Besides the fact that there’s a massive generational wealth transfer underway, another reason why I’m not too worried about the financial future of our kids is because they are much more financially savvy than we once were.
Thanks to the internet, there is an endless amount of free information to consume. The information uptake compared to when I was a kid in the 1980s (pre-internet) must be 1,000X greater. Further, the ability to invest smaller sums of money is much easier and access to once unaccessible deals is much more available.
It used to cost $200 to trade a stock. Now you can build a 30 position portfolio for only $7.95 through Motif Investing. You used to have to spend $500 to buy Microsoft Excel software to help track your finances. Holy crap! Now you can just sign up for Personal Capital and manage your net worth and analyze your investments for free. Those who’ve taken advantage of such democratization have tremendously outperformed those who couldn’t be bothered.
Given the stock market is at an all-time high, here’s an interesting question I received from a 13 year old cryptocurrency trader who wants to know what financial mistakes to avoid. Perhaps you can give this middle schooler some advice after I’m done as well.