VIDEO REVIEW
The short video chosen is entitled We Learn How to Invest Our Money, created by the
YouTuber As/Is. Here, two women explore more on finances, particularly the world of investing
with the help of the CEO and Co-founder of the investment platform Ellevest. Focusing on
personal finance and investing, the topics that were covered by the short video include the time
value of money (TVM) and a little financial leverage.
First, the guest tackled the importance of investing one’s money. In line with the
discussion on Block’s Chapter 9 of Foundations of Financial Management, the guest
emphasized that stagnant money is not growing. While supporting the habit of saving, she
discourages just putting money in the bank as it loses its ground every day. By all means, this is
true as the basic premise of the time value of money is “any amount of wealth today is valued
more than the same amount in the future.” Furthermore, the guest highly appreciated the client’s
non-usage of credit cards due to the fact that it has high-interest rates, and more often than not,
it could not be used to buy appreciating assets which is the opposite of the financial leverage’s
objective. Also, it was tackled in the video that it is preferable to pay off high-interest debt first.
While I found it confusing at first, I have realized that this is especially true when speaking about
the time value of money; the extra dollars that would be paid could be put to better use.
Additionally, the video tackled risks and returns. If an investor has a nearer investment
goal, one should keep away from high-risk investments. From what has been discussed by
Block, this is true because of market volatility; short-term investments in highly risky instruments
https://www.youtube.com/watch?v=QRlTGewPWL4