High School Resource

Financial Markets and Planning

Objective:

In this activity, students will gain valuable life skills in financial markets and planning as they develop an awareness of the United States economy.

Activity:

• Teacher, financial planner, financial reporter, or representative from the business school of a local university speaks to the class on the importance of understanding the financial markets and developing a financial plan for the future.
• Students are presented with definitions and information regarding:
  • NASDAQ/AMEX
  • Credit and credit ratings
  • Standard & Poor’s 500
  • Mutual funds
  • Insurance
  • Savings
  • Interest Rates (both borrowing and investing)
  • The Dow Jones industrial average
• Teacher or speaker explains the financial advantages/disadvantages, and relative risks, of the different investment formats, and discusses the difference between long-term and short-term investment.
• Students access numerous, related websites and various resources (e.g., magazines, newspapers) reinforcing definitions previously discussed.
• Students are taught how to invest and how to check on gains or losses.
• Each student is “given” a set amount of money to invest and develops a financial plan. The status of each student’s account is checked weekly, and each student maintains a spreadsheet of his “investments.”
• At the end of the semester or year, each student reevaluates his/her plan and has the opportunity to make adjustments.
• Each student submits a report of the gains/losses and explains why adjustments were made.
• Students discuss insights they gained from the experience.

Related NY State Academic Standards: RH.9-10.2, RH.11-12.2, WST.9-10.6, and more!

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