Why is the infographic below so important? As educators, we need to rethink how we are teaching young people about investing, as robo-advising continues to grow. In six short years, this trend has gone from the realm of the start-up garage to a service offered by the leading investment management firms (Vanguard, BlackRock and Fidelity), who now have billions under management. How should we change our teaching methods? We will teach less about individual stock selection, P/E ratios, growth rates and competitive landscape and more about asset allocation, risk tolerance and rebalancing.

Looking for some ideas on how to incorporate robo-advising into your investing unit? Here are a few ideas from NGPF (with more on the way):

• Simulation: Would You Trust a Robot to Make Investment Decisions (NGPF Interactive Library)
• Audio Resource (from Marketplace.org): Would You Let a Robot Invest Your Money? 
• Articles: Here Come the Robo-Advisors 

Here’s the infographic from Visual Capitalist (hat tip to Big Picture Blog) demonstrating how much has happened in so little time:

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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