Money is not meant to control people, rather it is meant to be put to work producing more money for you. You cannot build wealth without putting money in its rightful place
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
I lost over $70k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Natalie Strayer
I'm surprised that you just mentioned Natalie Strayer here also Didn’t know she has been good to so many people too this is wonderful, i'm in my fifth trade with her and it has been super.
Natalie Strayer has really set the standard for others to follow, we love her here in Canada 🇨🇦 as she has been really helpful and changed lots of life's
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Marten_t However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments
Thanks for the videos. I really enjoy them. Related to the comments ... pedantically, (1+0.02)^5 ~ 1.10408, thus actually rounds to a factor of 1.1041, and so when applied to £100 it gives approximately £110.41
you forgot that the bank will carry out this calculation every year and they will lose the penny fractions in their favour every year. so it isnt quite the same calculation which you made.
Regretfully far too many people have absolutely no idea about financial matters but if they would but take some time to become familiar with this they would reap huge rewards.
When I was at comprehensive school we had pupils who had very poor reading skills as we had a room with the Janet and John books in them which most of us had used at primary and junior school. I actually thought this room was a nursery type room for children of the teachers and was amazed that it was for pupils at the school aged 11-16. Some of these kids obviously could not handle any of the other subjects at the school as they could hardly read. Yet these same kids were able to play truant and put bets on, and guess what they could work out what they should be winning even though the horse odds were fractions. People forget the simple maths benefits of games such as darts, board games using 2 or 3 dice where you are adding / subtracting. I remember explaining to my younger son about income tax, and wage deductions after I had got a nice wage rise and explained I would only see a fraction of the money, he was 11-12. He said that’s not very fair. He’s now a qualified financial advisor 😂
I was rather shocked with Aberdeen findings the three questions you / they asked whilst maths questions are as much common sense and very basic. As a former Trustee of a pension scheme we always tried to give annual reports to members in a simplistic form and with pictorial graphs to get the message across with the words. Pensions can be complicated and governments over the years have made many changes that have made pensions complex so it’s no wonder to laymen they are confusing and almost taboo. GMPs are a great example of this with rules that often work against the recipient.
I find it worrying people can’t answer these questions correctly. I do also think budgeting, saving, credit, APR, working out bulk buy values, etc. should all be taught in school, with focus on ‘complex’ maths taught later if you are that way inclined. I know some very ‘smart’ people who are financially illiterate! My lad’s girlfriend had no idea how to budget and save, we helped her and now her relationship with money is completely different and doesn’t live pay cheque to pay cheque. Not rocket science but people don’t get taught this stuff.
Diane, great video. I got all 3 correct, and I am not good at Maths, but am motivated by understanding how money works, and our psychology surrounding it. At school,i found maths very difficult, but when you are immersed into mortgages, retirement planning, etc etc. it becomes far more fascinating and compelling.
It doesn't surprise me in the slightest. My company recently changed their pension scheme. There is an option for the company to add an additional 1% if the employee pays an additional 1% The number of work colleagues who couldn't be bothered shocked me. My colleagues all work in Finance related roles by the way. I managed to convince one person by saying: "Give me £10 and I'll give you £20 back."
What is financial literacy? I am certain that anyone earning between the living wage and the median wage would be far more able to provide a workable family budget using that income than any high-wealth individual, who would probably be far more knowledgeable about investment options and approaches. It all depends on your priorities and proportion of disposable income.
Even poorer people can make money over a period of time if they know how. I’ve always had low end jobs, but always invested what I could, and it’s worked out pretty well now I’m older.
@@fanfeck2844 I agree and little and often for a long time can work well. My main point is that there are different aspects to financial literacy and that people with lower incomes have different strengths (how to live more economically) than people with higher incomes, who are more likely to have a better understanding of investing. The two are not mutually exclusive though.
Thanks for the questions. Yes all 3 correct. The supplementary £100.00 after 5 years at 2% is either £110.00 using simple interest of 2% or 🎉about £110.40 compounded annually at 2%. It gets more fun if you have 2% pa compounded at shorter periods such as monthly , 3 monthly or 6 monthly. 2/12% compounded monthly would get you £110.51 according to my calculation ( 1.0166666667 ^ 60 ). 1.01667 = (100 + 2/12) and you get 60 months in 5 years. So the shorter the compounding interval the better the deal. Mathematically there is a limit called the force of interest…..where interest us paid continuously. I haven’t found a bank that would offer continuous interest though!!!!
The final question is about investing and should have had preliminary questions about "what is a fund?" or "what is the difference between a fund and stocks/shares? Secondly, "have you ever invested outside of a bank or building society savings account?" I wouldn't mind betting that the vast majority of people would answer "no" to that final question, despite the fact that in the majority of cases, their mandatory pension 'savings' are invested in funds and in which case Q3 is superfluous and should not even be asked.
@@fanfeck2844 What is your definition of "finance"? What proportion of people at lower income levels, would you expect to have an understanding of investing beyond a basic savings account (whether in an ISA, or not)? My point was specifically about the general understanding of investment options beyond a savings account. I'm afraid that the many financial scandals over the past decades have made many people extremely risk-averse, so they stick to what they know best and trust, which is traditional savings. There's also the risk of commentators having recency bias whereby the historically low interest rates and generally good stock market performance in the past two decades suggest a big differential. That ignores the volatility risk element and most people don't look beyond a five year time horizon but really you need to be investing for ten-plus years to minimise volatility risks.
