There are three forms of Investment: Ownership, Lending and Cash Equivalents.

1. What are the various forms
of investment?
Lesson 1 Week 1
Accounting
YEAR 10
Dec 2014

2. AusVELS
• Explain the role and significance of savings
and investment for individuals and for the
economy, and demonstrate the skills required
to successfully plan and manage personal
finances.
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3. GKR
Study Handout 1. What
do you think today’s
lesson is about?
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4. Today’s Learning Intention:
To develop an awareness of various investment
types.
Success Criteria:
Able to identify the investment forms
Able to provide one example of an investment
for each investment form
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5. Key Vocabulary:
• Investment
• Profit
• Convert
• Equivalent
• Money Market
• Real estate
• Stocks
• Shares
• Bonds
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6. Activity – Handout 2
• Create your own definitions
– Look at each of the sentences in Handout 2. Study
how each word (in bold) from the vocabulary list is
used.
– Now create your own definitions for each of these
words.
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7. 3 Forms of Investment
1. Ownership
– Putting money into something that gives you
ownership or part ownership of that ‘thing’.
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8. 3 Forms of Investment
2. Lending
– You act like a bank
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9. 3 Forms of Investment
3. Cash equivalents
– As good as cash because they can be easily turned
converted into cash
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10. Activity – Handout 3
• Complete handout 3 by:
– watching the rest of this presentation to
understand each of the investment types named
– then identifying the form each of the investment
types are by recording them in the correct column
on the handout
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11. Types of Investment
e the following is in no way to be
d investment advice. It is for
al purposes only!
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12. Types of Investments
• Remember, we invest to make money
• How can we compare investments?
• We can look at Return on Investment – that is,
how much we make based on how much we
have put in
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13. Types of Investments
• Savings accounts allow you to keep your
money in a safe place, a bank.
• By putting your money into a savings account
you are lending the bank your money.
• You earn interest on the
money you put into your
savings account.
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Click on the image to find out
- How Banks Work!

14. Types of Investments
• Go to http://www.anz.com.au/personal/bank-
accounts/calculators-tools/
• Use the savings calculator to work out how
much interest you can earn in 1 year on
$100,000
• Calculate the rate of return as:
ROI = (Gains – Cost)/Cost
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15. Types of Investments
• Business ownership
• Benefits – being own boss,
possibly making more money
than could as employee
• Risk – bankruptcy, very long
hours, etc.
Click on image
If it costs $100,000 to invest in the business and
ROI is 25% how much will you have earned on
your investment?
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16. Types of Investment
• Real Estate – owning real estate has many
benefits but there are risks too such as:
– tenancy risks (can’t get any / property damage)
– liquidity (can’t get money quickly)
– unable to make repayments on property
35 Reasons To Invest In Real Estate
http://www.yourinvestmentpropertymag.com.a
u/buying-property/35-reasons-to-invest-in-real-
estat
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17. Types of Investment
• Precious objects ownership – such as gold,
art, classic cars, glass, jewellery, etc., etc.
• Benefits include the pleasure of ownership
and an capital growth.
• There are risks such as capital loss,
damage and theft.
• Usually takes a long time for capital growth to
occur and generally does not generate any
income until sold.
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18. Types of Investments
• A Money Market Fund is an investment that is
easily converted to cash
• The security the fund invests in must be < 3
months to maturity so there is little risk of
change in its value if interest rates change
• It is a place to store cash that pays a higher
rate of interest than a savings account but is
still relatively stable (safe)
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19. Types of Investments
Click on image
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A bond owner has lent money
Bonds – are fixed income investment

20. Types of Investments
• An investment is something into which we put
our money with the intention of making a
profit.
• Are modern cars, education and big screen
TVs something we will make a profit from?
Complete the table.
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21. Handout 3 - Solution
Ownership Lending
Cash
Equivalent
Not an
Investment
Stocks
Savings
Account
Money
Market
Funds
Education
Business Bonds -
Big Screen
TVs
Real Estate - - Cars
Precious
Objects
- - -
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22. Review:
1. List the 3
investment forms.
2. Give one example of
an investment
option for each
investment form.
3. List 1 learning
strategy you used in
today’s lesson.
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