Financial literacy is a crucial skill in today’s complex economic landscape, especially for individuals who are new to investing. Olga Milko, the Business Development Director at Freedom24, emphasizes the importance of understanding basic financial concepts to make informed decisions about personal finance. As markets become more intricate, having a solid foundation in financial literacy is essential for effective financial planning.
Milko highlights the significance of inflation and the cost of money in shaping our everyday lives and future financial goals. She explains that keeping savings in cash at home or depositing them in a bank may not be the most profitable options due to the impact of inflation on purchasing power. This realization often prompts individuals to explore investment strategies to grow their wealth over time.
One key strategy that Milko references is investing in the S&P 500 index, which has shown significant growth over the years. By tracking the performance of this index, investors have the potential to see substantial returns on their investments. Understanding the basics of financial markets, such as risk and reward, is crucial for evaluating investment opportunities and building a diversified portfolio.
To support users in their investment journey, Freedom24 offers a range of educational initiatives through the Freedom24 Academy. These programs cater to both novice and experienced investors, providing foundational knowledge on stock investing as well as advanced topics like technical analysis and risk hedging. By combining theoretical concepts with real-market scenarios, users gain practical insights into navigating the stock market confidently.
In addition to educational resources, Freedom24 employs various strategies to assess users‘ financial literacy levels before they start trading. By conducting an initial onboarding questionnaire and appropriateness assessment, the platform ensures that users have a sufficient understanding of financial concepts and risks associated with different investment instruments. This personalized approach helps tailor the trading experience to match the user’s risk profile and investment goals.
Advanced trading tools are also available on the platform, catering to both novice and experienced investors. By offering customizable features and user-friendly design, Freedom24 strikes a balance between providing sophisticated tools and maintaining simplicity for all users. The platform’s customer support services play a crucial role in enhancing users‘ financial literacy by offering personalized assistance, guidance, and education.
While social trading and online investment communities have gained popularity, Freedom24 has chosen not to integrate these features into their platform. Milko highlights the risks associated with social trading, such as misinformation and impulsive decision-making driven by emotions like fear of missing out. By focusing on providing reliable information, educational resources, and user-friendly tools, Freedom24 aims to empower users to make informed investment decisions.
Looking ahead, Milko envisions a future where financial literacy is integrated into governmental education programs, ensuring that individuals have access to basic financial knowledge from an early age. By fostering a deep understanding of personal finance, individuals can achieve financial independence, security, and long-term wealth. As we navigate through uncertain economic times, the importance of financial literacy cannot be overstated, emphasizing the need for continuous education and informed decision-making in the world of investing.