Module 4 Investing. Complete: Activity 4.3 Activity 4.6 Challenge 4-A Challenge 4-B Challenge 4-C

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1 Module 4 Investing Complete: Activity 4.3 Activity 4.6 Challenge 4-A Challenge 4-B Challenge 4-C

2 Activity 4.3: More Money Scenario: Justin s dad suggests putting the $500 into a CD that earns more interest, more often. Their credit union currently offers 2.5 percent APY on a 12-month CD, and interest is compounded daily. Justin uses the compound interest formula to see the difference it makes to have his money earn interest at a higher rate every day rather than just once a year. He discovers that he will have almost $513 after one year if he goes with the CD option. Justin can increase his savings by compounding interest more often. What are at least two other ways he can grow his savings? High School Financial Planning Program Activity 4.3: More Money

3 Activity 4.6: Watch the Price Select two or three companies that are interesting to you because you use the company products. Look online or in a newspaper to find out the highest and lowest selling prices over the past 52 weeks for each company. Company Highest Price Lowest Price High School Financial Planning Program Activity 4.6: Watch the Price

4 Challenge 4-A: It Pays to Shop Around Go online to compare options for saving your money. Find out the following about savings accounts, money market accounts, and CDs at one or two banks or credit unions: any minimum balance requirements current APY compounding interest frequency Use the DECIDE steps to assess the saving option(s) that might be best for your current situation. DECIDE Steps My Situation 1 Define your goal Establish your criteria. What are the features you absolutely must have? And which ones would you like to have? Choose two to three good options. Eliminate any options without your must-haves and choose a couple of the remaining options. Identify the pros and cons. Make a chart to quickly compare the features of each option. 5 Decide what s best. Which option or combination of options best matches your criteria? 6 Evaluate the results. Explain how you intend to monitor and evaluate your decision. High School Financial Planning Program Challenge 4-A: It Pays to Shop Around

5 Challenge 4-B: Set My SMART Investing Goals Use the SMART goal guidelines to set your own saving and investment goals. If you completed Challenge 1-B in Module 1: Money Management, review your SMART financial goals for this challenge. If you have more than one goal, rank them from most to least important so you know where to focus if you can t tackle them all right now. Rank Goal Specific Measurable Attainable Relevant Time-bound SMART Goal Guide What exactly needs to be accomplished? Who else will be involved? Why do I want to accomplish the goal? How will I know I ve succeeded? How much change needs to occur? How many accomplishments or actions will it take? Do I have, or can I get, the information needed to achieve the goal? Is the goal a reasonable stretch for me? (neither out of reach nor too easy) Are the actions I plan to take likely to bring success? Is this a worthwhile goal for me right now? Is it meaningful to me or just something others think I should do? Am I willing to commit to achieving this goal? What is the deadline for reaching the goal? When do I need to take action? What can I do today? High School Financial Planning Program Challenge 4-B: Set My SMART Investing Goals

6 Challenge 4-C: DECIDE My Investment Plan of Action Now, use the DECIDE steps to choose the right investment route for you. DECIDE Steps My Situation 1 Define your goal. 2 Establish your criteria. What are the features you absolutely must have? And which ones would you like to have? 3 Choose two to three good options. Eliminate any options without your must-haves and choose a couple of the remaining options. 4 Identify the pros and cons. Make a chart to quickly compare the features of each option. 5 Decide what s best. Which option or combination of options best matches your criteria? 6 Evaluate the results. Explain how you intend to monitor and evaluate your decision. High School Financial Planning Program Challenge 4-C: DECIDE My Investment Plan