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Saving Well, Spending Well. Pack 226 Bears December 14 th , 2012. Saving Well, Spending Well. Discuss how we make, spend, and save money Learn about stocks, profits, shareholders Look at 5 stocks, discuss their prices in 2012 Partner up and select 2 of 5 stocks
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Saving Well, Spending Well Pack 226 Bears December 14th, 2012
Saving Well, Spending Well • Discuss how we make, spend, and save money • Learn about stocks, profits, shareholders • Look at 5 stocks, discuss their prices in 2012 • Partner up and select 2 of 5 stocks • See who made money, who lost money • Play Monopoly as a den
What can you do or buy with money ? What requires spending money ? -Driving -Eating -Clothes -Movies -Holiday/Birthday Toys How do you make money ? -Get a job ?!?! -Chores for an allowance ? How do you save money ? -Under mattress ?!?! -Bank account -Invest in stocks Money is going to be important to you all your life. Now is a good time to learn how to manage it.
Stocks for 3rd Graders • A piece of paper that says you own some part of a company. • Owning a share of the company makes you a shareholder. • As a shareholder, you are entitled to some part of the company’s profits. • Profits are money the company makes. • Each share is worth some price which can go up or down over time. • Some stocks pay Dividends, give money back to thank shareholders for owning part of the company. • Many things to look at before buying a stock, we will only explore the stock price today.
Apple (AAPL) • What 4 things does Apple make ? • What happens when a new iPhone comes out?
Goodyear Tire (GT) • What does Goodyear make ? • How often do Mom & Dad buy new tires ?
Netflix (NFLX) • What does Netflix do ? • How do you think they make money ?
McDonalds (MCD) • What does McDonald’s make ? • People have to eat, often in a hurry
Electronic Arts (EA) • What does EA make ? Hint: Madden • Name some other examples from EA
Picking Stocks • Partner up with someone • Review the 5 stocks we discussed • Look at and talk about their stock price • Choose 2 of 5 stocks that you think will make the most money
Winners & Losers Assume we bought $1,000 worth of each stock at the beginning of the year. If you chose… Apple You made $286 Goodyear You lost $109 Netflix You made $192 McDonalds You lost $93 Electronic Arts You lost $288
Closing Discussion • Stocks are a great way to make money • Can also lose money without smart choices • Think about what a company does or makes • Look at highest and lowest prices to see if this is a good time to buy or sell your stocks • What else did we learn? • On to “Take a Chance” ! (money game)