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Main Core Tie

Adult Roles and Financial Literacy
Strand 7 Standard 4




Students will understand investing, the Stock Market, investment strategies, protecting investments, and buying and selling investments.


Instructional Procedures

Use the vocabulary worksheet and key (pdf).

Primary Vocabulary

  • Savings
  • Risk
  • Return
  • Liquidity
  • Stocks
  • Bonds
  • Mutual Funds
  • Real Estate
  • Certificate of Deposit
  • Collectibles
  • Short Term Investing Strategies
  • Buying on margin
  • Short selling
  • Long- term Investing Strategies
  • Diversification
  • Dollar Cost Averaging
  • Buy and Hold Technique
  • Regulatory Pyramid
  • Prospectus
  • Annual Report

Supplementary Vocabulary

  • Compounding interest
  • Principal
  • Fixed Interest Rate
  • Simple Interest
  • Inflation
  • Time Value of Money
  • Interest
  • Interest Rate

FCCLA Activity Option
Consult the FCCLA Financial Fitness website.

  • Banking Basics - Conquer bank accounts, credit, and investments
  • Cash Control - Track and plan personal spending
  • Making Money - Sharpen on-the-job financial fitness
  • Consumer Clout - Become a savvy spender
  • Financing Your Future - Apply financial skills to real life.

Content Outline, Activities and Teaching Strategies
(All options do not necessarily need to be taught. Select ones to cover standards and objectives and according to your district policies.)

Option 1: Lecture/Discussion on Investing
Use the Investing Lecture Notes (pdf), Investment Transparencies (pdf), (you could make into a PowerPoint if you would like) and Investing Student Worksheet (pdf) to have a class discussion.

Option 2: Investing is Like...
Have you ever heard the word simile? A simile is often used in English and is defined as using "like" to compare one item to another. In this project the student will be creating a simile using "Investing is like…" The students can use colored paper or construction paper. At the top of the paper title it "Investing is like…" and then begin to think of a comparison. The students will then need three supporting facts on why investing is like that item, they will also need it to be illustrated using corresponding pictures. Refer to Investing is Like…Information Sheet (pdf).

Option 3: Stock Market Lesson Plan
Family Economics and Financial Education Lesson Plan (pdf)
Students develop an understanding about stock market fundamentals. They learn what stocks are, associated risks, types of stock, and how stocks are classified. Students also learn how to use the fundamental measures to research a stock, read a stock quote, recognize stock market indicators, and understand the process brokers use to buy and sell stocks on the organized exchange.

There are three options to choose from:

1.12.2 Language of the Stock Market
Students develop an understanding about stock market fundamentals. They learn what stocks are, associated risks, types of stock, and how stocks are classified. Students also learn how to use the fundamental measures to research a stock, read a stock quote, recognize stock market indicators, and understand the process brokers use to buy and sell stocks on the organized exchange.

1.12.2 Language of the Stock Market Game
This is a jeopardy style game designed to be used as an assessment tool for the Language of the Stock Market Lesson Plan.

1.12.5 Tracking a Stock
Students have $2,000 to invest in five different companies. They research the companies and then track the stock's performance for six weeks. At six weeks, students create a PowerPoint presentation describing the chosen stocks and their portfolio's performance.

Option 4: Investing Role Plays
Have students answer each question then share their answers with the class in the form of a role play. Refer to the Investing Role Plays Worksheet (pdf).

Option 5: Investment Brochure
Direct students to create informational brochures or posters to inform others about a specific investments according to their research and the investing lecture. Source:

Option 6: Top 5
Challenge students to create a "Top 5 Things to Do or Not to Do When Investing" by interviewing adults about their investment experiences, and sharing what you learned. Use the Top 5 Challenge worksheet (pdf).

Option 7: Investing Guest Speaker
This would be a great topic to invite a member of the community into your classroom to lecture on. He/she could share their insights and personal examples of the benefits of investing or discuss the different investment vehicles.

Option 8: Investor Island
A fun interactive lesson plan with web resources as well as resources you can print off on the concepts of investment, risk, and return. Refer to Investor Island Instructions (pdf). Author of the Econ Lesson Plan: Patricia Bonner.

Option 9: PIT Game
Pit® can be used to reinforce a variety of concepts in a family finance and economics course. Participants trade commodities on the market to try to 'corner' the market to win the hand. Pit® covers concepts from Investing and Values, Needs vs. Wants, and Goal Setting.

