Introduction to Socially Responsible Investing (SRI) and ESG for Kids and Teens
This video explains the concept of Socially Responsible Investing (SRI) and ESG in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about SRI and ESG, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
- What is Socially Responsible Investing (SRI)
- Do socially responsible investors care only about making a difference
- What is ESG
- How can you invest with social responsibility in mind
- Should you become a socially responsible investor
What is Socially Responsible Investing?
Socially Responsible Investing (or SRI) is investing in companies that have a positive social impact.
For example, companies that focus on green energy & sustainability, reduce their carbon footprint, use ethical practices, or give back to the community are considered to be socially responsible investments.
Socially responsible investing has soared in popularity in recent years.
Do socially responsible investors care only about making a difference?
No. Socially responsible investors look at the profitability of a potential investment, along with its impact on the world.
Many people think that in order to invest in companies that are good for the planet, they have to sacrifice investment returns. But that is definitely not the case!
If you do your research and choose a good stock or fund, it can give great returns even if it is Socially Responsible.
I heard about something called ESG. What is that?
ESG is a type of sustainable investing where investors evaluate companies based on Environmental, Social, and Governance criteria.
Environmental factors include carbon footprint, pollution levels, waste disposal, etc.
Social factors include employee diversity, consumer protection, animal welfare, etc.
Governance factors include transparency with shareholders, executive pay, board composition, etc.
How can I invest with social responsibility in mind?
Instead of investing in individual socially responsible companies, you can invest in a Mutual Fund or Exchange Traded Fund (ETF) that invests in socially responsible stocks. That way, you will be diversified without having to buy individual stocks.
When investing in a socially responsible fund, it is important to do your research and figure out the exact methods the fund uses to invest. You should only invest in funds that have philosophies that align with your own.
Should I become a socially responsible investor?
Having a socially responsible fund in your portfolio can be a good idea. In addition to supporting good causes, it makes your portfolio more diversified.
However, for now, it is best to avoid having your entire portfolio centered solely around socially responsible investing as that could severely limit your options.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What are Socially Responsible Investing (SRI) and ESG
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about Socially Responsible Investing SRI and ESG: What is Socially Responsible Investing (SRI), Do socially responsible investors care only about making a difference – what about returns, What is ESG (Environmental, Social, and Governance), How can you invest with social responsibility in mind, Should you become a socially responsible investor, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/socially-responsible-investing-sri-esg/