Financial Literacy

Money. Money means different things to different people. It can be the source of all our problems, or physical proof of the fruits of our labor. No matter what money means to someone, we all have a special relationship with money. These valued pieces of paper, clinking coins, and creased checks all create a unique understanding between people and their beloved dollar bills. Just like algebra class, we all are in different spots in the race to financial literacy. Some people can't tell the difference between a penny or a dime, while others can fully grasp the intricate locomotive that is the stock market. As one dives deeper  into the endless abyss of complicated laws and the mind boggling depth of finance, you begin to see common trends and characteristics between different types of people and their financial literacy. These distinguishing habits and actions are distinct and all belong to very specific and peculiar individuals.

The Young Highroller

The Walking Bank is an individual who has no cap to their spending sprees, hence their name, which comes from their seemingly endless pockets, much like a bank. When compared to their financial literacy it is very similar, endless. Endlessly empty. These individuals can be found in the highest of high end stores, decked out in name brands like Fendi, Gucci, or Prada. Or in a private school, riding the high of their teenage years aff of their Daddy’s wallet. They have a very high standard of living, contrasting their not so high standard of education and financial literacy, which really makes you wonder how they even made it this far.These are the people who, seemingly are able to, dine out at five star restaurants for breakfast, lunch, and dinner. People who can be found at the biggest ragers. People who also seem to find their way to a failing grade.  Their personalities are flamboyant and arrogant, oftentimes looking down on people who aren't as fortunate. Lazy and obstinate because their money has always solved problems for them. They despise anything dirty, non name brand, or anything that could tarnish their self image. Except of course their 2.1 GPA. Due to their very cheap and sustainable lifestyle, the Young Highroller finds themselves broke once they have sapped up all their trust funds. In despair when they can't pay bills. Embarrassed when they can't get a job due to their subar education. This is the horrifying reality they wake up to.

The Sleeper

The Sleepers are savvy individuals who as you guessed it, sleep or get slept on. These people are the investors and the true wealthy. These individuals however, did not sleep in class. Instead of going to parties and ragers, they spent their time learning and understanding money, with the intent to become financially literate. Note, they are not rich, but wealthy. Wealth can be defined in Robert Kiyosaki’s words “Wealth is a person’s ability to survive X number of days forward”. The countless hours they have spent learning about finance are finally paying off (pun intended). They rely on assets to generate income and sustain their lifestyle which basically coins their name “The Sleeper”. When they sleep their assets make money. The Sleepers aren't so easily spotted, unlike the Walking Bank, they do not flaunt their wealth. Sleepers are mellow individuals who understand money and finance. These people love to talk about money and investing because they recognize that one must learn to become financially literate. They talk about passive income such as index funds, the cons of living paycheck to paycheck, and the lifestyle one must adopt in order to be “successful”. However, the words of the sleeper often go in the ear and right out the other. This results in others sleeping on them, thinking that they are somehow better and do not need to be taught about money. This only proves that the sleeper understands finance like no other. Sleepers go to bed at night and close their eyes, free of worry and stress, because, they know at the end of the day, they have truly achieved wealth and financial freedom.

The Average Joe and Plain Jane

The past two examples have been polar opposites, however, not everything in life is black and white, there is grey. This segues into the next category. The Average Joe and Plain Jane.  They are averagely average, not too good at anything and not bad either. They go to college, graduate with a degree, and finally land a secure job. They didnt graduate top of their class, but they also never fell behind on their grades. Their spending habits aren't as flamboyant as the Walking Bank or as  well versed in the world of finance as The Sleepers. These  people both save and spend. The average of both of them. They save their money, putting it towards the very popular 401ks and Roth IRAs up until they retire. But what good is money if you can't have a little fun from time to time. Joes can be found buying new cars, Janes getting their hair done in an expensive salon, and both on a 5 star vacation for their anniversary, having the time of their lives. Personality wise, these people are the almost too friendly neighbors, showing up on your doorstep with a steaming veggie casserole. They live in a two story house, with two kids, a dog, and white picket fence. Joe can be found every Saturday morning washing his car, using the infamous wax on wax off method. Jane is rushing to get the kids into the four door minivan for their daughters weekly Saturday Soccer Game. Nothing much can be said about these people. They are just...average. They do not know much about finance, but they know enough. They know that they have to budget and save, but they fail to invest and grow. Most of the population fall into this category. Don't misconstrue my words, there is nothing wrong being average. Only those who strive to be more will find what they are looking for.

Every single one of us has a special relationship with money, the different levels of financial literacy I have highlighted are only some of a very long list. Each type of relationship stems from one's education about money and how they see it. It is important to become educated and understand basic finance so that we can function and interact with the world around us confidently. Especially in today's society, where we all revolve around money. We work for money, spend money, and greed is rampant. The evils and good of money both impact our lives dramatically, which is why it is very important to become fluent in the language that is finance.