Show Me The Money: A WebQuest

J. Cieply-Purcell, B. Larson, K. Turk and M. Weiger

Districts 99 and 218

Introduction:

Your grandmother has given you $10,000 to use for college. She tells you that for you to have access to the money, you must demonstrate how to invest money wisely. There exist many forms of investments, including savings accounts, CDs , money market accounts, mutual funds and stocks. Finding the best investment strategies has puzzled investors for years. In order to satisfy grandma, you must come up with the most profitable way to invest your money over a 12 week period.

Task:

Your group is responsible for creating an investment strategy based on each of the following types of investments:

• savings accounts and CDs
• money market accounts
• mutual funds
• stocks

You must then reach consensus as a group on how much of the $10,000 should be invested in each of the categories, and choose particular banks, brokerage firms and company stocks.

You will each take a role of investigating a type of investment. The conservative person will investigate savings accounts and C.D.s. The cautious investor will investigate the money market accounts. The moderate will investigate the mutual funds and the gambler will investigate the stocks.

Your group will be evaluated by the presentation you give for your grandmother. She will want to see the facts a variety of ways, i.e. graphs, charts, etc.

Process:

Each group member should assume one role:

• The Conservative: you are concerned with keeping your risk of losing money as low as possible by using traditional savings accounts and certificates of deposit to invest.
• The Cautious Investor: you will use money markets which pay a slightly higher return to achieve a higher profit. You are willing to take a bit of risk with this form of investment.
• The Moderate Investor: you are interested in maximizing profits by investing in several stocks at once by using a mutual fund. Although this is riskier, your investment is managed by a professional.
• Gambler: you are interested in maximizing profit at any risk. You do this by buying stock in particular companies.

1. Research the type of investment in your role.
2. Each person submit a completed role worksheet on your type of investment.
3. Reconvene with your group and explain your type of investment to the other group members, and make about three recommendations for particular investments in your area.
4. Decide as a group how much money to allocate to each investment. There must be at least one from each category. You must provide a justification.
5. Two people create a circle graph on percent and amount of money in each category.
6. Two people write a defense of your investment strategy.
7. Keep a t-table of day vs. value as the teacher specifies periodically.
8. Create a time vs. money chart (line graph).
9. Calculate net gain/loss in each investment option. Be sure to take fees into account.
10. Create a pie chart showing percent and dollars in each category at the end of 12 weeks.
11. Create a before and after double bar graph.
12. Presentation. What would you do differently after this learning experience?

Note to the teacher.

Product:

You will create several products, both individually and as a group.

• After Step 3 of the Process, each person in your group should have a completed role worksheet.
  (4 worksheets will be handed in.)
• After Step 7, your group should have a circle graph and written defense of why you invested as you did.
  (One circle graph and one written defense will be handed in.)
• Steps 8 and 9 require you to track your role's investment over 12 weeks by completing a T-table and time vs. money chart (line graph).
  (4 T-tables and 4 line graphs will be handed in.)
• 12 weeks after Step 7, your group will present to Grandma your net gain/loss, using an updated circle graph (with money and percent) and a before-and-after double bar graph. (A group presentation, and one circle graph and one bar graph will be handed in.)

Assessment:

You will be graded individually and as a group.

Your individual grades are:

1. Your role's worksheet from Step 3 of the Process.
2. The T-table from Steps 8.
3. The time vs. money line graph from Step 9.

Your group grades are:

1. The circle graph from Step 6.
2. The written defense from Step 7.
3. The presentation which includes your net gain or loss, a circle graph, and a double bar graph, from Steps 10-13.

Here are some rubrics which may be used to assess you.