Invest: Do schools teach you how to invest money? The Savvy Worker

Many people do not know how to invest money because of lack of financial education.

You might have heard the phrase “You can’t teach what you don’t know”.

This is so true when it comes to investing. Most schools don’t touch on the topic of investing at all. This is because, most educators often focus on their various subjects while business educators have to deal with curriculums.

If you are not taught from a young age how to invest money, you’ll probably not know how to do it.

This is a dangerous way to live your life because you’re not planning ahead for the future.

What if you know that in 5 years time, you’ll want to buy a house? And what if you don’t know how to invest money? You may be stuck in an apartment for the rest of your life!

Investing is a way of putting your money aside for future use. The money you invest goes into various instruments such as stocks, bonds, mutual funds, etc.

The idea behind investing is that you are able to generate enough wealth from your investments which will sustain you in future. In order to invest, you have to take the risk of losing some or all of your investment.

However, if you do things right, there is a high probability that you will earn more than what you invested.

In this article, we will go through the concept of investing and education.

Table of Contents

Financial education

Finacial Education is very important. It’s your money and you’re the one who is responsible to take care of it.

Why you should learn more about finances

There are two reasons why you should learn how to invest: to make more money and to reduce risk. Here are some advantages of becoming a good investor:

You will earn more

People who know how to invest earn a lot more than those who don’t. That’s why most millionaires think that investing is the key to their financial success.

You will be able to reach your financial goals faster

Once you become a good investor, the money you have now will grow faster.

You don’t have to wait for a long time for your money to double.

As an example, if you put $10,000 in the stock market and earn 10% on it every year, you will have $20,000 in 5 years. You don’t have to wait for a long time for your money to double. As an example, if you put $10,000 in the stock market and earn 10% on it every year, you will have $20,000 in 5 years.

You will be able to retire earlier

If you have a good financial plan, you can retire earlier because your money will grow faster.

If you start saving when you are 20, you may be able to retire earlier. But if you start saving when you are 40, you may be not be able to retire at 50.

You will be able to save more

If you are goodat investing, you can save more money because your money will grow faster.

If you have $100 a month to save, you may not be able to save much after a few years because of predicted increase in cost of living that may affect your income.

But if you are good at investing, you can make your money grow faster, which means that you can save more. If you are saving for retirement, you want your money to grow as much as possible.

You will be able to pay off your debts faster

If you are good at investing, you can earn a lot of money with a low risk.

In other words, you can earn a lot of money while losing very little money. With this kind of investment, you can easily pay off the debts that have high interest rates (like credit card debts).

Your money will be more secure

If you are good at investing, your money will be safer because you can earn more money with less risk.

If you know that you can earn a lot of money and lose very little money, you will not worry about losing the money that you invest.

In other words, if you are worried that you may lose money, you will not invest at all. But if you know that you can earn a lot of money and lose very little money, you can invest without worrying about losing your money.

You will be able to give more to charity

If you are good at investing, you can donate more to charity because your money will grow faster. If you are not good at investing, you may not be able to donate as much to charity, even if you try very hard to save money.

You will be able to enjoy the present more

If you are good at investing, you can afford to buy more things and do more things.

You will not be worried about losing your money because you know that your money will grow faster than you can spend it.

And if you are able to do more things, you can enjoy the present more.

The importance of investing Early

Investing early is very important because compound interest works best when there is a long period of time for it to work.

If you are young, you have a lot of time to invest and therefore the opportunity to earn a lot of money from investing.

If you invest US$100 at the age of 20, and if it earns 10% per year, you will have $11,739.09 by the time you are 70 years old.

If you invest US$100 at the age of 30, and if it earns 10% per year, you will only have $4,525.93 by the time you are 70.

Investing in the stock market

The stock market is the best place to invest because there are many companies listed in the stock market. There are also many types of companies and industries that you can invest in. The stock market is a very good place to have your money grow faster than the current inflation rate.

There are many ways to invest in the stock market, some of which you can learn through books, websites, and other resources.

How to choose which stocks

There are many ways to choose which stocks to buy. Pay attention to the following four points when choosing stocks:

1. The company is or will be profitable

2. The company pays a good dividend

3. The company has good growth prospects

Conclusion

If you go to a school, you should be learning about how to invest money.

Many of the most successful people in the world attribute their success to their ability to make wise investments. Instead of leaving it up to chance or relying on luck, the wisest people in the world are always thinking about how they can improve their investments.

The more methods you use to increase your investment, the greater your chances of making a large amount of money.

While schools do not teach how to manage or invest your money, you can enrool to free online classes that will improve your finacial literacy.