I want an app that simply teaches the basics of finance:savings, investing, inflation, diversification in an engaging way—an experimental Fantasy Financial Lab
Added over 1 year ago
The phrase “you can’t learn swimming (or become a pilot) by reading books” is applicable to many aspects of our life. For instance, it is extremely challenging for many of us to apply the basic theories of science and finance in real life, unless we learn them through experiments in laboratories. Experience and knowledge gained through experiments make them useful, applicable and memorable.
While science laboratories are prevalent in schools and universities around the world there are no financial labs or simulators for children and young adults to experiment their hypotheses, thoughts and strategies within a controlled environment. While it is possible to test out financial strategies in real world financial markets, there is always the risk of losing the entire investment. On the other hand there are so many apps out there that can help one how to invest in stock market without losing your socks off; but they are very complex and it's not simple enough for young adults and common people who are not financially literate to understand.
Financial education is increasingly important, and not just for investors. Young people now enter an increasingly complex financial world of store cards, mobile phone tariffs, credit agreements and financial marketing.
I really support this approach because nowadays mobile apps are very much popular in youth.
Very interesting. There was an article by Prof. Greg Mankiw in The NewYork Times ("A Course Load for the Game of Life"). He made a pointed comment about why young adults (and adults) should learn the basics of finance:
"LEARN SOME FINANCE With the rise of 401(k) plans and the looming problems with Social Security, Americans are increasingly in charge of their own financial future. But are they up to the task?
Few high school students graduate with the tools needed to make smart choices. Indeed, many enter college without knowing, for instance, what stocks and bonds are, what risks and returns these assets offer, and how best to manage those risks.
The evidence of financial naïveté shows up every time some company goes belly up. Whether it is Enron or Lehman Brothers, many company employees are often caught with a large fraction of their wealth in a single stock. They fail to heed the most basic lesson of finance — that diversification provides a free lunch. It reduces risk without lowering expected return."
If you guys can pull it through, this app will be a good basic lesson in finance.
Thanks for the great insight! In recent time I watched a TV shows in FOX network that was about a public school in Colorado that was running a competition for young kids using a stock market simulator. Even though this was an exciting approach one thing that went through my mind was these kids don't have enough foundation to even understand how stock market works. But this approach does validate a need for teaching complex concept through real world examples in a engaging way. Our approach is to simplify this by teaching the finance 101 in a simple market Ecosystem in a fun way so that these kids can retain this concept very well and apply these fundamentals in a virtual stock market or real world. With the increasing use of mobile device among youngsters I think our education system needs to change. We need to use more practicals and less theory. I strongly believe that 'picture is worth 1000 words'.
I love finance and investment and I am very practical person and I don't like theory. I want my kids to learn these concepts in a practical way as well. I think this idea is brilliant. With my kids constantly using mobile devices this is a great way for them to have in their phone or iPads and learn while playing!
1 – 5 of 5
Comments are closed.
Date entered: July 31, 2012
learn about a financial topic