The Wolf Den #82 - Financial Literacy, Trades And More
thewolfden.substack.com
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.I read a tweet this morning that resonated deeply with me and sent me down a rabbit hole of research on the topic of financial education.“Stop buying your kids what you never had and start teaching them what you never knew.” - Vala AfsharWhen I was a kid in the 1980s, financial education was largely ignored as part of our curriculum. We focused on memorizing useless facts about history, learning lessons that we would never use, studying the wildly inaccurate "food pyramid" that had us focusing on eating primarily complex carbohydrates and preparing for tests that offered zero indication of our likelihood of future success.My children are too young to have advanced deeply into the school system, but I have a feeling that things have not changed.There is no topic more important than financial literacy.As people become more aware of the far-reaching consequences of financial illiteracy, one question becomes obvious. Why isn’t personal finance taught in school? As one considers the repercussions of financial ignorance and advantages of knowing about personal finance, this question becomes increasingly important. The answer is a general failure of the education system to identify the most relevant skills students should possess. While some point to underfunding as a response to the question of why personal finance isn’t taught in school, the education manages to fund STEM programs with expensive computers and lab equipment, but cannot find room in the budget for personal finance 101 course.I dug up quite a few facts this morning about the power and importance of financial education.One team of researchers decided to analyze the efficacy of simulations in producing behavioral change in students. Students who took Junior Achievement’s Finance park, a simulation for middle school students that sees students assume family and income scenarios, were split up into two groups after going through the park the first time. One group underwent financial education training while the other group did not. After 12 weeks, all the students went through the park for a second time. Over half the students in the group that received training were able to successfully construct a budget, a statistically significant amount over the only 1 student who was able to do so before the training (National Bureau of Economic Research).Low-income workers attending an employer-sponsored financial education program were 11.5% more likely to participate in 401(k) plans and save more for retirement than peers who elected not to attend the education initiative (National Bureau for Economic Research).A research study analyzing the effects of parents’ values on children found a statistically significant positive association between parent’s savings rates and children’s savings rates (University of Agder).Parents who have three or more types of savings are more likely to have kids who discuss money with them (83% vs. 66%) and less likely to have kids who spend money as soon as they get it (40% vs. 52%) or lie about their spending (34% vs. 43%) (Money Confident Kids).The data is clear - children (and adults!) should be learning how to manage and approach their finances from an early age. I don't have all of the answers, but think that it is clear that the school system has almost no intention of teaching these lessons, which means that it falls on parents to educate their own children and the younger generation.And what should we be teaching them? At the most basic level, we should teach them the importance of money, how to manage it and what money is.Present these two types of money to a kindergartener and see which they think is superior:Fiat money is government-issued currency that is not backed by a physical commodity but by the stability of the issuing government. It is inflationary and can be printed endlessly, as we have seen over the past few months.Bitcoin is deflationary and requires no trust in a centralized entity. This means that the number of Bitcoin that is produced decreases over time and even will stop eventually once supply reaches 21,000,000.This stands in stark contrast to the inflationary model most of the world operates under.Even a kindergartener would likely understand the difference and choose the latter.So which model do you think will survive in the future, when our children need to understand money the most?My bet is on Bitcoin.Teach your children about Bitcoin.Side note: don't forget to check out my new website!!! I am updating it daily with fresh content for you to enjoy! This is the hub of all of my activities moving forward.https://www.thewolfofallstreets.io/What's In This Issue?The CFTC Chair Is Bullish On BlockchainInstitutional Adoption? Crypto Funds Are Growing90% Of Purchased Ethereum Is In ProfitIs The Altcoin Cycle Just Starting?The Story Of Charles PonziRisk : Reward AnatomyThe Wolf Of All Streets Podcast Ft. Anthony PomplianoBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMy Recommended Platforms And Tools
The Wolf Den #82 - Financial Literacy, Trades And More
The Wolf Den #82 - Financial Literacy, Trades…
The Wolf Den #82 - Financial Literacy, Trades And More
