Why Americans Are Failing the Grade at Financial Literacy
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- Опубликовано: 1 июн 2024
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Americans tend to get basic financial questions wrong compared to other Western countries… why is that? And what can be done about it?
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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.
Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Julia Lorenz-Olson
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Dano Johnson
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Music by: APM
SOURCES:
en.wikipedia.org/wiki/List_of...
money.cnn.com/2016/10/24/pf/f...
www.apnorc.org/news-media/Page...
www.urban.org/research/public...
www.investmentnews.com/articl...
www.nefe.org/_images/research...
www.investmentnews.com/articl...
www.thebalance.com/credit-car...
fortune.com/2016/07/12/financi...
www.creditcards.com/credit-ca...
www.surveyofthestates.com/#sta...
twocents.lifehacker.com/your-...
howmuch.net/articles/financia...
money.com/money/4115378/united...
www.huffpost.com/entry/financ...
ecdn.eu/wp-content/uploads/201...
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I went to high school in Colorado, and a Personal Finance course was offered as an elective. I learned about debit versus credit, created a budget, filled out 1040 tax forms, and handled an imaginary stock exchange account based on real world stocks. Best class I took while in high school.
im taking that next year and im so excited!!!
I too took a Personal Finance class in HS. We didn't learn shit. We spent a whole class period coloring checks.
@@jalapeno1119 U.S education, imma right🥲
Unfortunately, the schools don't teach financial education. Fortunately, people can learn themselves for free online 😀👍
Actually there is at my school, but it's all just propaganda saying that you need to go to college to get anywhere in life
Ozumṣauce
Ugh. I hate that hard college going culture :/. It really is toxic
And who controls the schools? Time to wear the tin foil hat now: Could politicians be bribed by banks and private companies to avoid educating financial literacy?
Khan academy also has a fantastic personal finance course
Its not fun enough for most people and people hate talking about money for whatever reason now..
Unfortunately RUclips has always been my best teacher on financial literacy and much more
Learning by yourself is not bad, though. You pick up the basic tools at school (reading and writing comprehension, numeracy etc) and you're able to learn anything you wish.
Basically my everything
Me too it's u tube
one things thats awesome about teaching yourself is as long as the info is correct your literally being taught the way thats best for you.. nobody knows you like you!
I think the best parent is transparent about what they don’t know. Teach your kids what you know, and show them how mistakes you’ve made cost you. They’ll learn from it. My mom’s horror stories prevented me from making many mistakes
"You're pregnant again"?
You guys are the best, goals.
(☭ ͜ʖ ☭)
Lol he said it like he wasn't at fault
They're adorable. Makes me believe in true love again
It’s almost like there’s an incentive for companies to keep the general public ignorant in finances
Almost 😉
Yuup
It used to be legal to beat employees for misbehaving. So... Think about that. That's where our country really came from. No, not slaves. I mean employees. This world has never been fair. It never will be. It's your job to make it fair for yourself. No one else will, ESPECIALLY not the people that claim they will.
Well, when the government is on the payroll of big business, what to expect? Reclaim your country and put political control on business, not vice versa.
Yes but education is free responsibility
I learnt it first from my father. You see, my father used to earn about a $100/month salary, a whopping $1200/year. Not bad for a government servant in Socialist India back then. He still asked me to earn my pocket money.
.
My job as a paperboy earned me 1cent per day and if I didn't show up, I would loose 1.2 cent of my salary.
So delivering newspapers on bicycle earned me 1/14 cent per kilometer of cycling. This, taught me to respect money.
.
So even though I earn almost $900/month now, I respect every cent I earn.
Ah middle class India
Socialist India?
@@engitect India was Fabian socialist right from the start, technically still is socialist in its Constitution
This is absolutely true ..I'm 41 years old I got my first credit card my first year of college$ 500 dollar limit that was in the year 2000 I've have been in debt ever since ..I'm now working to 2 full time jobs to pay off all my debt,my financial literacy was learned on my own ,I was on the verge of filing for bankruptcy...I decided to work the two full time jobs pay off the debt ...remember the borrower is slave to the lender
letsgetsocialinfo this is why we need financial literacy!! I’m so sorry to hear that
Excellent work ethic.
