Module Five

Topic: Investing

Make your money work for you!

Module 5 Overview

Introduction/ Lesson: Instructors will explain the basics of investing and diversification in the stock market (what can you invest in, relationship between increased risk and increased return, etc.). This lesson is highly based on participant involvement and will vary greatly based on how quickly participants receive an understanding of the key concepts of investing in stocks, bonds, and diversifying their portfolio. Visual aids and questions will be explored from the “What Have Stock Market Returns Been Over the Past Ninety Years?” and “Why Should You Invest When You Are Young?” activity sheets from the Next Gen Personal Finance Program (see attached). Student will also provide a brief intro into the nature of dividends (10-20 minutes)

Exercise: Participants will break into smaller groups of between 5 and 15 students (depending on how many student instructors/participants are present at each section) and student instructors will lead small group discussions. In these discussions, they will continue the above discussion (if necessary) to ensure students understand these vital concepts. Student instructors will also lead students in completing the “ANALYZE: Think You Can Beat the Stock Market?” activity from the Next Gen Personal Finance Program (see attached). (15-20 minutes)

Conclusion: Student instructors will guide participants through a full group discussion in which they summarize the day’s lesson and key concepts from each activity. If time permits, they may use the “NGPF Question of the Day Investing #1” (see attached) to do so. The session will conclude with a summary of what the students have learned from completing this activity. (10 minutes)

Lesson 1

What Have Stock Market Returns Been Over the Past 90 Years?

Lesson 2

Why You Should Invest When You Are Young? 

Lesson 3

Think You Can Beat the Stock Market?