The Learning Pyramid

Updated: July 23, 2020

Have you heard of the Learning Pyramid? It’s an illustration of the effectiveness of various learning methods. Or in other words, it’s a graphic representation of the different ways that people learn new things.

The top of the pyramid shows the “least effective” way to learn, while the “most effective” method of learning is represented by the base of the pyramid.

Below is how The Learning Pyramid actually looks like:


According to the National Training Laboratories (NTL) Institute for Applied Behavioral Sciences who is credited for this, the number represents the amount of information that an individual retains when learning is done through the specific method.

For example, when you read, you typically only remember around 10% of the information. But if the data is given to you as an audiovisual presentation, then you’ll retain around 20% of it.

The Learning Pyramid is intuitively correct, but some critics say that one method is not necessarily more effective than the other because learning styles are always dependent on the individual.

I tend to agree and believe that the shown percentages are not accurate.

However, I still believe that the Learning Pyramid is true to a large extent, and I’ve come up with my own version of it as shown below:


In “my version”, I have two major types of learning. The first one, represented by the red outline, is Passive Learning; and the larger base, as shown within the blue outline, is Active Learning.

Whenever you listen to seminars about investing, read books about wealth, or watch videos explaining how the stock market works, for example – you become a passive learner. You simply accept the information and try to commit as much information inside your head.

Unfortunately, most people educate themselves “passively” because it’s the most accessible method of learning. The more challenging, and more effective way, to learn in my opinion, is through the three methods enumerated as Active Learning, namely:

  • To discuss the lesson with other people
  • To learn by experience through practice
  • To teach others about it

Which brings me to my main point of this article, and that is – if you want to learn how to be rich, then you should be an active learner.

Find and connect with people who are as passionate as you when it comes to personal finance. The exchange of insights will certainly expand your perspectives about money.

Practice Doing
You can read all the books and attend every seminar out there about investing, but you’ll never really understand and learn how to manage your “fear” and “greed” until you have real money invested in the market.

Teach Others
Some people ask me why I keep this blog alive, and why I recently decided to conduct finance workshops. The answer is not merely because it’s a personal advocacy – but also, I discovered that by teaching, I am able to learn tremendously and understand my own lessons better.

An Opportunity To Be An Active Learner

Finding people to discuss personal finance can be a challenge if our social network isn’t as conscious about wealth as we are. Moreover, our fear of losing money usually paralyzes us from taking action on our finances.

But the most difficult of all is regularly finding people who would be willing to learn from us about money management. While we can certainly try to teach our family and friends about it, we can’t do it often unless we want to sound like a broken record to them.

Fortunately, there is an opportunity to be an active learner by attending and becoming a member of the IMG Wealth Academy.

I’ve been a member of IMG long enough to witness countless members grow their knowledge about personal finance by becoming trainers inside the academy.

So if you’ve been looking for a community where frugality is a way of life; if you want to meet positive people who see the world as opportunity-rich; and if you want to become part of a mission to spread financial literacy to fellow Filipinos – then IMG is for you.

If you’re interested to learn more about IMG, then sign-up HERE to attend a FREE Money Seminar at the IMG-Wealth Academy and discover who we are.


  1. You are so right! When you teach others you know, the lesson sticks to you long-term plus, good karma,too, is coming your way. That’s why I started to blog not because I want to earn but because I want to share whatever little knowledge I have with regards to finance.

  2. Your constant posts about IMG makes me want to be part of it all over again. I’ve attended the free seminars but have stopped and did not continue when I had to pay for the paid seminars.

    But with your promotions of it, I am inclined to attend it again and learn more from it.

  3. I agree with you. I am now on the part wherein, after gaining a lot of learning about personal finance, I am now sharing and teaching others about it. Too bad, I am not earning from it, but I find joy in sharing what I know.

  4. Without question, actually practicing what you have passively learned solidifies new concepts into your mind. It is a scary thing to watch a brand new investor “go for the gold” the first time out. A few get lucky but so many will fail and become discouraged.

    When I first started trading CSPs (Cash Secured Puts) and CCs (Covered Calls) for income, I did only one single contract at at time and only two or three total positions on different stocks or ETFs. You really want to be sure you fully understand the dynamics of the trade and how to make any needed adjustments. You can scale up and grow yourself a very decent income over time.

    These days, I love to share my techniques with retirees looking to cash flow their portfolios for additional income. It is also one of my great pleasures to teach, albeit slowly, our young troops. With good money management and learning this skill, they can produce a lifetime of income from the stock market and perhaps retire very early unless they have “work” that they enjoy and love to do.

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