Investing and Building Wealth

What is saving?

• Using money to buy something (like a piece of a company)

• Keeping money in a safe place (like a savings account)

• Spending money on entertainment

• Donating money to charity

Saving is good for ________ and emergencies.

• short-term goals

• long-term investments

• daily expenses

• luxury purchases

What is the extra money earned from saving called?

• Interest

• Tax

• Debt

• Loss

When you invest, you are hoping it will become more ________ over time.

• valuable

• expensive

• fragile

• useless

High risk in investing usually means high reward.

• True

• False

What is the magic that happens in investing, according to the worksheet?

• Saving

• Compounding

• Spending

• Borrowing

Based on the example in the image, if you invest $100 and it grows by 5% in the first year, how much money do you have at the end of the first year?

• $105

• $100

• $110

• $95

What do you buy when you purchase a stock?

• A loan to the company

• A tiny piece of that company

• A product from the company

• A building owned by the company

If the company does well, what happens to the value of your stock?

• It goes down

• It stays the same

• It can go up

• It disappears

What is a bond similar to?

• Owning a part of a company

• Lending money to a government or a big company

• Buying real estate

• Starting a business