The Young Investor: Projects and Activities for Making your Money Grow

145 Pages·1.965 MB·English

by  Bateman Katherine Roberta.

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Young
The
ACTIVITY/PERSONAL FINANCE
AGES 9 & UP
“Katherine Bateman’sThe Young Investor
T B
a
Investorprovidesthe tools needed
t
e
for today’s investors, young or not m Projects and Activities
a
so young, to navigate the path to n
for Making Your
he Young Investor successful savings for a first car,
house, and comfortable retirement.” Money Grow
explains the language
—Ronald E. Toupin Jr.,
of business and the skill of SECOND EDITION
independent chair,
investing so that children can Claymore Funds
grow up business literate and
“Using this friendly companion,
get an early start at making
young adults can make their way
T
their money grow. Brief, fun across the ‘great divide’ that sepa-
h
e
rates the savers and investors from
projects teach them how to bal- Y
o
the spenders.”
u
ance a checkbook, read stock
n
—Tim Schwertfeger,
g
tables, and understand terms
chairman and CEO,
I
Nuveen Investments n
such as inflation, recession, and
v
the Fed—as well as how to buy e
“An invaluable resource for anyone,
s
t
and sell stocks, savings bonds, young or old, who wants to under- o
r
stand investing and take more con-
and mutual funds. This fully
trol of their finances.”
updated second edition intro-
—John Rogers Jr., chairman
duces mortgages and how they S
and CEO, Ariel Capital E
C
O
work, explains what is meant by Management, Inc. N
D
E
a global economy, and more. D
“From how to write a check to how IT
IO
N
to put in a stop order on a stock, a
great resource for students, parents,
and teachers.”
Katherine R. Bateman
—Sarah J. Duncan, Young
Women’s Leadership
Charter School
$14.95 (CAN $16.95)
ISBN 978-1-56976-546-3
51495
9 781569 765463
Young
The
Investor
Projects and Activities
for Making Your
Money Grow
Second Edition
Katherine R. Bateman
Library of Congress Cataloging-in-Publication Data
Bateman, Katherine Roberta.
The young investor : projects and activities for making your money grow / Katherine
R. Bateman. — 2nd ed.
p. cm.
Includes index.
ISBN 978-1-56976-546-3 (pbk.)
1. Investments—Juvenile literature. 2. Saving and investment—Juvenile literature.
3. Money—Juvenile literature. 4. Stocks—Juvenile literature. 5. Children—
Finance, Personal—Juvenile literature. I. Title.
HG4521.B4225 2010
332.6—dc22
2010025642

Cover design: Paul Dolan Illustration
Interior design and illustration: Sean O’Neill

Copyright © 2001, 2010 by Katherine R. Bateman
All rights reserved
Second edition
Published by Chicago Review Press, Incorporated
814 North Franklin Street
Chicago, Illinois 60610
ISBN 978-1-56976-546-3
Printed in the United States of America
5 4 3 2 1
To my grandchildren—Eleanor, Arlo, T, Cauley,
Asa, Summer, and Roger Clay

Contents
Acknowledgments ix
A Letter to Parents and Grandparents
or Why I Wrote This Book xi
Introduction
The Warm-Up, Including the Goal xiii
1
All About Money
What Is It, and Where Does It Come From? 1
Search for Old Coins 3
Make a Money Circle 6
Practice Writing Checks 11
2
All About Saving
How Time and a Little Math Can Make You Rich 17
Compare Interest Rates at Banks and Credit Unions 22
Calculate Your Interest Earnings 23
3
All About Investing
How to Make Money Make More Money 27
Make a Risk Tolerance Chart 29
Search for a Savings Bond 31
Discover What’s Built by Bonds 34
Find a Stock Report 37
Think of Ways to Earn Money 40
4
All About the Market
What Is the Market, and Where Is Wall Street? 43
Visit a Stock Exchange 47
Find a Stockbroker 51
Write a Script 54
5
All About Stock Tables
How to Read Them for Fun and Money 57
Look Up Stocks 65
Read the Mutual Fund Tables 70
6
All About the Economy
Why Nikes Cost More When It Floods in China 75
Follow the Weather 77
Check the Health of the Economy 80
Check Inflation 84
Visit a Federal Reserve Bank 89
Find the Fed in the Media 89
7
All About Stock Picking
What Your Toothpaste Tells You 93
Search for Consumer Staples 96
Conduct a Consumer Survey 99
Find Fund Families 102
8
All About All of the Above
And Where to Go for More 107
Thinking of More Questions 114
Conclusion
The Wrap-Up, Including a Reminder of the Goal 115
Glossary 117
Index 123
About the Author 128

ACkNoWLeDGMeNTS
The following people deserve warm thanks:
Sara Schastok, for serving as matchmaker between my book and
Chicago Review Press.
The staff of Chicago Review Press, who graciously walked me through
each step of publishing a first book, then another book, and now this revi-
sion.
Cary Anderson, who provided me with first-hand information on credit
unions.
T, who searched for interesting number stories and found them.
Billy Ray Fawns, for being so open and forthcoming about each step
of his saving and investment plans. His story carries the concepts of
investing into reality.
Finally, Richard, who has helped me build a contented, creative base
from which to work.
ix