Superannuation - Risks and rewards
Access denied
Introduction
There are both risks and rewards associated with all investments, including superannuation. In this activity students interpret data to draw conclusions about the short- and long-term impact of the Global Financial Crisis (GFC) on different superannuation investments and the relationship between risk and reward and risk and age.
Achievement standard
By the end of Year 9, students explain the role of the Australian economy in allocating and distributing resources, and analyse the interdependence of participants in the global economy. They explain the importance of managing financial risks and rewards and analyse the different strategies that may be used. They explain why businesses seek to create a competitive advantage, including through innovation, and evaluate the strategies that may be used. Students analyse the roles and responsibilities of participants in the workplace.
When researching, students develop questions and simple hypotheses to frame an investigation of an economic or business issue. They gather and analyse relevant data and information from different sources to answer questions, identify trends and explain relationships. Students generate alternative responses to an issue and use cost-benefit analysis and appropriate criteria to propose a course of action. They apply economics and business knowledge, skills and concepts to familiar, unfamiliar and hypothetical problems. Students develop and present evidence-based conclusions and reasoned arguments using appropriate texts, subject-specific language and concepts. They analyse the effects of economic and business decisions and the potential consequences of alternative actions.
Content descriptions
Economics and Business Knowledge and Understanding
Why and how people manage financial risks and rewards in the current Australian and global financial landscape (ACHEK040).
Economics and Business Skills
Analyse data and information in different formats to explain cause-and-effect relationships, make predictions and illustrate alternative perspectives (ACHES045).
Apply economics and business knowledge, skills and concepts in familiar, new and hypothetical situations (ACHES047).
Teacher resources
In order to see the resources you must Register or Login if you already have an account.
Investment options and risk and reward
Student learning resources
In order to see the resources you must Register or Login if you already have an account.
Super investment options
Superannuation risks and rewards
Suggested activity sequence
This sequence is intended as a framework to be modified and adapted by teachers to suit the needs of a class group.
- Use the visualiser to explain the relationship between risk, reward, volatility and investment options. Define and discuss the key terms.
Key terms- Risk
- Reward
- Volatility
- Conservative investment options
- Growth investment options
- Balanced investment options
- As a class read the explainer, clarifying key terms and concepts.
- As an introduction to the student worksheet, provide students with context on the GFC:
The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems between mid-2007 and early 2009. During the GFC, a downturn in the US housing market was a catalyst for a financial crisis that spread from the United States to the rest of the world through linkages in the global financial system. Many banks around the world incurred large losses and relied on government support to avoid bankruptcy. Millions of people lost their jobs as the major advanced economies experienced their deepest recessions since the Great Depression in the 1930s (RBA).
- Students individually complete the worksheet.
- Use a grouping strategy to organise students into groups of 4.
Use a discussion strategy to promote collaboration and participation, such as talking cards.
- Groups discuss the following:
- Why is it important to take a long-term view in relation to super investments? Use statistics to support your response.
- The GFC has been likened to a ‘speed bump’. Do you agree or disagree with this statement? Why or why not?
- Groups share their conclusions with the class.