Recently I was telling someone that financial education would be difficult to incorporate into schools because it's a knowledge that's experiential, ubiquitous, evolving and contemporary, rather than static, based on a specified formula or even narrow.
In Nigeria at the moment, teachers are some of the lowliest earners because the value they're giving is not proportional to the worth they're getting.
I do believe that there's the theoretical and practical aspect of spending money, while one can imaginarily spend money either by doing some mathematical calculations, there's also the real-life scenario where a person is opportune to own a certain amount of money and spend it to take care of the need.
The former is static and can be updated through volumes, while the latter is continuous, difficult, and complicated. This is why I think financial education is the capacity to improve one's financial abilities through experience, permutations, and speculation.
Predictions, Based On Current Financial Situation
The reason why I added speculations is because we're bound the be predictive based on the realistic situations we've got on our hands. For example, people tend to predict that bitcoin has a likelihood of going to zero when it's the bear market, because of the dips and it makes the possibilities of speculation to be real.
Now, speculations, and assumptions are what people do when it comes to investing and when it fails, we learn valuable lessons, but when we gain, we also learn.
Speculation & Risk
Irrespective of whatever happens, we're learning at the end of the day. I've always mentioned that due to the extremal factors that come with unforeseen circumstances, it's difficult to speculate without a higher likelihood of risk..
However, when we invest in speculations and it turns out well, we try to follow the similar pattern we've been used to because we want to continue that sequence of success. In this life, I use to say nobody will completely know how to spend money because we cannot control the external factors that determine the success or failure of our speculations.
In this life, people who pride themselves as investment gurus were once heavy speculators, but the difference is that over time, their ability to speculate has been refined.
Discipline In The Face Of Crypto
Some days ago, CZ binance tweeted that people should not spend everything they own on crypto because bitcoin going to zero isn't impossible. This contradicted his success story because he sold his house to buy bitcoin in the early days.
However, looking at it carefully, he was right. When he bought into bitcoin back in the day, he wasn't a crypto guru, he was more of an enthusiast and he gambled hugely based on his research. It paid off well and the outcome of his success wasn't because of the refined investor he's now today, it was based on the enthusiast he was back in the day.
The truth is that even if he did thorough research it could still turn out bad because he was investing in assumptions with the proof of speculation and nothing really solid.
Experience Gained At Risk's Expense
However, we can say the experience he's had over time, has taught him one or two things. While his moves back then are now being applauded as genius moves, he'll never make a rash decision like selling his house again.
The reality is that the man is a revered figure in crypto due to his successes, but then, these successes haven't come because he can predict the future, there are times he's speculated and predicted.
The reason for this post is that, we're all speculators in the investment game, especially when it comes to Crypto, this means that no one is completely right or wrong as right, we're major speculators and this is because we're bereft of whatever will happen in the future, irrespective of the information we're equipped with, in the present.
Interested in some more of my works?
Keying Into Sophistication & Exposure To Forestall Economic Revolution
Money: The Learning Curve & Translational Process
What Makes A Job Opportunity Lucrative?
Shopping Online & The Illusion Of Buying Cheap Things
The Humanistic Approach Towards Scarcity & Competition
Spending & Accumulating: The Low & High Point Of The Crypto Seasons.
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Great Post!
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Thanks for curating
I never knew about CZ selling his house to buy BTC back then, that was one hell of a risky move, a sink or swim kind of move that paid off for him.
We learn every day, we win some we win some hoping we are not broken.
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That was the whole story of CZ, I think this was in 2012. He made that sink or float move and look where it's brought him thus far. Well I don't think a lot of people would do that nowadays because he's even advised people against doing it.
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Most investment are speculation and no matter how good and stable is what you are investing in there is always risk involved. We must always have calculated risk, I know cz is not stupid because he never said he sold everything he has to buy bitcoin or he has one house as at that time but the fact still remains that we must always be ready for the outcome.
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Well CZ said he sold "the" house, which means that at that particular time, he only had one house to go. I think he did that because he did his research and we all know that the higher the calculated risk, the higher we stand to gain or lose. I'm sure he wasn't a guru. He trusted his gut at that time
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You have raised a very valid point friend how I wish financial education can be well practice in schools ,you have raised alot of points here
On experience,risk,and discipline seriously speaking
Your post are always impactful well-done boss hope to see more of your mentorship and support @josediccus
Thanks for finding them (my post) insightful, I tend to think that I'm learning from them, myself.
That's good to know bro let's keep learning and happy learning @josediccus
Most investments tend to be speculation but there are options that may work out and others that won't at all. So there needs to be research done on the crypto projects.
As for financial education, I think concepts like compound interest and stuff like that should be taught in class.
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Compound interest most especially. It seem to me like it's a practical knowledge and aspect of one's life that's important to help them grow financially, sadly it isn't. It's a crazy system of education out there.
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Incorporating financial education in schools practically will be an added advantage to the scholars. It's unfair how teachers, especially in Nigeria don't receive the reward of the equivalent worth of what they give out.
Investors predict and speculate but then, it all boils down to taking risks and every smart investor will continue to take risks cos life itself is full of risk, when we fail in a particular investment, we will rise and try again while applying wisdom.
Most people invested in crypto maybe during their first time through speculations that could be drawn from something as funny as guts and other things like noise around a coin. Some may come through while others go sideways. As time went on, those with thorough DYOR could still have their predictions thrown in the rubbish bin by the market..!
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