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Course: Financial Literacy > Unit 11
Lesson 3: About this unit: Investments and retirementLearning objectives and key concepts: Investments and retirement
Here you will find clearly marked learning goals in "student will" statements, which complement the objectives of the existing units and help frame your instructional approach.
Unit overview
This unit is designed for students in high school or college, but anyone who wants to learn more about investments and retirement can benefit from it. Students can watch the videos, read the articles, and do the exercises at their own pace, or you can follow the suggested lesson plan below. You can also use the resources and activities in the unit to supplement your classroom instruction, homework, or projects.
The unit consists of three lessons, each covering a subtopic of investing. Each lesson has a set of videos, articles, and exercises that explain and illustrate the key concepts and skills. The suggested lesson plan for each lesson is:
- Watch the videos and take notes on the main ideas and examples
- Read the articles and review the key terms and definitions
- Do the exercises and check your answers and explanations
- Discuss the questions and scenarios with classmates, teacher, or family
- Do the extension activities to apply, evaluate, analyze, and design own solutions
By the end of this unit, students will have a comprehensive understanding of investments and retirement planning. They will be able to discern between different types of investment options, recognize the importance of diversification, and make informed decisions about risk and return. Furthermore, they will understand the significance of early retirement planning, be able to estimate potential retirement costs, and identify potential income sources during retirement.
The lessons and their learning objectives are:
Lesson 1: Introduction to saving and investing
This lesson imparts knowledge on the significance of saving and investing, the difference between the two, and how financial institutions and markets aid in these processes.
Key concepts:
Importance of saving and investing: Understanding the significance of setting aside money for future use and growing wealth.
Role of financial institutions: The function and services provided by banks, credit unions, and other financial entities in facilitating saving and investment.
Financial markets: How these markets operate and their role in the economy.
Student will be able to:
- describe the importance of saving and investing.
- identify how financial institutions and markets facilitate saving and investing.
- classify the types and functions of financial institutions and markets.
Lesson 2: Risk and return of investment options
Key concepts:
The lesson introduces students to the concept of risk and return in investments and familiarizes them with various investment vehicles like stocks, bonds, and mutual funds.
Risk and return: Understanding the potential gains (returns) and losses (risks) associated with different types of investments.
Investment options: Knowledge of various investment vehicles like stocks, bonds, and mutual funds.
Diversification: The strategy of spreading investments across various assets to reduce risk.
Student will be able to:
- define risk and return in the context of investments.
- differentiate between stocks, bonds, mutual funds, and the concept of diversification.
Lesson 3: Planning for retirement
This lesson educates students on the reasons to plan for retirement, how to estimate the costs associated with retirement, and potential sources of income during retirement.
Key concepts:
Retirement planning: Understanding the need to plan for life post-employment and the costs involved.
Retirement costs: Estimation of expenses during retirement including healthcare, living expenses, etc.
Retirement income sources: Different avenues from which one can derive income during retirement such as pensions, savings, investments, etc.
Student will be able to:
- explain why planning for retirement is important.
- estimate the costs of retirement.
- list and describe potential sources of income during retirement.