Code: 3.3.1 · Adults
Understands the relationship between risk and potential reward which means that if there is a high chance of making money on an investment there is also likely to be a high chance of losing money
Understands the purpose of investment diversification as a strategy to reduce the risk
Identifies the potential financial risks and rewards related to a decision that needs to be made
Compares the risk and reward of different financial investments
Takes into account the need for asset growth, financial security, and one’s own sustainability preferences when considering investment risk
Considers the risk of using credit for discretionary spending