Identification should include
- defining saving and investing
- discussing the risk-to-reward relationship, rate of return, diversification, and Rule of 72
- investigating and comparing savings and investment options, including
- after-tax and tax-advantaged personal savings vehicles (e.g., 401k, 403b, and individual retirement account [IRA])
- stocks
- bonds
- savings bonds
- real estate
- mutual funds
- retirement accounts
- savings accounts
- certificates of deposit
- collectibles/valuables
- money market accounts
- prepaid college plans
- investigating the purpose of estate planning.
Process/Skill Questions:
Thinking
- How does saving compare to savings?
- Why would an investor want to choose a certificate of deposit over a corporate bond?
Communication
- What do corporate bonds, municipal bonds, and government savings bonds have in common? How do they differ?
Leadership
- How much more would a traditional IRA earn than a basic savings plan?
Management
- What determines the value of a stock?
- What options are available to individuals who wish to invest in stocks?
Teacher Resources: