January is behind us and it has been a crazy month. It was a real rollercoaster due to business travel. I did spend one week in Shanghai, came home for 3 days and spend another week in Pennsylvania, USA ending with 2 days in New York city. Below you can find two nice pictures that I took during those travels.
During my travel I focussed on several projects and learning the gaps in my skill set mapping. I realize that we skipped few blog posts as a result but sometimes you have to focus and prioritize. Nevertheless we have completed the first Financial education class of the kids in January 2019.
Financial Education Class 9 : How to Invest ? Advice of a Bank
So for the first financial education class of 2019, the goal of this class was to visit a bank office and simply ask how to invest 1000 Euro. This was the first time that two 14 year old teenagers visited a bank for investing advice. The last time that they entered a bank office was to open a bank account two years ago.
The bank advisor started with explaining the difference between Fixed Return and Non-Fixed return products. Each product was explained with the risk and expected return.
All the different products that a bank can offer, were in detail explained. What is a bond, what is a mutual fund, what is a capital protection fund,….?
From the capital protected funds the explanation moved on to non-capital protection investment methods such as mutual funds and stocks. A stock chart of Facebook and some other companies was shown to the kids to make them understand that they can invest in a company that grow.
Also the concept of time and investment entry was explained. It is always better to invest over time and take several entry points within the stock market if you are a long term investor.
The whole financial education class took 40 minutes with three compelling questions at the end. Did they listen carefully and understand the content taught?
All three questions got answered correctly. Mission accomplished. We recorded the financial education class on our phone. If you are interested, I can share them but be aware they will be in Dutch language.
Final Words
Have you ever visited a bank office with your teenagers to ask how to invest money? No, you should do that ! It’s always a learning experience. What the bank advisor didn’t talk about, were the banking fees. The investment methods were well structured explained. The two teenagers walked outside with new insights how a bank would invest their 1000 euro money. Based on the explanation of the bank advisor, they believed now that they should avoid all risk and go for a product with a 0,5% return. I remembered them about the class of inflation. If you invest in a product with a “fixed” return of 0,5% lower than inflation, you lose money…
That made them think over again. Financial education class 1 of 2019 has been completed.
Do you want your kids to learn financial literacy ? Stop your excuses, educate yourself and teach your kids so they are prepared for the real life.
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As usual we end with a final quote.
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