What You Weren’t Taught About Making Money | Sarah Potter | TEDxCollingwood


Translator: Tanya Cushman
Reviewer: Riaki Poništ My daughter just started kindergarten. So this is a really exciting time. It marks a time when me, as a parent, is going to hand my child over
to this education system and hope that she learns the skills
she needs to be successful in life. I’ve only dropped her off at kindergarten, and I’m already thinking
about high school. But really, when we drop off our kids at school, it kind of evokes a lot of deep
philosophical reflections about what we need in order
to be happy or to be successful in life and what our children will need. Now, one of these topics is something that I know that she’s really
not going to learn in school, as much as I wish she would. And oftentimes, this conversation
doesn’t actually happen at home. The topic that I want to talk
to you about today is this, and specifically:
“How do you make more of this?” Now, my experience with money
started very differently than most. I was in education; I was an educational consultant,
worked there for about ten years. And at the time, I was doing
my Masters of Education, and I had this hobby
called “trading in the market.” As you can imagine, when I first started,
I didn’t make a lot of this stuff. And what I decided to do
when I did my Masters of Ed was apply the things I was learning
about how we learn best with the skills of making money. It ended up working out really well. I left that full-time job, and now I do this for a living,
and it’s pretty fantastic. But it’s with this perspective
of both education and investing that I want to talk to you about today. When we think about money, many of us are very familiar
with the skills: “save more,” “spend less,” “budget.” Those are terms we use all of the time;
we throw them around, we know they’re things that we should do, and they’re really focused
on preserving what we have. Then on the other side of the coin, we have this idea of what it would be like
to make a ton of money. We have these ideas and notions
in our head when it comes to the market – that we think we need to risk it all
to make millions of dollars. This is Gordon Gekko, a very familiar character
when it comes to making money. We’ve probably all seen
the movie “Wall Street,” we might watch shows called “Billions.” This is the typical depiction of what we normally think about
when it comes to trading. This is me. (Laughter) Trading in a coffee shop
while my baby is sleeping on me. What we see and hear
when it comes to money-making is so far removed
from what it’s really like. So, if you have a bit of money saved, and we’ve done what we’re supposed to do, and we want to actually grow some wealth, many of us are trying to hit that other very traditional notion
of what it’s like to be in the market, the notion that’s actually more
appropriate for institutional investing or people who already have
millions of dollars trying to make more. Depictions of average people
are few and far between. If we actually want to do
something with our money, we are somewhere here in the middle,
and there’s a big knowledge gap. And so, no wonder it’s pretty
confusing for all of us. I mean, 76% of millennial women
find investing confusing. 71% of Americans find talking
to their financial planner scary. And get this: 44% of Americans find the most
challenging conversation you can have is about money. Even the topic of death
comes in second at 38%. So this is a real problem. We all work really hard for our money. We are all told to save our money. But what do we do if we want
to make a little bit more? What do we do if we’re somewhere
here in the middle? Most of us are probably handing our money
over to financial institutions because this is often
what we’re told to do. And when we do that, that’s fine for some. But unfortunately, we don’t really
get to see what they do, we definitely don’t get
to learn how to do it, and many of us don’t even know
the questions we should be asking about why are they making
the decisions that they are. And I don’t think
that this is really right. Many of us don’t even realize
that we actually have the technology to be able to log in
to your cellphone or your laptop, and to be able to trade
at any point in time during the day. Unfortunately though, the skill set that’s gone
along with this hasn’t really kept up, so many of us don’t really know. So what if we turned, then,
to the formal education system? This is where we would think about: “We need to learn to make money.” So, the latest term that we have here
is called “financial literacy.” This is supposed to help
all of our money woes. But if you look at the narrative about what it still being discussed
when it comes to financial literacy, we still are talking
about the same old, same old: “save more,” “spend less,”
“budget your money.” And I want you to think
about it for a second. If we actually took this idea and started helping people
to know how to make money, and then they started spending money based on the profits
that they actually made from money they earned, how would that change
the conversation about money? We need to help our students realize that when it comes to the markets
or the ability to make more money, this can be actually
very achievable for most of us, but we need to stop trying to make
millions of dollars and risk it all and start realizing that this is a skill that any of us can do
at any point in time. We need to take some of the skill sets
that kids already learn. So think about something like: “compare and contrast”
or “sorting” for that matter. In kindergarten, they’re starting to learn
