your Money
  5. Assignment #3: What Investment is Best?
  6. Key #2 for Assignment #3: What Investment is Best?
Equipment:
  1. Teacher computer
  2. Projection equipment
  3. Computer access is optional (but recommended); teacher can provide more information on types of investments.
Technology Resources:

Procedures/Activities:
  1. Class Discussion: Give a brief description of the lesson and explain the concept of saving money for the future. Ask students, “Why would you need a savings account?” “Where would you go to begin a savings account or to invest your money?”
  2. Show PowerPoint #1: Show the first 3 slides to help with the class discussion. Slide 2 describes the SMART plan. Use this slide to help students understand what a SMART plan is before they begin Activity #1.
  3. Student Activity: Provide students with Assignment #1.
  4. Class Discussion: Beginning with Slide5 of PowerPoint #1, show the section on savings account. Discuss the different types of interest and help students distinguish between them. Discuss the Rule of 72 and how it works. Use the website hyperlinkin PowerPoint#1 to access a Rule of 72 calculator. Do a couple of examples with the students in order for them to comprehend Rule of 72.
  5. Video Time: Access Technology Resource #5 or #6 (YouTube videos). These videos demonstrate how teens the same ages as your students are already investing and building a substantial portfolio and savings account.
  6. Investment Review: Provide copies of Assignment #2. Have students complete the crossword puzzle to review the different investment alternatives.
  7. Class Discussion: Beginning with Slide9 of PowerPoint#1, show the section on Investing Your Money. Discuss different options for investing your money. “Why are some types of investing better than others?”
  8. Pair and Share: Students pair with another student. Give each pair a copy of Assignment #3. Have students complete Assignment#3 and share their findings with the rest of the group.

Assessment:
  1. Class participation
  2. Assignment #1
  3. Assignment #2
  4. Pair Share Activity using Assignment #3