Students are given brief descriptions of three individuals. They act as financial advisors and develop a financial investment portfolio for each client using internet references as they analyze various saving options. The internet web sites assist students by providing information regarding their choices for the portfolios. Students may track the portfolio over several weeks to assess their investment strategies.
In this lesson students will learn about the impact that efficient markets have on attempting to correctly time the stock market, as well as how investing in stocks should have long-term investment goals. Part I begins by having students read and discuss a story. A small exercise is included which demonstrates that predicting what a stock does next is not so easy. Parts II and III takes the student through an interactive historical simulation giving the student a chance to make decisions about investing in the U.S. stock market.
In Part II of this lesson, students will have the opportunity to complete an interactive exercise that will take them on a historical tour of the stock market from 1920 until just after WWII. Students will learn the difference between a buy and hold vs market timing strategy as it relates to investing. Part III continues this interactive exercise by taking the student on a historical stock journey beginning slightly after WWII and proceeding through end of year 2000.
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
This publication contains 16 stories that complement the K-2 Student Storybook. Specific to grades K-2 are a variety of activities, including making coins out of salt dough or cookie dough; a song that teaches students about opportunity cost and decisions; and a game in which students learn the importance of savings.
3 out of 15 lessons from this publication relate to this EconEdLink lesson.