how to sort things and build patterns. Those are skills that actually I use
in the market every single day. And, in fact, when I learnt how to trade –
and I trade for a living – a lot of the skills that I use
aren’t actually financial skills; they’re skills that I actually
learnt in other areas. So we need to help students bridge the gap between information
they’re already learning and tying that to conversations about money. The other piece that I want to talk
to you about is realistic expectations. Again, this is something
that can be very appropriate for students when we talk about this with them. When it comes to the market,
it’s not all or nothing. So, just for example here, about a week ago,
I got an email from someone. And he had $5,000, and he wanted to know how long I thought it would take
to go from $5,000 to $10,000. And that’s the problem. $5,000 to $10,000, that’s a 100% return;
that is doubling your money! Gosh, if everybody
could do that, wouldn’t we all? It’s all about our expectations. It would be far more realistic
for him to take his $5,000, trade with it, enjoy that, and take his family
out for dinner once a month as opposed to trying to double his money. There is nothing wrong with taking
a small amount of money that you have and only just focusing
on making some profits, and then spending those profits
on all the fun things that you love rather than trying to double your money It doesn’t have to be all or nothing. And let me tell you, I am not an ex-institutional trader. And by the way, just because
you are an ex-institutional trader doesn’t mean that you actually
know how to make money, or that it’s appropriate
for us as average people. I also want you to know that I am not a certified
financial planner. I do not have an MBA,
nor do I have a business degree. I am an average person. And when it comes to making money, I am no more capable of this than you are. Home Depot brought “do-it-yourself”
construction projects to the masses with the tagline: “We can show you how.” We need something like this for money-making skills, too,
for average people. We need to start seeing depictions
in media and entertainment that are actually
more realistic and focused on what most of us
can do with all of this. We need to stop idealizing these very fantasized versions
of trading in the market and [start] realizing
that this can be appropriate for all of us. So, there are three things that I really hope
you’ll walk away with today. And now that I do know how to make money, this is what I hope you will write down and you will continue
to tell other people. The first thing is that when it comes to making money, there’s this language to it. And there’s lots of complicated terms. And one term is often used
to define another term. So no wonder it’s confusing for all of us because none of us are using plain English when we start talking
about making-money skills, but particularly in the market. So let’s start asking
our financial planners, all of the media outlets to start talking about all this
in plain language so that we can actually understand. If you want to continue to invest
with someone else, that’s fine, but maybe we’ll have
better questions to ask about the decisions being made. And if you want to do that yourself, it’s even better. I also want you to know that the language shouldn’t be
the barrier for you to do this; you don’t need to know all of the words
to know how to make money. And vice versa: you can make money without knowing
all of the words in this industry. The second piece is that when it comes
to investing or trading or making money, it doesn’t have to be a full-time job. Now, I love this, and I have to say I’ve done this
part time, full time, and I started trading four days
after my second baby was born. You can do this as a hobby too. The best part about trading
and making money that’s more realistic is when you go to Starbucks
and you order a latte and it’s free. And you know why it’s free? Because I’m spending the profits that I made on a trade in Starbucks,
the stock, about a week earlier. That feeling is something
everybody can feel. If you have a little bit of money saved and you focus on spending it
on your indulgences, how does that change
your perception about money? The third thing that I want you to know
when it comes to making money is that it’s a skill. Unfortunately, there are a lot of people that come to the market and think
that they are Olympic mountain bikers before they’re really ready
to take the training wheels off. So I want you to remember that when you first started
to learn to ride a bike, you probably started with training wheels. And you may have even fallen
a couple of times when you took them off, but you got up, and now some of you
might be Olympic mountain bikers, but others might just enjoy
a Sunday afternoon ride. And the same experience
can be true in the market. Just make sure that if you do fall down,
you can still get back up again, because it does get to a place
where it’s actually really fun to do. I’d like everybody
to think about Gordon Gekko. What Gordon Gekko [did] is risky, but it doesn’t have to be that way. And honestly, not knowing
about money-making skills is risky too. If we all ask more,
see more and hear more, we can learn to make more. And so this brings me back
to the beginning of our conversation when I dropped my child off
at school this morning, as many of you have as well. Are they really learning the skills
they need to be successful in life? And have the skills
that you learned about money helped you to get you
where you want to go? Thank you. (Applause)

