Investing Basics Study Guide
This 2-page study guide reviews key concepts in investing for 9th graders. It covers topics like stock market differences, compound interest, diversification, and different types of investment accounts.
“create a review study guide based off the following questions: Which of the four investing decisions below is NOT good for your long term financial wealth? How does investing in the stock market differ from putting money in a savings account at a bank? Which of the following statements is TRUE about compound interest? Daniel has saved $2,000 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time? Which of the following accurately describes a difference between an individual bond compared to a bond fund? Which of the following statements about Exchange Traded Funds (ETFs) is TRUE? You bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on StreamingVideoCo stock? (Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.) Which of the statements below BEST describes the relationship between risk and return when considering an investment? Why is diversification a recommended investment strategy? Which of the following is a characteristic of dollar-cost averaging? How is a bond different from a stock? An actively managed mutual fund is? How can someone make money from investing in a stock? Why is it important for you to understand your risk tolerance before you start investing? Katrina works for Penny's Pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. In her budget, she only has $150 per month available to save for retirement. What should she do? English: Sam is 22, just started his first full-time job, and is selecting his investments through his company's 401(k) plan. Why might a target date fund (TDF) be a good option for Sam? What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA? Sanjana is explaining what Social Security is to her younger brother. Which of the following descriptions should she use? As a shareholder in a public company, what are the benefits available to you? Why are Index Funds such a popular investing option? Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because... You buy a bond with a fixed coupon rate of 5%. A year later, similar bonds that are issued have a coupon rate of 3%. Which of the following is TRUE? When talking about investing, what does it mean when someone refers to a fund? 401(k)s and IRAs are both...”
Teacher Guide & Tips
- Use this guide as a review before a unit test or as a standalone lesson on investing basics.
- Discussion question: How does the concept of risk tolerance directly influence investment choices?
- For struggling readers, consider pre-teaching key vocabulary like 'diversification' and 'compound interest'.
- Advanced students could research and present on a specific investment vehicle mentioned in the guide.
- Estimated time: 30-45 minutes.
What is Diffit?
Teachers use Diffit to get quality materials for their unique classrooms. Adjust difficulty, add scaffolds, or change the topic to get started.
Try Diffit for free“create a review study guide based off the following questions: Which of the four investing decisions below is NOT good for your long term financial wealth? How does investing in the stock market differ from putting money in a savings account at a bank? Which of the following statements is TRUE about compound interest? Daniel has saved $2,000 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time? Which of the following accurately describes a difference between an individual bond compared to a bond fund? Which of the following statements about Exchange Traded Funds (ETFs) is TRUE? You bought 10 shares of stock in StreamingVideoCo for $45 per share. Two months later you sold the 10 shares of stock for $80 per share. What was your profit or loss on StreamingVideoCo stock? (Assume that StreamingVideoCo didn't pay a dividend and that you didn't incur any trading fees during that period.) Which of the statements below BEST describes the relationship between risk and return when considering an investment? Why is diversification a recommended investment strategy? Which of the following is a characteristic of dollar-cost averaging? How is a bond different from a stock? An actively managed mutual fund is? How can someone make money from investing in a stock? Why is it important for you to understand your risk tolerance before you start investing? Katrina works for Penny's Pickles, which offers a 401(k) match for up to 3% of her salary, which is $65,000 per year. In her budget, she only has $150 per month available to save for retirement. What should she do? English: Sam is 22, just started his first full-time job, and is selecting his investments through his company's 401(k) plan. Why might a target date fund (TDF) be a good option for Sam? What is one question an investor should ask when deciding whether or not they would like to open a Roth IRA or a Traditional IRA? Sanjana is explaining what Social Security is to her younger brother. Which of the following descriptions should she use? As a shareholder in a public company, what are the benefits available to you? Why are Index Funds such a popular investing option? Leaving your investments in the stock market alone for at least five years is a good way to reduce risk because... You buy a bond with a fixed coupon rate of 5%. A year later, similar bonds that are issued have a coupon rate of 3%. Which of the following is TRUE? When talking about investing, what does it mean when someone refers to a fund? 401(k)s and IRAs are both...”
Teacher Guide & Tips
- Use this guide as a review before a unit test or as a standalone lesson on investing basics.
- Discussion question: How does the concept of risk tolerance directly influence investment choices?
- For struggling readers, consider pre-teaching key vocabulary like 'diversification' and 'compound interest'.
- Advanced students could research and present on a specific investment vehicle mentioned in the guide.
- Estimated time: 30-45 minutes.
Investing Basics Study Guide
This 2-page study guide reviews key concepts in investing for 9th graders. It covers topics like stock market differences, compound interest, diversification, and different types of investment accounts.
What is Diffit?
Teachers use Diffit to get quality materials for their unique classrooms. Adjust difficulty, add scaffolds, or change the topic to get started.
Try Diffit for free