Comparison should include
- definition of 70-20-10 Rule associated with spending, saving, and investing
- types of investments
- explanation of the time value of money and how compound interest works (the Rule of 72)
- short- and long-term consequences of investment decisions
- advantages and disadvantages of popular investment vehicles.
Process/Skill Questions:
Thinking
- What are the advantages of developing a savings plan?
- What is the difference between saving and investing?
- What are the consequences of not saving or investing your money?
- Where do you put the money for your emergency fund? Your retirement fund?
- What are some of your future financial goals?
Communication
- How can parents teach the importance of savings?
- What are some questions you could ask an investment adviser?
Leadership
- How can you adapt your savings plan to current economic situations?
- How do you determine who in the family should manage the money?
Management
- What are some reasons why people do not save?
- Why is it important to pay yourself first?