TOP 10 MONEY FACTS!! This was the title of a competition in Joy’s school. Joy was reading out the announcement which had just hit his school’s app – sounding an alert!!
He read aloud that students from his grade can research and list down any 10, out of the world, facts about money that most of us miss out or are not aware of and the best entries stand to win a scholarship at school for this current year.
Straightaway, Joy sensed a rush of blood out of excitement. This is what he exactly wanted to do, he wanted to be of some assistance to his dad during these tough COVID times. Now, if he could win this scholarship he would be able to save more than half of this year’s fees for his dad!!!
Khushi was equally excited for Joy, she adored him as a friend and guide. Today, looking at his conviction to save money for his dad, she felt immensely happy, that Joy was part of her life!!!
Khushi decided to help Joy, so that he could win this competition. They had a good two days to send the list. Without wasting much time, they started planning on how they would get this list, their first thoughts were they would not just do a copy paste job, but would actually research and understand lot of concepts and then present them.
After two full days of strenuous brain storming and getting lots of data and knowledge, both were left stunned! They now had almost 16 money facts ready, which according to them would change a lot of lives – young and old, if implemented.
It was Khushi’s idea to take this list to Joy’s dad so that he could give them his thoughts of the “Best 10” so that they could send it to their school.
Joy’s dad being a financial planner himself, was stunned at the 16 points that Khushi and Joy were able to note. As, he set about pruning the list to 10, his astonishment only turned to pride…
Here’s the final list:
- The Top 1 % of the wealthiest people in the world have 50 % of the world’s wealth.
2. More monopoly money is printed each year than real money in the US.
3. There is a substantial difference between what we want and what we need. Our needs are stronger desires than our wants. Our needs are those things which are essential, our wants are anything more than our needs, including luxury.
4. Your brain doesn’t want you to waste money you’ve already spent. Your brain thinks of the money you spent – which is money you no longer have access to – as something we have invested vs. something that is gone. It tries to make sure you use this investment and has a harder time realizing it is gone and shouldn’t influence our decisions nearly as much as it does. We end up spending more money, time, emotions into situations to “save” the money, time and emotion we’ve already spent.
For example, I joined the gym and spent ₹10000 in new shoes and gym clothes. I hate the gym and never want to go, but I keep the ₹4000/month membership because I’ve already “invested” in the shoes and clothes.
5. According to the survey, 67 percent of parents talk to their kids about saving money in general, and more than half talk about budgeting. But only 30 percent of parents talk about investing money, while 18 percent educate kids about saving money for retirement.
6. According to a global survey, about a staggering 76% of Indian adults do not understand basic financial concepts and are unfortunately financially illiterate even today. The survey confirms the financial literacy rate in India has been consistently poor as compared to the rest of the world. It is indeed high time for a developing country like India to realize the importance of financial literacy as such poor financial literacy rate can prove to be a major setback to India’s ambition of becoming an economic superpower in the coming years.
7. Paper money first began in China; the first ATM machine was installed in 1967 in the UK.
8. If I save Rs.1000 every month and put it in a bank for next 30 years, I would save Rs.3.6 lakhs and if the bank gives an 8 % compound interest on it I will get almost 15 lakhs in the end…that’s magic of COMPOUNDING!
9.If my friend Khushi puts the same money for 30 years but makes an extra 2 % return (that’s 10 %) she will get above Rs.22.5 lakhs!!! …that’s great reward for BETTER INVESTING TECHNIQUES!
10. It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.
So, who do you think Won the competition…?? ….think harder !!! People with the right knowledge about Money, Saving and Investments WIN…always. So what stops us? We all study long and hard to ultimately make money, lets make best efforts to make this money work well for us…what are your thoughts ?? Do share in the comments section…
Author: Nirmal Jain | Nirmal Jain is the Co-Founder at HappyWise Financial Services. He has helped over 100 Families over the last 15 years of his services in the Financial Planning Sector. He has been a mentor to several people to help them better understand investments, stocks, mutual funds, financial planning, personal finance and above all his favorite term “The Power Of Compounding!”.