Compare investment and savings alternatives.

Comparison should include

• definition of 70-20-10 Rule associated with spending, saving, and investing
• types of investments
• explanation of the time value of money and how compound interest works (the Rule of 72)
• short- and long-term consequences of investment decisions
• advantages and disadvantages of popular investment vehicles.

Process/Skill Questions:

Thinking

• What are the advantages of developing a savings plan?
• What is the difference between saving and investing?
• What are the consequences of not saving or investing your money?
• Where should one put money for an emergency fund? A retirement fund?
• What are your future financial goals?

Communication

• How can parents teach the importance of savings?
• What are some questions you could ask an investment adviser?

Leadership

• How can you adapt your savings plan to current economic situations?
• What life situations would cause you to alter your savings plan?

Management

• What might prevent someone from saving?
• What does it mean to pay yourself first? Why is it important to do this?