The Basics of Saving and Investing Investor Education
The Basics of Saving and Investing: Investor Education 2020 BRINGING INVESTOR EDUCATION AND PROTECTION TO THE CLASSROOM Event Title Date Presenter’s Name Presenter’s Affiliation
About IPI and IPT �The Investor Protection Institute protects all investors by undertaking and supporting unbiased investor research and groundbreaking investor education programs. �The Investor Protection Trust works to provide the independent, objective investor education needed by all Americans to make informed investment decisions.
Why teach investor education? � Most Americans have to invest, but are unprepared to do so. While some Americans have defined-benefit contribution plans, most do not. � A survey by the Center for Retirement Studies at Boston College shows the danger: Most Americans are not eligible for a pension and must fend for themselves to finance their golden years. Most Americans will not have enough saved to maintain their standard of living in retirement. 20% of eligible workers do not participate in the company offered 401(k). 30% cash out of their 401(k) when they change jobs.
Now Updated: The Basics Thousands of changes made for new 2015 edition. Many more online resources featured. Updated discussion of investment swindles.
3 Questions About The Basics �What is The Basics? The Basics is a teaching guide focusing solely on “investor education” – what people need to know about saving and investing in a savvy way. �Why investor education as a focus? Americans need to fully understand investing in order to prepare for a financially secure future. �What is different about The Basics? The Basics features a unique section on spotting and avoiding fraud – encouraging individuals to sharpen their critical thinking skills.
Why You Can Trust The Basics �The Basics was written by IPT and IPI in collaboration with 15 expert educators and State Securities Regulators. �The Basics is 100 percent independent. No industry money was used to create it. �The Basics was extensively updated in 2015 to keep it current and relevant. �The Basics has been used in over 450 teacher training sessions, covering nearly all 50 states. �More than 50, 000 U. S. educators use IPT and IPI publications, including three earlier editions of The Basics.
Inside a The Basics Unit …
Key Terms/Standards Up Front … Compound Interest Investing Market Returns Savings Trade-Offs Source: The Basics Unit 1 – Page 1. 1
Unit Objectives Spelled Out … �Discuss why people save and invest. �Learn how to think about financial decisions. �Understand key concepts of saving and investing (including the “time value of money”). Source: The Basics Unit 1 – Page 1. 1
Handouts in Every Unit … Source: The Basics Unit 1 – Page 1. 2
Clear Outlines for Every Lesson … Source: The Basics Unit 1 – Page 1. 12
Illustrations for Overheads … Source: The Basics Unit 1 – Page 1. 18
Pop Quiz: Try This Out! Can you place the following? • Futures • Real Estate • High Quality Stocks • Aggressive Growth Bonds • Corporate Bonds • Government Securities/Bonds Source: The Basics Unit 1 – Page 1. 19
Pop Quiz: Your Answers! Can you place the following? Futures Real Estate High Quality Stocks Aggressive Growth Bonds Corporate Bonds Government Securities/ Bonds Source: The Basics Unit 1 – Page 1. 19
Printable Quiz Forms/Clear Keys Source: The Basics Unit 1 – Page 1. 20
Close-up: A Unit 1 Lesson … Why people save and invest �Preparing for a career, often by going to college or a technical/vocational school. �Saving for major purchases and expenses (such as a college education, a family and a first home). �Building up a “rainy day” fund for emergencies (possible job lay off, etc. ). �Developing a personal financial/investment plan. �Starting a savings and investment program.
Another Unit 1 Lesson … Key Concepts of Saving and Investing �Pay yourself first �Set goals that inspire success (short, medium and long term) �Don’t take unnecessary risks �Put time to work for you �Diversify!
Unit 1 Overview – Getting Started �Defining “Investor Education” �Why people save and invest �How to think about making financial decisions �Key concepts of saving and investing
Unit 2 Overview – Intro to Financial Markets �Understanding risk and reward �How financial markets work �Savings, stocks, bonds, mutual funds and other investments �Regulation of financial markets
Unit 3 Overview – Financial/Investment Plan �Introduction to financial/investment plans and core concepts �Framing a plan to meet students’ financial goals �Selecting financial professionals
Unit 4 Overview – Investment Fraud �Introduction to investment scams �How telemarketing fraud works: Inside a “Boiler Room” �Teach your students to become “Victim Proof”: Self -defense tips against fraud �How regulators protect investors
Other Great The Basics Tools �Resources – updated inventory of the best online and in print! �Materials – emphasis on free content. �Organizations – an expanded list of the experts you can trust. �Agencies – learn about the state officials are standing by to help you as an educator. �Glossary of terms – expanded list of key investor education concepts.
Additional Resources for Educators IPT Investor Education Booklets Video on the IPT Website
Contact Us for More Information! �Presenter Contact Information �Investor Protection Institute www. i. Invest. org �Investor Protection Trust www. investorprotection. org
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