A Test of Financial Literacy

There will be a lot who wont even start to watch this.. A lot more whose eyes will glaze over before half way. And many more who will cry about it being "BS" or similar. But for those few who get it, congratulations. You are economically literate, and now understand your situation..😷
[media=https://youtu.be/E473tMN-GNw]

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Unlearn · 41-45, M

What is the interest rate offered there for keeping your money in the banks? How about deby funds?

whowasthatmaskedman · 70-79, M

@Unlearn Obviously that situation depends on where you are. Interst rates for borrowing and lending are different in different Countries. The broad message is that "Money" has become disconnected from "value" which it is supposed to represent. Some Wall street idiot came up with the idea that money was real and not just a way of allowing you to exchnage value. And it was a short step from there to "Print more and get rich.."😷

hartfire

@Unlearn For decades now, interest on savings in a bank has been consistently less than the rate of inflation.
That means leaving one's money in a savings account means it loses value over time.
Even compound interest doesn't keep pace because governments tax interest rates (without regard to inflation) as part of one's income.
Thus, anyone who has any spare cash after paying for their cost of living will tend to invest it in things that hold or increase in real value above the rate of inflation.