For the mathematically and financially minded, let’s call it a course about compounding interest and the time value of money. For the rest of you, it’s about appreciating the power of saving a little regularly, the benefit of starting early and importance of minimising deductions. Conversely, it’s about paying down debt however small the instalment and keeping it under control, so interest payments don’t negate what you’ve managed to squirrel away.
The learning outcomes are:
- Understand the interplay between time, capital, income and total return
- Appreciate the magnitude of financial gain compounding your savings/investment income can have over spending it
- Understand the interplay between personal preferences (including for risk) and requirements and the way you put aside money
- Become aware of investment products that allow you to invest small amounts but regularly
On request, the course can be extended to a full day to allow time to go into the mathematical detail and teach you how to build a calculation spreadsheet.