Very interesting and worrying that so many people don't have a basic understanding of financial literacy. Perhaps this explains why so many people remain poor.
Hello Diane, 1=a 2=c 3=b After 5 years the £100 @ 2% investment should have £110.40, unless you were shafted with a simple interest account, although 40p is only worth anything in the right shop. Maths is fun, even most IFAs don't understand the basis of the 7-10 rule, or something called the 72:100 rule (?)
Knowing that people would write the answers in the comments, I wrote them on a piece of paper...To be honest, I hadnt expected the questions to be so simple given the fact that only 20%of English people got them all correct,however on reflection , the people watching this item wouldn't be average and are already interested in the subject matter.£110.40 allowing for the bank disregarding the fractions of pennies in their favour every year.
I’m shocked that any adult would get these questions wrong…..but on second thoughts maybe I shouldn’t be surprised. I think the level of financial literacy and the ability to do even basic maths in the U.K. is appallingly bad. I’ve witnessed this first had in some of the evening classes I’ve taken, where the class would literally grind to halt, as soon as any maths were introduced.
For most people their biggest lifetime expense is Tax. When children leave school they don't even understand what a personal allowance is or have a clue how the tax system works. Education isn't about grades and passing exams.
All correct here, but come on, they weren’t exactly hard! Just shows how much change is required in the education system. There should also be a drive to educate adults in the basic such as pensions, ISA’s and investing, not sure how that could be achieved though.
Got all 3 correct but I am alarmed but not surprised at the results. Compound interest will give you between £110.41 & £110.51 depending on when interest is paid out. The minister is correct about standard of maths but this isn't maths it's financial eduction (or lack of). Most students will not need quadratic equations, calculus etc. unless they are going into a scientific career. Sunak's idea of doing maths until 18 was a dumb idea, far better to educate them in real world financial issues eg. budgeting, mortgages, loans, tax, interest, savings, ways to invest, portfolio diversification, their attitude to risk. I have even heard somebody thought that an APR of 27% on a credit card was a good thing! From an active experienced financial investor/trader.
Maths After a session with my granddaughter in which I worked through the trigonometry to calculate the number of roof tiles needed on a typical roof truss (by computing the length of the rafters), precipitated because she said "why do I have to know all this stuff"? Her father made a separate comment indicating that some practical reasoning behind why anybody might want to do any maths had also been missing from his education. It is a conundrum. I also likened my granddaughter's elementary work with triangles to learning A,B,C before she could read. Fortunately she loves reading so that worked. However it occurs to me that, as I have suspected for a while but not really explored the process, the people teaching maths to youngsters do it because they have to and do not themselves find the subject particularly interesting. This "lack of interest" bleeds over into the students and therefore they learn little and have even less interest.
Spot on, there needs to be a differentiation between living maths, such as that which applies to normal living and the purer maths needed for science, engineering etc. I like many I would guess have never had to use a good % of maths I learned as part of higher education in either my business or social life
I think that we are going to find out that the labour party has a bit maths and economics problem. They can figure out that a million unskilled immigrants added to the economy each year places an ever growing burden on the resources and makes people poorer.
Rounding down to the nearest penny its £110.40. Statistically you would win £4.40 a year if that £100 was invested in Premium Bonds so thats £22 over five years. Problem is that the minimum prize is £25 so actually you would not win anything as you cannot win anything less than £25. At six years you statistically should have won the minimum £25 prize. The £110.40 would have risen to £112. 60. I would still have the Premium Bonds if it was £100 you could forget about.
And who knows, you might be one of the 60 (I think) people who win a million quid over those 5 years. It's gambling, but not, because you get to keep your original stake!
I wish I’d invested in Nvidia (a single stock) rather than a global index, but this is purely with hindsight. So the last question is less of a math question like the first two and a statistical probability as it’s really hard to choose the right company to invest in.
@@jonharraway2172 you cannot ignore inflation in financial questions unless it is explicitly mentioned. I may be pedantic but my thinking is correct. You can see that Q2 mentions inflation clearly and you just assume that Q1 must disregard inflation
Q1 clearly states "... how much money do you think you would have?", so this question is to be considered purely in cash terms,ignoring inflation. The second question introduces inflation, so then then the question is about value = buying power.
Like many with a basic grasp of maths these were easy. Our education system needs to have a serious rethink in life skills required for pupils such as the true cost of interest, credit, loans, inflation savings, discounts at stores etc. Pure maths still needs to be tought for those at a higher level that will be needed potentially for future years. I have never needed to carry out a calculation with partial differentiation, or calculating where a Curve crosses the x axis Etc. but for sure I’ve needed to calculate interest on savings, a loan etc
@@guyr7351 If everyone had a thorough grasp of personal finance then there would be less people willing to take on debt; borrowing would fall, the truly savvy would invest and leave the workplace earlier. Both instances would result in less tax for the Government, so I personally believe that the Government is happy with the general public being more on the ignorant side of finance. It isn't a coincidence that the largest sector of the FTSE 100 is dominated by Financial companies (19%) and then by Consumer staples (17%).
