Investing in your own financial literacy might be one of the best investments that you can make. If you’re watching my videos I’m probably preaching to the choir, but around two-thirds of adults worldwide are financially illiterate. Even in Canada, one of the most financially literate countries in the world, about a third of the population is financially illiterate. Financial literacy is broadly defined as peoples’ ability to process economic information and make informed decisions about financial planning, wealth accumulation, debt, and pensions.

Referenced in this video:
– Optimal Financial Knowledge and Wealth Inequality:
– FINANCIAL LITERACY, RETIREMENT PLANNING AND HOUSEHOLD WEALTH:
– Financial literacy and stock market participation:…

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45 thoughts on “Investing in Your Financial Literacy

  1. Thanks to Ben for consistently delivering great videos! I've got a point of constructive criticism to make, however. I've noticed that some of your videos contain white noise in the background. Have you considered using some form of noise suppression? If you use OBS to record your audio, it should have a built in noise suppression filter which you can add to your audio processing chain. Krisp also offers a standalone noise suppression software for free.

  2. For a few months now I have been searching tirelessly for information on how to start investing. I even payed $400 for a course that I now regret. It appears that there is no structured guided for beginners on how to get started in this realm. I’ve came across several investors making well over $250k/annual and I would be grateful if anyone on here could provide insights on how to get started, identity potential stocks, when to make an entry, exit etc

  3. The best thing we can do for the public is to encourage Congress to ban high fee stock mutual funds from 401Ks, 403Bs & 457s. These funds are robbing the American people of their savings. They are nothing more than a giant skimming operation.

    We (& Congress) know this to be true. The data is clear and overwhelming. For those who insist on paying high fees, they can roll their money into an IRA, and choose high fee stock mutual funds.

    There's virtually no way for the average American to know that these high fee funds are BULLSHIT (scam).

  4. Numeracy is like literacy – it's understanding of numbers and math to a level necessary for navigating everyday life (literacy is understanding of written words to a level necessary for navigating everyday life). How do people navigate everyday life without numeracy?

  5. Even though I could answer these questions, I really feel financially illiterate and I'm not sure how to improve my literacy. Really wondering how to educate myself other than watching YouTube– and sometimes I'm not even sure which channels to watch, though I try to stay away from the flashy ones.

  6. As a software engineer Despite understanding more about the technical details of blockchain, cryptographic prpotcols, encryption, I have been, since inception extremely skeptical about the utility of cryptocurrencies (as a medium of exchange, a store of value) and the "investment" value of cryptocurrencies. I had to take advanced math and cryptography courses as part of my education. It amazes me how much confidence a LACK of knowledge engenders in many people.

  7. What I heard is that anyone that has completed grade school level math in the US and probably much of the industrialized world should be financially literate by this definition. The final four questions, enough to be considered financially literate, were just grade school math questions. I won't say the first question was common sense but we do have a saying about not putting all your eggs in one basket…

  8. I have a three year liberal arts degree…but I work in finance….learning the long term power of a basis point changed my life for the better…retiring at 53 very comfortably…

  9. Schools should teaching us this.
    Why no schools teach us? Business and economy class also doesn't teach us.

    Many people see money as evil.
    Even though they need money to survive.

  10. Off-topic question: Is it likely that much of the incredible stock performance we've seen over the past century is driven directly by massive population growth? There's been a ton more people created (who need to consume but don't start life owning land / stock) who are doing a ton more work than 50-100 years ago.

    But at the same time this trend is unlikely to continue much longer in many countries such as the US.

  11. My wife and I began investing last March during the peak of the GameStop / Meme stock craze. We both went into it completely ignorant and speculated on a few stocks. Thankfully, before any damage could be done, I came upon the Rational Reminder podcast and Common Sense Investing. We learned about the benefits of globally diversified index funds and the perils of active speculation. We've read many books and listened to countless podcasts to further our education. But ultimately, you and Cameron Passmore (based in Canada) are the greatest influences on my family's financial future in South Korea. Thanks so much for all your efforts in providing data and thoughtful commentary on both financial literacy and how to live a good life.

  12. Easily scored 2/5 there, which is at least 95% or something. Not even Wallstreet can put me up to a real challenge…gonna go invest in some Cryptos now, this is not worth my superior time after all…

  13. The fact that your videos are based on your professional experience and referenced academic studies is the reason I keep coming back. Too many fin bros out there giving dodgy advice. Truly appreciate all the work that goes into demystifying topics. Thanks Ben!

  14. One interesting observation about optimal levels of financial literacy: the way you described it sounds like a point-in-time consideration, and taken this way, an individual's optimal level of financial literacy might vary over time. For example, one's financial literacy needs may decrease over time due to past financially optimal behaviour. On a population level, average optimal levels of financial literacy may increase over time due to diminished availability of pensions or social security

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