Thinking back over my days in high school, I remember the presence of some character in every class who was constantly asking the teacher, "How will this be useful for me in my life out of school?". No matter the class, no matter the situation, the question would arise, to the disbelief and annoyance of the teacher, who never really gave an answer.
I would really love to go back, and review the subjects I learned back then just to see how insightful those kids were. To see how much of what I learned back then has helped me get to where I am today. I won't though, rather I want to look into a slightly different topic. I believe that there is one subject that everyone should be taught at school as it would be invaluable in helping you make your way through life, no matter what background you come from, or where you are going. This subject is never on the curriculum though. I don't understand why. It is Financial Literacy.
This subject "Financial Literacy" should teach you about the implications of making a bunch of decisions about your finances. From the simple things, to more complex things. The ultimate purpose of this subject should be to ensure that you are armed with enough financial knowledge, that you won't make the idiotic, financially ruining decisions so many people make every day. I'd see the curriculum running something like this.
Week 1. Are you being scammed? Students would be shown how to spot a scam and avoid it. It will prevent a variety of mistakes.
Week 2. How to determine if you can take on a loan. Most young people have no conception of what it means to pay back a debt. The second phase of class would lay out the problems of taking on debt and when it should be done. Personal and business loans would be discussed, along with examining credit card statements and taking on mortgages. The positive aspects (tax-wise) will also be covered.
Week 3. How can you evaluate assets? Students would get an idea of how to size up their assets. Appreciating assets would be contrasted with depreciating assets. Consumables would be contrasted with earning assets. Students would see how purchasing different assets affects net worth over one's life span.
Week 4. What investment strategies are right for you? This lesson would run through different risk profiles, explaining both what can go right and what can go wrong with these profiles. This should enable you to work out your tolerance to financial risk and therefore make better investment decisions. From there, the class should explain some robust investment strategies for the different risk profiles.
Week 5. How should you leverage investments? Working with investment portfolios, students would be instructed on the process of leveraging. Tax concerns would be part of the lesson, as there are significant tax breaks available when taking out a loan for an investment.
Final lesson. The final lesson of this course would be put it all together. The steps you should take to avoid the financial problems so many people face. How to structure yourself to maximize your legal protection and your tax position. And of course, how to use the money you have to most effectively create wealth and income, given your personal tolerance to risk.
I would really love to go back, and review the subjects I learned back then just to see how insightful those kids were. To see how much of what I learned back then has helped me get to where I am today. I won't though, rather I want to look into a slightly different topic. I believe that there is one subject that everyone should be taught at school as it would be invaluable in helping you make your way through life, no matter what background you come from, or where you are going. This subject is never on the curriculum though. I don't understand why. It is Financial Literacy.
This subject "Financial Literacy" should teach you about the implications of making a bunch of decisions about your finances. From the simple things, to more complex things. The ultimate purpose of this subject should be to ensure that you are armed with enough financial knowledge, that you won't make the idiotic, financially ruining decisions so many people make every day. I'd see the curriculum running something like this.
Week 1. Are you being scammed? Students would be shown how to spot a scam and avoid it. It will prevent a variety of mistakes.
Week 2. How to determine if you can take on a loan. Most young people have no conception of what it means to pay back a debt. The second phase of class would lay out the problems of taking on debt and when it should be done. Personal and business loans would be discussed, along with examining credit card statements and taking on mortgages. The positive aspects (tax-wise) will also be covered.
Week 3. How can you evaluate assets? Students would get an idea of how to size up their assets. Appreciating assets would be contrasted with depreciating assets. Consumables would be contrasted with earning assets. Students would see how purchasing different assets affects net worth over one's life span.
Week 4. What investment strategies are right for you? This lesson would run through different risk profiles, explaining both what can go right and what can go wrong with these profiles. This should enable you to work out your tolerance to financial risk and therefore make better investment decisions. From there, the class should explain some robust investment strategies for the different risk profiles.
Week 5. How should you leverage investments? Working with investment portfolios, students would be instructed on the process of leveraging. Tax concerns would be part of the lesson, as there are significant tax breaks available when taking out a loan for an investment.
Final lesson. The final lesson of this course would be put it all together. The steps you should take to avoid the financial problems so many people face. How to structure yourself to maximize your legal protection and your tax position. And of course, how to use the money you have to most effectively create wealth and income, given your personal tolerance to risk.
About the Author:
Damian Papworth acknowledges that you do not require mutual fund investments. Having learned some simple strategies, you are capable of being your own investment manager. Grab a totally unique version of this article from the Uber Article Directory
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