Updated: Oct 15, 2020
... And is it Working?
Money is the #1 cause of stress in Millennials & Gen Z.
Work was #2. This is according to the American Psychological Association.
It is no wonder young people are stressed about Money.
77% of workers are living paycheck to paycheck.
61% of people can't cover a $1,000 emergency.
What is the Purpose of Financial Literacy?
Financial Literacy education exists to help people understand how the mechanics of our money system works. This could include topics like banking, credit cards, budgets, paychecks, interest, stocks, & taxes.
If you are interested in that, check out our Money Fundamentals Level inside Money Club. It's included in the free version!
These money basics are all unquestionably important. Without first learning how to read, you could never write an email.
But there are two huge issues with financial literacy:
1. It is boring, especially to teens.
2. It doesn’t go nearly far enough.
Money is emotional
We spend, save, give and invest with our feelings, not our logic.
Many people understand how credit card interest works but still have an online shopping addiction.
Just like many people are workaholics, not because they need the money, but because they feel the most validated by being productive at work.
Financial Literacy doesn’t teach anything about building a meaningful career, alternative education options, or about targeted online advertising. It doesn’t teach anything about money worshipping, societal expectations, or networking.
If it doesn't teach all that, what is the purpose of financial literacy?
The supposed purpose of Financial Literacy is to prepare you for the financial world, which is needed more than ever. But the outcomes generally fall short, because it doesn’t teach it holistically, and it doesn't speak to young adults where they are now.
Our young adults need more than financial literacy
We believe that in order to have a happy and meaningful life, an individual needs to be Financially Intelligent.
Financial Intelligence means mastering the mechanics of money, but also the habits and emotions that drive our financial behaviors.
This sort of financial education can inspire and empower better people, families, schools, and communities, but we have to approach learning about money as if it’s personal, because it is!
Our beliefs about money have profound impacts on our lives.
We like to ask the deeper questions, because our young adults’ ability to adapt to the rapidly changing landscape requires a very strong sense of self-awareness and purpose.
Technology is drastically changing the way we earn, use, think about, feel about, and behave with money. The challenges have evolved, and our young adults need a new set of skills and tools to deal with them.
Without good guidance here, they will learn it too late through hardship and struggle, just like we adults have.
It's time we change that.
This is why we started Ortus Academy -- to give young people the very best chance they could have at navigating their financial life in the modern world.
SO What is the Purpose of Financial Literacy?
The purpose of Financial Literacy should be to master money so that it can work for you, not against you, and to build a fulfilling and meaningful life as you define it.
This Financial Education Blog is filled with games, tools, videos, and resources to help you teach Millennials and Gen Z about money in a fun and approachable way.
We've finally made learning about money cool, and we want to help as many caregivers as possible positively impact the young adults in their life!
To learn more about building healthy money habits and designing your financial and professional life, check out Money Club -- an online game, course, and community of people learning how to be financially independent!