Getting a headstart in financial literacy can be fun and educational

I admit - the title image is not the best. You want your children to understand through calculators and actual money at some point. The point I am trying to drive home is - when you take immense pressure in making decisions you will often get them wrong, and you don't want to teach children financial literacy with the burden that it will make or break their lives in the future. What I contend is that if the same propensity to take decisions is built in naturally, intuitively - there will be lesser friction in understanding the nuances of the financial world and acting in the best interests of one's future and their family's needs.

Where are we Playing

The toddler-and-up mobile app educational and gaming market is expanding. Children taking to mobile phones is no longer a dangerous distraction rather it is helping kids get up to speed with the real world by honing their skills far quicker than any generation previously has been able to manage.?

It is also apparent that there is a significant void in society on the subject of financial education. When adults are hit with real-world repercussions and monetary consequences when they take on debt for example, they often turn to lament the educational system that never explained far simpler concepts to them at the time that they were learning calculus. ?

Summary of Business Idea

Thus, I think these two pieces of trends and/or pain-points can be connected together to form a product that can later on be integrated into the entire financial landscape, a behemoth of a market currently fulfilled by banks who will fast have to cede ground on an incremental basis. More on that later - but the core of the idea is to be a company that builds games for toddlers-and-up with the intention of introducing them to the concept of sharing, barter and earning initially and tilt the scale of their learning as they age, grow and level up. What those games would be is for the designers, engineers, user researchers, product managers, etc. to figure out. Even so, let us just delve into a little flavour of what they might be using some of the most common games of our times.?

Do you remember the game “snake” in the earliest versions of the Nokia? It was simply a 2 dimensional game with a small snake growing longer on the screen as it ate blocks or added blocks to itself. The only way the game ended for you was if you made a turn into the growing body of the snake or yourself. Now imagine if a kid could play this very game every day only once and at the max five times a week, and could set a goal based on the points they earned in it directly linked on the app itself. Say for example a 4-5 year old wants a Lego set worth $100 (just making it up). That 100$ will be broken into $2 each week till the week before Christmas. Each week it would be easy to make $2 if they are consistent and play decent on all 5 days. They can make more if they optimise for a day but they also have the option to save the points they have earned. If they run the snake into itself they don’t get awarded points for that day. There are numerous virtues that will be developed through such a game as kids will have to take a decision to bank their points and also develop a purpose and be intentional in showing up every day of the week for a goal they have earmarked. The game in itself can be optimised for helping the kids acquire other skills which is why I don’t necessarily think I would go for the game Snake - but you get the idea.?

The idea is to build virtues, intelligence and skills within kids that would go towards building financial literacy within kids even without anyone realizing that it is actually that - and that is the whole idea - to make it subtle. The idea is also ingraining the skills that they otherwise learn in school at that age by having games designed in that way, and picking games as such.?Finally, the idea it to hold a child's hand and not let it go till they get a better understanding in the sphere of finance - which means that the education through the app is from 2 or toddler years all the way till 18. This would also mean you can talk about retirement early - since no one thinks it is a big deal once you start working. You get the gist. I am running out of names - so I shall be referring to this company, app and product as Daffy as well - from here on.

Problem Statement

• Financial literacy is lacking worldwide and we don’t optimise the money we earn as a society
• Poor financial management leads to issues in corporations, startups and households. Reversing that would create a lot of value.?

Solution

• Developing simple games for the toddler-and-up demographic to harness their learning ability for making them accustomed to taking decisions they will have to later in life.?
• Educating kids on things they would need as adults. Inculcating lessons and virtues in a subtle manner that is enjoyable to the kids and not intrusive.?
• Building aspects of parents getting toys and gifts for their children in an educational app that allows kids to work towards goals and learn what it sometimes takes to earn something they like and want.?

Key Features and Benefits

• Games of incremental difficulty as kids grow up and challenge themselves while learning about financial literacy without intending to as such explicitly.
• Games that target not just financial literacy and education but normal skills and learning that kids take up in a schooling environment.?
• Games and features within them that allow kids to collaborate and learn with friends on different strategies to accumulate points towards working for a goal (for example). ?
• Allowing parents to adjust the learning of their kids but at the same time learning adjusted to age by the app to ensure some uniformity.
• Benefits would include better understanding of the financial decisions when kids become or approach adulthood.?
• Other benefits would be the propensity of kids to start saving far earlier in their lives which would alleviate anxiety and stress later on in their lives and thus the community - leading to lower probabilities of crimes as well.?

