Why the tip “Study hard, get good grades & find a good & secure job” no longer seems to work in a changing world

authored by
Konstantinos Zacharis
19.03.2021
Saving for your children
7 minutes read

As a father of 2 children aged 15 & 20, I have often wondered if our education system prepares children for the real world.

"Study hard, get good grades and you will find a well-paid job with many benefits," our parents used to urge us and we continue to urge our children.
You see the purpose has always been to offer them the best possible education so that they have more chances to excel themselves in life.

I trust you have wondered yourselves what is wrong when our children sometimes returning from school are frustrated and ask us "Why should I spend time studying lessons that I will never use in my life?".

I guess you too have heard your children say to you, 'Dad, Mum, keep up with the times, look around you, many deeply rich and successful people have not succeeded because of their education. Take for example JOBS (APPLE), ZUCKENBERG (FACEBOOK), ORTEGA (ZARA), KARDASHIAN, GATES (MICROSOFT) who dropped out of school and are now among the richest people in the world.

You must have thought that the advice we give to our children is the same advice that our parents gave us. The world has changed but the advice has not. The truth is that good education and good grades are needed, but they no longer guarantee success and no one seems to realize it except of our children.

"Dad, I do not want to work as hard as you do. You earn money, we live in a nice house and we can meet most of our needs comfortably, but if I follow your advice, I will end up like you, working harder and harder to pay unbearable taxes and possibly end up one day in debt to the bank for my mortgage," my 20-year-old son tells me and continues.

I can realize that he tells me "that today work is no longer a given and is increasingly being replaced by technology, and highly educated people today earn less compared to the times that you graduated and began your career. Take for example the civil engineers, the lawyers, there is an overabundance of scientists and they no longer make that much money. I also know that my generation as well as those that follow have a high probability that we will never retire. I need new solutions."

He is right. We need new solutions like all of us. Our parents' advice may have been a lifesaver for people born before 1965, but it can be disastrous for those of us born into an ever-changing world where most things are not a given and require modern life skills and adaptability.

Personally, I can no longer push & tell my children "go to school, go to university, get good grades and find a safe and secure job". I know I have to follow a new rationale to guide my children's education and become a Chief Life Skills Officer.

To try to develop modern skills such as,

• Basic management skills of everyday financials,
• Savings and investments,
• The development of entrepreneurship,
• Negotiation & communication skills,
• The effective presentation of ideas & arguments,
• The persuasion,
• PC programming & code writing,
• The monitoring of technological developments,
• Synthetic & analytical thinking,
• Critical thinking & problem solving,
• Leadership skills,
• Social skills & emotional intelligence, the so- called EQ.

As a parent and investment professional, the lack of teaching practical basic financial education at school makes me wonder.

Many teenagers today acquire debit and credit cards from neobanks such as REVOLUT and N26, before graduating from High School even though they have never been educated on money management and investments.

Without basic and practical financial education and ignoring the way that money works, our children are not prepared to face the world ahead, a world that emphasizes more on consumption than on saving and investments.

Unfortunately, our education system teaches little about money management and most young people graduate from higher education and university without having this basic skill (Life Skill). So, they begin their adult and professional life without knowing anything about saving and investing.

But the most important thing is that the lack of this skill can lead them to wrong decision taking that could damage significantly their financial state and have serious impact on their lives.

Something else that is related to the knowledge of financial affairs is the following.

We all fall into 4 employee categories. Employees, freelancers, businessmen and investors. The first two categories exchange time for money and make for about 95% of the economically active population but control only 5% of wealth. While the last two categories control 95% of the wealth and make for approximately 5% of the population, only because they know how to make money work for them.

At XSpot Wealth one of the goals of our corporate social responsibility program is to help young people gain savings awareness and get to know the investment world and how it can help them achieve critical future financial goals such as buying a house, funding their studies, purchase their first car, have a travel experience etc.

And because a picture can describe a thousand words, look at the example of two young people, Kostas and Ioanna, that began saving and investing in a different way, and their results.

1st Case: Kostas wastes his money for 8 years and at the age of 26th years old decides to invest 150 euros a month until he turns 65 (pension) in the Growth investment strategy of XSpot Wealth with a net return of 12%.

2nd Case: Ioanna invests 150 euros per month for 8 years in the Growth investment strategy of XSpot Wealth with a net return of 12% and does not invest anything else until she becomes 65.

As you can see, Ioanna despite investing less money, achieved much better results due to the fact that she began investing her money earlier (at 18 versus Kostas’ 26 years old).

Conclusion: Τhe earlier one starts saving and making money work for oneself, the greater the chances to accumulate a satisfactory amount of money.

For this reason we suggest you to click on the relevant banners and discover the Smart Wealth and Junior Wealth plans from XSpot Wealth, which we consider them to be an effective way for everyone, regardless age, to develop a savings and investment consciousness and learn how to create an alternative source of income beyond your employment, which is certain that will not last forever.

I am Kostas Zacharis from XSpot Wealth, the number one digital wealth manager in Greece and we want to change the way people invest their money.

This article does not constitute and shall not be construed as a prospectus, advertisement, public offering, or placement of, nor a recommendation to buy, sell, hold or solicit, any investment, security, other financial instrument or other product or service. This document is for general information only and is not intended as investment advice or any other specific recommendation as to any particular course of action or inaction.