@Hector Pintor Debt is great if you know how much you can tolerate and how to minimize it. It's understandable Dave hates it given his personal experience and the general person who abuses it,
There is good debt and bad debt. Loans are a tool like any other. If you learn to use them well, in a disciplined way, they can help you greatly. In the long run a mortgage can save you a lot vs. paying rent for the rest of your life. Getting an education from a reputable school to get skills that are in demand is worth a loan. Getting a loan for a $9k car is better than saving cash to buy a $1k car that's always breaking.
I paid mine off. It is hard not to go back in. Now, I have all these dreams I am working on.
I think my parents were a bad example when I was a kid on how to actually manage money and pay your bills. We were always having utilities shut off and debt collectors calling when the phone wasn't disconnected for non payment.
They did teach us about hard work. I did mow lawns and deliver papers. It was someone from the paper company that helped me get bank accounts and learn about that. Older aunts and uncles and grandparents would answer questions and show me stuff. Now as an adult I pay on time, have a savings, no credit card debt, no student loans and a great credit score. I still have to be careful about what I buy and how much I spend.
My financial training was “Put your money in the bank and it’ll be there when your old.” That was it. We all need to take a personal finance class.
I took a business and personal finance class in high school (usa). It was mostly about businesses - types of business, accounting, and stock market. We learned how to write a check but we never really went into detail on personal finance; saving and investing our money or making a budget. Most of the stuff I learned is from RUclips, my dad, and different articles. Thank you guys so much for making these videos!
Lainabell1496 we never had a class like that in hs.. hell even as an it business grad they didn’t teach in college. I believe the government run education system wants spenders not savers thus refuse to educate children on it. I’m glad you seemed out the knowledge though.
The 'system' wants to keep people being deaf, dumb, blind and stupid consumers. Teaching 'kitchen sink' economics in high school would be considered 'anti - American"!
My high school had an entrepreneurship class as a mandatory requirement. We learned how to create a business plan but not how to create a budget : | strange priorities, these schools
Hmmm. I didn't know she needed a step ladder to look taller.
Well technically it’s not a stepladder... a soapbox, perhaps?
*Apple box (film industry name)
Brandon Tamayo lol I only realized that after seeing your comment and had to rewind and look for it
Timestamp?
Austin Underwood 7:42
I am 35 years old and finally deciding to take charge of my finances. Unfortunately I didn't learn anything about finances in school or at home and now that I think of it I was never in the company of any friends who were financially smart too. I am learning a lot through RUclips videos and starting the new year onwards my goal is to keep educating myself in this area.
I always stick to my frugal lifestyle when asked to contribute to Patreons. But I love you guys too much. I'm gonna do it. Consider yourselves patronized.
!!!! WE'RE HONORED SIR!!
Talking about money was a no no at my house. I learned to be a saver because of DELAYED GRATIFICATION. When I asked my parents to buy me a toy, they said no... over and over again. I stopped asking for toys because I knew what the answer was. We weren't poor by any means... I never qualified for free lunches or financial need based scholarships. We had a home and it's paid off now. I didn't learn about credit cards until one of my last years of college.
I learned about finances by having an unreliable mom and step dad that constantly brought stress and evictions to our tiny trailer. Got a little bullied for it too. Age 16 I told myself I'll never borrow money or student loan!! Growing up with less is what taught me about money. Being stationed overseas has helped
You guys should just make a virtual school about financial education, because from all the videos I’ve watched. This should just be a course.
Wow a nonsense opinion the blind leading the blind. Take classes from registered and qualified individuals. Not youtube content providers that are not qualified trying to make a few bucks.
