Financial education is an issue that is being watched globally, and in a country with so many economic slacknesses, such as Argentina, this article becomes more and more essential. In this sense, more and more banking entities are developing content of this type. This week, Itaú launched a platform with advice and services, and economist Claudio Zuchovicki -special guest- has compiled a list with six lessons for saving and investing.
According to a study by Trendsity, Nearly 7 out of 10 Argentines lack basic tools to virtually manage money.
For the economist and manager of the Buenos Aires Stock Exchange, financial education is a central theme. “How many hours are devoted to a job, a boss, a customer or a supplier; it is good to dedicate some time a day to improve the relationship with one of the pyramids of our financial life, which is the investment, he underlines.
Here are the six lessons for saving and investing by Claudio Zuchovicki:
Lesson 1: “We must distinguish between speculation and investment”
“Investing in Argentina it is really tempting because the volatility is so high which can often be a good deal but, at the same time, volatility is high because we are a sea of uncertainty. I would tell you uncertainty is the worst enemy of investments, far. Yes, uncertainty is a great friend of speculation. And this is where we confuse a lot of investing with speculation,” she warns.
In this sense, follow: “Speculation is short-term. It is trying to win or lose as prices rise or fall. The investment is maturing, it’s like planting an oak tree. What was the best time to plant an oak tree? And 20 years ago. You let it grow, you water it… That’s what investing in Argentina should be. Generate something, water it every day, and then have a better infrastructure that translates into quality of life in the future”.
Lesson 2: “Invest in people, not companies”
“The essential point is to learn to listen. Investments are mobile. Never fall in love with a company. It’s like a carpenter who falls in love with a hammer. It runs rough. Investment is just a tool that changes over time. The first point in today’s generations is not to invest so much in companies; it is investing in people, in managerial capacity”, underlines the economist in the Itaú special.
Lesson 3: “Think ahead, never the past”
“The past is part of the prices. Of course, you have to study it to avoid repeating mistakes. And speaking of future, we must learn to listen to what modern generations consume”, addition. And he continues: “Investing is not a risk, it is a decision about something called ‘future'”.
Lesson 4: “Learn to diversify and know how to win”
“Learn to diversify but not much. You don’t have to have your eggs in one basketbut the baskets don’t have to travel on the same train either,” he says.
In this sense it indicates that it is necessary “to diversify into three products – not ten or twenty because attention is lost – and in three or four places at the same time”.
“Knowing how to win is what costs the most in finance. Learning to win is winning, getting up every morning and asking yourself: has the world changed today? With everything that has happened today, am I happy with the investments I have? If not, the price you paid doesn’t matter; Is old. if the the answer is yes, no matter how much you paid, you keep. Everything can be worth a little more and everything can be worth a little less,” he says.
Lesson 5: “My big investment would be in cybersecurity”
“Today people want to live better. So, I would buy goods from that. People spend on health, entertainment and sustainability. You have to invest in that. And understand where the world of the new generations is going, with technology and apps, My big bet today would be in cyber security”comment.
Lesson 6: “It’s not the savings that give you financial peace of mind: it’s the flow”
“If there’s one thing I’ve learned from finance, it’s to differentiate between flow and stock. The stock is the savings you have. Flow is what I can produce in time. What gives you a future, peace of mind, is not savings. The savings you can lose, spend or collect an extra fee. What gives you peace of mind is flow. It is knowing that you have an income every month, that if the money is well placed it will produce more money and income for you », she points out.
In closing, Claudio Zuchovicki invites us to be optimistic about what is to come. “You don’t have to be afraid of the future; you have to want it and without wasting the present. You need to listen to where people’s interest is coming from today. We may or may not like financial education, but there are things we cannot ignore”.
NS
Source: Clarin
