No-one can guarantee any investment, remember that.

The closest you’ll get is the Australian Government’s $250,000 deposit guarantee.

In fact, putting your money somewhere that doesn’t have risk makes it a saving – not an investment.

But, if I’m wrong about the following investment, I’ll give you my 3 kilograms of 24ct white gold.

(just kidding, I don’t have any gold)

Financial Education in Schools

Over the weekend I was sitting with a group of friends talking about finance and teaching. Included in the group were two teachers.

It made me ask myself an important question…

Why do we go to school at the beginning of our lives?

“Because our minds absorb more when they are younger?” Hmm, no.

“To get them out of the house?”, I like where you are going with this, but no.

We teach children at the start of their lives because knowledge compounds over time.

If you learn basic math now, you can learn algebra in the future.

If you learn English now, you’ll likely have a better chance at becoming fluent in German.

Or, if you learn how to play soccer now, you’ll have a better shot at mastering it in the future.

The point is this: Our learning snowballs until our brains are full-up, stiff and crusty.

“An Investment in Knowledge Pays the Best Interest” – Ben Franklin

In Australia, we are truly privileged with (mostly) free education. HECS-HELP or HELP debt is some of the cheapest debt you’ll ever get – it goes up with inflation (2.1% this year).

Even mortgages, Australia’s first love, currently incur interest of 4% to 5%. Maybe, just maybe, our education is cheaper because it is a better investment than a house…

My #1 Investment Tip

If knowledge compounds like a snowball rolling down the hill of life, why do most of us leave our financial education until we’re about to retire?

I couldn’t tell you the last time I calculated the volume of a sphere or how long it takes train A to pass train B on its way to Never-Gonna-Use-This-Again Station.

Yet, today, I evaluated a new savings account and had to calculate the change from my morning coffee.

Fortunately, if you – like me – didn’t learn any of those important financial literacy skills at school, it’s never too late to learn.

To paraphrase a Chinese proverb:

If the best time to plant the tree of financial success was 20 years ago – the next best time is today.

So my #1 investment tip is this: It’s never too late to start compounding your financial knowledge.


[insert: A plug for our free education courses]

You can start brushing up on your finance skills with one of our free video courses on personal finance, shares or superannuation.

And, if you are a teacher — or know someone who is — you can use all of our videos in your classroom.

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