From: Scott Wolla (misterwolla@yahoo.com)
Date: Fri Jul 25 2003 - 13:12:32 EDT
Next message: Scott Wolla: "[Channel-talkeconomics] Video #5 observations - Trading Globally"
Video #4
Learning, Earning, and Saving
I really enjoyed this video because I teach a unit on
Personal Finance in my Economics class. In reference
to the millionaire activity, I start my personal
finance unit with a study of millionaires. I have my
students build a profile of a typical millionaire
based on their perceptions as to how much money they
make per year (they almost always say over one million
per year – revealing their misceptions of what makes a
person a millionaire), what they drive, what kind of
house they live in, what they do for a living, and
what they do in their free time. Students have formed
their perceptions of what a millionaire is by watching
“MTV Cribs” and hearing about the lifestyles of
various movie stars, rock stars, and professional
athletes. They believe you become a millionaire by
winning a game show, or becoming very famous, then you
live a very extravagant lifestyle. In truth, normal
people become millionaires by working hard, living
beneath their means, and investing wisely. After our
discussion, I have student read the beginning of “The
Millionaire Next Door” which does a fantastic job of
revealing the truth. Students then write an essay on
their perceptions and how they may have been
incorrect. The activity on video #4 was very similar;
I plan on using this activity as my introduction to
the unit instead of the profile activity.
I also enjoyed the next activity on the topic of
compound interest. I tend to emphasize the time factor
to students when we talk about investing. There are a
number of great sheets showing the outcome of two
hypothetical investors with the basis of the
comparison being that one started earlier than the
other one. Students are always amazed to see how great
the growth factor of money is over a long time period.
The question that usually comes up is how can I earn
9% or 10% rate of return? This is a very thoughtful
question given that current interest rates on a simple
savings account are often less than 1%. I almost
always have students come and talk to me about how to
take advantage of time and what to invest in (I always
suggest an index mutual fund). I also do a very
intensive stock market portfolio activity, which often
gets students talking to their parents about stocks,
and often open their own brokerage accounts.
I thought Video #4 was very well done and I plan on
using some of these simulations in my classroom.
__________________________________
Do you Yahoo!?
Yahoo! SiteBuilder - Free, easy-to-use web site design software
http://sitebuilder.yahoo.com
_______________________________________________
Channel-talkeconomics mailing list
Channel-talkeconomics@learner.org
http://www.learner.org/mailman/listinfo/channel-talkeconomics
You may un-subscribe from this email list at any time by using the online form at the above URL. If you have difficulty using this form, please send email to Channel-talkeconomics-admin@learner.org and our mailing list administrator will assist you. Our privacy policy is posted online at: http://www.learner.org/about/privacy_policy.html
|
