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

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

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 and Emotions

  • 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.

Building a Positive Relationship with Money

  • 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.

Investing and Financial Growth

  • 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 Financial Well-being

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

Overwhelmed by Endless Content?