Don’t be fooled
Fool’s Gold is a gold coloured metal – known in technical terms as iron pyrite – often mistaken for real gold. In history, this lookalike metal fooled gold prospectors into thinking they found their fortune when, in fact, they had simply discovered some of the shiny substitute. The tradition of biting gold – still carried out in jest on occasion by Olympic gold medal winning athletes – tends to relate to a different issue with gold. Biting a gold coin aims to test its purity, as gold is dense and soft and would be firmer if mixed with another metal.
Watch out for modern scams too
It’s not just gold prospecting that can financially fool. A wide range of financial scams are detailed, for example, by the Canadian Securities Administrators, which points out modern technology is making it easier for financial fraudsters and scam artists to find potential victims.
Be “penny wise”
Basic financial planning can also help avoid becoming a fool with money. Basic steps, such as budgeting and building an emergency fund, can help avoid financial problems. The video tutorial How much should I be saving? provides an overview of the first steps in financial planning.