Creating Wealth

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A primer for high school students.

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Creating Wealth

  1. 1. Creating Wealth<br />A primer for high school students<br />
  2. 2. Sources of Income<br />Allowance<br />Job<br />Inheritance<br />Career<br />investments<br />
  3. 3. Return on Investment Formula<br />Investment Proceeds – Cost of Investment____________________________________<br /> Cost of Investment<br />
  4. 4. Future Value of a Single Sum<br /><ul><li> PV is amount invested
  5. 5. r is the interest rate
  6. 6. n is the number of investment periods</li></li></ul><li>Future Value with Compounding<br />m is the compounding frequency, <br />e.g., semi-annual would be 2<br />
  7. 7. Power of Compound Interest<br />Invest a sum and keep the interest in <br />“interest on interest”<br />
  8. 8. RISK<br />RETURN<br />
  9. 9. Wealthy Barber<br /> Save 10% of what you earn...FIRST!<br />
  10. 10. Warren Buffet<br />Buy companies’ stocks whose products you use everyday<br />Buy and Hold<br />
  11. 11. Alternatives<br />Collectibles<br />Trading cards<br />Art<br />Comic books<br />Antiques<br />Gold, Silver<br />
  12. 12. Fun Websites<br />Compound Interest Calculator:<br />http://www.calculatorweb.com/calculators/compoundcalc.shtml<br />Chartgame (stock trading simulation):<br />http://chartgame.com/<br />

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