FINANCIAL LITERACY FOR CHILDREN
Here at London Stock Exchange Group, we believe financial literacy opens up options and opportunities. Whether it’s study and career choices now, or how to save and invest money later on in life, understanding how finance works can help build a better future for us all.
What is a stock exchange?
Think about stock exchanges as future-boosting machines. People with money they want to invest go to the stock exchange to find companies that can make better use of their money. By receiving these investments from ordinary people, companies can make things and services for many, many more people than they could otherwise reach.
They can also use the money to upgrade and improve their existing products so that they are slicker, faster, cooler, and more sustainable.
As companies sell more, they make more money, and you as investor benefit too. As an investor, you now own a piece of the company, or a certain number of shares of the company and that may become worth more as the company does well. And all the while, you’re making the world better for people. If customers stop buying from a company, perhaps because their stuff is no longer the best, then its investors make less money, and they could even lose it all. That’s what keeps the system honest, healthy and fair.
Did you know?
London Stock Exchange was created in a London coffee house more than 300 years ago. We’re a bit different now. Back then the stocks were all written on a chalkboard. People wore powdered wigs, wrote with quills, and presumably drank coffee all day. Today, the stock exchange allows investors to find out about and invest in companies from around the world.
Want to know more?
You, as a young person, can expect to spend a lot of time in the future, so you might want to think about what kind of things we will need to prosper, and how you might become part of a system that makes sure we can get it. To help you get started, we are partnering with a charity called City Pay it Forward. Below you’ll find a few videos, case studies and insights to give you a first glimpse into the world of finance.
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