Personal Management Merit Badge Merit Badge Workbook SCOUT'S ...

Personal Management Merit Badge Merit Badge Workbook SCOUT’S NAME: ___________________________________________ This workbook is meant to help you prepare your answers before completing the requirements online. The answers you write here will not be counted towards your requirements, only the online version will be counted. The online Merit Badge Workbook can be found at aplusfcu.org/bsameritbadge.

SAVING AND INVESTING Answer the following questions: a. What is saving?

b. What is investing?

c. When would you save rather than invest?

d. When would you invest instead of save?

e. What is return on investment?

f.

What is risk?

g. What is simple interest?

h. What is compound interest?

i.

How do simple and compound interest affect investments?

Select five publicly traded stocks (use online sites such as www.google.com/finance or www.finance.yahoo.com or the business section of the newspaper) and find the information below. Stock Name

Stock Symbol

Current Price

1 Day Change

52 Wk High

52 Wk Low

Pretend you have $1000 to save, invest, and help prepare yourself for the future. What are the advantages and disadvantages to the following saving and investing tools? Name at least 2 advantages and 2 disadvantages for each. Advantages Common Stocks

Mutual Funds

Life Insurance

Certificate of Deposit (CD)

Savings Account

U.S. Savings Bond

Disadvantages