@@raymondchu7609 Looks like you’ve missed the entire takeaway of this channel. It’s an educational channel that talks about aspects of finance and money management. In addition, both Philip and Julia have experience with financial management and aren’t just random people picked to talk on the channel. Also, if you haven’t noticed, two cents is under PBS which is a public network so you can view this on their website if you wanted with no ads. I doubt that Two Cents is being run simply for profit.
@@raymondchu7609 yes we can guarantee that these registered individuals are more trustworthy, just look at our "qualified" teachers.
I became obsessed with watching Suze Orman in college and that's what really launched my personal finance education. I read her book and Dave Ramsey's as well as started following financial blogs/vlogs such as yours.
I started learning after taking an *excellent* macroeconomics class at Valencia College taught by an actual economist with Wall Street experience. Among the top 7 classes of my engineering degree. From there, I started reading classic/modern personal finance & investing books from the local library during my summers at college. Almost immediately after I graduated, I shifted my focus into 4th gear, and restructured my investment portfolio, built an emergency fund, maxed out my Roth, turned to budgeting apps/software, and moved to higher-level holistic personal finance books. Thanks for the resources, because learning is a lifetime pursuit!
A small snippet of the books I've read:
- "A Random Walk Down Wall Street" by Burton Malkiel
- "The Next Millionaire Next Door" by Sarah Stanley
- "Your Money or Your Life" by Vicki Robin
- "The Dollar Meltdown" by Charles Goyette
As a Gen Xer. The high school I attended had required courses of either economics or business classes for 1 year. There were trade programs (welding, mechanics, etc...) and programs where some students could attend community college courses, which were used as high school and college credits. Of course, that was back in the mid to late 80s' and I'm sure those programs no longer exists.
The problem is that Banks and the financial industry lobby the government for them NOT to teach people about Finance.
Respond with factual evidence
Evidence?
I am not American but I can understand what make most of American have struggle with it
Are you Vietnamese?
Look at the name? @@roxcyn
we boogie
Which is a bad government. Still Americans are all pointing at Socialist countries like Denmark, Norway and Sweden as "BAD" countries. Especially the right wing. They are just stupid.
@@HermanWillems wha? Who does that? Fo real tho
I’ve learned from my grandparents and expanded my financial knowledge more recently on RUclips 😉
Dear Philip and Julia,
I absolutely love your videos, and completely agree that financial literacy is something that should be increasingly taught in schools. While some of the points raised in the video are true, it does not necessarily capture the full picture of the situation in my home country of Sweden.
Due to several factors such as low interest rates and tax treatment favouring mortgage debt and home ownership, Swedish households have been able to borrow money at almost no cost for decades. Today, this has landed us with sky-high house prices, young people struggling to enter the housing market, an average household debt of 88% of GDP and 176% of disposable income which is one of the highest in the entire European Union. This can be compared to the Government's own debt of 38.8% of GDP.
Afraid to pop the bubble, recent Governments (both Conservative and Labour) have ignored the warning signs, and only introduced some light mortgage repayment requirements as late as in 2016. (Source: eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020SC0526&from=EN).
Greetings from Sweden :)
The only economics class I had in high school was locked behind another course on top of it which was U.S. government. Unfortunately, (btw I'm from California) this course is only available to high school SENIORS. This was the one class I was dying to put on my class registration since middle school. Due to distance learning, our year long class was cut short down to a semester. We spent so much time learning about U.S. gov. that we barely had 3 days to cover econ (and learn about financial literacy) before the the semester ended. A lot of my peers were incredibly lazy and didn't do any work, so during the U.S. gov portion of the class, the teacher was held up and which caused the entire class to be delayed on lectures. In the end, school didn't teach us anything worth while. Most of my financial literacy came from mimicking my mom, personal experience, and watching RUclips videos.
Personal finance was a required course at my high school (at least until 2016) but it was mostly how to budget and balance a checkbook
I was lucky that my high school offered a business and technology pathway that freshman could choose to take. By the time I graduated I had developed all kinds of useful skills that I wouldn't have even known that I needed to know and I'm miles ahead of the average adult in terms of financial literacy. Even with that experience I still learn something new every time I watch your videos!!!