100 thoughts on “What You Weren’t Taught About Making Money | Sarah Potter | TEDxCollingwood

  1. God, this is horrible. It's called INVESTING!!! That's how you make money (possibly). Not by trading.

  2. So her talk is basically why dont we teach kids to use the stockmarket. Because why would you teach kids to gamble before they have a tangable understanding of what money is? And because stockmarkets and shareholders promote some of the worst behaviours in business aka unsustainable growth?

  3. it would be lovely if i can order something in a store and technically it would be free for me!

  4. I read the comments before I watched it. I found out that this is a good lecture, not bad at all. She makes investment reachable and approachable to all of us. Though it's not TED TALK quality, it should have been more thought-provoking than this but it's not that bad.

  5. This was a joke, right? A woman talking for an entire video about how we were not taught things about money, and she manages to not share one bit of usable information.; This is shameless clickbait.

  6. Lol, what is she talking about! Starbucks coffees, 71% of Americans, and trading. Useless, no value here.

  7. whats wrong with wanting to double your money…and how is telling him to go treat himself with the profits sound financial advice

  8. I'd argue learning how to have more and bigger orgasms is more important than learning about money skills… but this is just I.

  9. Your coffee was not free. you spent time trading to make a profit to buy this coffee.

  10. This is so perfectly attacking the educational system. Though it doesn't provide any guide on how to invest in the market, it does tells us how our educational system is not teaching the things that ought to be taught to the general public.

  11. She said everything a person needs to get started. So do not be lazy and complain but rather get started. Use the internet, books and people who are doing it. Use all of that as resources to learn. Not a 12 minute Ted talk. That is not what the Talks are for from what I have seen. Stop being lazy.

  12. Just Jargon and promotion of Star Bucks.. Making Money through trading is not cake walk.. This TED talk was futile with vague explainations reaching no where.

  13. Law of attraction to receive money from the universe💰💰💰🌐. Money tree🌋😀🐕

  14. When the guy with the $5000 asked her how to double his money, she should have said for him to find a stock, ETF, or mutual fund that has an average annualized rate of return of at least 10% over the last 40 years, then put his money in that and wait for 7 years (less if he is reinvesting dividends, and even less still if he is putting in additional capital over time). That nonsense about not worrying about double ones money and just going out to eat with the family instead of worrying about making money in that situation made me want to scream!

  15. This is not that bad. Why so many negative comments? I learned something and that's okay. Did you expect to leave here with a blueprint on how to make money? The talk was more on financial literacy than making money through trading. Change your perception of fast, risky money-making cause it's a lie…is that a bad message? Granted though, she could have given a better presentation.

  16. Save yourself 13 minutes.
    Point 1 school fails to educate people on real world problems.
    Point 2. Big wins don't happen over night take that steak and enjoy it.
    Point 3 Making money isn't like building a house , blueprints just aren't available
    Point 4 trading on the stock market doesn't take that much time.
    Point 5 switching to Geico can save you 15% or more

  17. She gave the clue, the pathway. Yes she didn't give away her inner secret but the word is "trading". Well it could had been a few seconds video but like Hollywood it had to be a full-time movie.

  18. I dont know why so many down votes since I absolutely feel that video was very helpful in guiding the beginners well… I thank you so much Sarah for your thoughtful insights on how to begin the trading!

    Take care and God Bless you all :):)

  19. telling investors to sell as soon as they make a little profit and use the money to take their family on vacation is TERRIBLE advice. Keep the money invested, you future self will be thankful. Constantly buying and selling comes with so much friction cost. If you want to take a vacation save for it in your checking account then pay for it in full without using a credit card.

  20. Stop calling it MONEY omg. You're a trader and you don't know what currency is.

  21. I agree that money is not taught in school…. but there is nothing here that teaches anything…

  22. Like most Ted talks, no useful content. Foolish to think you can trade like this. 90% loose 90% in 90 days.

  23. What a waste of 12 minutes. I could have given a better ted talk about this subject.

  24. Worst speech I ever heard. She talks "blah blah" for 13 minutes, no value addition, no useful information. Only the title looks attractive.

  25. Making more money doesn't make you happy… this is what you should teach to your kid :/

  26. so how about when you lose money trading? you will wish you were a teacher making a regular income

  27. Most of yall in the comments just dont get it the info being spit here, "No information provided, complete waste of my time" you know why? Because you were looking for an easy way to get rich and you were looking for that answer instead you of applying what she's talking about. This is why more than 70% of people struggle because they look for the easy way and expect a handout with no work put in

  28. We need more information everywhere… provides no information. Yai yai, give me something I can use.

  29. Ah yes, trading! The art of taking out of a system without putting anything in. And her coffee wasn't free, she probably spent untold hours, and luck, getting that profit. You'll have my respect when the get something because you gave something.

