Saving Well, Spending Well

Pack 226 BearsDecember 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 $286Goodyear You lost $109

Netflix You made $192McDonalds 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)