The Investment Expedition

This reading activity gives an introduction to the lab and to the next "quick start" activity that they are going to do.

Sub Activities

1. Quick Start Activity

Students will read about the purpose of investment and how is it different from savings. Students will also understand the need of investing early and why should they start investing are there young age.

Sub Activities

1. Saving vs Investing

In this activity, students will read and understand about compounding, the difference between simple and compound interest, also the rule of 72

Sub Activities

1. Effect of Time in Compounding
2. How Does Compounding Work?

Students will read about inflation and how the prices of different commodities have changed over the years. They will understand why a regular savings account, though it is safe, is not enough to beat inflation, and how investing can help them grow their wealth by beating inflation. They will also be introduced to waters CPI (Consumer Price Index)

Sub Activities

1. Inflation Calculator

Students will do a recap on the benefits of investment. Then they will briefly understand different investment schemes in which they can invest their money, such as stocks, bonds, mutual funds, and real estate. They will be delving deeper into each of them in the upcoming sections of the lab.

Sub Activities

1. Review Questions

In this infographic activity, students will understand what shares or stocks are and how they represent ownership in a company. They will follow the story of John, who runs a donut cart and needs capital to expand his business. By learning how John sells shares of his company at $100 apiece in exchange for a share of the profits, students will gain insight into the process of trading shares and how share values fluctuate. Additionally, they will recognize that share prices do not always increase but can also decrease, reflecting the risks and dynamics of the stock market.

Sub Activities

1. Review Questions
2. Doughnut Stock Trend
3. More events
4. Volkswagen Share Price Drop
5. More About Stocks
6. Review Questions

Students will read about stock exchanges, how shares are traded in stock exchanges, different exchanges such as NYSE, NASDAQ, etc. and the importance of timing in buying and selling shares. Students will also be given an introduction to the next activity which is a share market simulation.

Sub Activities

1. Review Questions
2. Share Market Simulation

In this reading activity students will understand that they should be very careful in selecting the stocks in which they should invest, the activity explains how to analyze stocks before investing in them, such as evaluating financial statements, profitability ratios, growth potential, etc.

Sub Activities

1. Analyzing Performance of 3 Stocks

In this reading activity, students will try to understand the key financials of a company to look at before purchasing the shares, such as - Market cap, Revenue, Profit, P/E ratio, EPS, etc.

Sub Activities

1. Analyzing Financials of APPLE and NVIDIA
2. Not just financial data?

Students will understand that the share prices are not just affected by the financials of each company but also depend on global market conditions. They will understand that indices such as the Dow Jones Industrial Average (DJIA), Nasdaq Composite, and S&P 500 are indicators of global market conditions.

Sub Activities

1. Review Questions

Students will read and understand that investing comes with a risk of losing money. They will read about different events that happened in the past that eroded a lot of money from the share market, they will understand that balancing risk and return is very important.

Sub Activities

1. Review Questions

Students will read and understand the risks associated with investments and learn how to mitigate these risks using three key strategies: investing for the long term, diversification, and investing over time. This activity aims to enhance students' knowledge of risk management in investing, equipping them with practical strategies to make informed and resilient investment decisions.

Sub Activities

1. Invest for the Long Term

Students will read in-depth about how diversification can help reduce the risk associated with investment.

Sub Activities

1. Diversifying investment

Students will read about the importance of Investing Over Time (Dollar Cost Averaging) in reducing the risk associated with investments.

Sub Activities

1. Dollar cost averaging

Students will read and understand what bonds are and the key terminologies used in bonds.

Sub Activities

1. Review Questions
2. Types of Bonds
3. Review Questions

Students will read and understand what funds are and different types of funds such as Mutual Funds, ETFs, etc.

Sub Activities

1. Review Questions

Students will read about the importance of saving for retirement, and how investment can help them create their retirement fund quickly. They will also read about how the share prices of Apple, Amazon, and Microsoft soared from their initial public offering.

Students will read about the next activity which is a retirement calculator activity and the importance of doing that activity.

The objective of this activity is to enable students to understand and plan for their retirement by forecasting their savings needs based on their current age and annual expenses. By experimenting with different starting ages and monthly savings amounts, students will learn the importance of starting early, the impact of compounding interest, and how to achieve their financial goals for retirement.

Following is a screenshot of the calculator

Students will be given different scenarios to find the minimum amount to be saved every month for successful retirement -

The objective of this activity is to provide students with an inspiring example of successful long-term investing through the life and career of Warren Buffett. By reading Buffett's success story, students will understand the principles of value investing, appreciate the importance of patience and discipline, learn about the power of compounding, gain insights into risk management, and be motivated to set their own financial goals. This activity aims to encourage students to start investing early and leverage Buffett's lessons to build a secure financial future, while also developing their critical thinking skills by analyzing Buffett's investment strategies and decisions.

Sub Activities

1. Interviewing Warren

This lesson outlines tips for new investors, which should help students feel more prepared to pursue investing for themselves.

The objective of this writing activity is to help students articulate the importance of investing for long-term financial security and personal growth. By explaining the concepts of early investment, the power of compounding, and the ability of investments to combat inflation, students will reinforce their understanding of these financial principles.