Objective

By the end of this lesson, the student will understand how to open an index fund in the S&P 500 and successfully open one of their own by depositing $20 they earned from their entrepreneurship efforts. They will learn basic concepts of investing and the importance of saving money.

Materials and Prep

• Notebook or paper for notes
• Pencil or pen
• Calculator (optional for math calculations)
• Access to a computer or tablet for research (if needed)

Before the lesson, ensure the student has a basic understanding of money, saving, and the concept of investing. Discuss any previous knowledge they may have about stocks or funds.

Activities

• Introduction to Index Funds: Start by explaining what an index fund is. Use simple terms and examples. For instance, say, "An index fund is like a basket of stocks. When you buy a share of the fund, you own a tiny piece of many different companies!"

• Research the S&P 500: Help the student find out what companies are in the S&P 500 index. They can make a list of some of the biggest companies. You can say, "The S&P 500 is like a team of the top 500 companies in the USA. Let's see who’s on the team!"

• Opening an Index Fund: Walk the student through the steps of how to open an index fund account. Explain that they will need to choose a brokerage and fill out some forms. Say, "Just like opening a bank account, you’ll need to provide some information to start your investment journey!"

• Making the Deposit: Discuss how to deposit the $20 into their new fund. You can say, "Now that you have your account, let’s put your $20 in! This is your first step toward growing your money!"

Talking Points

• "What do you think happens to your money when you invest it?"
• "Why do you think it's important to save and invest money?"
• "Can you think of some companies you would like to own a part of?"
• "How does it feel to know that your money could grow over time?"
• "What are some ways you could earn more money to invest in the future?"