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Economics for Kids — Book 7

by Ryan Semerau

Ages 7–12EconomicsInvestingFinance

The seventh book in the Economics for Kids series. Covers investing and financial markets — stocks, bonds, risk, diversification, index funds, ETFs, trading, options, futures, and cross-border investing. Demystifies the financial markets for young readers.

16 chapters · 76 lessons · first 6 free

IntroductionFree

1 · Markets and Stocks

1.1 · What a Financial Market IsFree
1.2 · Raising MoneyFree
1.3 · Buying and Selling LaterFree
1.4 · Prices, Rules, and TrustFree
Chapter 1 TestFree

2 · Stocks as Ownership Claims

2.1 · A Share of a CompanyFree
2.2 · Dividends and Reinvestment🔒
2.3 · Voting and Control🔒
2.4 · Being Paid Last🔒
Chapter 2 Test🔒

3 · Why Stock Prices Move

3.1 · The Market Price🔒
3.2 · Profits, Growth, and Surprises🔒
3.3 · Time and Interest Rates🔒
3.4 · Risk and Noise🔒
Chapter 3 Test🔒

4 · Bonds as Debt Claims

4.1 · What a Bond Is🔒
4.2 · Coupons and Payments🔒
4.3 · Bonds vs. Stocks🔒
4.4 · Why Borrow With Bonds🔒
Chapter 4 Test🔒

5 · Bond Prices and Rates

5.1 · The Bond Price🔒
5.2 · Yield and the Opposite Direction🔒
5.3 · Interest Rate Risk🔒
5.4 · Premium and Discount Bonds🔒
Chapter 5 Test🔒

6 · Credit Risk and Spreads

6.1 · Credit Risk🔒
6.2 · Credit Ratings🔒
6.3 · Spreads🔒
6.4 · Default and Recovery🔒
Chapter 6 Test🔒

7 · Risk Premia

7.1 · Risk and Reward🔒
7.2 · The Risk Premium🔒
7.3 · Different Kinds of Risk🔒
7.4 · Risk Appetite and Fear🔒
Chapter 7 Test🔒

8 · Diversification and Portfolios

8.1 · What Diversification Means🔒
8.2 · Building a Portfolio🔒
8.3 · Rebalancing🔒
8.4 · Diversifying Across Asset Types🔒
Chapter 8 Test🔒

9 · Index Funds vs. Active

9.1 · Passive and Active🔒
9.2 · Why Beating the Market Is Hard🔒
9.3 · Fees, Taxes, and Compounding🔒
9.4 · When Active Can Make Sense🔒
Chapter 9 Test🔒

10 · Mutual Funds and ETFs

10.1 · What a Fund Is🔒
10.2 · Mutual Funds🔒
10.3 · ETFs🔒
10.4 · Choosing Between Them🔒
Chapter 10 Test🔒

11 · Trading and Market Makers

11.1 · What Trading Is🔒
11.2 · Market Makers🔒
11.3 · Orders: Market and Limit🔒
11.4 · Liquidity and Spreads🔒
Chapter 11 Test🔒

12 · Auctions and Order Books

12.1 · The Order Book🔒
12.2 · How Auctions Set Prices🔒
12.3 · Continuous Trading🔒
12.4 · Fragility and Price Jumps🔒
Chapter 12 Test🔒

13 · Options

13.1 · What an Option Is🔒
13.2 · Why People Use Options🔒
13.3 · What Makes an Option Valuable🔒
13.4 · Moneyness and Risk🔒
Chapter 13 Test🔒

14 · Futures and Commodities

14.1 · What a Future Is🔒
14.2 · Hedging With Futures🔒
14.3 · Speculators and Liquidity🔒
14.4 · Commodity Prices and Real Life🔒
Chapter 14 Test🔒

15 · FX and Cross-Border Investing

15.1 · What an Exchange Rate Is🔒
15.2 · Why Exchange Rates Move🔒
15.3 · Currency Risk for Investors🔒
15.4 · Other Cross-Border Risks🔒
Chapter 15 Test🔒

What you'll learn

✓What financial markets do and why they exist
✓What stocks are and how they represent ownership
✓Why stock prices move up and down
✓What bonds are and how they differ from stocks
✓How bond prices relate to interest rates and credit risk
✓What risk premia are and why riskier investments pay more
✓Why diversification matters and how portfolios work
✓The difference between index funds, mutual funds, and ETFs
✓How trading works, including market makers and order books
✓What options, futures, and foreign exchange are

How to use this workbook

15 chapters, designed for one chapter per week (4 short lessons per week plus a chapter test). Each lesson takes about 15–20 minutes — read the lesson, talk it over with the AI tutor, then answer a few short questions in your own words. Your work is graded by the tutor and you can retake a chapter as many times as you need.

Prerequisites

Completion of Economics for Kids Books 1–6, or a strong understanding of economics, personal finance, banking, macroeconomics, and business finance.