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Investment returns Figure 1: Percentage return by asset class – 2014-2023 The following tables represent the returns on an investment of $100,000 over different periods of time. Table 1: One-year investment Date of investment Gain or Loss (actual return on $100,000) Year beginning and ending Cash Bonds Property Shares 2014 $3,600 $4,308 $6,700 $5,310 2015 $2,650 $2,407 $10,700 $2,250 2016 $…

Refer to Investment returns – Data sheet. Part 1: Analysing investment returns Look at figure 1. It shows the percentage returns of different asset classes for the 10-year period between 2014-2023. It does not include returns of alternative assets, as these are more appropriate for experienced and sophisticated investors. What does the graph tell you about the volatility of each asset class? Volatility is a tendency to change quickly and…

What is the difference between saving and investing? Have you ever saved up to buy something? Maybe you are putting money aside now to buy something that is important to you. Money can also be saved for a rainy day, or for unexpected expenses or events. Putting money aside into a savings account offers security or a sense of comfort regarding the future. If you save your money in a bank, you begin with a deposit and contribute regular amounts…

  Linked activity: Saving versus investing

Refer to Saving, investing and super – Explainer. In your groups, complete the following tables. Attributes Saving Investing Definition How does it work? Purpose   Investment attributes Saving Investing Reward…

Imagine you have inherited $10,000. You have 2 options: save it invest it  Each of these options has its advantages and disadvantages, or costs and benefits.  Rank the following financial goals in order of importance to you: Financial goals (Criteria) Ranking from highest to lowest priority (1 being highest to 4 lowest) Having money in the bank in case of…

  Linked activity: Managing your spending Starting a job

Step 1: Determine your financial position Your weekly income Your weekly expenses Remaining (if you spend more than you earn, use a negative sign) What financial position are you in? Do you currently: Spend less than you earn? That’s great news, but with some planning and discipline, you can improve. Spend what you earn? You’re living within your means, which is good…