Key Partners

• Key partners would include fintechs, banks, insurance companies, financial entities, gift card entities, etc. which would help sponsor things without there being a conflict of interest and they would make products catered to segments they didn’t think about. ?

Revenue Streams (some)

• Revenue streams would include?
• advertising,?
• premium in-app purchases,?
• monthly/annual subscriptions,?
• sponsored educational content,?
• workshops, etc.

Hypothetical Founder Introduction?

Introduction:

Good morning everyone, and thank you for joining us today. My name is John, and I'm one of the co-founders of Daffy, the financial literacy app that we're excited to share with you today. I'm joined here by my co-founders Sarah and Michael, and together we've been working on this project for the past year, driven by our shared belief that everyone deserves the opportunity to achieve financial independence and security.

The Problem:

As you all know, financial literacy is a critical life skill, yet many people struggle to manage their money effectively or to make informed decisions about their financial future. We believe that this is a problem that deserves attention and action, both for its social impact and its business potential. According to recent studies, nearly two-thirds of Americans are unable to pass a basic financial literacy test, and the average personal debt is over $38,000. This not only puts individuals at risk, but it also has wider economic consequences.

The Solution:

That's why we created Daffy - to provide a solution that's accessible, engaging, and effective. With Daffy, users can learn the fundamentals of personal finance through interactive lessons, connect with a community of like-minded individuals, and receive personalized advice and recommendations based on their unique financial situation. We've designed the app to be intuitive, fun, and engaging, using gamification and social learning to keep users motivated and on track.

The Market:

The market for financial literacy solutions is vast and growing, with over 3 billion smartphone users worldwide and a growing awareness of the importance of financial education. We've conducted extensive market research and user testing to validate the demand for Daffy, and we believe that our app has the potential to capture a significant share of this market. Our target audience includes millennials and Gen Z, who are increasingly concerned about their financial future, as well as underserved populations such as low-income households and minority communities.

The Business Model:

We've developed a subscription-based business model that offers users a free trial period and a variety of pricing tiers based on their level of engagement and support. We've also explored potential partnerships with financial institutions and employers, who could offer Daffy as a benefit to their customers or employees. Based on our financial projections and key metrics, we estimate that we can achieve profitability within three years and generate significant returns for our investors.

Tactical Level - Methods to the Madness

To teach kids about finances, the app could use a combination of gamification techniques and interactive lessons to make learning about financial literacy more fun and engaging for kids.

• Interactive lessons: The app could have interactive lessons that explain basic financial concepts in simple language that kids can understand. The lessons could cover topics like saving money, budgeting, investing, and more. Each lesson could be broken down into smaller sections, with interactive elements like quizzes, videos, and animations to keep kids engaged and motivated.
• Gamification: The app could use gamification techniques like points, badges, and leaderboards to encourage kids to learn more about finances. For example, kids could earn points for completing lessons, quizzes, and other challenges. They could then use these points to unlock rewards or move up the leaderboard.
• Virtual bank accounts: The app could allow kids to create virtual bank accounts where they can practice saving and spending money. They could set goals for themselves and track their progress over time. This would help them develop good habits and understand the importance of financial planning.
• Real-life scenarios: The app could present kids with real-life scenarios that teach them about financial decision-making. For example, they could be given a budget to plan a party or a vacation, and they would need to make decisions about how to spend their money. This would help them understand the consequences of their financial decisions and develop good financial habits.

Overall, the goal would be to make learning about finances fun and interactive, while also providing practical tools and knowledge that kids can use to develop good financial habits for the future.

Tactical Level - Themes of Games and Features

• Budgeting games that teach users how to track expenses, set financial goals, and create a budget that works for them.
• Investment simulation games that teach users about stocks, bonds, mutual funds, and other financial instruments.
• Retirement planning games that teach users how to plan for retirement, including calculating savings needs, investment strategies, and risk management. (this admittedly is not for the early years - but as kids reach 14-15, it wouldn't be the worst thing to let them know that retirement is a fact and a milestone around which people need to prepare)
• Interactive calculators that help users calculate mortgage payments, credit card interest, and other financial metrics.
• Quizzes and assessments that measure users' financial literacy levels and provide recommendations for improvement.
• Personalized coaching and feedback that guides users on how to improve their financial skills and habits.
• News and updates on financial trends, regulations, and best practices that keep users informed and up-to-date.