Aww that's so awesome to hear! Good for you for taking those classes!!
Again, this and most PBS channels should be mandatory in schools!
Yes like play these videos in the cafeteria while kids are eating
Congrats on your success. I have been binging this pretty hard lately. I am 31 and had to take an online personal finance class to understand and care about my finances. I have been able to help teach my parents some good stuff too.
Yaaaay a patreon account finally
I'll join you guys when I go to work!(I'm a student)
Love you guys😍
Awesome!! See you there!!
*Financial education is better taught online anyways* 🤷♂️ my high school teachers didn’t know anything about personal finance!
I just realized something. Don't marry if you can. If you must, marry an economist. 😂
You read my mind and I am so happy. I really hope people do reach out to their libraries and credit unions as many offer courses. In fact, just as in the video, a local credit union in our town offers courses at my job, their bank and as well hosts them at the library. Even if you're just starting out they are amazing. Best of all, they're completely free! 😎
When I went to Jr. High school back in the 80's they used to have a class called Home Economics in Los Angeles.
I grew up poor and my grandmother also told me about saving money as a very young kid. I took that advise very well.
It taught you how to save money and get the best value for your Dollar. Budgeting, difference between wants before needs, reading labels to find the best value and cooking at home to save money. And saving money for the future, they even supplied false checks to teach you to pay by paper before CC's were prevalent and teaching you how to write a check. We don't have kids but I suppose that class isn't taught anymore.
I'm happy to say that I have used credit cards since the age at 19 and have NEVER paid a penny in interest to those credit card companies. I have a couple of cash rewards cards and man, I sometimes feel bad at taking all the benefits for free! Actually not! 😉 And I have a credit score of very close to 840 too.
That home econ class and grandmothers advise was sooo helpfull! 😁
albear972 in my state it is required in every school online, private, public or religious.
6:46 I really like where this is going. You guys do a great job giving out information about finances. It’s not easy making a RUclips channel, but you all pulled through!
I'm so glad I found this channel! Very insightful. My parents come from Mexico with literally no experience in budgeting and finances in general. As a result, my siblings and I did not have any idea about savings, credit cards, loans etc. I learned by reading articles, attended a seminar on personal finances, my credit union and from you guys! Thank you for providing these videos :)
Simon
The severe lack of financial literacy in America is a major reason I'm majoring in accounting and finance. My desire is to help both individuals and small businesses become far more financially successful, in addition to simply helping them with records and statements.
For me, it's this simple. 1) live on a budget. 2) spend less than you make. 3) stay away from debt. 4) keep a descent emergency fund. 5) save for large future expenses.
I keep a strict budget and keep track of every penny I make and every penny I spend. I have no debt, outside of a mortgage; but, I'm paying that off as quickly as possible. I keep a rainy day fund, for minor unforeseen emergencies, of $1,000. And, I keep an emergency fund of 3 to 6 month's living expenses, as well.
What do I do with the additional income above my expenses? I save it for several things: future marriage/family, mission trips, car/truck upgrades, and simply putting some towards extra principle payments on the mortgage.
As far as investing and thinking towards retirement, I set aside some matching contributions through my job. I don't think it's a good idea to every fully retire. You can definitely slow down and do lighter work as you age, but the idea of ceasing to be productive altogether seems a bit absurd to me. So, I simply save/invest to allow myself to simply slow down.
This is the first and only channel I've ever supported on Patreon. You guys do amazing stuff, and I'm extremely happy to see that there's a method to support financial wellbeing and literacy that isn't beholden to bottom lines or commissions. Thank you for doing what you do :)
My moms been living paycheck to paycheck for most of my life, so ive been looking for other ways to understand money and build my finacial literacy. I mainly go on youtube and watch the finacial diet. But i also ask adults that i know who understand money and it really helps to have peoplw there that you can trust to talk about finances and not feel judged
Please make video on:
1. How to manage emergency situations?
2. Insurance - What, When & How.
3. Managing family finances.
4. Saving up for education.
I am 21 years old. Thousands of things in mind. I want to learn so that the things I do right now will help in my future.
