Importance of the Topic:
Underlying the humour of this vignette is a serious message about investing. We all would like to be able to put our money to work for us by investing it, but often we are so eager to get a good return on our investment that we overreach and take a chance on an apparent opportunity that offers a greater than normal return. This is a risky venture to say the least. It’s important to take a moment to reflect before acting. As the old adage says, “Act in haste, repent at leisure.” There are a number of things that should be considered when investing money in order to protect ourselves from scams.
Desired Outcome, Knowledge, or Skill:
- Learn to trust your instincts about any deal that seems suspicious.
- Understand the validity of the saying “the greater the reward, the greater the risk”.
- Appreciate that you should be prepared to lose all of the money you invest in a high- risk venture.
- Realize that you should invest only with credible sources and be wary of any you don’t know.
- Learn to look for fake websites and avoid them. Be on your guard – if in doubt, don’t do it.
- With a partner, discuss things that you need to stop and consider before investing any money.
- Check reliable and trusted institutions to see what investment opportunities they are offering so that you can use this for comparison with less well-known organizations.
- Determine how much money you would be prepared to invest in higher risk investments appreciating that you could very well lose all of this money.
- Investigate how you can tell if any website you are on is, in fact, a legitimate website. (https://www.youtube.com/watch?v=F-J6sRhtRuU)
- As an activity, find an investment that is offering a greater than normal return and then do a check on that organization to see its history and reliability.
- Complete a risk tolerance questionnaire to establish how comfortable you are with risk taking.
- With a partner, discuss opportunities that you have had to invest but declined to do and explain the reasons for your decision.
- Again, with a partner give an example of an investment opportunity you declined that proved to be a solid opportunity, and then discuss the differences between that opportunity and the ones you discussed in 6.
- List the things that you will do in the future before you would invest your money with a specific company or organization.