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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