How many of you guys invest your money into sources other than In N Out Burger and iTunes? I’ll be honest, I know a bit about investments, but not a ton. Apparently lots of Americans are somewhat in the dark about the basics of investing, according to a recent Wall Street Journal article by Andrea Coombes. Why is our nation as a whole so uneducated about investing options and terms? For one thing, evidently not many schools have courses about personal finance and investing. There are other contributing factors too, check it out for yourself:
“It’s the time of year when students nationwide head back to the classroom. Adults might want to hit the books, too.
When it comes to understanding basic concepts about investing, Americans come up woefully short. Consider that while 67% of respondents to a 2009 survey rated their own overall financial knowledge as “high,” only 53% answered this question correctly: “True or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.”
Only 6% got the answer wrong, choosing “True.” But fully 40% said they didn’t know the answer, and 1% declined to answer. The survey of about 28,000 U.S. respondents was by the Investor Education Foundation of the Financial Industry Regulatory Authority. Finra, as the authority is commonly referred to, is a private, industry-funded agency that regulates financial-services firms.”
Click here to see how many people are really in the loop, and who could stand to take a crash course in investments.
Now comes the real question: why bother to learn about investments? Isn’t it enough to have a cushy savings accounts or a growing nest egg? Very plainly put, wise investments can make you more money than interest from a savings account can. Now, don’t take my word for it, because as I openly stated before I’m no whiz at the world of investments. But I do know that they can incredibly lucrative, and from the sounds of it Americans may not be using investment options to their full potential for lack of understanding. OK, now pardon me– I’m gonna go hit the books (i.e. surf the web) to educate myself on the big bad world of investments!