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1 HAPPY BIRTHDAY BANNER DJ FLASHY PARTY HIRE PARTY STORE PARTY SONG I Make Money Too Save Money for the Long Term Brought to you by LIST PARTY party

2 This Activity Answers The Question... PAGE 2 In addition to saving in a bank, is there another way to save? Saving for Success music video demonstrates saving money in a bank as one way to save and grow your money. Another way to save and grow money is investing in the stock market. Money deposited in a bank is guaranteed back to the depositor. In return, the money deposited earns a small amount of interest each month for lending it to the bank. This type of saving is free from risk but grows very slowly. Investing in the stock market means that your money is given to a company to help that company grow and make more money, and you become a partial owner of the company. In this way, if the company makes money, you make money too. Investing in companies means that you can make more money than you might if that same money was slowly growing in a bank. However, it s also a riskier way to grow money because if the company loses money then you lose money too. Why is this important? This is important because investing money in the stock market is a choice that people have around money. It is important for kids to know their choices and understand the advantages and disadvantages of each. Informed decisions related to the 4 pillars of money (Earn, Save, Spend and Donate) enables individuals to successfully accomplish short and long term goals that meet their unique needs and wants. Choosing companies to invest in the stock market is equally unique to each person that invests. Learning about the stock market is a huge topic and therefore, this music video only touches on a few key concepts and in doing so starts the conversation about the stock market as a money choice. Researching companies, diversifying your investments into a number of companies and investing for long-term (slow and steady growth) are three important concepts to consider.

Music Video: I Make Money Too PAGE 3 The band are hanging out in the park where they see the kids all playing with the latest cool toy, the BatCat.

Zul is confused so Justin explains to him that investing in companies is another way to grow money.

So he researched the company that made it.

He decided to buy shares (invest) in BatCat, and in return he became a part owner of the company. Then if BatCat made money he would make money too.

He gives the tip that the best way to grow money by investments is to diversify.

Justin looked at a successful computer company called Althos Computers. His friends all really liked their products.

Althos lost money because a competitor sold a similar computer at a less expensive price.

Their new product is expected to be something everyone wants and he expects the share price to rise again.

3 Music Video: I Make Money Too PAGE 3 The band are hanging out in the park where they see the kids all playing with the latest cool toy, the BatCat. Justin explains to Zul he has invested in the company that makes the toy. Zul is confused so Justin explains to him that investing in companies is another way to grow money. Justin tells the story of how he was impressed by the BatCat when he first saw it and how other kids also loved it. So he researched the company that made it. He went to the factory and found out that they didn t have enough machines to make the toy fast enough to keep up with demand in the shops. He decided to buy shares (invest) in BatCat, and in return he became a part owner of the company. Then if BatCat made money he would make money too. However Justin was aware that he may be wrong and that BatCat might not be a big success. He gives the tip that the best way to grow money by investments is to diversify. This tip is important because this means that if one company doesn t make money, then he doesn t lose all his money. Justin looked at a successful computer company called Althos Computers. His friends all really liked their products. He researched the company s history and their share price. He found out that they had a lot of success but then their share price fell sharply. Althos lost money because a competitor sold a similar computer at a less expensive price. However Althos innovated and their next product, the Althos Lite was very successful. Their new product is expected to be something everyone wants and he expects the share price to rise again. Justin therefore bought shares in Althos Computers and reveals his second tip: do your research so you know as much as possible about the company before you invest. Because share prices can go up as well as down, Justin then looked for a really stable company to invest in for the long-term. He found a product that everyone needs, uses everyday and expects to need forever, electricity. In fact, when he did his research he found out that the electricity company had plans for the future that would keep them in business and earning money for a long time. What is more, there was no competition, as only one company sold electricity in his city, called ElectriCity. He didn t think he was going to make or lose a lot of money. This investment could be steady income for the long term. He invested his money and bought shares in ElectriCity. Another investment tip is, investing for the long term.

4 Do-Together Activity PAGE 4 DISCUSS CREATE REVIEW Start this activity by watching this music video. Then ask the question and discuss with your child(ren): What are your long term life goals? How do you plan to reach those goals? Have you ever heard of the stock market? What does invest mean? Is investing in the stock market a way to earn, save, spend or donate your money? Which one(s)? What does it mean to take a risk? Before you choose a company to invest in, what are some questions you should ask about the company you want to have partial ownership? If you have the money to invest in more than one company, what should be the same or different about the companies you consider? 1) 2) 3) 4) Play Portfolio Create your own investment portfolio (a group of companies you want to invest in), buy shares in a few strong companies that you think have the potential to grow. Keep track of the stock price for a week / month. Research. Brainstorm the most popular products or services and the needs and wants of people in the world today. Which companies would you invest in? Why? Search about the companies on search engines, e.g. Google / Yahoo. Fill out the Research Questions Tips Sheet and evaluate your investment choice. Ownership. Act as if you just gave the companies that make that product or provide that service money to become a shareholder. Print out the certificates and fill in the name of the companies, the amount of money invested and the number of shares of stocks awarded. Investment Statement. Follow the stocks' price by tracking the up's and down's on a daily basis on the printable Blank Investment Chart to Track Progress provided. Diversify. If you enjoyed this process keep playing and create a balanced portfolio adjusted to your desire for risk. Now that you have dabbled in the stock market answer the following questions together: What is the stock market? What does it mean to invest in the stock market? What are the pro s and con s of investing in the stock market? When choosing a company to invest in what questions should you consider? What did you learn in the process of tracking your stock choice every day? If you had the chance to own a variety of stocks which ones would you choose and why?

5 Research Questions Tips Sheet PAGE 5 What does the company you chose make? Is the product needed and used by people? How? How often? How many people need and want it? Who? Will this product be needed in the future? What is the companies competition? What makes this company unique from the competition? What do experts say about the company? Who runs the company? Does that person have a track record of success? How long has the company been in business? How much is the company worth? How much money did the company make last year, the year before and ten years ago? Do they have plans for the future that make you think they will make more money? ** these are just some of the key questions to ask when thinking about investing in a company.

6 STOCK CERTIFICATE THIS IS TO CERTIFY THAT IS THE OWNER OF SHARES OF STOCK OF SIGNATURE DATE

7 Blank Investment Chart to Track Progress $ PAGE 7 Day

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8 As seen on Ching.com Brought to you by We would love to hear your feedback. Visit our website and tell us about your experience with this activity and/or what you and your child(ren) learned from doing this activity Prudential Corporation Asia. All rights reserved.

Brought to you by. party PARTY LIST PARTY SONG HAPPY BIRTHDAY BANNER DJ FLASHY PARTY HIRE PARTY STORE

Brought to you by. party PARTY LIST PARTY SONG HAPPY BIRTHDAY BANNER DJ FLASHY PARTY HIRE PARTY STORE HAPPY BIRTHDAY BANNER DJ FLASHY PARTY HIRE PARTY STORE PARTY SONG Invisible Money It s Easy to Spend More Money than you Have! Brought to you by LIST PARTY party This Activity Answers The Question... PAGE