CHICAGO, IL/ACCESSWIRE/February 1, 2022/ The United States has the largest economy in the world, but what is the financial health of those who contribute to it? The numbers are not encouraging. four out of seven Americans are financially illiterate. Two-thirds have no emergency fund while 78% of adults live paycheck to paycheck. Less than 20% of adults are confident in their savings.
While the reasons for these numbers are undoubtedly complex, one possibility is the lack of financial literacy American students experience in school, a problem that Rapunzel Investmentsfounded by Brian Curcio and Myles Gage, seeks to solve through its free simulated trading platform that allows students to explore investing in stocks and crypto without ever leaving their smartphones.
The problem of good financial education in schools
Since 2019, only 24% of millennials feel they understand basic financial topics, a situation with far-reaching implications. Lack of financial awareness can undermine the ability of American families to save and build generational wealth. Currently, financial education is acquired almost entirely through personal experience. According to the Federal Reserve Bulletin, 73% of people with high financial literacy scores say they were self-taught. While their initiative may be applauded, the question is whether the schools themselves can fill this gap with their own programs.
Rapunzl says this is an option worth considering. “From 2018 to 2020, the number of states requiring personal finance courses for high school students to graduate increased by 24%,” the company says. “This is a welcome development, as research has shown that young adults who attend state-mandated personal finance courses are less likely to take out high-interest loans and deposit balance sheet.”
Another benefit, Rapunzl continues, is that by helping students become more financially savvy, their families as well as their communities can benefit. According to the National Bureau of Economic Research, there is a positive correlation between people who participate in the stock market and those who actively participate in a sociable community.
While Rapunzl supports the move to mandate more financial education classes, he believes companies should step in to support teachers. To this end, it offers its own financial platform which aims to increase students’ understanding of financial matters.
The solution created by Rapunzl Investments
Recognizing that investments and good money management have the potential to increase economic mobility and alleviate social problems that plague underserved communities, Rapunzl strives to improve the state of financial education in secondary schools.
Through its free simulated trading platform, the company addresses the lack of engaging financial education tools offered to students. Similar to programs instituted in New York, Texas, and Arizona, Rapunzl provides a pay-to-learn model to incentivize engagement. These prizes are paid through weekly, monthly and quarterly contests with cash prizes and scholarships.
The company says that by incorporating new generations’ interest in social media with free financial education modules that make complex financial topics digestible, Rapunzl can help close the achievement gap plaguing students in the system. school in the country.
“We believe that by providing students with our platform, we can increase equitable access to quality financial education tools,” says Rapunzl. “We are particularly concerned about this because more than 50% of Americans do not have enough money saved for retirement, and these statistics translate into real problems for millions of families. An education everyone has access, regardless of where they live or go to school is a big part of the solution.”
Learn more about Rapunzl
Brian Curcio and Myles Gage, high school friends who became business partners, founded Rapunzl in college after watching their peers randomly trade stocks and realizing they could benefit from a free platform that educated them about finances. personal and investment.
Both men believe financial education is one of the most effective ways to break the cycle of poverty and help communities build generational wealth. “People need to understand investing before they invest,” Curcio says. “While many commission-free brokerage platforms have made trading more accessible, most fail to educate users about the risks, rewards, and best practices of being a successful investor. That’s why Rapunzl matters: With our mobile app, we can bridge the gap between those who understand personal finance and those who have never covered financial concepts in class.”
The Future of Financial Education in American Schools
As a record number of retail investors open their first brokerage account, the need for financial literacy remains. At the same time, schools looking to meet state-mandated personal finance courses are doing so while their educators teach remotely and rely on technology to engage their students. This may be an opportunity for Rapunzl and other platforms to step in.
While financial illiteracy is not a problem that will go away any time soon, businesses and educators are increasing their investment in financial education because they have realized that their investment has a cumulative effect on the community. By teaching students how to manage their personal finances, schools provide students with pathways and exposure to begin thinking about and preparing for the future.
As Rapunzl puts it, “Ultimately, the goal is for seven out of seven Americans to be financially literate. Only then can all Americans be able to participate equitably in financial markets and the cumulative effects of investing. long-term.”
For more information about Rapunzl Investments and its free simulated trading platform, please visit its website or contact:
THE SOURCE: Rapunzel Investments
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