Financial Literacy

Traditional Financial Literacy Stinks!

The term “financial literacy” slowly came on to the scene about 15 years ago. Before that there was little discussion about the need for financial literacy for today’s youth, millennials or the general population at large. Man, have things changed.

Since that time there’s been billions of dollars spent on financial literacy efforts by non-profits, financial institutions and government entities. All well-intended but with little change in financial behavior.

The ROI is not there because traditional financial literacy is missing the mark big time.

Traditional financial literacy is boring. The two words “financial literacy” are two words that should never go together. It sounds like and is education. There’s a big emphasis on credit scores, APR’s (annual percentage rates), budgeting and how to be a good spender. Today’s financial literacy is a cause for yawning, leaving a workshop early or not showing up at all.

I’m not alone. Ask any millennial and they will tell you the same thing. They don’t want be financially literate or financially educated. They just want to know HOW to be financially successful so they can push forward to achieving some life goals and dreams. And I’m guessing that’s what you want as well.

Here’s what I believe needs to happen on a global scale:

  1. Financial literacy needs to change its name to financial success. With a focus on what it takes to be financially successful in life starting in middle school.
  2. We need to stir the heart and mind of young people to understand why they ultimately want to be financially successful in life. This is the foundation to a successful financial success program and the impetus to creating real behavioral change.  
  3. Focus on the time value of money and power of compound interest through investing. This will affect dreaming, spending, student loan decisions and make a dent in frivolous consumer debt accumulation.   

As a result, lives and entire families will be positively changed along the way. Looking forward to seeing a major shift in how we teach money. In the meantime, we will keep on teaching money differently through Young Money University.

 

“Today’s financial literacy is a cause for yawns, leaving a workshop early or not showing up at all.” – Todd Romer

Acorns Investing Platform

Acorns Investing Platform: A Game and Life Changer

You have to love game-changing technologies and ideas (ie..Uber, Lyft, AirBnB, Venmo, etc.) that can turn an industry upside down or just make one’s life more simple. One such game changer is the Acorns investing app. This relatively new micro investing platform enables you to begin investing with spare change to create wealth over time. Yes, spare change!

By simply attaching your debit or credit card to the Acorns investing app, any purchase you make on coffee or on Amazon will be rounded up to the next whole dollar. Your “round-up change” will be invested automatically for you into one of five investment portfolios. These portfolios are managed by a few of the top investment management companies in the U.S. And you can make additional automatic recurring investments every week or month as well. Just like I have been teaching for years. How cool is that?

So many millennials want to invest and know they should invest, but are afraid to do so because of the lack of knowledge.  

Acorns combines professional, passive money management, ease of use and low cost to provide a dynamic way to save and create wealth over time. In other words, you don’t have to know jack about investing in order to take advantage of the time value of money through the Acorns investing platform.   

When I began investing money in high school, college and throughout my twenties I had to have a minimum of $1,000 to invest in a stock mutual fund. Your minimum investment requirement with Acorns is technically one penny if your debit card purchase is $1.99, for example.

If you’re a college student and have a valid .edu email address Acorns is free up to four years after registration. Otherwise, it is $1.00 per month. Once your Acorns investment account reaches $5,000 there is no monthly fee. You just pay an annual management fee of 0.25% which is super competitive.

I’m convinced that Acorns can help create thousands of millionaires over the next few decades who would otherwise not be able to do so on their own. I am all in on Acorns and have been for a while.  It’s a game and life changer. Really, it’s that good.

“In other words, you don’t have to know jack about investing in order to take advantage of the time value of money through the Acorns platform.”  – Todd Romer

Keep and Grow Your Money

The Raw Formula to Financial Success – Keep and Grow More of What You Earn

In 1996, Thomas J. Stanley and William D. Danko authored the book Millionaire Next Door. The title evoked much interest as it shared common behaviors of the wealthy that surprised many people. Through their research, they found most millionaires are not living in huge homes, driving super fancy cars or wearing $5,000 watches.

Rather, many millionaires live in modest homes, drive mid-priced cars and take simple steps to keep and grow more of the money they earn rather than focus on spending.

Keep and Grow Your Money

It’s no wonder when I speak that many older adults will come up to me afterward and say, “If I could go back in time to my 20’s I would do money so differently.” They tell me about their wish to have spent less money and saved and invested more. I get this same story everywhere I go.

The great news now is that you can achieve long term financial success by switching your focus to keeping and growing more of what you earn. It requires a new thought process and new behaviors with money that anyone can do over time.

 

“Many adults will come up to me afterward and say if I could go back in time to my 20’s I would do money so differently.”    

– Todd Romer

Financial Success is a Choice

It continues to be a great privilege to teach and coach thousands of millennials the fundamental components to achieving financial success over time.  Near the end of my presentation, when I see my 5 Step Plan really sinking in, I then ask the audience this question: “Now, what is the only thing that can get […]