As a recent high school graduate, it really refreshes me to see how inspiring you guys are and it shows through the quality of your videos. I’m a definitely becoming a patron because of the work you do. I’ve learned so much financially from you guys and I can’t wait to see more. Go Two Cents!🙏🙌
How about a Patreon tier with personalized signed photos from Queen Julia herself? 😍
I learned about personal finance through extensive research on the internet, mostly blogs (thanks Mr. Money Moustache!) but unfortunately only after I made a ton of mistakes and got into debt. Thanks for your RUclips channel! One of my favourites!
I have been learning about financial process through a bunch of different sources like social media/ web sites, and even reading books. If anyone wants to become financially lettered. You must seek after it diligently and apply the systems that you have studied.
Your videos are so addicting to watch! =) I've just been clicking on one after the other and I love it
I graduated high school in 2016. My school was great in that it offered a Financial Literacy class, but it was an elective and not required to graduate.
I got lessons about money as well as a kid. We even had a dedicated week for it all throughout primary school. It was the one week at school where you had to pay for things (with fake money of course). You could rent play equipment, books that were usually not there, and for the kids 10 and up you could even earn money by helping out toddlers or staying after school to clean up. At the end of the week we had a circus where you could spend it on delicious and fun things.
My parents also taught me a lot. Both are incredibly frugal and love budgeting. We got pocket money that we could spend on whatever we liked, but if we wanted something more expensive we had to save and/or do jobs in and around the house. I got my first bank account at age 12 and my first paper round to put some money in there. I had to pay for my own cellphone, clothing I wanted but didn't need, and other fun stuff. Stupid teenager me liked fun things and saved too little, adult me loves saving (it's so addicting).
A lot of people are aware of how to become financially savvy but they are unmotivated so they choose not to make the moves, failing to realize how much it impacts them☹️👎
they say a job is a safe bet. How is it safe, if you depend your livelihood on someone else's good grace and their desire to make a profit off your labor? Starting your own business is way to go.
FW Poon it's nice to take care of your own interests. You never know what your boss is thinking. The business could close down, you could be fired etc.
Easier ways to make $. Besides if you can't think of one you can easily become a panhandler, oops, i mean influencer on RUclips.
My sister and I got most of our financial knowledge from our parents. We were negotiating Christmas gifts, allowance and even loans by the time we were 8. We wanted a new video game/ toy? Were we willing to pay off the loan of our allowance for the next 3 months? My sister never liked mathematics, but when she understood that if she loaned money she could get money back on interest she was very interested and that if she took to long to pay off borrowed money she was going to have to pay more than what she had originally borrowed? that was a no thank you. Teaching your kids about finance doesn't have to be hypothetical or boring, kids understand the value of money, the value of cost and work since a very early age and as they grow you can also accommodate to the tasks to teach them about budgeting( giving them their allowance once a month instead of every week, so they need to budget their expenses)
Thank you both for sharing this information!!
I learned about finances through Dave Ramsey, Two Cents, Graham Stephan, and the financial diet 💕
My parents were never good with money so I listen to podcasts, watch RUclips videos and I also do my own research with different finance topics.
Great video. Thank you for your time to make it great job.
Yyaayy! You featured Nicole from Frugal Chic Life! I'm subscribing! Great content and showing love to others! I'm so glad I found you.
I remember my high school tried a pilot program to teach kids who wouldn’t pass algebra 2 and trig and other 12 grade math classes gave a class on basic value of stocks interest and real life math problems it was canceled after 3 years but I learned some basics and avoid credit issues until I lost my job last fall
I had an amazing teacher for a grade 10 obligatory class in BC, Canada - PLANNING Not only we got to explore our personalities, career paths, but also family planning and bugeting. For the family budgeting project, we were assigned a job, paired up and assigned the number of children. We had a month to figure out our annual family income, all areas of spending, make savings, pay tax, plan holidays/activities as well as birth control method. Then make a presentation. I learnt so much about the value of money and how it influences our lifestyle choices during this class. I considered this project as the most important thing people should take away from high school and was very shocked that this is not something everyone gets to learn about.
