For a discourse moderated by ESPN sports columnist Holly Rowe, it was an honor to share the stage with legendary women’s hockey player Candace Parker and senior vice president Kelly Lannan of Fidelity Investments. I enjoyed giving economic education advice to the diligent student athletes as well.
It seems appropriate that the screen was present during Financial Literacy Month in April. Financial education can determine whether a fiscal outcome is favorable or negative. It impacts the market, also.
I’m convinced that one of the major causes of the 2007-2009 Great Financial Crisis (GFC) was financial poverty. Because many people were putting down or taking out mortgages they couldn’t afford or comprehend, housing was at the heart of the crisis.
Some didn’t know how much their monthly payment may come up with adjustable-rate debts; some didn’t know balloon payment mortgages. The effect, the GFC was the closest point to the Great Depression.
At Invesco, we are committed to educating the next generation of buyers and have a strong belief in financial education. Invesco QQQ created the engaging game “How Not to Suck at Money,” an established financial education system of the NCAA, and why we hold student financial education modules like yours at various universities.
The board covered a wide range of subjects, from budgeting to saving to trading, and included a colorful Q&A. I illustrated the importance of building an emergency fund, as well as an investment portfolio, by using their colleges’ assets as an example.
During the pandemic, when lower membership and higher prices strained finances, an adequate investment helped make the difference for some universities. In fact, you can learn a lot about investing from college assets, which can be the “lifeblood” of institutions.
They develop expense policy statements that set out how much money is allocated to various asset classes and when rebalancing distributions are made. These statements are typically used as guardrails to stop people from reacting negatively to business events, and they are intended to promote the portfolio’s development and long-term viability.
This seemed to appeal with the kids. I was specially moved by the scholar audience’s interest in starting investing, particularly once they realized the benefits of having a long time horizon.
These are my “final four” economic ideas:
- Create a schedule for spending, saving, and investing. A budget can help assure that there’s wealth for saving and investing. In case things go wrong, it is crucial to have an emergency finance. When you have one, begin creating an investment portfolio to provide it a chance to develop.
- Borrow wise. Borrow only for what you actually need, at the interest levels you can purchase. I advise only borrowing for “big ticket” items that can increase in value over the long run (i .e., electronic. , education and houses). And, of course, pay attention to the interest charge on bill — try to find the lowest price possible.
- Invest with intent. Think about every non-essential order and ask if it ’s needed. There’s an “opportunity value” for every purchase because that income isn’t being saved or invested. For instance, I often ask my children, “Do you really need that coffee? Or could you use that money to better employ by investing it?”
- Continue to study and become informed about money. There’s so much to understand, and the investment landscape may change over time. Utilize all the educational tools at your disposal, including the Invesco-produced elements.
Making mistakes is acceptable, only make sure you take lessons from them. I left the college kids with an important and widespread information: One does n’t plan to refuse; they fail to approach.
Risk is a part of all investment, including the risk of damage.
The National Collegiate Athletic Association (NCAA ) trades the names Final Four and NCAA. Invesco is not affiliated with the NCAA, Candace Parker, Fidelity Investments, or ESPN.
As of April 15, 2024, the author’s ideas are those of the writer. These opinions should not be construed as tips, but as an instance of broader themes. Forward-looking assertions are not guarantees of potential benefits. They involve challenges, difficulties, and assumptions; there can’t be any assurance that the results will actually be in line with expectations in any way.