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All eggs in one basket

Why spreading your money softens the falls

Level 6: Big money ideas · from age 13 · 3 minutes · 3 Kesho Stars

The story

Two uncles each invest KES 100,000. Uncle Ouma puts it all into shares of one company. Uncle Kibet splits it into four parts of KES 25,000: three different companies and a money market fund.

The big idea

Spreading money across different things is called diversification. It doesn’t stop losses, but one bad bet can’t sink you.

Ask at home

Talk about where your family’s income comes from and what would happen if one source stopped.

The full lesson, with its questions and Kesho Stars, is in the myKesho kids app.

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