Love PBS, love it love it love PBS, as a Canadian in Nova Scotia my children grew up on PBS. 💕
You guys are great! Thanks for all your helpful videos. Keep up the good work!
This is yet another great video by two cents! Great job guys! This is where I watch most of my financial conscious videos. Your videos help me understand how, where, when and what to spend on. I greatly appreciate your knowledge on this topic. You guys are awesome!
God bless you both in making and hosting such great content. I have learned a little bit from high school during "business" class and some in college through accounting. My mother did teach me about saving and open a savings account. She taught me little about paying bills and budgeting. The rest like investing and the like i was self taught and learned late in life. So glad my mother gave me the basic foundation about money management.
I'm fortunate to learn about finances from school, my grandparents, and personal experiences. Personal finances was part of a Home Economics class back in Elementary school. My grandparents instilled in me the ideas of saving and investing. My experiences as a child taught me the value of money and the unforgiving world
The 'consumer society'(how I hate that description!) is very content to keep everyone blinkered when it comes to personal/household finances. A dollar down and a dollar a week is alive
and well in many households letting wants instead of needs rule the day. Good sound advise, thank you.
Where did I learn about money? My college offered a semester long class on personal finance. In recent times, internet personalities like Dave Ramsey and Mr. Money Mustache have taught me a lot. However, I think a better question is why learn about money. At one point, I had a very unpleasant employment situation that I've never forgotten that has greatly motivated me to passionately pursue financial independence. Looking back, that horrible work situation was probably the best thing that ever happened to me.
I like you guys a lot and have learned so much from you! You make these financial topics less daunting and break them down really well. I feel like you cover a lot of things that more people should be aware of. Thank you for doing what you do!
I learned personal finance from Dave Ramsey. But the "Two Cents" channel is a *close second* in my favourite financial videos to watch! Keep up the good work you two! I hope one day you'll be able to make 2 or 3 videos per week.
Awww thanks so much! Hahah, that would be ALOT of videos. ; )
when the kids were little and we would drive around on Sunday afternoon we would always tune in to Money Talk with Bob Brinker. They loved that show and have reminded me on a number of occasions how much they learned.
I've always been interested in finance so I got an entry level job at an Independent Financial Advisory firm. They paid for my exams to get a diploma in financial planning so I could become a fully qualified and regulated IFA.
Definitely very important stuff to teach in school! In High School there was an extracurricular class called DECA that really helped with this. And a financial literacy class most seniors had to take for a math class. I took Calculus instead. And instead learned about finance by getting a job at a credit union!
Seriously you are the best guys.. I was learning about money from 1 yr before, but budgeting and payment of loans and stuff was absolutely fantastic
I am 45 and in community college for business management.
In my first semester as a free elective, I took personal money management.
I did not realize just how enough with finances I was until I took this course.
My wife read my textbook and we took the tools in the textbook to strengthen our financial status.
Now this is just my opinion.
But I think that personal finance should be a high school course. Because it just one semester of learning about my finances help me to improve everything drastically. And we do this for the high school kids.
Perhaps there won't be so much debt among young people and our country is a whole could become more financially stable.
The budget template looks great. I'd definitely use it. Thanks for always producing high quality content and providing great smiles. You two rock!
Thanks so much!!
WOW I'm dumbfounded! I was born in the 1950's. We kids were taught Financial Literacy at home sitting around the dining room table as our parents did the weekly budget, and then there was education and programs in school. DAMN my family forced us kids to keep track of our expenses; which we dropped as soon as we were teens. We actually had saving's programs in school to buy gov't bonds in 1st grade and I had a savings acct. at a bank during grade school. I remember having to learn compound interest in 1st grade - I felt like we were being forced into becoming accountants. We would do compound interest formulas followed by learning colors and the alphabet.
