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If you research this I think you'll find that starting with capital correlates strongly with having a financially literate family who can provide useful guidanc

If you research this I think you'll find that starting with capital correlates strongly with having a financially literate family who can provide useful guidance. Giving capital to people who are not financially literate will likely end up with that capital quickly moving out of their hands to people who are financially literate.

cascom 5y ago
Moreover - as you go up the capital spectrum you see an increasing emphasis on teaching financial literacy to children (just look at the marketing materials of private banks an wealth managers purporting to help educate the next generation)
Broken_Hippo 5y ago
Financial literacy is useless if you can't teach folks how to survive when there isn't quite enough money. Teaching how to invest is useless if the person remains poor for the next 10-20 years, and if trends stay the same, they probably will be. Financial literacy should include this stuff, plus how to get help if you can't make rent, are going hungry, or are homeless.
- dhzizns 5y ago
  “ when there isn't quite enough money” But is it obvious there isn't enough money? My in-laws, immigrants with almost no skills and mext to zero English, work at Walmart. Their income sucks (<40k combined [1]), and they have zero financial skills (they grew up in communism). The one thing they know, however, is that my wife is very sharp. therefore, they have given her full access to their all their accounts. Result? They’re contributing to a 401k despite always blowing money on flashy iPhones (they’re fairly irresponsible). They also bought a modest house (ill admit we did lend them the money for a 10% down, which they've paid back) since rent had become more expensive than a mortgage. They’ve been in the US for just five years and, with very little material help from us, have a reasonable shot at retirement income [2]. The big difference with many others is that my wife took a chunk of their financial autonomy with automatic withdrawals so they wont blow too much money (lottery tickets, booze, fancier iPhones, etc) [1] Note, they don't have to take care of anyone but themselves with <40k [2] retirement means selling the house and coming to live with us as soon as either of them can no longer work.

cascom 5y ago

Moreover - as you go up the capital spectrum you see an increasing emphasis on teaching financial literacy to children (just look at the marketing materials of private banks an wealth managers purporting to help educate the next generation)

Broken_Hippo 5y ago

Financial literacy is useless if you can't teach folks how to survive when there isn't quite enough money. Teaching how to invest is useless if the person remains poor for the next 10-20 years, and if trends stay the same, they probably will be. Financial literacy should include this stuff, plus how to get help if you can't make rent, are going hungry, or are homeless.

dhzizns 5y ago
“ when there isn't quite enough money” But is it obvious there isn't enough money? My in-laws, immigrants with almost no skills and mext to zero English, work at Walmart. Their income sucks (<40k combined [1]), and they have zero financial skills (they grew up in communism). The one thing they know, however, is that my wife is very sharp. therefore, they have given her full access to their all their accounts. Result? They’re contributing to a 401k despite always blowing money on flashy iPhones (they’re fairly irresponsible). They also bought a modest house (ill admit we did lend them the money for a 10% down, which they've paid back) since rent had become more expensive than a mortgage. They’ve been in the US for just five years and, with very little material help from us, have a reasonable shot at retirement income [2]. The big difference with many others is that my wife took a chunk of their financial autonomy with automatic withdrawals so they wont blow too much money (lottery tickets, booze, fancier iPhones, etc) [1] Note, they don't have to take care of anyone but themselves with <40k [2] retirement means selling the house and coming to live with us as soon as either of them can no longer work.