Title: Compare investment and savings alternatives.
Course: Life Planning (19257-18) > Section: Developing a Plan for Financial Sustainability

Comparison should include

- definition of 70-20-10 Rule associated with spending, saving, and investing
- types of investments
- explanation of the time value of money and how compound interest works (the Rule of 72)
- short- and long-term consequences of investment decisions
- advantages and disadvantages of popular investment vehicles.

Process/Skill Questions:

Thinking

- What are the advantages of developing a savings plan?
- What is the difference between saving and investing?
- What are the consequences of not saving or investing your money?
- Where do you put the money for your emergency fund? Your retirement fund?
- What are some of your future financial goals?

Communication

- How can parents teach the importance of savings?
- What are some questions you could ask an investment adviser?

Leadership

- How can you adapt your savings plan to current economic situations?
- How do you determine who in the family should manage the money?

Management

- What are some reasons why people do not save?
- Why is it important to pay yourself first?