Im in high school and two of my classes next year are money management and accounting.
How did I learn? By making mistakes. 😆🤦🏾♂️🤷🏾♂️
Thats the real truth!
Kenneth L. Thomas, Jr. Same, also from watching my family make mistakes. I’m trying to be the smart generation and make better financial moves.
Over here very basic financial litercy is mandatory in school. It is not enough but at least pupils get to know what a subscription is, what package deals means, Interest, inflation etc.
I finally became financially literate after learning from bad financial decisions I made over the years. I certainly paid for my mistakes literally speaking.
Love this channel!
great job as always
This channel is so good! I actually stumbled on to it thinking it’s a Ryan Gosling sketch with him wearing a moustache lol!
I love this stuff, it's all so true, keep up the good work thank you!
I’m 16 and I stumbled upon your channel on accident. It has been so helpful and educational for me, I feel a lot more confident now that I’m looking into college and my future after high school.
Thanks for the vid. My main issue with my financial literacy is how to *do* certain things. Especially investing. I know the terminologies, but have no idea how to actually go about investing. And I have been apprehensive about seeing a financial advisor for the reasons you said in this video too. Seen plenty of videos about investing. But still don't know how to *actually go about* doing that. Not really interested in this robo investing because I actually want to understand what is going on. Any suggestions? (Or if @Two Cents sees this, maybe a video on it?)
Learn about the different types of accounts you can invest in (tax-related effects) and about the different types of securities. Choose the right asset allocation depending on your age, investment goals and risk tolerance. Invest in a low cost mutual funds that tracks the indexes and in investment grade bonds and hold onto it while investing regularly to reach your goals.
I love your channel, and this video was excellent. It would be amazing if you made video explaining exactly how financial illiteracy falls on society as a whole and not just on the folks who are financially illiterate!
I am in love with your content! I started watching since the first video launched! Thank you for all that both of you and your team do for the public. Can't wait to join the community through Patreon.
p.s. I am a fan of Dave Ramsey too!
Awww so glad! We'll see you there!
I definitely first learned about compound interest and saving for retirement in grade 11 math class but I've gotten a lot more specific education online from programs like twocents.
Thank you Two Cents, I learned about money while taking a Dave Ramsey class. I love your RUclips channel, thank you for all your team does.
Learned in the school of life. Took a course in 10th grade, but wasn't able to work in hs so i forgot everything i learned. Started working in college but the need for a budget and savings didn't hit me til a year later when I was short on cash and ended up unable to pay rent and had to move out someplace else.
I intentionally took business class and an Accounting class my senior year of High School. In addition to my own financial mistakes/ experiences and the willingness to learn new skills to better my financial health. Also seeing my parents poor financial choices used to give me anxiety until I learned better financial habits.
Hello 2 cents! I’m a huge fan. I was wondering if you guys could do a video on what to consider when thinking about relocating and working in a different city/country....
I’ve gotten a lot of inspiration from these blogs:
Mr. money mustache, JLCollins, GoCurryCracker, and LivingStingy
Awesome Vids, the kind of work you make is definitely going to change the world. I learned by trial and error. Thank you for your hard work ;)
You know how I learned about financial decisions? I left the house at 18 and never went back. I had to figure out all those things and the internet was a big help for some things I needed a little help with. My school layer down a little bit of a foundation and I had a bank account since I was 3 (obviously my parents did it but it was there) but really the rest was being forced to learn how to manage money.
I went to college for a semester and had some major disappointments with my choice in school and left after that first semester. I didnt want to move back home so I came home for a month and found an room to share in an apartment and headed back out with $2000 that I had saved up while I was in college and had decided to leave. I finally got a job at the last minute and have been on my own ever since. Kinda. My fiance and I started living together while we shared apartments with roommates before we bought our house when we were 24/25. We used the internet to figure that stuff out too. The internet has definitely been the best tool.
