Chapter 21: Helping Others
A great way to see if you truly understand something is to try and teach it to someone else. Explaining material to others allows you to go over the key points in your head and internalize them. If your teaching is successful, then you can rest assured that you’ve truly grasped the information gathered.
Whether it’s a new budget tracking app or an ETF with lower fees, explain the concept and benefits to someone else. Then, gauge your understanding by how well they can follow along. Many financial topics seem straightforward at first glance. But when you break them down into the steps involved, you realize how many rules or differing interpretations there are. By thinking through what’s most relevant for your explanation, it will help you remember what matters most.
Sharing what you know with those around you also allows them the opportunity to return the favour. If you explain the benefits of a TFSA to a friend, they may return the favour later by suggesting a new investment option. You never know the value that could be added to someone’s life by helping them with a financial topic. As more people around you become comfortable with personal finance, it can become a helpful, thought-provoking and enjoyable field of conversation.
The success of a community doesn’t rest on any one person. The financial success of a community or, more widely a country, relies on the achievements of all its citizens. The more informed, capable and motivated people are the more successful we’ll be as a nation. As a result, you share some of your fate with your neighbours and fellow citizens. Even if you’re prepared for retirement, if others need financial support, it places higher requirements on your savings. Therefore, your investment in the future should be made not only into your savings account but into helping those around you to better understand and prepare for their own financial future.
Key Takeaways
You can have a major impact on others by helping them learn about personal finance topics.
While your financial plan may relate to you and your family, it’s impacted by Canada’s success as well.
This blog is a duplicate of the recently self-published book The Snowman’s Guide to Personal Finance available for purchase here.