Happy Financial Literacy Month! Now It’s Time For Millennial & GenZ Investors to Take Control of the Conversation.

The Great Wealth Transfer refers to the inevitable passing of wealth from the Baby Boomer generation to GenX, Millennials, and GenZ. The Baby Boom, as the name suggests, created the largest generation in American history, who are now beginning to retire and pass on their wealth. 

This wealth transfer, like the generation that preceded it, is also expected to be the largest in history. An estimated $68 trillion will be changing hands over the next 20 years, including $4.4 trillion by 2025.

The Great Wealth Transfer will have a significant impact on the economy and society at large, boosting economic growth as younger generations use their inheritance to invest and start businesses. 

However, the Great Wealth Transfer does present some challenges too. One challenge is that younger generations do not yet possess the financial literacy we need to handle the responsibility that accompanies this wealth. It’s not our fault, many of us simply haven’t needed this literacy in our lives yet. 

Lucky for us, we’re good at learning on demand. It’s the perks of being born a digital native in the time of YouTube, FinTok, Reddit, etc. 

To be fair, the Greatest Generation (parents of the Boomers) said the same thing about the Boomers, who were - and still are - spending too much time meditating and listening to the Rolling Stones. 

Like it or not, every generation must pass the torch to their children and grandchildren, unless they are actual members of the Rolling Stones, in which case they will tour the globe forever and ever. 

Building Financial Literacy

One very easy way to start building financial literacy is to follow NOYACK on social media, where we post a #WordoftheDay, well, daily. We also offer a newsletter, investment reports, and the Noyack Investing Club (NICL), your guide to the private investment universe. 

For quick definitions, Investopedia has been a longstanding resource for more than two decades. Here are some tips to help you build financial literacy this April and beyond:

Start early. Most people wait until they’re starting a family to learn about kids, until they receive a bonus to start a brokerage account, and most people don’t learn much about credit until they’re looking to buy a house. It’s human nature but the earlier you start learning and take the financial reigns, the better off you’ll be. This will give you more time to develop good financial habits and learn how to make sound financial decisions.

Set financial goals. What are your financial goals? Do you want to buy a house? Retire comfortably? Save for your children's education? Once you know what you want to achieve, you can start making a plan to reach your goals.

Learn about different financial products and services. There are many different financial products and services available, it's important to understand what they are, how they work, and whether they fit your profile and risk tolerance. Many millennial and GenZ investors are less trusting of the stock market, so we’re turning to everything from collectibles to private investments.

Assess some deals. There is no better way to learn about a possible investment than to simply research an investment as if your financial future depends on it. You don’t have to ultimately invest, and in fact, deciding not to make an investment is a big part of becoming a successful investor. 

Get help from a financial advisor. A financial advisor can help you create a financial plan, assess and define your risk tolerance, and help you make sound financial decisions.

Stay informed. The financial world is constantly changing, so it's important to stay informed about the latest news and trends. This will help you make informed financial decisions and avoid costly mistakes. Whether you subscribe to the Wall Street Journal, follow some new financial analysts on Twitter, or simply add a couple finance podcasts to your audio rotation, it’s all going to help you become more literate, even fluent, over time. 

Be patient. Building financial literacy takes time and effort. Don't get discouraged if you don't see results immediately. Keep learning, be cautious, and you will eventually slay your financial goals. As Ken Fisher, topflight boomer and founder of Fisher Investments famously said, “it's not about timing the market, but about time in the market.”

History of This Observance

Financial Literacy Month was first launched in 2004 by the JumpStart Coalition for Personal Financial Literacy, a nonprofit organization that works to improve the financial literacy of Americans.

The goal is to raise awareness of the importance of financial literacy and to provide resources and information to help people improve their financial skills. Each year, the JumpStart Coalition partners with businesses, organizations, and individuals to host events and activities that promote financial literacy.

Investing time in your own financial literacy is a very solid way to start investing in your future and steadily improving your quality of life over time. 

NOYACK offers private investment research and education in these markets, including fine art, REITs and funds. Sign up for our email newsletter above or join for free to learn more.