Do you remember the course you took back in high school, or maybe your freshman year of college, that taught you about how to manage your personal finances and invest your money?
If you’re thinking something along the lines of, No, I never took a class like that — that kind of class doesn’t exist! then rest assured: That’s how 99% of people would likely answer this question.
The fact is, we don’t receive this kind of education in schools. Rarely do we get it from our parents either, and our friends or co-workers aren’t much help because they’re in the same boat.
The Importance of Earning an Objective Financial Education
Learning about how to invest and how markets really work is critical — and yet most people have zero formal training or education on these topics.
Even if you do get proactive and set out to teach yourself all there is to know, you’ll run into yet another challenge: There is no end to the misinformation out there. While the internet is an incredibly helpful tool for learning, it has that one big downside of not being able to filter through the noise. The signal can be hard to find. It’s even more difficult to know fact from fiction.
That’s part of the reason why investment education is one of the first tasks I tackle with someone when we first begin working together. We sit down and look at the facts and evaluate the best strategies to use to earn a reasonable investment return.