7.1 - Why Should I Invest?

All of the following are reasons to invest, EXCEPT…

• To minimize the impact on inflation, which causes you to lose purchasing power

• To earn a consistent rate of return with lower rates than typical savings accounts

• To build wealth by reinvesting your returns and allowing them to compound

• To earn higher average rates of return than you would in a typical savings account

Which of the following statements describes investing?

• Putting $100 per month into an FDIC-insured bank account for short-term goals

• Buying and selling stocks within the same day to take advantage of short-term price variation

• Reducing the purchasing power of your money over time

• Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term.

What is one advantage of starting to invest as early as possible?

• You’re eligible for higher interest rates the younger you are.

• You’ll get a discount on any fees for funds you invest in.

• Your money has more time to grow.

• You have access to more funds.

A savings account is useful for all of the following purposes EXCEPT…

• Building an emergency fund

• Putting aside money for retirement

• Funding a future vacation

• Saving for a new car

The top reason people don't invest is..

• Don't have money to invest

• Don't understand Investing

• Too many risks

• Would rather save

Tags

CCSS.RI.11-12.8

CCSS.RI.8.7

CCSS.RI.9-10.7

CCSS.RL.11-12.8

CCSS.RL.9-10.7

What is compound interest?

• reinvesting earned interest back into the principal of the investment

• withdrawing the interest earned and saving it

• Not taking any risks

• Minimzing the interest to save more

Which in NOT an example of a investment?

• Bonds

• Stocks

• Mutual Funds

• Emergency Funds

Like Savings, Investing involves no risks and money will always grow.

• TRUE

• FALSE