Differentiation from Other Competition

• Personalized Learning Experience: Create a learning experience that adapts to the individual learner's needs, progress, and learning style. For instance, use AI-powered personalized recommendations, quizzes, and games that adapt to the user's skill level and pace.
• Interactive and Engaging Content: Make the app fun and engaging by using interactive content such as videos, animations, simulations, and games that reinforce financial literacy concepts in a way that is relatable and relevant to the users.
• Real-World Scenarios: Incorporate real-world scenarios that users can relate to, such as managing expenses, investing in the stock market, or saving for retirement.
• Gamification: Incorporate game-like features, rewards, and incentives to motivate users to engage with the app and learn financial concepts. For instance, offer badges, points, or virtual currencies that users can accumulate and exchange for tangible rewards or prizes.
• Social Features: Include social features such as peer-to-peer learning, user-generated content, and community discussions that enable users to connect with one another, ask questions, and share insights and experiences.

Partnerships Key for Go to Market

Partnerships with fintechs, banks, and insurance companies would be key. Partnering with such providers would enable Daffy to offer value-added services and promotions to app users. For instance, Daffy could offer exclusive discounts on financial products or services to users who complete certain levels or achieve certain milestones in the app.

Partnerships with fintechs, banks, and insurance companies can be mutually beneficial for both parties. Here are some ways Daffy could benefit from such partnerships:

• Offer value-added services: Partnering with financial service providers, banks, and insurance companies can help Daffy offer value-added services to users, such as personalized financial advice, investment management, or insurance products.
• Expand user base: Partnering with established financial institutions can help Daffy reach a wider audience and gain credibility and trust with users.
• Access to data and insights: Collaborating with financial service providers can provide Daffy with valuable data and insights on user behavior and financial trends, which can help improve the app's features and functionality.
• Generate revenue: Partnering with financial institutions can also help generate revenue for Daffy, through commissions or revenue sharing on products or services sold through the app.

By partnering with schools, universities, and financial institutions, Daffy can also expand its user base, offer value-added services, and generate revenue.

Pricing and Revenue

The pricing model for Daffy would depend on the target audience, competition, and the value proposition of the app. Here are two potential pricing models:

• Subscription-Based Model: This model charges users a recurring fee for access to the app's features and content. This pricing model works well for apps that offer ongoing education and updated content, such as financial news and market trends.
• Freemium Model: This model offers basic features for free and charges for advanced features or premium content. This model can help attract more users and encourage them to upgrade to the paid version.

Revenue from Sponsorships or Partnerships:

The app could generate revenue by partnering with sponsors or financial institutions. Here are some ways monetization of Daffy could be done through sponsorships and partnerships:

• Sponsored Content: Daffy could partner with financial institutions or other companies to create sponsored content that is relevant to the app's audience. This could be in the form of articles, videos, or infographics.
• Affiliate Marketing: Daffy could partner with financial institutions and earn a commission for each user who signs up for a financial product or service through the app. This could include credit cards, savings accounts, or investment platforms.
• In-App Advertising: Daffy could also partner with financial institutions or other companies to display in-app ads. This could be a banner ad or a video ad that plays between levels or activities.
• Brand Partnerships: Daffy could partner with financial institutions to offer users exclusive discounts or promotions for using their products or services through the app. This could include credit cards, loans, or investment accounts.
• White Labeling: Daffy could be offered as a white-labeled solution to financial institutions that are interested in offering financial literacy to their customers.

The financial literacy app Daffy can be priced based on the value it provides to users and the competition in the market. The app can also generate revenue by partnering with sponsors or financial institutions through sponsored content, affiliate marketing, in-app advertising, brand partnerships, and white labeling.

