WHO WANTS TO BE A

MILLIONAIRE???

A Webquest by

Ashley Yartz ahy101@psu.edu, John Neumyer jen125@alumni.psu.edu,

and Tom Seltzer tas210@yahoo.com

 

 

| Introduction | Task | Process | Resources | Evaluation | Conclusion |

 Introduction 

Who wants to be a millionaire?

If you had one million dollars, what would you do with it? Would you buy that brand new car you have always dreamed of? Perhaps you would build your own house or start your own business. Maybe you would travel around the world. You might even consider donating some of the money to charity. With $1,000,000 you could probably do all of these things and more!

Did you know that it is possible for you to become a millionaire during your lifetime? Yes, it is true! You could become a millionaire during your lifetime! To become a millionaire you do not need to win the lottery, win a contest, appear on a game show, or have a job with a large salary. All you need is some money to invest, time, and a willingness to take some risks. Are you guaranteed to become a millionaire? No ­ there are no guarantees in life. However, odds are that if you are willing to take some risk and invest some of your money, you very well may make $1,000,000 or more during your lifetime.

This webquest will allow you to explore the possibility of becoming a millionaire by investing different sums of money in two types of investments; certificates of deposit (CDs) and mutual funds. (Note: For the purposes of this webquest, assume that interest rates will remain constant during your lifetime ­ this may or may not hold true. Also, this webquest does not take into consideration the taxes you would be required to pay on your earnings).


| Introduction | Task | Process | Resources | Evaluation | Conclusion |


 Task 

 

Way to go! Your hard work and discipline to save money has paid off. You have been able to save enough money to start making investments that could help you earn $1,000,000. Now it is time to do some research. As a group you will need to:

 

    Find the average salaries for three different jobs that are of interest to you;

    Use a compound interest calculator to explore two different investment options, certificates of deposit (CDs) and mutual funds, determine the risks and benefits of investing in each, and determine which of the two options is more likely to help you reach your goal of $1,000,000;

    Respond to several questions based on your findings; and

    Prepare a 15 ­ 20 minute presentation to share your findings with your classmates.

    | Introduction | Task | Process | Resources | Evaluation | Conclusion |

 Process 

 

Follow these steps to complete this webquest:

 

Step 1: As a group, you will need to assign roles. Each group member should be responsible for one of the roles listed below (Each role may only be used once).

 

 

High School Graduate

You have just graduated from high school and have chosen to work rather than go on to college. You were fortunate enough to find a job you like that will pay you between $20,000 and $30,000 per year. Follow the steps listed below to determine whether or not you could become a millionaire.

College Graduate

After high school you chose to go on to college. Fortunately you had some scholarships and you were able to work part-time while going to school. This has allowed you to pay off all of your college expenses and you are now debt free. You have also found a job that will pay you between $30,000 and $40,000 per year. Follow the steps listed below to determine whether or not you could become a millionaire.

Graduate Student

You have completed college and paid off all of your college expenses. You have decided to go on to graduate school. Fortunately you have a job that has agreed to pay your future college expenses while also paying you a salary between $40,000 and $50,000 per year. Follow the steps listed below to determine whether or not you could become a millionaire.


 

Step 2: Choose a profession that pays an average salary which falls within the specified limits for your role. Assume that you have been able to save an amount equivalent to one-half of your salary. This will be your investment amount (Assume you have no debt and you were able to save money from the part-time jobs you worked during high school and / or college). Record your profession, salary, and investment amount on worksheet #1.

Step 3: Find the highest APYs for 1-year, 3-year, and 5-year certificates of deposit. Record the name of the institutions along with the APYs on worksheet #1. Then, use a compound interest calculator to complete worksheet #1.

Step 4: Find three mutual funds having a 10-year average annual return that is greater than the interest rate you calculated on the bottom of worksheet #1. Record this interest rate along with the names of the mutual funds and their 10-year average annual returns on worksheet #2.

Step 5: Use a compound interest calculator to complete worksheet #2.

Step 6: Visit a local bank and talk to a banking representative about the benefits and risks of investing in both CDs and mutual funds. Then, use the information you have collected from the bank and from this webquest to complete worksheet #3.

Step 7: Discuss your findings with your group members and prepare a 15-20 minute oral presentation to present your findings to your classmates.


| Introduction | Task | Process | Resources | Evaluation | Conclusion |

 Resources 

Use these resources to help you in your quest to become a millionaire.

Salary Wizard ­ allows you to find jobs in the local area and review their salaries.

Certificate of Deposit rates ­ Select the Harrisburg-Lebanon area and type of CD to find the current annual percentage yields.

Compound Interest Calculator ­ Read the information on this site carefully. The calculator allows you to solve for several variables.

Fund Quickrank ­ allows you to select funds from all categories and choose the time period over which the rates of return have been averaged.

Best Funds ­ Another resource where you may find some mutual funds of interest.


| Introduction | Task | Process | Resources | Evaluation | Conclusion |

 Evaluation 

Your webquest will be worth a total of 56 points. Twenty-four(24) of these points will come from an individual assessment and thirty-two (32) of these points will come from your group presentation. Click to view the rubric that will be used to grade your webquest.


| Introduction | Task | Process | Resources | Evaluation | Conclusion |

Conclusion

 

 

This concludes your journey in the attempt to become a millionaire. Through this webquest you have been introduced to the idea of compounding interest. You have seen how the variables of time, principal, and interest rates play an important role in determining how much money you can make by investing. Hopefully you have seen the benefits of saving and investing money early in life and you will be able to apply what you have learned to your own life. Happy investing!


| Introduction | Task | Process | Resources | Evaluation | Conclusion |