Chapter 5: The Power of Investing
LESSON GOAL
BY THE END OF THIS LESSON,
you’ll understand what investing means in simple, kid-friendly language. You’ll learn how investing is different from saving, why it helps your money grow over time, and why starting young gives you a major superpower.
💬 let’s break it down
You already know how to save — that’s putting money aside to use later.
But what if your money could grow all by itself, like planting a magic seed?
That’s called investing.
📈 Investing is when you use your money to buy something — like a piece of a business (called a stock) — that has the power to grow in value.
When the business does well, your piece becomes worth more. You didn’t work extra hours — your money worked for you!
But here’s the thing: investing takes time and patience. Sometimes the value goes up and down, like a rollercoaster. 🎢 But if you leave it alone long enough, it usually grows way more than just saving alone.
People invest in all kinds of things — businesses, real estate, farms, even art.
And the earlier you start, the more time your money has to grow!
🧠 ANALOGY: Investing is Like Planting a Tree
Saving is like putting apples in your lunchbox. You can eat them soon.
But investing is like planting an apple tree. You won’t get fruit right away… but if you water it, wait, and take care of it — it will grow and give you way MORE apples year after year 🍎🌳
The secret? Start planting early, and let time do the work!
🤔 critical thinking questions
What’s the difference between saving and investing?
Why does investing take patience?
What do you think would happen if you invest and then take the money out right away?
If your money could grow like a tree, what would you want it to grow into?
✍️ journal entry: “If My Money Could Grow…”
Pretend you planted a money seed and it started to grow.
What would your money tree look like in 1 year? 5 years? 10 years?
Draw a picture of your tree and what you would use the money for — like helping your family, buying your dream house, or building a business!
👨👩👧👦 ACTIVITY WITH FAMILY OR FRIENDS: Business Investor Game
What You’ll Need:
A few “pretend businesses” (make up names like Leo’s Lemonade Stand, Ava’s Art Shop, etc.)
A paper with $100 pretend dollars
A grown-up or friend to play with
What to Do:
Each person gets $100 to invest.
Read about each pretend business (what they sell, how they grow).
Choose which ones to invest in — and how much.
After a few “months” (pretend time), check how your business did!
🎯 What This Teaches: Investing is about making thoughtful choices and trusting the process — not about getting rich quick.
💵 real-life practice: Learn What Your Parents Invest In
Ask your parent or guardian if they have any investments.
Some ideas:
Retirement accounts
Stocks or mutual funds
A small business or real estate
Have them explain in simple terms what it means — and how it’s helping their money grow.
🌟 Bonus: Ask if they’d help you start your own mini investment (even just tracking a pretend stock each week!).
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