What are the best ways to teach people about investing?

I taught corporate finance and investing for years. It was enjoyable because the audience was attentive and motivated. Who doesn't want to learn how to make more money? I found it was best to start with basics and not to assume students already knew things most of us might find obvious. This includes the following: Make sure you spend less than you earn and invest the difference. Appreciate the gift of compound interest. Invest for the long term (don't try to get rich quickly). Understand the different security classes such as stocks and bonds. Appreciate how risk differs from volatility. Understand the relationship between present value, future expected cash flows, and interest rates. Finally, realize how inflation can destroy value.

Another suggestion that I passed on to my sons- when you get your annual pay raise allocate half or more of it your 401k- this inhibits you from raising your lifestyle too quickly and forces you to save in the early years of your career to generate those long term gains

A key way to improve financial literacy is to start with directly applicable principles to people's lives. The difference between saving vs. investing is a great starting point, the average- and worst-case scenarios when investing in the stock markets (people also like to know the worst that can happen!), beginner-friendly investment tools like index funds, and simple steps on how you open a brokerage account. Relevant, practical, concise.

Love this! I like to show people the effects of compounding first to get them excited, but then show that before we invest there are some more important lessons. Mostly saving and having deductibles covered.

Teaching people about investments requires a practical and engaging approach. Starting with basic concepts such as compound interest, diversification and risk is key. Using interactive tools, such as investment simulations, helps participants experiment with different strategies. Providing relevant information about the financial market and encouraging the definition of financial goals are important steps. Finally, promoting a growth mindset by encouraging the pursuit of continuing education is essential to empower people to make informed financial decisions and build long-term wealth.

Simulations are great and easy way to demonstrate what could happen; however, a simple hands on introduction to actually buying their first security might do more to ignite curiosity than fake money.

How fast can you save 1 million dollars? An interactive calculator that helps you visualize the path to getting to that number (e.g., by saving and investing $X per month for Y number of years) can be a powerful way to help people get started with investing.

Gosto de utilizar algumas ferramentas interativas para que as pessoas consigam ver com maior praticidade o comportamento de seus investimentos. Aplicativos ou planilhas automatizadas são interessantes para que a pessoa saiba o quanto pode obter de retorno ao longo do tempo dependendo de cada valor aplicado, tempo e taxa de juros. Através dessas ferramentas interativas também podemos observar a diferença de comportamento de um investimento para outro com relação a volatilidade.

Simulations - always a very effective way to help audience learn more deeply and comprehensively. It gets them actively involved and thinking vs passively listening to you.

Effective investment education combines clear, concise information with practical experience. By demystifying financial concepts, individuals gain confidence in their investing abilities. Interactive tools, such as simulations and online courses, offer hands-on learning experiences. They allow users to experiment with investment strategies in a risk-free environment, thereby enhancing understanding and retention of complex financial principles. This approach encourages active participation and real-time feedback, key to mastering investing fundamentals.

Illustrate investing concepts and strategies with real-life examples and case studies that resonate with learners. Show how different investment decisions can impact wealth accumulation and financial goals over time.

Finfluencers (a.k.a. Finance Influencers), who are mostly hobbyist investors, have flooded social media with entertaining and relatable financial advice (things that some in the finance industry are arguably lacking). However, studies by the CFA institute and academics like James Choi have proven that the advice is often questionable (e.g., "only buy domestic stocks") and that ethics can vary greatly (with more than 50% of finfluencers not disclosing a product promotion in their posts.) Investors should always ask themselves: how is this person giving advice on social media getting paid? It's a starting point to evaluate the objectivity of the advice itself.

Hoje em dia devido ao avanço da tecnologia, é muito mais fácil acessar as informações. Importante é saber filtrar, pois existem materiais bons e ruins em livros, vídeos, podcasts e sites de notícia. Mais importante do que ler uma notícia é saber como aplicar isso aos seus investimentos. Queda de juros, alta do dólar, Ibovespa em alta, tudo isso encontramos com facilidade em qualquer noticiário, porém precisamos aprender como colocar esse conhecimento em prática para benefício da carteira de investimentos.

