How your favorite things can make you rich!

Free free to copy these slides!

Did you know that you can become a part owner of many of your favorite companies?

Show the kids the logos one at a time, and have them guess the company. In order, Pinterest, Uber, Dunkin Donuts, Apple, Tesla, Dominos.

Many companies “go public” when they need money.

Talk about how companies need money to grow, and one way how they can get money is to go public.

They sell “shares” of “stock” in exchange for money, which allows anyone to become an owner!

When Uber went public, they sold stock to investors.

Some companies that recently “went public.”

$1,600,000,000

$8,100,000,000

$240,000,000

$2,340,000,000

Show them the logo first, have them guess the company name, and then show how much money these companies raised in 1 day!

Why do investors buy the stock?

They become entitled to a portion of the company’s profits forever and can make their money grow!

What is profit?

How does Dunkin Donuts make money?

How does Dunkin Donuts make money?

$10

$2.50

Cost to buy it -

- $2

Dunkin cost =

- $0.50

Profit:

= $8

= $2

Show them the picture, ask how much they buy it for. Then, ask them how much it costs Dunkin to make it. I know this is WAY over simplified and leaves out a lot of other costs, but the idea is to teach them what “profit” means.

How does Netflix make money?

How does Netflix make money?

$12/month

Cost to subscribe -

- $8/month

Netflix stream cost =

Profit:

= $4/month

193 million subscribers!!!

Again, over simplified, and the picture is also outdate. Make sure you update this with the most recent number!

When a company’s profits grow, its stock price goes up, and investors make money!

Start to make the basic connection between a company’s profits going up and its stock price going up.

Rewind the clock to 2008…..

Apple’s profit were $6,500,000,000!

One share of Apple’s stock cost $27.

In 2008….

The iPhone 1 was 6 months old!

Didn’t exist!

Talk about how the iPad, Apple TV, Apple Watch, Apple Pay, Apple Arcade didn’t even exist yet!

$6.5B

Show them how Apple’s profits increased drastically as the iPhone become more popular and it rolled out new products.

Apple’s stock became much more valuable as its profits grew and grew.

Update the chart

If you invested $1,000 in Apple in 2008, it would be worth…….

$8,910 today!

Update the total

Video game companies

2010 Profits

$100 million

-$600 million

$0 million

2018 Profits

$600 million

$970 million

$200 million

Talk about how video games became more popular, and these companies’ drastically grew their profits. Use up to date numbers.

And investors did great!

Use an up-to-date chart.

$1,000 turned into….

2010 2018

$1,000 $4,200

$1,000 $4,400

$1,000 $10,240!!!!!!

Use up to date numbers

But stocks don’t always go up……

GameStop and GoPro’s profits have fallen…

Ask: Why? Why have these companies not done well?

$1,000 invested in GameStop three years ago is now worth only $100 today ☹

Use update numbers….

Imagine if……you saved $1,000 every year.

How much money would you have when you are?

20

$10,000

30

$20,000

$30,000

40

$40,000

50

AGE

TOTAL

Make these numbers reflect their actual age. So, if they are 8, make them 18, 28, 38, 48…..Also, have them do the math for you.

Imagine if……you invested $1,000 every year and earned 10%.

Go slow so they see the compounding in action.

How much money would you have when you are?

20

$10,000

30

$20,000

$30,000

40

$40,000

50

AGE

Save

Invest 10%

$20,384

$70,403

$200,138

$536,637

Again, update the numbers to reflect their actual age.

An investor’s goal is to buy companies that grow their revenue & profits!

Time to play a game – You get $10,000.Pick Your Favorite 5

Video games

Activision-Blizzard

EA

Take Two

Microsoft (xbox)

Apple

Food

Dominos

Dunkin donuts

Dave & Busters

Chipotle

Beyond Meat

Online

Facebook

Twitter

Snapchat

Pinterest

Etsy

Streaming

Netflix

Google (YouTube)

Amazon

Disney

Clothing

Nike

Under Armour

Stitch Fix

Cars

Tesla

Uber

Lyft

Legend

Green = profitable

Red = unprofitable

= Growing 10%

= Growing 20%

= Growing 30%+

Update in case any of these companies are now profitable / unprofitable