  30. This really seems akin to having a small-sum lottery winner on to talk about how to make money buying lottery tickets. Once you win just spend your earnings it's so great! She's benefited from trading in a bull market (long period of steady growth), but her only real information is to improve your financial literacy. Look pretty much anywhere else and you will find basically three tips:

    1. Track and control your expenses (i.e. don't live beyond your means, and avoid lifestyle creep)
    2. Pay yourself first (i.e. put a set % of earnings into savings / diversified investments)
    3. Diversify your assets (i.e. Split your investments across different sectors/markets/etfs/etc…)

    Of course all those apply to a passive investor, but I think that's who she's trying to target with this speech, people with relatively low financial literacy. For anyone trying to become an active investor (i.e. day-traders) there are way better resources out there.

  31. Did you know even Warren Buffet started as a Day Trader until growing his $$$ bigger. Then he used his gains to also do longer time holds.

  32. What a bunch of nonsense.
    I'm surprised TED is having this deluded misleading women here.
    Trading is very high skill activity. U don't understand why the word LOSS is not even mentioned….. Starbucks….😂

  33. Ahh man, I’m reading the comments as I watch this video…… I … must…. stop…. watching…. but ….. I just…… can’t … stop!!!!

  34. lol the comments are exactly what i was thinking..zero content

  35. 8:00 into the video and she says nothing of substance. At least Dave Ramsey gives sound advice.

  36. Thank you this was exactly what I wanted to hear/learn. Despite all of the negative comments I found this really good if you never invested anything. The message you can do it too is very important. At least for me…now..thanks thanks keep up the good work

  37. Another Ted talk where they spend 12 minutes delivering a sentence worth of info. "if you want to learn to invest, start small."

  38. She still has a little to learn she doesn’t make money. She can only earn money. The central bankers make money.

  39. This is the worst Ted Talk I've ever watched. This was literally a waste of time. I'm still waiting for her to start sharing some actual information.

  40. Great comment section everyone! Let's keep the fake in phony la la land!

  41. The best advice she gave was that the financial industry should be using plain english and not financial jargon.

  42. Day trading mostly works when markets are going up.Just like people who bought houses in major cities in the 60's and 70's are supposedly geniuses.

  43. 1. Look up "Ethical Stocks" and invest in them.
    2. Get together with 5 friends and get a house close to a university/college. Section it out and offer it as rental space to students at less than campus price.

  44. this country is based on crime,,conmen,fraud,insider trading and ponzi schemes etc.etc.etc.

  45. Ahh wasted 10 mins watching before realizing there was nothing.

  46. Not only is there next to no information given about how to make money but the little bit of information that is there would likely prove disastrous for most new investors.

  47. Starts at kindergarten… Skips to how to invest. I think you skipped a few steps🤔

  48. You don't make money from investing… If you want to get more money you either build a BUSINESS or get a BETTER JOB.

  49. Nobody told me that "making money" was forgery! I should have tried to earn it.

  50. Make awesome returns and instead of letting it compound, spend it!
    Stupidest advice ever

  51. I'd learn all I can about geometric financial growth from someone who actually puts it to practice.Someone should this someone should that Just make it happen.

  52. This is horrible advice. First it assumes that trading means profits so “you can take your family out to dinner” with the profits. Most people who day trade lose money.

    Secondly, investing is not the same as trading. There is also something called capital gains. Taking your “profits” to buy coffee and calling it “free” is simply asinine.

  53. cant understand the negative comments on this, for me it was a good one. I am a hobby trader and it changed some things about the most important field. Mindset. Thanks.

  54. I prefer for the Robert Kiyosaki method even though I don't always practice it.

  55. Agreed. Just because you make profits doesn't mean you should go buy coffee or go out to dinner. According to more experienced money mangers you should budget your spending and investing. Investing monies are for investing. Re-invest your profits and continue growing your holdings. That disposable income is for coffee and dinners at the restaurants. However, once that money is exhausted, one must wait til the next month or replenishment of those funds.

  56. Risk 1% on a trade to make 3%. Look for the trading patterns like iron condor to know when to start the trade. Set the stop loss so you lose the 1% or trade out at 3% gain. Its that easy.

  57. what is the key point of this talk ? …. she was talking rubbish !!!!!…. giving general facts ???

  58. Not sure I understand all the negative comments. It's a TED talk its meant to be superficial and a bit motivational.she gave areally good insights school does not teach you how to make money,but more how to save it and manage it.

  59. there wasn't too much concrete info here but I still found value in it. just the overall idea that it can be done and it doesn't have to be all or nothing was motivating. good job girl!

  60. This is brilliant! Thank you and I have recommended this talk in my women financial literacy company Finesse Finance

  61. Sarah makes some excellent points to consider. She makes sense and it right on target with how the so-called teachers of investing are not getting the job done. Her credibility is outstanding.

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