Financial Literacy & The Social Media Generation | Nelson Soh | TEDxGrandviewHeights

Summary

The speaker, a member of the social media generation, addresses the group's financial illiteracy and its impact on their lives. Despite being educated and tech-savvy, this generation struggles with understanding money, debt, and long-term planning. The speaker shares personal experiences of impulsive spending and the realization of the need for financial literacy. Emphasizing the importance of learning about money management, the speaker encourages the audience to make smarter financial decisions for a secure future.

Takeaways

• 📈 The 'social media generation' born after 1985 is now in their 30s and is characterized by being educated, competitive, and high-tech, but with a significant weakness in financial literacy.
• 💡 Financial literacy is essential for understanding money, including concepts like good vs. bad debt, compound interest, and the importance of paying oneself first.
• 🌐 The speaker, a member of the social media generation, admits to living in the present and struggling with future planning, which affects financial decision-making.
• 🚀 The generation's sense of entitlement and desire for instant gratification, fueled by social media, leads to impulsive purchases and a lack of saving.
• 🤳 The impact of social media on the speaker's life includes a preference for virtual communication over face-to-face interaction and a focus on presenting an idealized version of life.
• 🛒 The speaker highlights the influence of social media on consumer behavior, with examples like the impulsive purchase of an air fryer after seeing it on TikTok.
• 💳 The generation is accumulating record levels of high-interest debt, which is exacerbated by a lack of understanding of how money works and the power of compound interest.
• 🚗 The speaker shares a personal story of a poor financial decision to buy a luxury car, influenced by social media and a desire for approval from peers.
• 📊 Becoming financially literate is presented as a necessity for the social media generation, who will soon make up a large portion of the global workforce and inherit significant wealth.
• 🔑 The speaker's journey to financial literacy involved self-education, seeking mentorship, and developing a budget, leading to improved financial health and freedom.
• 🌟 Financial literacy is framed as the foundation for making smarter financial decisions, regardless of social media influences, and is crucial for the future success of the generation and the world.

Q & A

What generation is the speaker referring to as the 'social media generation'?

The speaker refers to the generation that started in 1985, which is now in their 30s, as the 'social media generation'.

What is the speaker's main concern about the social media generation?

The speaker's main concern is the social media generation's lack of financial literacy and their tendency towards instant gratification, which can lead to poor financial decisions.

Why does the speaker believe the social media generation is not ready to 'run the world'?

The speaker believes the social media generation is not ready to 'run the world' because they are incurring high levels of debt at high-interest rates and lack understanding of financial concepts like compound interest and good debt versus bad debt.

What is the speaker's view on the social media generation's attitude towards the future?

The speaker views the social media generation as being so focused on the present that they have difficulty thinking about the future, which is reflected in their financial habits and decisions.

What impact does the speaker believe social media has on the social media generation's financial decisions?

The speaker believes that social media influences the social media generation's financial decisions by promoting a desire for instant gratification and material possessions, often leading to impulsive and financially unsound purchases.

What was the speaker's personal experience with financial illiteracy?

The speaker, despite being a CPA, was not financially literate in the sense that they did not have financial goals, a budget, a retirement plan, or an emergency fund. They made poor financial decisions, such as selling a practical car to buy a luxury car for social media validation.

What realization did the speaker have about their life and work?

The speaker realized they were living a lie, caught in a cycle of lifestyle creep, and that they were working not out of passion but for the money to buy material things and impress others.

What steps did the speaker take to improve their financial literacy?

The speaker took steps such as buying personal finance and self-help books, reading them, using their Excel skills to make a budget, finding mentors, and hiring coaches to guide them.

How did becoming financially literate change the speaker's life?

Becoming financially literate made the speaker feel free from entitlement and the craving for instant gratification. They were able to pay off high-interest debt, double their savings rate, build an emergency fund, invest for retirement, and buy a modest home.

What advice does the speaker give to the social media generation regarding financial literacy?

The speaker advises the social media generation to understand money and how it works, to learn to use credit the right way, and to make smarter financial decisions today, regardless of social media influences.

What is the speaker's final message about the importance of financial literacy for the social media generation?

The speaker emphasizes that financial literacy is non-negotiable for the social media generation, as they will be the future leaders of the world and will be in charge of running various systems and institutions. Their future and the world's future depend on it.