Turn Savings Into Assets, Not Consumption, Experts Tell Youths

Financial market experts have urged Nigerian youths and teenagers to develop disciplined saving and investment habits early in life, saying early financial education and responsible investment decisions could provide them with a strong foundation for long-term wealth creation.

The experts spoke at the maiden edition of the Investdata Teens and Youths Investment Summit, organised by Investdata Consulting Limited in Lagos, where participants were encouraged to set financial goals, save consistently, invest prudently and develop the knowledge required to make informed financial decisions.

They said young people have a significant advantage over previous generations because they can begin building investment portfolios much earlier, allowing their savings to benefit from long-term growth and compounding returns.

Speaking on the theme, “The Investor Mindset: Shifting from Spent to an Owner of Assets,” Head of Investment Advisory at Meristem Stockbrokers Limited, Morayo Jaiyeola, told participants attending physically and virtually that starting early could give them an important advantage in building wealth.

Jaiyeola encouraged the teenagers and youths to move beyond a consumption-driven mindset and begin thinking of themselves as future owners of productive assets.

She explained that developing the right investment mindset at an early age could influence their financial decisions throughout adulthood.

Also speaking on “Stock Market Decoded,” Taiwo Adekeye, a trader with Bamboo, said financial education was an important complement to the formal education parents provide for their children.

According to him, understanding how money works, how investments generate returns and how to manage financial risks could help young people make disciplined investment decisions rather than approach the market without adequate knowledge.

Adekeye said the financial decisions being made by today’s teenagers and youths could have significant implications for the level of wealth they accumulate over the next decade and beyond.

He explained that investing in listed companies through the Nigerian Exchange (NGX) could enable young investors to put their money to work while pursuing their education, careers and other interests.

He noted that investors in equities could potentially benefit from capital appreciation when the value of their shares rises, as well as dividend payments distributed by profitable companies.

“If you remember nothing else, decide that if you are given N10,000, you will not eat everything, but save some for investment,” he told participants.

Adekeye also introduced participants to fixed-income securities, explaining that such investments typically have predetermined returns and repayment structures.

He, however, maintained that equities could provide investors with an opportunity to achieve returns that outperform inflation over the long term, although investment returns are not guaranteed and market values can fluctuate.

He further cautioned the youths against gambling and other schemes that encourage the pursuit of quick money, urging them instead to develop structured approaches to wealth creation through saving, investing and continuous financial education.

An investment analystKanayo John, focused on the psychological dimension of investing, urging participants to learn how to manage emotions, particularly fear and greed, which he identified as major factors capable of influencing poor investment decisions.

He said investors should not allow emotions to determine when to buy or sell assets, stressing that investment decisions should be based on research, analysis and clearly defined financial objectives.