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Introduction To Investing 2.1 What Is An Investment V2
Introduction To Investing 2.1 What Is An Investment V2
Introduction To Investing 2.1 What Is An Investment V2
LENGTH: 45 minutes
What Is an Investment?
Lesson Overview
In this lesson, teachers introduce students to the concept of investing and explore
why people invest. Students will rely on personal experience to create a list of
potential “investments.” Based on this list, teachers will lead a short discussion
on different investment instruments. Both teachers and students will provide
personal definitions of investing and their argument for why people invest.
Finally, you will compare different types of investments by introducing students
to the concept of risk, return and liquidity.
■ Gold: A precious metal that is also a popular alternative investment to more common asset classes like
stocks and bonds.
■ Investment: Giving up something in the present in order to gain something more in the future.
■ Return: A measure of the gain or loss generated from an investment. It is the difference between the
money that you pay to buy a security and the money that you receive when selling it.
■ Risk: The chance you might lose something of value, in this case money that you are investing.
Lesson Plan
SEQUENCE/TIME DETAILS
1. Ask students to list 3-5 things that they think about when they hear the word “in-
vestment”. Students will usually focus primarily on the stock market (e.g. “stocks,”
“money,” “businesspeople”). Encourage students to think as broadly as possible.
Engage
/5 mins 2. If students are stuck, ask them what it means to “invest in your future.” This will usu-
ally spur thoughts of college or job market readiness. Write five students’ answers on
the board.
3. Show some additional pictures such as real estate, a college degree, or a lottery ticket,
and ask students whether they think it is an investment.
KAHOOT GAME
Click here to access the game.
Assess
/2 mins
Student Worksheet
DIFFRENTIATE RISK, RETURN AND LIQUIDITY AMONG ASSETS
Risk Return Liquidity
Stock vs. Bond Stock
Bond
Real Estate vs. Stock Real Estate
Stock
Gold vs. Real Estate Gold
Real Estate
Cash/Cash Equiva- Cash
lents (e.g. bank savings Stock
accounts, certificates of
deposits) vs. Stock