Think About It

Think About It!

Have you ever heard the phrase, “Have your money work for you”?

Janella’s younger sister, Julia, recently received some money on her birthday. She wants advice about the best way to have her money work for her. She wants to pick the best way for her to make more money.

Her friend told her, “Buy a lottery ticket. It may be a longshot, but you don’t have to spend much and you could become a millionaire.”

Her grandmother said, “Hide it in a safe place in the house so you’ll always have it on hand for emergencies.”

Her cousin advised her to, “Buy stock in a technology company. Tech companies are always in the news.”

Janella told her, “Put it in a savings account. It’ll earn compound interest over time, so you’ll have more than what you started with.”

1. Who gave the best advice? Why?

2. Who gave the riskiest advice? Why?

Let’s discuss a few new key terms and determine how they may impact Julia’s decision for having her money work for her.