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WorksheetsInvesting Basics 1
Total questions: 15
Worksheet time: 15mins
A key difference between saving and investing is
Saving is for everyone, investing is for the wealthy
Your money is insured when investing, it is not in savings
Investing has a guaranteed return, savings does not
Saving is for emergencies & goals, investing is for long-term wealth
Which would be considered the highest risk investment type?
Stock
Mutual Fund
Bond
Money Market Account
Why is it important to start investing as soon as possible?
You take less risk when you are young, so money will be safe
You have more time for your money to compound
Investing is an easy way to make quick money
Fees on investments are cheaper when you are younger
This is when a company will pledge to repay a specific amount of money along with interest
Corporate Bond
Government Bond
James Bond
Savings Bond
An investment is:
A contract between you and your bank for a checking account
The outlay of funds for income or profit
Only something that can be done through your 401K
never a risk
The FDIC insures deposits per depositor up to
$50,000
$100,000
$200,000
$250,000
Your initial investment is referred to as
interest
inflation
principal
return
What two options are open to you if you want to INVEST your money?
Leave it in a drawer
Put it in a Savings Account
Spend your money on food
Buy shares on the Stock Market
