Unit 1: Introduction to Investing

What is Investing?

Investing is the act of allocating resources, usually money, in order to generate income or profit. It involves purchasing assets like stocks, bonds, real estate, or mutual funds with the expectation that they will increase in value over time.

Why Invest?

  • To build wealth over time.
  • To achieve financial goals such as retirement or education.
  • To combat inflation by growing your money faster than the rate of inflation.

Investment Growth Over Time

Investment Growth Chart

Knowledge Check

1. What is the primary goal of investing?

2. Which of the following is NOT a common investment type?

3. What does diversification mean in investing?