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Money · Ages 10+ · Set A
Stocks, bonds and cash
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Goal: 15 min
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Remember: Cash stays put, a bond is a promised loan, a stock is a slice. The more a thing swings, the more it might give or take.

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Three friends in Pebble HillIn Pebble Hill there were three ways to keep coins: cash, bonds and stocks. Three friends each had one hundred pretend coins and picked a different way. Nico picked cash. He put his coins in a jar, and the jar still held one hundred years later. Cash is handy and calm, but it grows nothing. Ben picked a stock from Lemon Co., a company cut into slices. A slice cost ten coins, so he bought ten slices and owned a little of Lemon Co. In year one each slice was worth 13 coins, so his slices were worth 130. A rainy summer in year two dropped each slice to 9, so 90. In year three each slice climbed to 14, so 140. Maya picked a bond. The town hall wanted to dig a well and asked its neighbors to lend it coins. Maya lent 100, and the clerk wrote a promise to pay five extra coins a year and return the hundred after three years. A bond is a loan, and the paper is the promise. A promise can still break if the borrower cannot pay, but a careful town keeps its promises, so bonds usually swing less than stocks. None of the friends knew what next year would bring.
1
Nico keeps his hundred coins in a jar on a shelf. What kind is it?
CashA bondA stock
2
Join each friend to what they hold.
  1. 1Nico
  2. 2Maya
  3. 3Ben
  • Aa jar of cash
  • Ba bond, a loan to the town
  • Cstocks, slices of Lemon Co.
3
Ben pays 10 coins a slice with his 100 coins. He buys slices.
4
Look at the table. Maya gets 5 extra coins a year for 3 years. That is extra coins.
5
After 3 years Maya gets her hundred back too. In all she has coins.

Compare, sort and fix

6
Look at the bars. Which ended highest after three years in this story?
CashBondStock
7
Look at the table. What happened to Ben's slices between year one and year two?
They rose from 90 to 130They fell from 130 to 90They stayed the same
8
Circle every clue that says: this is a BOND.
A loan to the townA slice of a companyA promised extra each yearCoins in a jarRepaid after three years
9
Put them from swings least to swings most.
  • Cash
  • Stock
  • Bond
10
Why do bonds usually swing less than stocks?
A bond can never lose a coinA bond is a slice of a companyA bond has a promise to pay, so it climbs in small steady steps
11
Tia says: Maya ends with 105 coins. What did Tia mix up?
The hundred never comes backShe counted the extra for one year only; it is 5 a year for 3 years, 15Maya gets 5 coins a month
12
Ben says: a bond is a slice of a company. Is Ben right?
YesNo
13
Ben's slices ended at 140 coins, and he started with 100. Ben's gain was coins.
14
Draw a jar, a paper promise and a lemon slice. Label each one cash, bond or stock.
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