The ability to plan and save is, to a great extent, a guarantee of financial well-being. Investments analysts from Nornickel and Tinkoff Investments told the students how to plan a budget, make the first steps in investing and obtain reliable information on stock market participants.
The number of people in Russia with loans outstanding is very high. Every fifth borrower defaults on timely repayments. Ca. 9 million people in Russia default on their debt obligations. Such data are reported by the National Association of Professional Debt Recovery Agencies.
To improve the financial literacy among young people, Nornickel and Tinkoff Investments held the First Youth Forum “Health and Wealth in Bobrovy Log: Invest wisely!” in Krasnoyarsk. The event was held on August 25th. The speakers shared how important it is to focus on revenue growth, rather than cost cutting, and to understand which monetization points may be available to the young audience.
To improve the financial literacy among young people, Nornickel and Tinkoff Investments held the First Youth Forum “Health and Wealth in Bobrovy Log: Invest wisely!” in Krasnoyarsk. The event was held on August 25th. The speakers shared how important it is to focus on revenue growth, rather than cost cutting, and to understand which monetization points may be available to the young audience.
Financial literacy is general-purpose knowledge
Investing is a way of living: it’s about health, relationships, and education. Irina Akhmadullina, host of the “Money Never Sleeps” program, spoke at the forum. She explained why it is better to start investing from your childhood days: the most reliable knowledge is the skills acquired in practice. The sooner you start, the better you get.
Financial literacy is a measure of general knowledge that will come in handy in any case. The younger generation, making the fist steps in investing, develops the good habit of saving. Even small savings on a daily basis, in the amount of a coffee cup price, can turn into tangible financial capital in the future.
MIKHAIL BOROVIKOV,
Director of Investor Relations at Nornickel:
“The cornerstone of any investment is the concept that money today is not the same as money tomorrow, i.e. a ruble today is worth more than a ruble tomorrow. This is the concept of investing. If you invest this ruble today, at least it won’t depreciate”.
The older we get, the more we want: with adulthood, come the dependents and mortgage, and it is very important to prepare children for this period of life now. With Tinkoff Investments, children from 14 years old can now trade in the stock market, provided that their investments do not exceed RUB 10,000.
The financial ceiling is very important: the children invest their savings and not their parents’ million. Teenagers learn how to be financially responsible. And when their income transforms into more capital, they will learn how to plan a budget.
For the third phase of life, retirement, the ability to receive passive income is also very important. Nornickel has a blog on the Pulse social network, which helps users understand stock market instruments and talks about assets.
For the third phase of life, retirement, the ability to receive passive income is also very important. Nornickel has a blog on the Pulse social network, which helps users understand stock market instruments and talks about assets.
Digital Assets Helping to Restore Historical Justice
Another Nornickel’s investment initiative aimed at improving the well-being and interest among employees is the Digital Investor program. Employees with 1+ year of experience with the company received free tokens — digital financial assets (DFA). One DFA is equal to the value of one share. In total, over 70 thousand employees will be provided with digital assets. The program will cover all regions of the holding’s presence and will be held until the end of this year.
VLADIMIR POTANIN,
President of Nornickel:
“The idea is to restore historical justice, so to speak. When Nornickel was privatized back in 1994, about 25% of the shares were owned by employees. But, unfortunately, they could not take full advantage of this kind of investment, many sold their shares. I would like to recover this historical justice and make sure that 25% of Nornickel’s shares are returned to the people, including employees”.
To provide DFAs to employees, Nornickel has redeemed more than 400 thousand of its shares on the market. To avoid the mistakes of 1994, a lockup period was introduced for tokens, during which they cannot be sold. This is the first experience of this kind in Russia.
According to the survey findings, over 30% of Nornickel’s employees are interested in sustainable development of their enterprise achieved through the ESG strategy. This year, the Moscow Exchange has included Nornickel on its new stock index — RAEX ESG balanced. Thus, by participating in Nornickel’s investment activities, the shareholder supports the environment and socially responsible management of the enterprise.
According to the survey findings, over 30% of Nornickel’s employees are interested in sustainable development of their enterprise achieved through the ESG strategy. This year, the Moscow Exchange has included Nornickel on its new stock index — RAEX ESG balanced. Thus, by participating in Nornickel’s investment activities, the shareholder supports the environment and socially responsible management of the enterprise.
The role of employees’ financial literacy in the company’s sustainable development
One of the three goals of Nornickel’s ESG strategy is to improve the quality of life of local communities in regions where the company has a presence. Balanced budgeting, increased savings, and smart investments contribute towards the well-being of employees and local communities. This strengthens their loyalty to Nornickel’s projects, which ultimately supports the company’s sustainable development.
MIKHAIL BOROVIKOV,
Director of Investor Relations at Nornickel:
“Nornickel is not a consumer goods company, we do not do retail. But at the same time, we have more than 400,000 individual investors. We believe in the potential of the Russian market and businesses, and think that the number of investors will continue to grow.
It is important to approach investing consciously, and not treat it as a lottery. Using Nornickel as an example, we explain to the people all the risks, our long-term strategy, its pros and cons. We hope that the forum has helped young people gain new knowledge on financial literacy and will ultimately contribute to the welfare of the new investor generation”.
September, 2023