Incorporating real-world financial situations and scenarios

• Simulations of buying and selling goods: Feature simulations where kids can practice buying and selling goods using virtual money. This could include simulations of grocery shopping, online shopping, or buying and selling items at a garage sale.
• Investing in stocks: Create simulations that allow kids to practice investing in stocks using virtual money. These simulations could provide real-time updates on stock prices, news, and market trends, allowing kids to learn how to make informed investment decisions.
• Managing a budget: Feature simulations where kids can practice managing a budget using virtual money. This could include simulations of paying bills, managing expenses, and saving for future goals.
• Role-playing scenarios: Create role-playing scenarios that allow kids to practice making financial decisions in real-world situations. For example, a scenario where a child is given a budget and needs to plan a birthday party or a scenario where a child needs to decide how to spend their allowance.

Adapting the App to Different Cultures and Regions:

• Use of inclusive language and images: Ensuring that Daffy uses inclusive language and images that are culturally sensitive and appropriate for different regions.
• Inclusion of content relevant to different regions: Adding content in the app that is relevant to different regions and cultures, such as different currencies, financial products, and local financial regulations would help.
• Collaboration with experts in different regions: Incorporating collaboration with experts in different regions would ensure that the app is culturally sensitive and relevant to the target audience.
• Offering translations: Translations of the app's content into different languages will make it more accessible to a wider audience.

In conclusion, incorporating real-world financial situations and scenarios into Daffy can help kids apply their knowledge to real life. To make Daffy more universally applicable, the use of inclusive language and images, inclusion of content relevant to different regions, and collaboration with experts in different regions, and offered translations all improve its effectiveness.

Customer Journey

• Discovery: A potential user discovers Daffy through word of mouth, social media, or app store recommendations. Intrigued by the idea of improving their financial literacy, they download the app and sign up for a free trial.
• Onboarding: Daffy's onboarding process guides the user through setting up their profile and selecting their financial goals, preferences, and current situation. This helps Daffy personalize the user's learning experience and recommendations.
• Learning: Daffy's interactive lessons cover a wide range of financial topics, from budgeting and saving to investing and debt management. The lessons use a variety of formats, including videos, quizzes, and simulations, to keep the user engaged and motivated.
• Community: Daffy's community features allow users to connect with other members, share their progress, and learn from each other's experiences. This helps create a supportive and collaborative learning environment.
• Recommendations: Based on the user's profile and activity, Daffy provides personalized recommendations and advice, such as suggesting a savings plan or offering an investment opportunity. These recommendations are tailored to the user's preferences and goals.
• Progress tracking: Daffy's progress tracking features allow users to monitor their financial health and see how far they've come. This includes visualizations of their savings and debt, as well as milestones and achievements to celebrate.
• Support: If a user has a question or needs help with their finances, Daffy offers personalized support through its chat feature or by connecting them with a financial advisor or coach. This helps users feel confident and supported in their financial journey.
• Mastery: Over time, the user becomes more confident and knowledgeable in their finances, achieving their financial goals and improving their financial health. Daffy helps them maintain this progress and continue to grow their financial literacy.

Overall, Daffy's customer journey is designed to be engaging, personalized, and effective, with a focus on empowering users to take control of their financial future.

Jobs to be Done

• Learn about personal finance: The app should help customers learn about various aspects of personal finance, such as budgeting, investing, saving, and managing debt. Customers need to gain knowledge and understand these topics, and the app should provide information and resources to help them achieve that.
• Track financial goals: The app should allow customers to set financial goals and track their progress over time. Customers wish to stay accountable to their financial goals, and the app should provide tools to help them stay on track and achieve their goals.
• Manage finances: The app should provide tools for managing finances, such as tracking expenses, monitoring investments, and managing debts. Customers may want to organize their finances and simplify their financial management, and the app should provide a platform to make this easier.
• Connect with experts and peers: The app could also provide opportunities for customers to connect with financial experts and other users of the app. Customers may want to seek guidance and support from others who are knowledgeable about personal finance, and the app should provide a platform for these interactions.
• Make informed financial decisions: The app should provide information and resources that help customers make informed financial decisions. Customers might require assurance and a feel of being confident and informed about their financial choices, and the app should provide insights and advice to help them achieve this job.

