It's not surprising that a number of surveys have found that younger millennials and Generation Z score lower on financial literacy than their older Generation X and Y counterparts.
Fundamentally, this is because educating yourself and learning about the different components of wealth takes time, often through direct or shared experiences with family, friends and colleagues.
However, the flip side to this “education curve” is that there is digestible information, webinars and training material online that are more accessible than ever before, compared with the environment Generation X and older millennials had, so there is an opportunity for younger people to learn quicker than their parents, for example.
Additional digital tools such as “demo” accounts and investment simulations also offer a direct way to dip your toes into the wealth world before you have the capital or regular income to do so.
This is another great way to familiarise yourself with the wealth journey ahead.
Start as early as you can
If you consider how Fomo (fear of missing out) and Yolo (you only live once) influences youth spending patterns, it appears that younger people prioritise living for today ahead of thinking about tomorrow.
However, I would strongly advise that you start saving as soon as you can to get into the habit and take advantage of the “law of compounding” on your portfolio, which is among the strongest success factors for building a healthy investment portfolio during your lifetime.
Fortunately, access to investment platforms and even investment advice is far easier today than it was before.
It is relatively simple to set-up an online investment and trading account with either a zero minimum or low minimum cash requirements to start.
So, if you only start with a few dollars each month, my advice would be to start as early as you can, build the habit of regular saving to build some discipline.
Start simple and low cost
While you are going through the education cycle described above, you can start with easy low-cost investment products to build the foundation of your portfolio and take advantage of the compounding effect of money over time.
For example, you can start your early investing journey by buying simple, well-proven strategies such as investing into exchange-traded funds (ETFs), which are a basket of securities consisting of stocks, bonds, commodities or other financial assets that track major global stock markets.
This low-cost strategy does not eat into your savings, is a proven way to put your savings to work over the long term and does not require detailed investment knowledge.
In addition to buying ETFs on the US, European, and Asian indexes, you can also look to low-entry mutual funds, which are managed by professional portfolio managers, to gain entry to a diversified range of foundation investments in your initial years of saving.
Diversify, diversify, diversify
Diversification is one of the longest and most proven investment tactics that has stood the test of time.
Resist the temptation to go “all-in” on the latest hot trend or fad; the recent turbulence in the cryptocurrency market is a good example.
There is nothing wrong with having a small allocation of your portfolio in a high risk/high reward area such as cryptocurrency, however, make sure this is blended with lower-risk, arguably more “boring and predictable”, investments in index stocks, funds, or even fixed income.
By doing this, you get the upside if a part of the high-risk portfolio takes flight to the moon, but you also have the downside protection if the opposite happens as it will only impact a small percentage of your portfolio.
Avoid using debt to invest
Until you are at a far more experienced stage of your education, avoid using debt or credit to fund your investment portfolio.
It may seem very easy to build your portfolio from credit cards that are constantly being marketed to you online or, once you have started your portfolio, to use “leverage” from your portfolio to accelerate your investments.
Watch: Meet the teenager and his sister launching a cryptocurrency
However, both can be very dangerous.
Think about this in simple terms: if your credit card is costing you 15 per cent to 30 per cent a year in interest charges, or if your online platform is charging you 4 per cent to 10 per cent to take “loans against” your portfolio, then you need to get a better return from the instruments you have invested into by using that cash, otherwise you will be in a negative position.
Be careful to avoid being scammed
As the saying goes: “If it looks too good to be true, typically it is too good to be true.”
It is, and will be, difficult when you start your wealth journey to validate this. So, take some time, ignore the Fomo, and speak to others who have more experience and can help to guide you in the early years of investing.
Damian Hitchen is the chief executive of Saxo Bank for Middle East North Africa
Honeymoonish
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Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Need to know
When: October 17 until November 10
Cost: Entry is free but some events require prior registration
Where: Various locations including National Theatre (Abu Dhabi), Abu Dhabi Cultural Center, Zayed University Promenade, Beach Rotana (Abu Dhabi), Vox Cinemas at Yas Mall, Sharjah Youth Center
What: The Korea Festival will feature art exhibitions, a B-boy dance show, a mini K-pop concert, traditional dance and music performances, food tastings, a beauty seminar, and more.
For more information: www.koreafestivaluae.com
First Person
Richard Flanagan
Chatto & Windus
MATCH INFO
Euro 2020 qualifier
Croatia v Hungary, Thursday, 10.45pm, UAE
TV: Match on BeIN Sports
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Where to apply
Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020.
Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.
The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Usain Bolt's time for the 100m at major championships
2008 Beijing Olympics 9.69 seconds
2009 Berlin World Championships 9.58
2011 Daegu World Championships Disqualified
2012 London Olympics 9.63
2013 Moscow World Championships 9.77
2015 Beijing World Championships 9.79
2016 Rio Olympics 9.81
2017 London World Championships 9.95
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Ashes 2019 schedule
August 1-5: First Test, Edgbaston
August 14-18: Second Test, Lord's
August 22-26: Third Test, Headingley
September 4-8: Fourth Test, Old Trafford
September 12-16: Fifth Test, Oval
No more lice
Defining head lice
Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.
Identifying lice
Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.
Treating lice at home
Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.
Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital
Results
- Brock Lesnar retained the WWE Universal title against Roman Reigns
- Braun Strowman and Nicolas won the Raw Tag Team titles against Sheamus and Cesaro
- AJ Styles retained the WWE World Heavyweight title against Shinsuke Nakamura
- Nia Jax won the Raw Women’s title against Alexa Bliss
- Daniel Bryan and Shane McMahon beat Kevin Owens and Sami Zayn
- The Undertaker beat John Cena
- The Bludgeon Brothers won the SmackDown Tag Team titles against the Usos and New Day
- Ronda Rousey and Kurt Angle beat Triple H and Stephanie McMahon
- Jinder Mahal won the United States title against Randy Orton, Rusev and Bobby Roode
- Charlotte retained the SmackDown Women’s title against Asuka
- Seth Rollins won the Intercontinental title against The Miz and Finn Balor
- Naomi won the first WrestleMania Women’s Battle Royal
- Cedric Alexander won the vacant Cruiserweight title against Mustafa Ali
- Matt Hardy won the Andre the Giant Battle Royal
Brief scores:
Arsenal 4
Xhaka 25', Lacazette 55', Ramsey 79', Aubameyang 83'
Fulham 1
Kamara 69'
SNAPSHOT
While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.