This newsletter is sponsored by 2 amazing companies: VOYAGER and PHEMEX.I use Voyager for my spot trading and investing (and to compound interest) and I use Phemex for trading with leverage. Sign up to both with the links above and get some free Bitcoin. I really encourage you to check them both out - you know that I never endorse a product that I do not use!Make sure to use code SCOTT25 after you download the Voyager App to get $25 in free Bitcoin.I read a tweet this morning that resonated deeply with me and sent me down a rabbit hole of research on the topic of financial education.“Stop buying your kids what you never had and start teaching them what you never knew.” - Vala AfsharWhen I was a kid in the 1980s, financial education was largely ignored as part of our curriculum. We focused on memorizing useless facts about history, learning lessons that we would never use, studying the wildly inaccurate "food pyramid" that had us focusing on eating primarily complex carbohydrates and preparing for tests that offered zero indication of our likelihood of future success.My children are too young to have advanced deeply into the school system, but I have a feeling that things have not changed.There is no topic more important than financial literacy.As people become more aware of the far-reaching consequences of financial illiteracy, one question becomes obvious. Why isn’t personal finance taught in school? As one considers the repercussions of financial ignorance and advantages of knowing about personal finance, this question becomes increasingly important. The answer is a general failure of the education system to identify the most relevant skills students should possess. While some point to underfunding as a response to the question of why personal finance isn’t taught in school, the education manages to fund STEM programs with expensive computers and lab equipment, but cannot find room in the budget for personal finance 101 course.I dug up quite a few facts this morning about the power and importance of financial education.One team of researchers decided to analyze the efficacy of simulations in producing behavioral change in students. Students who took Junior Achievement’s Finance park, a simulation for middle school students that sees students assume family and income scenarios, were split up into two groups after going through the park the first time. One group underwent financial education training while the other group did not. After 12 weeks, all the students went through the park for a second time. Over half the students in the group that received training were able to successfully construct a budget, a statistically significant amount over the only 1 student who was able to do so before the training (National Bureau of Economic Research).Low-income workers attending an employer-sponsored financial education program were 11.5% more likely to participate in 401(k) plans and save more for retirement than peers who elected not to attend the education initiative (National Bureau for Economic Research).A research study analyzing the effects of parents’ values on children found a statistically significant positive association between parent’s savings rates and children’s savings rates (University of Agder).Parents who have three or more types of savings are more likely to have kids who discuss money with them (83% vs. 66%) and less likely to have kids who spend money as soon as they get it (40% vs. 52%) or lie about their spending (34% vs. 43%) (Money Confident Kids).The data is clear - children (and adults!) should be learning how to manage and approach their finances from an early age. I don't have all of the answers, but think that it is clear that the school system has almost no intention of teaching these lessons, which means that it falls on parents to educate their own children and the younger generation.And what should we be teaching them? At the most basic level, we should teach them the importance of money, how to manage it and what money is.Present these two types of money to a kindergartener and see which they think is superior:Fiat money is government-issued currency that is not backed by a physical commodity but by the stability of the issuing government. It is inflationary and can be printed endlessly, as we have seen over the past few months.Bitcoin is deflationary and requires no trust in a centralized entity. This means that the number of Bitcoin that is produced decreases over time and even will stop eventually once supply reaches 21,000,000.This stands in stark contrast to the inflationary model most of the world operates under.Even a kindergartener would likely understand the difference and choose the latter.So which model do you think will survive in the future, when our children need to understand money the most?My bet is on Bitcoin.Teach your children about Bitcoin.Side note: don't forget to check out my new website!!! I am updating it daily with fresh content for you to enjoy! This is the hub of all of my activities moving forward.https://www.thewolfofallstreets.io/What's In This Issue?The CFTC Chair Is Bullish On BlockchainInstitutional Adoption? Crypto Funds Are Growing90% Of Purchased Ethereum Is In ProfitIs The Altcoin Cycle Just Starting?The Story Of Charles PonziRisk : Reward AnatomyThe Wolf Of All Streets Podcast Ft. Anthony PomplianoBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsMy Recommended Platforms And Tools