The financial world is dynamic, with markets reacting to global events, economic shifts, and new trends. Providing learners with up-to-date information helps them understand how external factors influence investment decisions.

Il est nécessaire de croiser les informations et de conserver un point de vu totalement objectif sur les avis des influenceurs. C'est pourquoi nous travaillons actuellement sur une plate-forme qui va sélectionner les meilleurs créateurs de contenu finance traditionnelle, finance décentralisée, entrepreneuriat francophone.

Encourage goal-setting and planning aa a tool for increasing investments. It is easy to teach someone about savings and investing by encouraging them to set their own financial goals. Such goals can best saving for Children Marriage, retirement, buying a home, or starting a business, and to create a plan that suits their needs, preferences, and circumstances. Once goals are set, plan to achieve them through planning right kind of investments.

Personal financial goals drive investment choices. Teach people to set clear, achievable investment goals and develop a plan to reach them. This includes understanding risk tolerance, time horizons, and the need for diversification.

The first step to learning to invest is understanding what you want your money to do for you. Investing for retirement and investing for a down payment on a house can be very different strategies. Understanding why you are putting this money to work will allow you to explore and learn about the options available to achieve your goals in the most effective manner. It will also help you maintain discipline which might be the most important concept to understand when saving/investing.

Quando vamos montar uma carteira de investimentos é preciso que tenhamos uma direção, se é uma carteira para o longo prazo, ou apenas uma reserva, qual o perfil do investidor, se a pessoa é o principal responsável pelo sustento da família. A partir dessas informações fica mais fácil conseguir estruturar uma carteira de forma personalizada. Então sempre tenha em mente qual a receita líquida suficiente para manter o seu padrão de vida atual e até que idade pretende trabalhar. Assim ficará mais fácil conseguir estruturar o seu planejamento financeiro. Nesse momento é ideal contar com o apoio de um profissional.

Each investment should be backed by goal. The goal can be retirement planning or child education. Even investing for buying a car in 6 months is a goal. Funds exists for that goal too. Goals can be short term or long term. After goal setting and investment, start focus on monitoring of portfolio.

Teaching investing with a growth mindset involves emphasizing learning from mistakes, seeking feedback, and embracing uncertainty. Celebrating achievements and providing support nurtures confidence and resilience, crucial for successful investing.

Emphasize the importance of financial literacy and money management skills in the context of investing. Teach concepts such as budgeting, saving, debt management, and retirement planning to provide a strong foundation for investing.

É essencial manter-se sempre atualizado. Entender as mudanças no cenário macroeconômico, buscar conhecimento sobre novos ativos e entender se faz sentido ter em sua carteira. Por mais que você invista a muito tempo ou até mesmo que trabalhe com o mercado financeiro, você nunca será expert em tudo. Há sempre oportunidades para se aperfeiçoar.

A growth mindset is particularly relevant for women as most of the advice geared towards them is to "save" (scarcity mindset) vs. investing and creating wealth (growth mindset). Go buy that latte. Saving $5 on a cup of coffee won't make anyone wealthy. Learn, invest, repeat.

Do not forget to consider the habits of people, their culture and issue they had to face during their personal lives or in their territory. Contest and culture is crucial.

Think long term, most people are not suited for day trading. Therefore, explaining the different styles of investing will encourage them to figure out what they like.

Would definitely want to include and emphasize on the behavioral aspects of investing. 90% of investing is about managing your emotions. All knowledge is waste without disciplined action.

O conhecimento é um fator primordial para se obter sucesso nos investimentos, porém outro fator que nem sempre é mencionado, é o fator psicológico. Entender que existem momentos onde os seus investimentos não terão uma boa performance. Se nesses momentos você agir mais pela emoção do que pela razão, poderá se frustrar... Procure sempre manter a calma. Se você é uma pessoa que dedica muito tempo em alguma outra atividade profissional da sua expertise, recomendo que tenha um profissional do mercado financeiro para te dar um direcionamento com relação aos investimentos e ao seu planejamento.