Crafting a Wealthy Mindset: More Than Just Numbers

As the O'jays famously sang, "Money money money money, money." Some folks truly feel they've got to have it, while others might do things - good and bad - all for the love of that "lean, mean, mean green." Their song really drives home how the almighty dollar can change, and sometimes even fool, people.

In this week's G.R.O.W. newsletter, "Crafting a Wealthy Mindset," we're diving into a deeper understanding of money. It's not just about the bills and coins but the mindset that accompanies it. By exploring wise investments and smart budgeting, we aim to redefine wealth in a way that goes beyond the "almighty dollar."

For our weekly challenge, let's reflect on the song's message and take a closer look at our last month's expenses. Where might we find an opportunity to save and make better financial choices? And always remember, as Epictetus wisely pointed out, "Wealth consists not in having great possessions, but in having few wants." One of our founding core principles is finances at A Few Good MENtors. We believe that learning about finances at a young age will help in your future endeavors.

Thank you for joining us on this financial journey, and I trust this week's insights will offer valuable perspective.

Let’s G.R.O.W.

Michael R. Morgan

President/Founder

A Few Good MENtors, Inc.

Understanding Money - Beyond the Bills and Coins

Financial Literacy for the Younger Generation

In 2021, middle schoolers Stockton Carlson and Calvin Lambert got a firsthand experience of the power of social media on stock market dynamics when their gamble on GameStop (GME) shares during a statewide simulation saw their virtual money grow from $100,000 to $171,526.61 in 10 weeks, landing them a first-place win in their category.

1. The Power of Early Financial Education: Teaching kids financial literacy early on sets the stage for better money management later in life. It's not just about knowledge; it's about application. The state of Utah was ahead of the curve in 2008, making personal finance education a high school graduation requirement. Now, the movement is towards introducing these concepts even earlier.

2. The Current State of Financial Literacy: Disparities in financial literacy exist among different demographic groups. Wealthier households generally score better in financial literacy tests, and there are noticeable gaps among racial and gender lines. Systemic factors have played a role in creating these disparities.

3. Benefits of Financial Literacy: With knowledge comes better financial decision-making. The benefits include better spending habits, a higher likelihood of saving, efficient retirement planning, avoiding high-interest loans and hidden fees, and overall better financial health.

4. Starting Early Matters: Karsten Walker, who has firsthand experience in introducing financial literacy programs in schools, believes in the advantages of early financial education. The challenges kids face today, including the barrage of ads and social media pushing for excessive consumption, underscore the need for foundational money lessons from a young age.

5. Tips for Parents and Guardians: Vince Shorb, CEO of the National Financial Educators Council, suggests practical methods to engage kids in financial discussions. These include explaining household financial decisions, incentivizing chores with money, introducing kids to various careers, and taking time to teach them the basics of money.

6. The Core Principles: Financial literacy isn't just about saving or spending. It covers earning, saving & investing, protecting assets, responsible spending, and understanding borrowing.

7. Adaptable Teaching Methods: There's no one-size-fits-all in teaching financial literacy. The approach should be tailored to a child's learning style, whether that's through games, discussions, or real-world experiences.

In Conclusion: The importance of teaching financial literacy cannot be understated. Starting early, understanding the socio-economic disparities, and adapting teaching methods can shape a future generation that's financially savvy and makes informed decisions.

Article originally authored by Diccon Hyatt

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