I started investing immediately after graduating from college, but I didn’t like it.
Knowing little about the difference between stocks and bonds, I moved directly to the Genie May futures contract for my personal annuity account. Why? Well, I don’t know, except that a stock broker friend convinced me that it was a wise move.
A year later, I finally unplugged it, but only after my retirement account showed a loss. Yes, it’s a newcomer’s mistake, but it has shaken confidence in investment.
After waiting for two years, I jumped in again, but this time it was an employee’s stock purchase plan. To date, I still regret losing two years’ worth of time to invest for the future.
During my college days, my parents never told me about investing. By the time I graduated from college, I was behind the age of education because they didn’t invest and I didn’t ask any questions.
Investor education remains a big issue, judging by what happened this year when many novice investors using online accounts and mobile apps jumped into stocks like GameStop and AMC and overcame ups and downs to stunning heights and depths. ..
That’s why recent announcements from financial industry regulators encourage us to look for new ways to reach and educate investors over the age of 18.
A self-regulatory group in the securities industry is studying a program “aimed to educate this fast-growing novice retail investor segment leveraging technological advances” to play in the equity market. He said he plans to spend about $ 30 million to launch.
I don’t think it’s a coincidence that FINRA’s announcement came shortly after giving Robin Hood, the stock market trading platform, a $ 70 million fine (the largest ever). Trade them without proper education. Robin Hood claimed he was working on “financial democratization” at the time.
Earlier this year, FINRA found that U.S. investors’ knowledge was low among all investors around the world, with new investors “lower levels of financial knowledge” than experienced investors. Announced.
FINRA said it is seeking feedback from all visitors by August 30 on effective ways to reach new investors.Move to www.finra.org..
Here are some suggestions for priming your pump:
- Each program requires young investors to be familiar with cryptocurrencies, trading platforms such as Robin Hood, peer-to-peer payment platforms, and other ways technology can change the investment climate.
- As many young investors focus on social media, it’s important to identify trusted websites and podcast “influencers” who are trusted financial experts.
- When high school and college students play stock market games, the focus should be on learning the basics of investing. Games often emphasize short-term profits and big bets on stocks to win the competition because the time spent teaching and playing is short.
- The university must require new students to take Finance 101 classes throughout the first semester during or beyond orientation. It covers themes such as the power of compound interest, risks and rewards, smart budgets, and ways to identify fraud.
Finally, old-fashioned advice from Jamie Bosse, financial planner for Aspyre Wealth Partners in Overland Park, Kansas. They need to be taught to think of investment as a long-term approach. “
Long-term thinking, patience, and delays in satisfaction. These are not the traits that teens (or most people) are associated with. However, they are a major feature of successful investments.
Source link Children and Money: It’s Time to Improve Investor Education | Money
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