Product Line Features & Benefits

• Educational content: The app could provide educational content on various personal finance topics, such as budgeting, investing, saving, and managing debt. This would help customers learn about personal finance and achieve their job to be done of gaining knowledge and understanding.
• Goal setting and tracking: The app could allow customers to set financial goals and track their progress over time. This would help customers stay accountable to their goals and achieve their job to be done of tracking financial goals.
• Expense tracking and budgeting: The app could provide tools for tracking expenses and budgeting, allowing customers to easily monitor their finances and stay on track. This would help customers achieve their job to be done of managing finances.
• Investment tracking: The app could provide tools for tracking investments, allowing customers to monitor their portfolio and stay informed about their investments. This would help customers achieve their job to be done of managing finances.
• Debt management: The app could provide tools for managing debts, such as credit cards and loans, helping customers stay on top of their payments and avoid fees and interest charges. This would help customers achieve their job to be done of managing finances.
• Financial advice: The app could provide personalized financial advice based on a customer's financial situation and goals. This would help customers make informed financial decisions and achieve their job to be done of seeking guidance and support.
• Community and support: The app could provide a community forum where customers can connect with other users and financial experts, asking questions and sharing insights. This would help customers achieve their job to be done of seeking guidance and support.
• Interactive tools and calculators: The app could provide interactive tools and calculators to help customers make financial decisions, such as retirement calculators, mortgage calculators, and investment simulators. This would help customers achieve their job to be done of making informed financial decisions.
• Rewards and incentives: The app could offer rewards and incentives for achieving financial goals, such as discounts on financial products or exclusive offers from partner companies. This would help motivate customers to achieve their job to be done of tracking financial goals.
• Security and privacy: The app could offer high-level security and privacy features to protect customers' financial information and prevent identity theft. This would help customers feel secure and confident using the app to manage their finances.

Cringe Advertising, Perhaps, Perhaps Not ;-)?

Are you tired of feeling lost when it comes to your finances? Do you struggle with managing your money or understanding financial jargon? Look no further than Daffy - the financial literacy app designed to empower you with the knowledge and skills you need to take control of your financial future.

With Daffy, you can:

1. Learn the basics of budgeting, saving, and investing through fun and interactive lessons.
2. Connect with a community of like-minded individuals who are also on their journey towards financial independence.
3. Get personalized advice and recommendations based on your unique financial situation.
4. Track your progress and see how far you've come on your financial journey.

No more feeling intimidated by financial jargon or overwhelmed by the complexity of personal finance. With Daffy, you can take control of your finances and build a better future for yourself. Join the Daffy community today and start your journey towards financial literacy and freedom.

Wholesome list of (probable) Revenue Streams

1. Subscription model: Charge users a subscription fee for access to premium features or content within the app.
2. In-app purchases: Allow users to purchase additional features or content within the app, such as advanced educational modules, personalized coaching or advice, or other value-added services.
3. Advertising: Offer paid advertising options for financial service providers, such as banks, credit card companies, or investment firms, to reach users within the app.
4. Affiliate marketing: Partner with financial service providers to offer users special deals or promotions, and earn a commission on any resulting sales.
5. Referral fees: Offer users incentives to refer friends or family members to the app, and earn a referral fee from any resulting subscriptions or purchases.
6. Data analytics and insights: Sell anonymized user data to financial service providers, market researchers, or other entities seeking insights into consumer behavior and trends.
7. White labeling: Offer the app as a white-labeled product to financial institutions, which can then brand and customize the app to their own specifications.
8. Sponsorship: Seek out sponsorship or partnership deals with financial service providers or other relevant organizations, such as universities or nonprofits, to support the development and maintenance of the app.
9. Licensing fees: Charge other organizations, such as schools or other educational institutions, for access to the app's content or features.
10. Crowdfunding: Seek out funding from users or supporters through a crowdfunding platform, in exchange for exclusive rewards or benefits.

Final Thoughts

Education at the most basic level is transforming and needs to do so for the requirements of tomorrow. At the same time, it is hard for parents to keep children away from electronics and apps for exposure to the outside world is both - inevitable and necessary. Thus, there is a fundamental need to introduce something that both keeps the attention of the child but at the same time is not dangerous - rather productive for the child.

This idea hits at one of the things lacking in society which is financial literacy from age 2 to 18 so that folks aren't going "Eurekaaa!!" in adulthood after they have left their fair share of money on the table already. However, I encourage folks to think about other kinds of education that could be imparted within these years where they would be better equipped during adulthood.