Junior Achievement Investment Strategies Program LESSON 2 – Mutual Respect.

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Junior Achievement Investment Strategies Program

LESSON 2 – Mutual Respect

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 2

LESSON 2 - Mutual Respect

Canada’s Talent

Bombardier Inc.

Suncor Energy

BlackBerry

How did your company do this week?

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 3

LESSON 2 - Mutual Respect

Canada’s Talent

Value of 100 Shares

Company 1: Company 2: Company 3:

Value Week 1

Value Week 2

Value Week 3

Value Week 4

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 4

How long will it take to double my money at a 3% rate of return?

LESSON 2 - Mutual Respect

Rule of 72

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 5

Divide the number (72) by the rate of return (3). Therefore it will take (24) years to double the investment.

LESSON 2 - Mutual Respect

Rule of 72

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 6

LESSON 2 - Mutual Respect

Stocks and Bonds

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 7

LESSON 2 - Mutual Respect

Investment Vehicles

Bonds Real Estate

GICs Art

Penny Stocks Mutual Funds

Blue Chip Stocks RESPs

ETFs RRSPs

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 8

Research 3 investment vehicles to learn the advantages and disadvantages of each investment.

LESSON 2 - Mutual Respect

Investment Vehicles

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 9

Before you make financial decisions, you should consider a few factors:

• Personal financial goals• Risk vs. Return• Diversification

LESSON 2 - Mutual Respect

Investment Vehicles

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 10

What are your personal financial goals?

LESSON 2 - Mutual Respect

Investment Vehicles

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 11

LESSON 2 - Mutual Respect

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 12

Define

Diversification

LESSON 2 - Mutual Respect

Investment Vehicles

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 13

Chin has decided to buy his first car. He has $2,000 ready for a down payment but can’t seem to find the car of his dreams.

Chin does not consider himself a risk taker and wants to feel secure about his investments.

LESSON 2 - Mutual Respect

Advise and Invest

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 14

Shivi’s parents want to save for an RESP for Shivi and estimate that they will need $20,000 in 10 years time.

 

Shivi’s parents would rather risk a bit of money in hopes for a higher return, as long as they can access his money immediately.

LESSON 2 - Mutual Respect

Advise and Invest

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 15

LESSON 2 - Mutual Respect

Advise and Invest

Nikki’s generous aunt gave her $5,000 for her 18th birthday. She would like to risk a bit to see how much money she can make from this gift.

 

Nikki feels that she is young and is willing to try a few high-risk investments just for fun.

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 16

There are hundreds of mutual funds available in Canada.

What are they? Why can they be a good way to make a return on your investment?

LESSON 2 - Mutual Respect

Mutual Respect

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 17

Balanced

Bond

Socially Responsible

Money Market Sector

LESSON 2 - Mutual Respect

Mutual Respect

BUSINESS EDUCATION FOR YOUTH | jabc.org

SLIDE 18

Research securities that you will include in a mutual fund.

Do you want a socially responsible fund; bond fund, sector fund, etc.?

LESSON 2 - Mutual Respect

Mutual Respect

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