Would investment education be useful?

[mellifuous]

I wonder just what level of education would protect investors from the bad guys who are out there ready to fill their bags of loot at investors' expense?

 

[gfresh]

How long is a piece of string?

I think basic investment and money management skills should be taught in high school, if they aren't already? Would stop people getting into many forms of financial strife in their lives.

 

[Trembling Hand]

Yes, very easy too. Just hand out a mirror.

 

[Temjin]

There is no minimum level. You should never stop learning in anything. It's impossible to completely eliminate the probability of being scammed in any investment schemes. Every investment has risk and human greed is a big part of it. You could be cheated even for buying blue chip shares if the executives running the companies were looting its own assets without your prior approval. So don't limit yourself to a specific level of learning. Just keep learning and you should reduce the probability of running into an obvious scam.

 

[GumbyLearner]

There is no minimum level. You should never stop learning in anything. It's impossible to completely eliminate the probability of being scammed in any investment schemes. Every investment has risk and human greed is a big part of it. You could be cheated even for buying blue chip shares if the executives running the companies were looting its own assets without your prior approval. So don't limit yourself to a specific level of learning. Just keep learning and you should reduce the probability of running into an obvious scam.

That's good advice. Life is the best educator in my opinion. Calculating risk and any number of factors involved in whatever scenario you decide to invest in.

 

[jono1887]

of coarse they would be useful.. just have to make the information interesting i suppose considering most people would have fairly short attention spans when it comes to investment and finance. Perhaps a school program or including it in school syllabus's would be a good idea. That way, the kids are forced to learn it :

 

[prawn_86]

I think basic investment and money management skills should be taught in high school, if they aren't already? Would stop people getting into many forms of financial strife in their lives.

As far as i know its not offered already. I was actually considering doing an honours thesis based on the positive impact a subject like this would have on students/economy etc (but am not going ahead with it).

 

[skyQuake]

As far as i know its not offered already. I was actually considering doing an honours thesis based on the positive impact a subject like this would have on students/economy etc (but am not going ahead with it).

...or a dusty old professor will ask you in mild amusement

"Why would it matter in an efficient market?"

 

[Judd]

Maybe, maybe not. What do you eliminate from the school curriculum to fit in investment education? It is seemingly overloaded now and trying to get 16-17 yo interested in anything is difficult, apart from cars and girls if you are a boy (I know, I know: a bit of a generalisation there.)

Interesting tidbit from the papers.

http://www.theaustralian.news.com.au/business/story/0,28124,26027031-5019213,00.html

Investors have lost trust in financial advice

Clive Mathieson | September 04, 2009
Article from: The Australian

THE financial crisis has taught investors the one source they should turn to for investment advice. And almost without exception, they name the same person _ themselves.

The distrust of so-called financial experts picked up in the January The Australian Crosby|Textor Investor Jury has escalated into outright disdain.

Faith in any sort of financial adviser, from high-profile commentators to suburban planners, has been shattered along with their portfolios. And they have lost all faith in the messages they get from companies, which either spin their results or bury their true performance in legalese.

Continued........

If you have the stamina, wade through the comments from Messieurs Forsyth and Mckenzie of the Australian Investors Association at the Brisbane hearing of the "Inquiry into Financial Products and Services in Australia."

http://www.aph.gov.au/hansard/joint/commttee/J12136.pdf

 

[tech/a]

If you cant control it dont be in it.

I run my own super managed to miss the downturn as its consists of cash and Business property.

I trade from my own analysis.
I do my own property developments.
Run my own Company.

The above has stead me fast for 55 yrs.
Doesn't mean you wont make errors but does mean you'll learn very quickly and you'll never have someone else to blame.You'll learn control and risk.

 

[prawn_86]

...or a dusty old professor will ask you in mild amusement

"Why would it matter in an efficient market?"

Well it would have been looking at more than the stock market, it would have covered budgeting/savings etc. But the prof that wanted me to do it is actually really good and thinks EMH is a load of crap. He spend half his lectures telling us what the 'need/should' to know, and the other half what's wrong with the theory (ie assuming normal dist etc)

 

[explod]

If you cant control it dont be in it.

I run my own super managed to miss the downturn as its consists of cash and Business property.

I trade from my own analysis.
I do my own property developments.
Run my own Company.

The above has stead me fast for 55 yrs.
Doesn't mean you wont make errors but does mean you'll learn very quickly and you'll never have someone else to blame.You'll learn control and risk.

This is the way to go though I only took full control about 5 years ago, SMSF also.

I read the (I know he's just a book seller) the Rich Dad Poor dad series and branched out from there. I would say just the first one and a later two "Cash flow quadrant" and "Who took my money"

good thread