The Basics of Saving and Investing:

Investor Education 2020

BRINGING INVESTOR
EDUCATION AND PROTECTION
TO THE CLASSROOM
Event Title
Date

Presenter’s Name
Presenter’s Affiliation
About IPI and IPT

The Investor Protection Institute protects all

investors by undertaking and supporting
unbiased investor research and
groundbreaking investor education programs.
The Investor Protection Trust works to
provide the independent, objective investor
education needed by all Americans to make
informed investment decisions.
Why teach investor education?

 Most Americans have to invest, but are unprepared to do so.

While some Americans have defined-benefit contribution plans,
most do not.
 A survey by the Center for Retirement Studies at Boston College
shows the danger:
 Most Americans are not eligible for a pension and must fend
for themselves to finance their golden years.
 Most Americans will not have enough saved to maintain their
standard of living in retirement.
 20% of eligible workers do not participate in the company
offered 401(k).
 30% cash out of their 401(k) when they change
jobs.
Now Updated: The Basics

Thousands of changes made

for new 2015 edition.

Many more online resources

featured.

Updated discussion of
investment swindles.
3 Questions About The Basics

What is The Basics? The Basics is a teaching guide

focusing solely on “investor education” – what
people need to know about saving and investing in a
savvy way.

Why investor education as a focus? Americans

need to fully understand investing in order to prepare
for a financially secure future.

What is different about The Basics? The Basics

features a unique section on spotting and avoiding
fraud – encouraging individuals to sharpen their
critical thinking skills.
Why You Can Trust The Basics

The Basics was written by IPT and IPI in collaboration

with 15 expert educators and State Securities Regulators.
The Basics is 100 percent independent. No industry
money was used to create it.
The Basics was extensively updated in 2015 to keep it
current and relevant.
The Basics has been used in over 450 teacher training
sessions, covering nearly all 50 states.
More than 50,000 U.S. educators use IPT and IPI
publications, including three earlier editions of The
Basics.
Inside a The Basics Unit …
Key Terms/Standards Up Front …

Compound
Interest
Investing
Market
Returns
Savings
Trade-Offs

Source: The Basics Unit 1 – Page 1.1

Unit Objectives Spelled Out …

Discuss why people

save and invest.
Learn how to think
about financial
decisions.
Understand key
concepts of saving and
investing (including
the “time value of
money”).
Source: The Basics Unit 1 – Page 1.1
Handouts in Every Unit …

Source: The Basics Unit 1 – Page 1.2

Clear Outlines for Every Lesson …

Source: The Basics Unit 1 – Page 1.12

Illustrations for Overheads …

Source: The Basics Unit 1 – Page 1.18

Pop Quiz: Try This Out!

Can you place the following?

• Futures

• Real Estate

• High Quality Stocks

• Aggressive Growth Bonds

• Corporate Bonds

• Government Securities/Bonds

Source: The Basics Unit 1 – Page 1.19

Pop Quiz: Your Answers!

Can you place the following?

Futures

Real Estate

High Quality Stocks

Aggressive Growth Bonds

Corporate Bonds

Government Securities/ Bonds

Source: The Basics Unit 1 – Page 1.19

Printable Quiz Forms/Clear Keys

Source: The Basics Unit 1 – Page 1.20

Close-up: A Unit 1 Lesson …

Why people save and invest

Preparing for a career, often by going to college
or a technical/vocational school.
Saving for major purchases and expenses (such
as a college education, a family and a first home).
Building up a “rainy day” fund for emergencies
(possible job lay off, etc.).
Developing a personal financial/investment plan.
Starting a savings and investment program.
Another Unit 1 Lesson …

Key Concepts of Saving and Investing

Pay yourself first
Set goals that inspire success (short,
medium and long term)
Don’t take unnecessary risks
Put time to work for you
Diversify! Diversify! Diversify!
Unit 1 Overview – Getting Started

Defining “Investor Education”

Why people save and invest
How to think about making financial decisions
Key concepts of saving and investing
Unit 2 Overview – Intro to Financial Markets

Understanding risk and reward

How financial markets work
Savings, stocks, bonds, mutual funds and other
investments
Regulation of financial markets
Unit 3 Overview – Financial/Investment Plan

Introduction to financial/investment plans and

core concepts
Framing a plan to meet students’ financial goals
Selecting financial professionals
Unit 4 Overview – Investment Fraud

Introduction to investment scams

How telemarketing fraud works: Inside a “Boiler
Room”
Teach your students to become “Victim Proof”:
Self-defense tips against fraud
How regulators protect investors
Other Great The Basics Tools

Resources – updated inventory of the best online

and in print!
Materials – emphasis on free content.
Organizations – an expanded list of the experts
you can trust.
Agencies – learn about the state officials are
standing by to help you as an educator.
Glossary of terms – expanded list of key
investor education concepts.
Additional Resources for Educators

IPT Investor Education Booklets Video on the IPT Website

Contact Us for More Information!

Presenter Contact Information

Investor Protection Institute
www.iInvest.org
Investor Protection Trust
www.investorprotection.org