Week 02, Class 07
Saving versus Investing
Borrow, protect and grow your money
Saving and investing are words used interchangeably by people who lose money doing one when they meant the other. This class separates them properly: what each is designed for, and what each asks in return.
Students meet stocks, index funds and diversification, and the idea that risk and return travel together. Then they practice the actual skill: matching a financial goal to the right tool, saving or investing, and explaining the choice.
Topics covered
- Saving versus investing
- What a stock is
- Index funds
- Diversification
- Risk and return
- Matching choices to goals
The practical activity
Students receive a set of financial goals with time horizons and match each to saving or investing, then defend the matches out loud.
The learning outcome
Students can compare saving and investing and match each to a goal.