How to Explain “efficient frontier” to child?
"I would let them get their hands dirty, learn by practicing. Below you can find a simple program to generate your own efficient frontier, just 29 lines' python. Depending on the age, adult could help in the activity but I would not make it too lecturing. With child-parent relationship, I would make it a challenge, no easy money anymore -- let-your-money work-for-you -attitude, create the efficient portfolio!  If there are many children, I would do a competition over years' time-span or make many small competitions. Winner is the one whose portfolio is closest to some efficient portfolio such as lowest-variance-portfolio, I have the code to calculate things like that but it is trivial so build on the code below. Because the efficient frontier is a good way to let participants to investigate different returns and risk between assets classes like stocks, bonds and money, I would make the thing more serious. The winner could get his/her designed portfolio (to keep it fair in your budget, you could limit choices to index funds starting with 1EUR investment or to ask bottle-price-participation-fee, bring me a bottle and you are in. No money issue.). Since they probably don't have much money, I would choose free software.  Have fun! Step-by-step instructions for your own Efficient Frontier Copy and run the Python script with $ python simple.py > .datSimple Plot the data with $ gnuplot -e ""set ylabel 'Return'; set xlabel 'Risk'; set terminal png; set output 'yourEffFrontier.png'; plot '.datSimple'"" or any spreadsheet program. Your first ""assets"" could well be low-risk candies and some easy-to-stale products like bananas -- but beware, notice the PS.  Simple Efficient-frontier generator P.s. do not stagnate with collectibles, such as candies and toys, and retailer products, such as mangos, because they are not really good ""investments"" per se, a bit more like speculation. The retailer gets a huge percentage, for further information consult Bogleheads.org like here about collectible items." I know you really like bananas, but don't you think you would get tired of them after a while?  Better stock up on some kiwi and mango just to mix it up a bit. I wouldn't want to risk eating only banana sandwiches, banana ice cream and banana bread for the rest of my life.  I have don't think I could take it.  Same goes for mango and kiwi, but I think if I had all three I could probably get along just fine.
"Sometimes it's like a fairy tale, and saying with the ""virgin"" and the ""child"" becomes reality. From our history in the Lower Rhine Helidays has in September 2015.  The lot after the drag race fell on our authors, Rüdiger Hut, and received a coupon for the CORE 700 helicopter from Markus Fieh, product manager of the company CORE Helicopter. Here he describes his experiences in construction and flight. Markus Fiehn is not only responsible as a developer at CORE Helicopter, but also directs troops around the CORE promotion team. In RC-Heli-Action 8/2015 there is an interview with him, explaining and demonstrating many technical characteristics of the CORE Heli-System. CORE Helicopter is a newly founded subsidiary of Karcher AG. But first, sequentially." Now I have been trying to figure out how to split the money that we both earn. From what I can see there are several concepts but none of them really seems ideal to me. There is nothing fair or unfair in such arrangements. It is what you both agree. You can try and make this as scientific as possible. But then there is no golden rule.  For example, your girlfriend makes 2200 now and due to child, she is making 1100. The child is both of your responsibility; so you need to compensate half of her salary loss. 550 and she takes the other half. If you hire a nanny to look after you kinds, it would say cost you 500. But your girlfriend is doing that job, so she should get additional 500 from common pot. Plus due to loss of few years in looking after the children, she has a lost opportunity in career growth. i.e. she may indefinitely make less money than she can... So one gets into all kinds of theories and analysis and any arrangements will have some or the other gaps.  So my suggestion, don't get too scientific about it. Just talk it out as to what you both feel how this should be and arrive it. It is something every individual has to agree. It also make sense to have the large assets [or assets that matter], like house, car etc in clear title and who gets what in case you decide to separate. Other should be incidental. Efficient Frontier has an article from years ago about the small-cap and value premiums out there that would be worth noting here using the Fama and French data. Eugene Fama and Kenneth French (F/F) have shown that one can explain   almost all of the returns of equity portfolios based on only three   factors: market exposure, market capitalization (size), and   price-to-book (value). Wikipedia link to the factor model which was the result of the F/F research. How are you even comparing a turkey, that will be eaten, to child abuse?  Its not even the same ballpark, hell, its not even the same sport.  Its not about everything dies.  Its about, they are raised simply to eat.  Who cares if the handlers are mean to them. "Economics is not hard science.   Economics is really just a study of what people do and why. The best book to read to understand why people protect their wealth when the government threatens it is ""[Human Action](http://mises.org/document/3250)"" by Ludwig von Mises. Check it out. It will answer all of your questions with a lot more logic than research. Economic research on macro subjects can prove any preconceived theorem, therefore it is worse than logic because it purports to ""prove"" what are, in the end, only opinions." &gt;I propose to make the requirements for finish high school and college degrees much much higher, as it was in the past.  Not gonna happen. The paradigm is that low scores are entrenched and therefore unable to be lifted without the kids parents having higher education.  Therefore, waiting for disadvantaged kids to get higher scores will not happen until they get accepted into college.  If you force schools to gain their income from future students earnings they will have high concern for kids that have a good P/E ratio.  It will also stop the loan industry from putting these kids into debt.   The downside is that it may turn colleges into trade techs, but that is much better than what is going on now: useless degrees and high debt. The world is changing. Your child’s future job may not exist today. If they can learn to work through uncertainty and open-ended answers, and become superstars at problem solving, they’ll have a life skill that can carry them far. &gt;provide cheap, commoditized services.  This is crux to the article's argument. But the point should be taken from the article that you need to value your time (so there is a higher chance of success with the business endeavor).   If you can hire someone else to do other (lower level) tasks (i.e. farm out, delegate, contract) you free up time for yourself to do those tasks that bring more results to your efforts. And hence has more value.  Perhaps this is where the [80/20 rule](http://en.wikipedia.org/wiki/Pareto_principle) comes into play.