Objectives

• Develop an understanding of investing and why it is important
• Learn about different ways to invest your money

Suggested Activities

• What is investing? Why is it important?
• What is interest? What is simple interest? What is compound interest?
• Discuss different ways to invest your money:
• Savings account
  • Certificate of Deposit (CD)
  • Bonds
  • Stocks
  • Mutual Funds
  • Mortgage-Backed Securities
  • Real estate
• Discuss the concept of risk. The greater the risk, the more you stand to lose.
• Are some investments better than others? What is the difference?
• Try to distinguish between investments that might be better for achieving short-, mid-, and long-term goals.

Tips for using The Home Zone to discuss types of investments

Go to Cool Stories:
• Watch "Saving & Investing," which discusses why saving is important, what investing is, and ways to save and invest.
• Watch "Home Ownership," which discusses home buying as an investment and the concept of equity.
• Watch "Interest," which explains what interest is and how it works.

Go to Brain Food:
• Use the "Calculator" to see how interest works first hand.
• Visit "MindBuilder, Saving & Investing" for a discussion about income, expense, and exercises in computing interest.
• Visit "MindBuilder, The Value of Home Ownership" for a discussion of equity.

Go to Glossary:
• Terms used in The Home Zone are defined here, including different types of investments.

Go to Game Center:
• Play "HomeBuilder," which reinforces a variety of concepts addressed in The Home Zone.