Table Of Content

Young Investor_mechanical_2E_109-CRP/YoungInvestor_key_ r2 8/4/10 12:40 PM Page 1 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