Session #4 Bonus Material

Other ETFs are actively managed. Their investment managers try to beat the performance of a market index by picking specific investments that they think will have above average returns. While that might sound like a great way to make more money, these sometimes come with a few downsides, including:

• Higher expenses • Greater risk of poor performance • More tax bills along the way

Share with students that many popular ETFs are based off of the S&P 500.

During the next session, we will take a closer look at the S&P 500 and how the stocks within it are chosen.

NOTES

Project Time: (15 minutes)

Have students physically split into groups of 3-4 students. You can let them choose their groups. Pay close attention to students who may need help finding a group to be a part of and help make introductions to students who may not know each other well.

Once students are in their groups, read the introduction to Financially Planning for Janella Sims together.

Once the introduction has been read aloud and discussed, set a timer for 13 minutes. Let students know once there are 10 minutes remaining, 5 minutes remaining and 1 minute remaining in group project time.

As students are analyzing Janella’s revenue and expenses, walk around the room and listen in on different groups. For groups that need additional help getting started, you may choose to join that group to help them think through Janella’s pay stub and expenses.

Students may use…

• Google or Search Engine

• Phones, tablets or laptops to research average prices and expenses in Janella’s city

At the end of time, have students move desks/chairs back to their original place and return to their seats.

Note that not all of the expense values have been provided to students. Encourage students to research averages and to use their best judgment when filling out Janella’s budget.

Students may choose to fill in $0 for any of the expenses if they will be recommending Janella completely cut out that expense.