2. Don’t start with the money!

3. Remember him?

4. Why Finance?
“People don’t buy what
you do, they buy why
you do it.”

5. Can money make me happy?

6. Should I invest in this?

7. Should I invest in this?
TIMEMONEY

10. K W L
FINANCE & FINANCIAL LITERACY

11. Text

12. How should I invest $3000?

13. Brokerage Firm
#1
Brokerage Firm
#2
Brokerage Firm
#3
Paolo Pedro Gonzalo
Daniela Gisella Bobby
Andrea Karen Carolina
Augusto Domenico Stefan

14. FINANCE PRINCIPLE #1: Time Value of Money
Time Value of Money

15. FINANCE PRINCIPLE #1: Time Value of Money

16. What is the future
value of $3000 if you
invest that money at
8% for two years?
FINANCE PRINCIPLE #1: Time Value of Money

17. FINANCE PRINCIPLE #1: Time Value of Money

18. How long would it
take for that money
to double?
FINANCE PRINCIPLE #1: Time Value of Money

19. FINANCE PRINCIPLE #1: Time Value of Money

20. What you do--
or don’t do--
with your
money today,
affects you in
the future.
FINANCE PRINCIPLE #1: Time Value of Money

21. What you do--
or don’t do--
with your time
today, also
affects you in
the future.
FINANCE PRINCIPLE #1: Time Value of Money

22. FINANCE PRINCIPLE #1: Time Value of Money
Setting important
goals and being
DISCIPLINED
enough to achieve
them.
The first part of finance is about:

23. FINANCE PRINCIPLE #1: Time Value of Money
If you spend
your money
wisely today, it
will pay off in
the future.

24. FINANCE PRINCIPLE #1: Time Value of Money
If you spend
your time
wisely today, it
will pay off in
the future.

25. FINANCE PRINCIPLE #1: Time Value of Money

26. FINANCE PRINCIPLE #1: Time Value of Money

27. FINANCE QUIZ
What is the
time value
of money?
And why is this
important?
Question

28. FINANCE QUIZ
A dollar today is
worth more than a
dollar tomorrow.
INVEST!
Answer

29. FINANCE QUIZ
What is
interest?
Question

30. FINANCE QUIZ
The charge for the privilege of
borrowing money, typically
expressed as an annual percentage
rate.
Answer
Interest is commonly calculated
using one of two methods: simple
interest calculation, or compound
interest calculation.

31. FINANCE QUIZ
What is
compound
interest?
Question

32. FINANCE QUIZ
Interest that accrues on the initial
principal and the accumulated interest of
a principal deposit, loan or debt.
Compounding of interest allows a
principal amount to grow at a faster rate
than simple interest, which is calculated
as a percentage of only the principal
amount.
Answer

33. FINANCE QUIZ
Answer

34. FINANCE QUIZ
What is a
stock?
Question

35. FINANCE QUIZ
Answer
At some point, just about every company needs to
raise capital, whether to open up a West Coast
sales office, build a factory, or hire a crop of
engineers.
In each case, they have two choices: 1) Borrow the
money, or 2) raise it from investors by selling them
a stake (issuing shares of stock) in the company.
When you own a share of stock, you are a part
owner in the company with a claim (however small
it may be) on every asset and every penny in
earnings.

36. FINANCE QUIZ
Answer
the capital raised by a business or
corporation through the issue and
subscription of shares.
shares of a company that a person

37. FINANCE QUIZ
Answer
Nevertheless, it's that ownership
structure that gives a stock its value. If
stockowners didn't have a claim on
earnings, then stock certificates would be
worth no more than the paper they're
printed on.As a company's earnings
improve, investors are willing to pay
more for the stock.

38. FINANCE QUIZ
What is a
bond?
Question

39. FINANCE QUIZ
Answer
A debt investment in which an investor loans money
to an entity (corporate or governmental) that
borrows the funds for a defined period of time at a
fixed interest rate. Bonds are used by companies,
municipalities, states and U.S. and foreign governments
to finance a variety of projects and activities.
Bonds are commonly referred to as fixed-income
securities and are one of the three main asset classes,
along with stocks and cash equivalents.

40. FINANCE QUIZ
Answer
Two features of a bond - credit quality and duration -
are the principal determinants of a bond's interest
rate. Bond maturities range from a 90-day Treasury bill
to a 30-year government bond. Corporate and
municipals are typically in the three to 10-year range.

41. FINANCE QUIZ
What is a
mutual
fund?
Question

42. FINANCE QUIZ
Answer
An investment vehicle that is made up of a pool of
funds collected from many investors for the purpose
of investing in securities such as stocks, bonds, money
market instruments and similar assets. Mutual funds
are operated by money managers, who invest the
fund's capital and attempt to produce capital gains and
income for the fund's investors.A mutual fund's
portfolio is structured and maintained to match the
investment objectives stated in its prospectus.

43. FINANCE QUIZ
Answer
One of the main advantages of mutual funds is that
they give small investors access to professionally
managed, diversified portfolios of equities, bonds and
other securities, which would be quite difficult (if not
impossible) to create with a small amount of capital.

44. FINANCE QUIZ
What is an
ETF?
Question

45. FINANCE QUIZ
Answer
A security that tracks an index, a commodity or a
basket of assets like an index fund, but trades like a
stock on an exchange. ETFs experience price changes
throughout the day as they are bought and sold.

46. FINANCE QUIZ
What are the
indexes like
NASDAQ, DOWN
JONES, S&P 500?
Question

47. FINANCE QUIZ
What is an IPO?
Question

48. WHAT’S AN IPO?

49. FACEBOOK’S IPO

50. FACEBOOK’S IPO