Page 4 - DIY Investor Magazine | Issue 29

.....TEACH THEM WELL
& LET THEM LEAD THE WAY
When DIY Investor Magazine launched seven years ago it was in the belief and expectation that people would necessarily have to take more personal financial responsibility as self- reliance replaced state support.
The pandemic delivered a short, sharp shock and brokers
and investment platforms reported record levels of business; now the most common feedback we get from those new to investing ask@diyinvestor.net is ‘I wish I’d started sooner’. Duration is one of the key factors in a successful investment strategy, so it stands to reason that the more young people that are engaged the better the outcomes.
Calls to improve financial literacy are invariably met with approving looks and promises of focus groups and government Czars, but for most the guidance and advocacy of a friend or relative is sufficient to stimulate curiosity and interest. Growing up, one of my father’s stock phrases was ‘mony a mickle maks a muckle’ and that is the ethos that underpins sister site Muckle which engages next generation savers and investors on a journey to financial independence.
Another was ‘neither a borrower nor a lender be’ and however galling that was as a skint teenager, that was how he conducted himself. If he wanted something, he saved; when Mrs T sought to increase share ownership he gratefully participated. We did not wear a cilice under our school uniforms, we were just brought up in an environment where money and the possibilities it brings were discussed; rather than, or perhaps as well as, formal financial education, time talking to children about all things financial is rarely wasted.
And it is not just children that can benefit from some intergenerational assistance. Unfortunately Dad left us all too soon, but I only recently discovered that some of the gains delivered to Sid et al were languishing in a Santander ‘Easy ISA’.
Statement to 5th March – Balance £13,046.10, ‘20/21 income - £6.85 (0.01% p.a.) The decision to move this money on is not a difficult one, but how many people are sitting in similar accounts, seeing the real value of their money decline?
A recent survey from Boring Money found that 75% of people were not confident enough to invest and feared losing their money; whilst it is true that there is no such thing as no-risk investing, there are low-risk investments for those that seek and understand them.
City watchdog the Financial Conduct Authority is keen to improve transparency to ensure that investors understand the risks associated with an investment and is contemplating requiring those new to investing to prove their competence before embarking on an investment strategy.
That is to be applauded as should any attempt to engage and empower people to invest for their future; banks should play a role in their education and awareness.
As the Gamestop episode demonstrated (Wolves in casual clothing take Gamestop to the next level) the Internet is an increasingly important source for those seeking information and to invest collaboratively.
As ever, where there is money to be made, there will be those seeking to take advantage; Tik Tok is fast becoming the compendium for money making tips, and its reach is enormous - #personalfinancetips has 30.3bn views, sparking the almost inevitable ‘How To Spot Bad Money Advice On TikTok - And Where To Look Instead’.
There may be many things you’d prefer your children not to access online, but it makes sense to ensure they have the basic knowledge to process and contextualise the information they find; talk to them – they really are the future!
I owe you one Dad.
MAKE SURE YOU DON’T MISS AN ISSUE; CLICK HERE TO RECEIVE DIY INVESTOR MAGAZINE TO YOUR INBOX
DIY Investor Magazine | Jun 2021 4