Case Study of the Week: The Risks and Rewards of Investing

Dec 1, 2025

Personal Financial Literacy

You are to assume the role of an investment advisor. A client has asked you about the risks and rewards of investing.

The client has been actively saving money for the future by placing all extra funds in a non-interest-bearing savings account. The client has been saving for a few years and has $10,000 in the account. The client’s friend recommended investing money in corporate stock, but the client knows nothing about it and does not want to lose money. The client is an adult with no children and owns a home.

You must explain to the client:

  • Investing and why people invest
  • Potential risks and rewards of investing in corporate stock
  • Factors that could influence the client’s risk tolerance

Questions?

Randi Bibiano
Competitive Events Specialist
randi@deca.org

Randi Bibiano is DECA's competitive events specialist. In this role, she conceptualizes and authors role-play scenarios for the collegiate and high school division’s competitive events programs. She also manages DECA's online competitive events and serves as a liaison to volunteer efforts at DECA's educational conferences.

Discussion Questions

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Classroom Connection

Career Cluster:

Personal Financial Literacy

Instructional Area(s):

Investing

Performance Indicators:

Explain why people invest their money
Explain the potential risks and rewards of investing in corporate stock
Give examples of factors that can influence a person’s risk tolerance