Financial Analysis Explained to a Twelve-Year-Old

Finance for Twelve Year Old

If you had to teach financial analysis to a twelve-year-old, could you? How would you start?

Before moving on, why are we teaching a twelve-year-old? Farnam Street is involved in that. I’m assuming one of that blog’s most popular articles is “Feynman Technique: The Ultimate Guide to Learning Anything Faster.

Shane Parrish teaches his readers a simple framework to master new skills as follows:

  1. Select a concept and map your knowledge
  2. Teach it to a 12-year-old
  3. Review and Refine
  4. Test and Archive

Source: Feynman Technique: The Ultimate Guide to Learning Anything Faster – fs.blog

Now then, let’s start teaching a twelve-year-old, but let’s start with some very simple concepts. Even a grown adult may learn a thing or two from these basic teachings.

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