Author Topic: Learning about economics, investment - the basics - in Australia  (Read 1356 times)

misterhorsey

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Anyone have any recommendations for books, articles, or online material that is an easy introduction to all matters personal finance/economics? MMM and other frugal bloggers are great but they also presume an understanding of basic concepts - for example, like how interest rates work and affect the typical wage earner/mortgagee.

I was chatting with a very young colleague yesterday. 22 and it's her first job after graduating from uni.

We were walking around at lunch and we started talking about cost of housing, this is in Fitzroy, Melbourne, and I mentioned the existence of this: https://www.domain.com.au/level-5-1-3-otter-street-collingwood-vic-3066-2013329616

Well, it hasn't been built yet. But mind was blown.  I did mention that if you were the developer you'd want to squeeze as much out of the price as you could so the listing price is a invitation to negotiate as much as anything else.

This provoked a conversation about general economics She studied communications and although she did economics in high school, she has, at best, a very rudimentary understanding of economics and finance, at worst, no understanding. 

For example, she mentioned that she would like to understand how things like interest rates affected her.  I did a bit of an explanation.  But it's quite challenging to distill my 20 years of obsessing of these kinds of concepts into a few casual remarks.

So if anyone remembers what material first piqued their interest I'd love to hear it.  Or what book or website shed a light on concepts that at first seemed overwhelming it would be much appreciated. I'm not confident that this person will persevere with her interest, but sometimes the lack of interest arises because they haven't yet found the right messenger.

Now that I'm writing this, I have another friend, 30, who is slowly developing personal financial literacy. However, about a year ago when I suggested she consider investing in the stock market via index funds, her response was 'I can't do that. The stockmarket is for rich people' - which I think is an understandable, but unfortunate viewpoint, when you come from very humble beginnings. When your only knowledge is via the mainstream media, and you don't have parents, family or friends who are familiar with lower risk investing, then it can all seem like secret society.

Another young friend of mine also read this and rated it highly, and went out and started a Vanguard Life Strategy fund afterwards  - but I haven't read it myself:

http://www.getrichslow.com.au/

Thanks in advance.