Module 4 Investing - Burlington County Institute Of Technology

Transcription

Module 4InvestingComplete:Activity 4.3Activity 4.6Challenge 4-AChallenge 4-BChallenge 4-C

Activity 4.3: More MoneyNAME:DATE:Scenario:Justin’s dad suggests putting the 500 into a CD that earns more interest, more often. Their creditunion currently offers 2.5 percent APY on a 12-month CD, and interest is compounded daily.Justin uses the compound interest formula to see the difference it makes to have his money earninterest at a higher rate every day rather than just once a year. He discovers that he will have almost 513 after one year if he goes with the CD option.Directions:Justin can increase his savings by compounding interest more often. What are at least two otherways he can grow his savings? 2012 National Endowment for Financial EducationHigh School Financial Planning Programwww.hsfpp.orgModule 4: InvestingActivity 4.3: More Money

Activity 4.6: Watch the PriceNAME:DATE:Directions:Select two or three companies that are interesting to you because you use the company products.Look online or in a newspaper to find out the highest and lowest selling prices over the past 52weeks for each company.Company 2012 National Endowment for Financial EducationHigh School Financial Planning ProgramHighest Pricewww.hsfpp.orgLowest PriceModule 4: InvestingActivity 4.6: Watch the Price

Challenge 4-A: It Pays to Shop AroundNAME:DATE:Directions:Go online to compare options for saving your money. Find out the following about savings accounts,money market accounts, and CDs at one or two banks or credit unions: any minimum balance requirementscurrent APYcompoundinginterest frequencyUse the DECIDE steps to assess the saving option(s) that might be best for your current situation.DECIDE Steps1Define your goal.2Establish your criteria. What arethe features you absolutely musthave? And which ones would youlike to have?3Choose two to three good options.Eliminate any options without yourmust-haves and choose a coupleof the remaining options.4Identify the pros and cons. Makea chart to quickly compare thefeatures of each option.5Decide what’s best. Which optionor combination of options bestmatches your criteria?6My SituationEvaluate the results. Explain howyou intend to monitor andevaluate your decision. 2012 National Endowment for Financial EducationHigh School Financial Planning Programwww.hsfpp.orgModule 4: InvestingChallenge 4-A: It Pays to Shop Around

Challenge 4-B: Set My SMART Investing GoalsNAME:DATE:Directions:Use the SMART goal guidelines to set your own saving and investment goals. If you completedChallenge 1-B in Module 1: Money Management, review your SMART financial goals for this challenge.If you have more than one goal, rank them from most to least important so you know where to focusif you can’t tackle them all right now.RankGoalSMART Goal dWhat exactly needs to be accomplished?Who else will be involved?Why do I want to accomplish the goal?How will I know I’ve succeeded?How much change needs to occur?How many accomplishments or actions will it take?Do I have, or can I get, the information needed to achieve the goal?Is the goal a reasonable stretch for me? (neither out of reach nor too easy)Are the actions I plan to take likely to bring success?Is this a worthwhile goal for me right now?Is it meaningful to me—or just something others think I should do?Am I willing to commit to achieving this goal?What is the deadline for reaching the goal?When do I need to take action?What can I do today? 2012 National Endowment for Financial EducationHigh School Financial Planning Programwww.hsfpp.orgModule 4: InvestingChallenge 4-B: Set My SMART Investing Goals

Challenge 4-C: DECIDE My Investment Plan of ActionNAME:DATE:Directions:Now, use the DECIDE steps to choose the right investment route for you.DECIDE Steps1Define your goal.2Establish your criteria. What arethe features you absolutely musthave? And which ones would youlike to have?3Choose two to three good options.Eliminate any options without yourmust-haves and choose a coupleof the remaining options.4Identify the pros and cons. Makea chart to quickly compare thefeatures of each option.5Decide what’s best. Which optionor combination of options bestmatches your criteria?6My SituationEvaluate the results. Explain howyou intend to monitor andevaluate your decision. 2012 National Endowment for Financial EducationHigh School Financial Planning Programwww.hsfpp.orgModule 4: InvestingChallenge 4-C: DECIDE My Investment Plan

Activity 4.3: More Money 2012 National Endowment for Financial Education Module 4: Investing High School Financia