The idea of getting started with investing in the stock market can be overwhelming. This is not something that is taught in school and if your parents are not knowledgable this may have never been discussed in your house. One of my goals is to educate my children and anyone else I can on the know how and benefits of investing. If I can give them the knowledge and leg up in life at an early age, they will have an easier time. Being financially savvy is not everything, but it definitely makes life easier.
One of the first concepts to understand that will set you on your financial literacy journey is the concept of compound interest. Compound interest can work for you or against you, and knowing how it works is the cornerstone of financial literacy. Once you can understand this concept, you will learn how to make your money work for you and not against you. This understanding will lead you to the stock market and investing, which has been the greatest wealth creation vehicle ever created.
I created the following presentation to help introduce these topics to my son’s school during a Great American Teach-In event last year. Feel free to share with your friends, family, and co-workers.