[B+] Nelson Soh | Financial Literacy & The Social Media Generation [ PRACTICE ]

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⏱ 00:16 - 04:03

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literacy

[ 'lit-er-uh-see ]

noun

- knowledge of a particular subject, or a particular type of knowledge

Computer literacy is becoming as essential as the ability to drive a car.

gratification

[ grat-uh-fi-'key-shuhn ]

noun

- pleasure or satisfaction, or something which provides this

Some people expect instant gratification (= to get what they want immediately).

incur

[ in-'kur ]

verb

- to experience something, usually something unpleasant, as a result of actions you have taken

We incurred heavy expenses to repair the poor work done by the builder.

leading-edge

adjective

- in or at the most advanced position in an area of activity

This is a very important, leading-edge project.

compound interest

noun

- interest that is calculated on both the amount of money invested or borrowed and on the interest that has been added to it

Thanks to the power of compound interest, every €1 you invest in your 20s is worth €2 in your 30s and €3 in your 40s.

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FIRST CUT ⏱ 00:16 - 01:56

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A new generation began in 1985. Leading-edge babies are now in their 30's. I'm one of them, and we are the social media generation. We are unlike any generation the world has ever seen. We are educated, competitive, and high-tech. But we have a massive weakness. It is our lack of financial literacy. Financial literacy is being able to understand money and how it works. How many of us understand good debt versus bad debt, compound interest, and the idea of paying ourselves first? If we don't understand money, how will we be able to buy the things we want to buy, do the things we want to do, and one day retire debt-free? As a member of the social media generation, I live in the present. We are so present that we have a hard time thinking about the future. Don't ask me what I want for dinner tomorrow. That's a future me problem. And this applies to our finances as well. Future me will deal with it. Where is this all coming from? It's coming from us. We feel the world owes us something. We feel entitled. We want our ego to be stroked. We want the good things in life, and we want them now. Instant gratification.

Let's follow Nelson Soh...

A new generation began / in 1985. // Leading-edge babies are now in their 30's. // I'm one of them, // and we / are the social media generation. // We are unlike any generation the world has ever seen. // We are educated, / competitive, / and high-tech. // But we have a massive weakness. // It is our lack / of financial literacy. // Financial literacy / is being able to understand money / and how it works. // How many of us understand good debt versus bad debt, / compound interest, / and the idea of paying ourselves first? // If we don't understand money, / how will we be able to buy the things we want to buy, / do the things we want to do, / and one day / retire / debt-free? // As a member of the social media generation, / I live in the present. // We are so present / that we have a hard time thinking about the future. // Don't ask me what I want for dinner tomorrow. // That's a future / me problem. // And this applies to our finances as well. // Future me / will deal with it. // Where is this all coming from? // It's coming from us. // We feel the world / owes us something. // We feel entitled. // We want our ego to be stroked. // We want the good things in life, / and we want them now. // Instant gratification.

SECOND CUT ⏱ 01:56 – 04:03

Let's read...

As part of the social media generation, I grew up with smartphones and social media. My friends and I would rather send text messages and videos than meet up in person. Phone calls? Not our thing. We use social media to let others know what's happening in our lives. Hey, did you see that on my Instagram story? Is what we commonly ask our friends. And we only show the world the best of our best. We are a generation that's motivated by likes, comments, views, and shares. What other people think about us is so important. Sometimes we forget that social media also shows the best of other people's lives. And when we see what they have, we say, ooh, I want one of those. A few months ago, I saw a TikTok video where someone used an air fryer to make some healthy fried chicken. Come on, healthy fried chicken? How could I say no to that? I bought an air fryer. It was $100 I didn't need to spend. And when asked about this impulsive purchase, I say, TikTok made me buy it. Our lack of financial literacy is hurting our generation. Run the world? We aren't ready for that yet. The only thing we are running up right now is our credit card debt. We are incurring record levels of debt at high interest rates. Compound interest is working against us. And why are we going into debt? We are buying things we can't afford to impress people we don't even know or even care about. We are setting ourselves up for failure by not understanding how money works. We are making money decisions based on entitlement and ego. Add easy access to credit to this mix, and this is a recipe for disaster.

Let's follow Nelson Soh...

As part of the social media generation, / I grew up with smartphones and social media. // My friends and I would rather send text messages and videos / than meet up in person. // Phone calls? // Not our thing. // We use social media / to let others know what's happening in our lives. // Hey, did you see that on my Instagram story? // Is what we commonly ask our friends. // And we only show the world / the best of our best. // We are a generation that's motivated by likes, / comments, views, and shares. // What other people think about us is so important. // Sometimes / we forget that social media / also shows the best of other people's lives. // And when we see what they have, / we say, / ooh, I want one of those. // A few months ago, / I saw a TikTok video / where someone used an air fryer / to make some healthy fried chicken. // Come on, / healthy fried chicken? // How could I say no to that? // I bought an air fryer. // It was $100 I didn't need to spend. // And when asked about this impulsive purchase, I say, / TikTok made me buy it. // Our lack of financial literacy is hurting our generation. // Run the world? // We aren't ready for that yet. // The only thing we are running up right now is our credit card debt. // We are incurring record levels of debt at high interest rates. // Compound interest / is working against us. // And why are we going into debt? // We are buying things we can't afford to impress people / we don't even know or even care about. // We are setting ourselves up for failure by not understanding how money works. // We are making money decisions based on entitlement and ego. // Add easy access to credit to this mix, / and this is a recipe for disaster.