There’s More to Financial Literacy Than Education | Matt Jaekel | TEDxAurora

11 Mar 2024 (9 months ago)

Financial Literacy

Financial literacy involves our money mindset, relationship with money, values, purpose, and behaviors.
Despite high literacy rates, many youth and adults lack basic financial literacy skills.
Financial well-being is directly related to mental well-being, and poor financial management can lead to various health issues.
Several factors contribute to the lack of financial literacy, including inadequate teaching in schools, lack of parental guidance, and the complexity of financial information.

Money is emotional, and our anxieties, comparisons, judgments, and risk perceptions can affect our financial decisions.
Changing the cultural taboo around talking about money can start with positive conversations with youth and children.
Our values and purpose should guide our spending, and we should avoid buying things we don't need to impress others.
Social media exacerbates the problem of comparison and can lead to feelings of inadequacy.

Our relationship with money should be positive, and we should have open conversations about it with our partners and parents.
Do what you love when you make money, as you'll be more likely to work hard and be good at it.
Make saving money easy and automatic by allocating your paycheck to different accounts as soon as you receive it.
Think of saving as future spending on something you're looking forward to.
Spend extravagantly on the things you love and truly value, but don't sweat the small stuff.
Don't worry about small purchases like coffee or avocado toast; focus on big purchases and investments.

Invest every month in a broad Index Fund that follows the overall market for long-term growth.
Be skeptical of guaranteed returns or promises of quick wealth; there are no shortcuts.

Improving our money mindset, values, purposes, behaviors, and habits can lead to better financial and life goals.