Investing Basics

Subject: Financial Literacy  ·  Grade level: 10th

Compound interest, risk vs return, index funds, and why time matters more than timing.

In this lesson

• Compound growth: time's superpower
• Risk vs return
• Why index funds win

Key terms

Index fund

A fund that tracks a market index (S&P 500, Total Stock Market).

Expense ratio

Annual fee a fund charges (lower is better).

Diversification

Spreading investments to reduce single-stock risk.

401(k) / IRA

Retirement accounts with tax advantages.

Investing Basics lesson on BrightPath

BrightPath Tutoring offers free interactive lessons and 1-on-1 tutoring for students in grades 3–12. Based in the San Fernando Valley, Los Angeles, CA.