Step # 1: Go to: (You will need to register and log in to this website prior to use)
Step # 2: Click on: 5.0.0 Active Learning Tools
Step # 3: Click on: 5.0.17 Pit Lesson Plan

  1. Explain the instructions for playing Pit® using the instructions in Pit® game.
  2. Divide participants into groups of 3 -- 8 players for each card game. Participants play individually.
  3. Have participants set up the card game and play.
  4. After participants have finished the game, hold a class discussion using the Discussion Questions handout 5.0.17.E1.

The following items from FEFE:

  • Discussion Questions Pit ® handout -- 5.0.17.E1
  • Pit® -- approximately one board per 4 to 6 participants
  • Approximate cost: $13.00 -- $17.00 per game

Option 10: Stock Market Game
The Stock Market Game™ (SMG) gives students the chance to invest a hypothetical $100,000 in an on-line portfolio. They think they're playing a game. You know they're learning economic and financial concepts they'll use for the rest of their lives. Refer to the Stock Market Game Information (pdf). See

Option 11: NEFE High School Planning Program
National Endowment for Financial Education (NEFE) Instructor Manual and the corresponding Student Guide: Use Unit 3 Investing: Making Money Work for You.

You can order free Instructor Manuals and Student Guides by going to the following website:

Option 12: Hands on Banking
This lesson gives students exposure to smart investing and capital gains and losses. Refer to the Hands on Banking Web Lesson Plan. Go to the following website: (You can print off a guide or you can use the information in order to have a hard copy of one.)

For Grades 6-8 go to Guide.pdf.

UNIT OVERVIEW: Smart Investing
Unit Five: Smart Investing
Smart Investing (page 87)
Section 1: Introduction to Investing (page 88)
Section 2: Capital Gains and Losses (page 94)
Teaching Tips (page 97)

In these lessons, middle-school students (grades 6-8) calculate and compare the returns on simple investments. Students compute the average of a given set of data. In the online/CD-ROM version of Hands on Banking, there are seven lessons that are condensed into 2 sections, below.

Section 1: Introduction to Investing
Students will investigate different types of investments including stocks. Students will explore the concept of dividends.

Section 2: Capital Gains and Losses
Students will recognize the steps to responsible stock purchasing. Students will calculate capital gains and losses.

For Grades 10-12 go to: uide.pdf.

Section 4: Investing
Students are introduced to the basic concepts of investing and investment options including stocks, bonds, and mutual funds.
Work & $.(page135)
Section 3: Retirement Plans (page 142)
Section 4: Investing. (page 147)
Section 5: Your Financial Plan (page 152)
Student Activities (page162)
Work & $ Assessment Worksheet (page 164)
Teacher's Copy of Work & $ Assessment Worksheet. (page 166)

Option 13: Savings and Investing Lesson Plan
Students will understand savings and investing from the Practical Money Skills Savings and Investing Web Lesson Plan. Go to:

Possible Activities

  • 12-A Pay Yourself First (A Little Can Add Up
  • 12-D Certificates of Deposit (CDs)
  • 12-E How Simple and Compound Interest are Calculated
  • 12-H The Rule of 72
  • 12-I Bonds
  • 12-J Mutual Funds
  • 12-K Stocks
  • 12-L Real Estate
  • 12-M Retirement Plans
  • 12-O Comparing Savings and Investment Plans
  • 12-P Avoiding Investment Fraud

Source: Practical Money Skills

Option 14: Shaving Cream Mutual Funds
For mutual funds, use a shaving cream art project. Spray a large blob on a paper plate to symbolize the stock market. Then, ask for some various companies to represent drops of food coloring. Spread them around because, well, let's face it, Wall Street is crazy. Take a small note card or piece of cardstock (your mutual fund) and smash it gently into the shaving cream swirls. Remove it and use a straight edge (ruler) to wipe off the shaving cream. I then asked them to look at the different colors and analyze what would happen if red (Company X) went bankrupt or blue (Company Y) skyrocketed, etc. This really gets them thinking about how mutual funds are more than just one stock and are safer than investing in only one stock. Author: Maria Jones

No matter how much you may want to have something, you will not be able to obtain it if you cannot pay for it. In order to gather the necessary funds to achieve the future you picture, you will need to carefully plan and become self-disciplined. If you are investing or saving to meet a goal that will make you happy and finically secure, the sacrifices you make now will be worth it in the future (opportunity cost). Investing is the purchase of assets with the goal of increasing future income. There are different vehicles you can use in order to invest as well as different strategies. A large component of investing is the stock market. It is important to develop an understanding about stock market fundamentals, including, what stocks are, risks associated with investing in the stock market, the various types of stock, and how stocks are classified. As well as how to use the fundamental measures to research a stock, how to read a stock quote, know what the stock market indicators are, and understand the process brokers use to buy and sell stocks on the organized exchange.

Created: 07/14/2011
Updated: 02/05/2018