The Importance of Teaching Your Children About Business and Investments Early On

Hands up—how many of you out there as children truly enjoyed studying math at school? There probably aren’t many hands going up right now. With the best will in the world, mathematics, calculus, algebra, and arithmetic were, and continue to be, the banes of many a school-age learner.

Yet we really can’t live without it–numbers are the only universal language. Plus, we use math almost everyday without realizing it. Whenever we are backing a car onto the drive, we are using trigonometry to determine how much space we have to maneuver into. When we are at a restaurant, and tallying up the bill to share amongst a party, we are using our mental arithmetic skills and fractions.

In the wider world, math has a huge—albeit silent—input into all the businesses you see around you. But much like when you are using a form of it during, say, a budgeting session, these real-world applications will not readily be defined as out-and-out-math. Business workers and investors have to apply math in their respective workplaces every day and using their skills to earn big.

So why, therefore, business and investments not taught at schools in the same way that the functions of a hypotenuse are? Well, the answer is that they are, but just not in an outwardly obvious way. For your children to specifically learn about getting ahead with the skills that the business and investment opportunities demand, they will have to find that knowledge elsewhere. Most likely, that will start with you.

Why do they need to know this stuff?

Well, first of all, they probably already do, but children’s knowledge of business and investment will only go so far as to the technicalities of them. How investments work, and how the simple formulas of business are taught every day, through the math lessons that cover mental arithmetic, formulae, equations, and logic et al.

The knowledge that they don’t have, however, is in the practicalities of math, and this is something that is learned in time, almost through growth. The practicalities of different functions of math become more evident in the (almost unconscious) use of it.

When they are working out their own GPAs in schools, or figuring out the braking distance when learning to drive, the practical uses of math become much more obvious–even if they aren’t being stated as such. It is these practical uses that define business and investments, and so early knowledge of them is fundamentally important to those who want to pursue a relevant business later.

Catching them early, to help them later.

But if a child is struggling at school with the lessons of this important and widespread element of day-to-day life, it might be worth getting them a math tutor to help boost their studies. There is no shame in not knowing all aspects of math, but it can help in later career choices to have this knowledge.

When Covid-19 forced the majority of school children to stay at home and receive their classes from there as well, it is understandable that the majority of parents would have struggled also to teach this particular subject. For both helping those students who are struggling with school-taught math problems, and those parents who are now struggling to teach it, it might be worth enlisting the help of an online math tutor to connect the dots and help bring out that knowledge.

With math help online, from digital learning providers like HelloThinkster, children can learn the technicalities of mathematics, from fractions or geometry to algebra or calculus, and how to apply it both in their studies and the real world.

They can do this through partaking in interactive video tuition, enlisting in courses, and doing practical math homework without it getting boring but staying focused on learning. HelloThinkster is also offering free trials and a math learning app to ensure that the extra study can continue after Covid-19 restrictions pass.

An example to consider.

This fundamental knowledge will not only prove to be useful at school and getting into college but will open the door to a myriad of careers in the future. If you have hopes that your child will enter into business and investment–two very important and very lucrative careers in themselves–then having a good sense of mathematics will definitely help.

Both of these careers are using formulas to get ahead and even share equation-based math to improve themselves. One example would be to know what’s a good TIE ratio, in order to determine the potential value of a business’ investment return.

Businesses divide their income before taxes and interest by their outgoing expenses, and round the answer down to the lowest whole-number to come up with a Times Interest Earned Ratio. The result of this equation shows the number of times a company would hypothetically be able to pay all of its debts, before running out of money.

The higher the number, the better the ratio and this TIE ratio is used by every investor to determine how sustainable a business is–and therefore the risk involved in investing in it–before making that decision. In this example alone, logic, equations, and formulaic math has been used and is being used every day in a practical business and investment accounting calculation.

A final thought.

Let’s be honest, no kid at school is telling anyone that they want to be in business or investments when they grow up. They either want to be an astronaut, a police officer, a princess, or Batman. But let’s consider for a moment, what would happen if we influence that narrative a little bit.

Role models are usually people of action, but perhaps it’s time for unsung heroes like John Foresi to come to the fore. Foresi, along with business partner Andrew Stewart, founded Texas-based realty company Venterra Living and insisted from day one that each employee has to work in compliance with a set of core values that include honesty and integrity, candor, and openness.

As a business owner, John Foresi may not be a household name but his insistence on doing honest and truthful business led to Venterra Realty being named as one of the Fortune 100 best workplaces for five years running. If you want your child to do well in the world of business, then point to this man as an example.


Interesting Related Article: “Teaching: Reflections on Education During COVID-19