FINANCIAL LITERACY – INDIVIDUAL, COMMUNITY AND ECONOMY
Karl Dakin
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
QUICK CALENDAR
TOMORROW, WEDNESDAY, NOVEMBER 6, Don Cohen show, 9 am Mountain Time / 11 am Eastern Time – Business Development
THURSDAY, NOVEMBER 7, Community Revitalization show, 8 am Mountain Time / 10 am Eastern Time, LinkedIn Live
TUESDAY, NOVEMBER 12, Successful Funding show, 8 am Mountain Time / 10 am Eastern Time (after Daylight Savings time shift) – Andy Sherbo – Entrepreneur Education on Funding
TUESDAY, NOVEMBER 19, Successful Funding show, 8 am Mountain Time / 10 am Easter Time – Dr. Tom Frey – Future of Entrepreneur Funding
?FUNDING HAPPENINGS
Next Street celebrated October as National Women's Small Business Month and the important contributions of female entrepreneurs. NXST Partner Donald Jones recently conducted a series of interviews with small business owners around the theme of?Identity as an Asset.?Visit the blog ?to hear from women business owners across the country on how their identities have shaped their entrepreneurial journeys.
?FUNDING POINT – FINANCIAL LITERACY – INDIVIDUAL, COMMUNITY AND ECONOMY
@Eric Hanson was my guest on the Successful Funding show this morning. I asked Eric to identify a key issue to improving the capital industry and he pointed at ‘financial literacy’.
Financial literacy is the ability to understand and effectively use various financial skills, including personal financial management, budgeting, and investing. It involves knowing how to make informed financial decisions, such as saving for retirement or paying off debt, and understanding financial concepts such as interest rates, inflation, and financial planning. This knowledge is crucial for managing personal finances and making informed financial decisions.
The World Economic Forum reported that the TIAA Institute Personal Finance Index measured the knowledge and understanding that would enable sound financial decision-making and effective management of personal finances among U.S. adults. The index is based on responses to 28 questions across eight functional areas: earning, consuming, saving, investing, borrowing/managing debt, insuring, comprehending risk, and go-to information sources. The report showed that financial literacy in the US has hovered around 50% for eight consecutive years , with a 2% drop in the past two years. Financial literacy was particularly low in Gen Z, who only answered 37% of the questions.
Professor Annamaria Lusardi and Professor Olivia Mitchell designed three multiple-choice questions known as the? Big Three. You can test yourself on these below, and find out the answers?here :
1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow?
2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, with the money in this account, would you be able to buy…
3. Do you think the following statement is true or false? Buying a single company stock usually provides a safer return than a stock mutual fund.
In 2021, just under?30% of Americans answered all of them correctly .?
?A 2023 article by Ann Carnns in the New York Times reported, “Just seven states — Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah, and Virginia — earned an A grade, meaning they require students to take a semester-long personal finance course, or its equivalent…”
My take on these tests, as important as they are, is that they fail an understanding of community capital and economics. Knowledge regarding how capital is raised and utilized within communities, the impact on local economies, and how financial systems operate at both micro and macroeconomic levels is critical to evaluating an investment or raising funding for a business.
Not only should financial literacy be a standard curriculum in secondary schools, but it should also be expanded beyond balancing a checkbook and investing in a mutual fund, including taxation, government budgeting, and economic development.
A key learning lesson is understanding the difference between value and price and between appreciation and speculation. Understanding the concepts can help a person make a more informed decision between investing in Wall Street or Main Street and between buying a lottery ticket or cryptocurrency.
?SUCCESSFUL FUNDING SHOW
?THIS MORNING, on my Successful Funding show, I hosted Eric Hanson, a professional entrepreneur. We discussed improving the capital industry through offering more extensive education on financial literacy.
You may see a recording of the show at:
领英推荐
?RCI COMMUNITY FUNDS
THIS THURSDAY, November 7, I will be the guest on the Community Revitalization show at 8 am Mountain Time and 10 am Eastern Time. The topic of the show will be ‘integrated investment.’ This topic is a key component of the design of the community investment funds planned by RCI Community Funds. In short, every dollar invested in a community is intended to achieve the greatest impact possible toward building community wealth.
You may watch the show live or as a recording at:
LAST THURSDAY, Bill Huston and I hosted Chris Miller with the National Coalition for Community Capital. This organization is the leading advocate for community capital and community investment funds to empower underserved and economically distressed communities. We discussed a range of issues regarding the need for and approaches to creating these funds.
You may see a recording of the show at:
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DON COHEN SHOW
?TOMORROW, NOVEMBER 6, I will be a guest on the Don Cohen show, where we will discuss business development. The show will be at 9 am Mountain Time / 11 Eastern Time.
?You may see the show live or later as a recording at:
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LAST WEEK, I was the guest on the Don Cohen show, October 28, 9 am MDT, 11 EDT, on LinkedIn Live. Don and I discussed financials and how they give a picture of a business from a dollars and cents perspective. We also discussed the distinction between a point and time and different perspectives looking backward and forwards with and with adjustment for income taxes.
?You may see a recording of the show at:
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Karl Dakin, the Capital Coach
Dakin Capital LLC
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2 周That's going to be Interesting event thanks for sharing this best wishes to each and everyone their ?????????????????????????
I help you overcome challenges to raising capital. Take advantage of my Motivated Money Method to identify those investor candidates that are most likely to invest. Top expert in fundraising.
2 周How can you contribute to financial literacy?