Great video!
I feel like I'm from a different planet. Back in the 1950's my parents, uncles & aunts [all grew up in the Great Depression] forced us kids to track our expenses as kids and toddlers. And then every 2 weeks when our father's got paid, we sat down around the dining room tables with check book open to discuss distribution of money and budgeting. Then in school we kids bought these red stamps that went into a book that went to buy US gov't bonds. We were also given a white book that we'd take to a bank so that the change could be placed into our savings acct. For crying out I remember being forced to memorize the compound interest formula in 1st grade. In addition to this, all of our fathers worked in the mills and factories, and about every 2 years, they were on strike. So all of the adults in my family created a 2nd job for income [my Dad fixed up old run down shakes and then flipped them]. Then during hunting season, we all went hunting for wild game and us kids were also taught to forge for wild food. By the mid-60's when we were teenagers, most of us stopped this. But when I got older, I went back to these old habits like several of my other cousins.
I learned about personal finances through free workshops and classes at my church. The introduction helped me and I'm very grateful.
Love your videos!!
❤️❤️
...One of the reasons why home economics isn't such a big thing in the US might also be that, at least here in Sweden, we are taught (among many other things) the importance of unions and why stores like walmart (specifically named in the class I had) are bad for people in the long run (for those interested, a very abridged version of the lesson was that it basically pushes down prices for the consumer, yes, but it also ensures that people's incomes stagnates, effectively lowering the average consumer's purchasing power.*) during this time.
*To elaborate, the reason stores like Walmart can have such prices is partly because they give their own employees starvation wages, but also because they by now have such influence that they can make or break many smaller enterprises. I remember in this lesson we got to see an interview of the previous owner of a factory that produced vacuum cleaners. They were specifically told by Walmart that they needed to lower the cost of their products, again and again. Which they felt forced to do no matter what as they would otherwise lose almost all their customer base. In so doing, they too had to start paying their employees starvation wages (and the extra profit that would normally occur from this? Gobbled up by Walmart. And these same employees would likely also then be forced to make their purchases for the cheapest prices, namely walmart). Eventually they couldn't anymore, Walmart canceled the deal with them, and they had to close down shop. With their employees loosing their source of income after already having been paid starvation wages after a long time.
Money doesn't grow on trees, there is a fixed amount in the system. And as companies like Walmart hoards all the more wealth why continuously offering lower prices, it means that they are effectively tightening a snare as the people around them grow poorer. Other businesses that can't compete have to close leading to less competition and a lot of people without a real income. Even those who do survive only do so by also paying their employees starvation wages. All forcing these low income earners to seek out Walmart again. And at one point or another, they will not have a choice even after they have realized this trap as they can't afford anything else.
I learned about finances on RUclips. I didn't start saving until my late 20's. I wish there were personal financial classes when I was in high school and in college. I'm happy I found this channel and the Financial Diet channel. :)
I am a finance student I have been teaching my siblings (7) and parents about personal finance. Some of my younger siblings have even shown a great interest in following in my footsteps.
I was very fortunate to have parents who prioritized education and moved us to a school district with really high quality education. We had a required semester long class called Senior Seminar which was mostly a financial education class to prepare us for the "real world" after graduation. We also covered many basic financial concepts like supply and demand between our required 2 semesters of economics (micro and macro economics). My parents don't have the best financial literacy. They knew enough to get us bank accounts as children but they valued education enough to make smart decisions that carry with us today. My parents are not wealthy but we lived in an area that had a lot of wealthy families, hence the high quality education. So, most of my classmates were not the kind of kids who probably need financial education the most. Even if financial education is promoted at school, we still need to change the way we fund schools to make sure that kids who live in poor areas still get access to the same programs.
I think it's awesome that you guys started a patreon ! And it's well deserved ! You do an amazing job and I've learned a lot, video after video, for free ! I think it's fair that we support you by giving back.