The ForbesBLK newsletter highlights the importance of Financial Literacy Month, emphasizing the need for improved financial education in the United States. A money quiz conducted by fintech platform Goalsetter revealed that even top university students struggle with basic financial concepts, answering only 51% of the questions correctly. CEO Tanya Van Court expressed concern about the lack of understanding of concepts like compound interest and budgeting rules among young adults, pointing to a regression in financial education across social classes.
Van Court, who spoke at the ForbesBLK Summit in November 2023, has successfully raised funding for Goalsetter, including a $9.6 million Series A extension. The company, valued at nearly $70 million, has received investments from notable figures like billionaire Robert Smith and NBA stars Chris Paul and Kevin Durant. Van Court attributes her success in attracting capital to having a clear vision for the company and the ability to transform the world with innovative ideas.
Reflecting on her own financial struggles, Van Court shared how she lost $1 million in one day during the dot-com bust at age 28 due to a lack of financial education. She emphasized the importance of passing on financial knowledge to future generations to prevent wealth loss, stating that 90% of affluent families lose wealth by the third generation because of miseducation. Van Court believes that financial education is not just about generational wealth but also generational knowledge that can empower families to make informed financial decisions.
The article highlights the significance of understanding financial concepts like the 50-30-20 budgeting rule, which was a learning experience for the author as well. It acknowledges the struggles and failures with money in one’s 20s and emphasizes the importance of financial education in empowering individuals to make informed financial decisions. The quiz mentioned in the newsletter challenges readers to test their financial knowledge and reflect on the importance of improving financial literacy to build a secure financial future.
Overall, the ForbesBLK newsletter emphasizes the importance of Financial Literacy Month and the need for better financial education in the US. Through the insights shared by Tanya Van Court and the challenges faced in understanding basic financial concepts, the newsletter encourages readers to take control of their financial well-being and to educate themselves on important financial principles. By highlighting the importance of passing on financial knowledge to future generations, the newsletter calls attention to the long-term impact of financial education on family wealth and financial stability.
