Investing Basics & Risk
📋 What it is
Investing puts money to work for possible growth, with risk that it could fall.
🗣️ Coach says
Investing means using money to try to make more — but with RISK (it can go down too). Higher possible reward usually means higher risk. Spreading money around ("don't put all your eggs in one basket") lowers risk.
🧠 Memory hook
Investing = growth with RISK. More possible reward → more risk. Spread it out to lower risk.
😂 Giggle
Why did the bank feel secure?
Because it had a lot of interest in its customers!
😲 Whoa!
Historically, money invested broadly in the stock market has grown over long periods — but it drops in some years, which is the risk.
✅ Quick check: Why is putting all your money in one company risky?
Say your answer out loud first — then reveal.
If that one company falls, you lose a lot; spreading it out cushions the loss.
Diversifying reduces the impact of any single investment failing.
🧪 Try it! (2 minutes)
List 3 things people invest in (stocks, savings, a business) and rank them by risk.