Chapter 5: The Power of Investing
LESSON GOAL
BY THE END OF THIS LESSON,
you’ll learn how the stock market works in a simple, hands-on way. You’ll play a fun mini game with your parent, sibling, or friend to practice “buying” and “selling” pretend stocks, track their value, and experience how investing changes over time.
💬 let’s break it down
The stock market is like a big store where people buy and sell tiny pieces of companies, called stocks.
When you invest in a stock, it’s like buying a super small piece of a company — like Disney, Nike, or LEGO (cool, right?).
If the company does well, your piece becomes worth more.
If it doesn’t do so well, your piece might go down in value.
That’s what we call market ups and downs — just like you learned about in the last lesson.
In this game, you’ll act like a real investor!
You’ll choose pretend companies to “invest” in and track how their value changes over the next few days or weeks.
The goal isn’t to “win” — it’s to learn how the market works and how to be a calm, thoughtful investor. 📈📉
🧠 ANALOGY: The Stock Market is Like a Farmers Market
Imagine going to a farmers market. Everyone is buying and selling — prices change depending on the season, how fresh the fruit is, or how many people want it.
Stocks work the same way. Their prices go up and down based on how the company is doing, how people feel, and what’s happening in the world.
Just like with fruit, some days are better deals than others — but over time, value can grow.
🤔 critical thinking questions
Why do stock prices change so often?
Would you sell your stock if the price dropped a little? Or wait?
What kinds of companies do you think are good to invest in?
How can playing a game help you become a smarter investor?
✍️ journal entry: “My Investor Report”
Write about the pretend company you chose in the mini stock market game.
Why did you pick it?
How did it do?
If you had real money invested, what would you do next?
Write how it felt to watch the price go up and down — and what you learned about being patient.
👨👩👧👦 ACTIVITY WITH FAMILY OR FRIENDS: Mini Stock Market Game 🎲
What You’ll Need:
Paper or printable game sheet
Pretend money (or use real coins if you like!)
A list of pretend companies (or real ones you like!)
Dice or coin to simulate price changes
A tracker sheet for your “stocks”
How to Play:
Each player gets $100 in pretend money.
Choose 2–3 pretend companies to “invest” in. Write down how much you put in each.
Each day (or round), roll a dice or flip a coin to see how the prices change.
Example: Roll a 1 = stock drops 10%, roll a 6 = stock rises 20%
Track your value and write it down each round.
After a few days or rounds, compare how everyone’s investments did!
🎯 What This Teaches: Investing takes strategy, patience, and staying calm during ups and downs. Practice makes progress!
💵 real-life practice: Pick and Track a Real Stock
Ask a grown-up to help you choose one real stock to “watch” this month.
Use a free app or website like Yahoo Finance or Google to check the stock’s value once a week.
Track:
The company’s name
What the price was each week
Whether it went up or down
What you think will happen next
🌟 Bonus: Write a pretend investor report about your “stock pick of the month.”
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Add a short summary or a list of helpful resources here.