During their final year in the MYP, 10th-grade AISVN students commit to a personal project. The skills-based project is an exciting opportunity for students to take ownership of their learning, and explore a topic that interests them. MYP Coordinator, Ms. Emma Burns, along with many other personal project supervisors, help guide the students according to the IB requirements.
One inspiring 10th grader, Stephanie, is passionate about financial literacy. For her personal project, Stephanie has educated herself about investment opportunities, and wants to share her learning with others. Thank you, Stephanie!
By: Stephanie (Grade 10)
The purpose of this article is to introduce to you the concept of investing money. Here are the top reasons why people should invest their money:
Instead of putting our salaries into savings accounts for an annual return of around 0.07%, we can invest our salaries into stocks with an average return of 10% a year which is 9.93% more than the former option. With a minimum starting capital of as low as $10, anyone can start investing and building their wealth anywhere and anytime.
Financial independence is commonly defined as the state of having enough money to live comfortably without relying on others. According to The Ascent, 63% of millennials are at least somewhat financially dependent on their parents or spouses and only 37% are totally independent from others. Investing can be an additional source of income that helps you achieve financial independence, and it does not require advanced training or special diplomas.
One of the most common reasons why people do not choose to invest in stocks or any particular investment product (such as stocks, cryptocurrency or bonds) is because of their potential “high risks,” and the chances of losing money. There is no definite guarantee that a person will always profit from the product they choose to put money in, which is why investing is categorized as a risky act. Caution is always wise, but educated risk-taking can lead to positive exploration and growth.
Are you planning on opening your own business in the future? Well, in order to run a business or even start one, you need startup capital to get it and keep it running. There are many startup financing options for entrepreneurs such as bank loans or angel investors but these options lead to high-interest rates, debt, and a possibility of ownership division. The best way is still always through self-funding where you fund your business with your own money which then will allow you to have full ownership and be free of accumulating debt in the future.
Investing at an early age not only can help you to fund your business, but can also secure your future when reaching retirement age. As you can see from the chart below, an investor who began investing $5,000 a year at the age of twenty-five was able to save $787,176 by the time they reached sixty-five. This shows that the earlier you invest, the more money you can accumulate by retirement age. Just like that, you can make money in another way besides your job.
Investing is an interesting topic to learn about. Society is continuously evolving and when everyone can be independent regarding their finances, I believe issues such as misogyny, discrimination, inequality, and even poverty can be improved.
Instead of spending money to buy a trending pair of shoes, consider using that money to buy a share of that shoe brand!
