Finance Equals Freedom
According to Time Magazine, U.S. student loan debt now totals over $1.5 trillion. Many young Americans are making the single biggest financial decision of their lives without the proper financial analysis. There is a general feeling that debt is bad, but few students take the time to understand how the debt might be beneficial or detrimental for their lives.
The finance industry can benefit society through creating accessible products and educating young people on the merits of financial products. Too often I have conversations with my peers in which they associate investing with gambling. They are stuck believing that earning .02% from their college savings account is the only responsible place to keep their money.
In recent years, platforms like Robinhood and Acorns have made equity investing more easily accessible. However, there is still so much more room to grow. The beauty of today’s environment is that there are financial instruments that precisely accommodate risk-tolerance across the board. The finance industry must continue to educate so that people do not leave money on the table.
Returning to the student loan debt example, a graduate who has been informed about all of his options will have the ability to make coherent decisions that match his risk tolerance and needs given his student debt, lifestyle, and future goals. Instead of feeling buried under the weight of student debt, he can feel confident in his decision to take on debt, recognize the ways in which it has added value to his life, and choose to leverage his financial knowledge to best pay off his debt and live the life he desires. Understanding his finances and the array of financial products available leads to freedom in his life. The finance industry has the power to help young people find freedom.
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