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Session 7 Study Guide: Investing and Growing Money

Money, Values & You — A Financial Literacy Course for 6th Graders

Key Topics

TopicDetails
What investing meansWhat investing means: putting money to work to grow
Saving vs. investingSaving vs. investing: safety vs. growth
Ownership (stocks) vs. lendingOwnership (stocks) vs. lending (bonds)
Why people investWhy people invest: building wealth over time
What is riskWhat is risk: the chance of losing some or all of your money
What is rewardWhat is reward: the potential gain from an investment
The risk-reward tradeoffThe risk-reward tradeoff: higher risk = higher potential reward
DiversificationDiversification: not putting all your eggs in one basket
What a stock isWhat a stock is: a small piece of ownership in a company
How businesses raise money by How businesses raise money by selling shares
What shareholders are and whatWhat shareholders are and what they get
How stock prices go up and dowHow stock prices go up and down
What halal investing meansWhat halal investing means: investing according to Islamic principles
Industry screeningIndustry screening: avoiding haram businesses
SukukSukuk: the Islamic alternative to bonds
Building a values-aligned portBuilding a values-aligned portfolio

Lesson Summaries

Lesson 1: What Is Investing?

Discover what investing means and how it differs from saving. Learn the difference between ownership and lending.

Lesson 2: Risk vs. Reward

Learn why higher potential rewards come with higher risks, and how to think about risk wisely.

Lesson 3: Stocks and Businesses

Understand what stocks are, how businesses raise money, and what it means to be a shareholder.

Lesson 4: Halal Investing and Sukuk

Learn how Islamic investing screens for values, avoids prohibited industries, and uses sukuk instead of bonds.

Review Questions

  1. What is investing?
  2. How is investing different from saving?
  3. What is the difference between owning and lending?
  4. Why do people invest?
  5. What is risk in investing?
  6. What is the relationship between risk and reward?
  7. What is diversification?
  8. Is it possible to invest with zero risk?
  9. What is a stock?
  10. Why do companies sell stocks?
  11. What do shareholders get?
  12. Why do stock prices change?
  13. What is halal investing?
  14. What is industry screening?
  15. What are sukuk?
  16. Can halal investing be profitable?