Title: Identify savings and investment options.
Course: Independent Living (22904-18) > Section: Managing Personal and Family Finances

Identification should include

- defining saving and investing
- discussing the risk-to-reward relationship, rate of return, diversification, and Rule of 72
- investigating and comparing savings and investment options, including
  - after-tax and tax-advantaged personal savings vehicles (e.g., 401k, 403b, and individual retirement account [IRA])
  - stocks
  - bonds
  - savings bonds
  - real estate
  - mutual funds
  - retirement accounts
  - savings accounts
  - certificates of deposit
  - collectibles/valuables
  - money market accounts
  - prepaid college plans
- investigating the purpose of estate planning.

Process/Skill Questions:

Thinking

- How does saving compare to savings?
- Why would an investor want to choose a certificate of deposit over a corporate bond?

Communication

- What do corporate bonds, municipal bonds, and government savings bonds have in common? How do they differ?

Leadership

- How much more would a traditional IRA earn than a basic savings plan?

Management

- What determines the value of a stock?
- What options are available to individuals who wish to invest in stocks?

Teacher Resources:

- Educator Toolkit for 2011 National Financial Capability Challenge, U.S. Department of Education (https://www.ed.gov/category/keyword/educator-toolkit-2011-national-financial-capability-challenge)
- Virginia Council on Economic Education (https://vcee.org/)
- Virginia Jump$tart Coalition for Personal Financial Literacy (https://www.jumpstart.org/who-we-are/states/virginia/)