FL.Investing_Lesson 1

Investing Basics - Lesson 1

Objectives

• Recognize the value of young people investing early, regularly, and long-term to extract maximum earnings from their investments

• Explain how compound interest works and how to harness its power when saving and investing

Open Ended

What do you know about investing, and where have you learned about it?

Open Ended

Is investing something you plan to do? Why or why not?

A Simple Introduction to Investing

On the next slide you will reas an article that explains that investing involves putting your money into different assets such as stocks, bonds, and real estate with the goal of generating returns. It also highlights the importance of diversification, which involves spreading your investments across different types of assets to reduce risk.

Review the infographic in preparation for a class discussion.

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Open Ended

What is the difference between savings and investing?

Multiple Choice

Which of the following is an example of a diversified investment portfolio?

• A portfolio that only includes stocks from one sector

• A portfolio that includes a mix of stocks, bonds, and real estate

• A portfolio that only includes stocks from one company

• A portfolio that includes only one type of asset

Multiple Choice

Why is diversification important in investing?

• To minimize risk and maximize returns

• To guarantee high returns on investments

• To invest in the best-performing assets

• To focus on investing in a single asset class

Multiple Choice

Which of the following is an example of passive investing?

• Buying individual stocks based on their potential for growth

• Purchasing a mutual fund that tracks a stock market index

• Analyzing financial statements to pick winning stocks

• Investing in real estate to generate rental income