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Oct 31 •
The 5 Pillars of Financial Literacy (and how it all began)// I 5 Pilastri dell'Educazione Finanziaria
Bilingual post ENG: Back in the early 2000s, two brilliant economists—Annamaria Lusardi and Olivia Mitchell—asked a simple but world-changing question:“Do people actually understand the basics of finance?” To find out, they created what became known as the “Big 5” financial literacy questions—a short test designed to measure how well individuals grasp fundamental money concepts.When they ran it worldwide, the results were… eye-opening. Even in advanced economies, only about one in three adults could answer all five questions correctly. Those five questions weren’t random. They represented the five pillars of financial literacy—the building blocks of every sound financial decision: 1. Interest Rates – understanding how money grows (or debt compounds) over time. 2. Inflation – knowing how rising prices quietly erode purchasing power. 3. Risk Diversification – realizing why “don’t put all your eggs in one basket” is timeless investing wisdom. 4. Bond Pricing – grasping how interest rates and bond values move in opposite directions. 5. Mortgages – understanding how loan terms, payments, and interest interact over time. I’ve already shared the five questions from the Lusardi–Mitchell quiz—you can take it now and see how you score before diving deeper into each pillar. In the coming days, I’ll post about each one in detail: what it means, why it matters, and how you can apply it (or teach it) in real life. Financial literacy isn’t a luxury. It’s a life skill. And this is where it starts. IT: All’inizio degli anni 2000, due brillanti economiste – Annamaria Lusardi e Olivia Mitchell – si sono poste una domanda semplice ma rivoluzionaria:«Le persone capiscono davvero le basi della finanza?» Per scoprirlo, hanno ideato quello che oggi conosciamo come il “Big 5” test di alfabetizzazione finanziaria: un breve quiz pensato per misurare la conoscenza dei concetti fondamentali della finanza personale.Quando lo hanno somministrato in diversi Paesi, i risultati sono stati sorprendenti: anche nelle economie più avanzate, solo una persona su tre rispondeva correttamente a tutte e cinque le domande.
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Oct 30 •
Welcome ( Benvenut*!) and the importance of financial literacy
Bilingual post : 🇮🇹🇺🇸🇬🇧 🇬🇧🇺🇸Hello friends! I am so happy that you decided to join this community 😁. Honoring you for being here , taking your first steps towards improving your and your family’s financial wellbeing. Did you know that financially literate people save more, take on less “ bad debt”, experience less financial stress and invest more towards retirement? These results are backed by research! Financial education and literacy are core life skills , can help the world reduce poverty and are a guarantee for a better future. So congrats on being here! You are in the right place! And I have the skills and competence to teach you and guide you in your journey to build long lasting wealth! I have a master in finance, a PhD, the Chartered Financial Analyst ( CFA) certificate as well as I co-wrote numerous articles and a book on investing. I specialize in financial education for both adults and kids! 🇮🇹 Ciao! Felice che ti sia iscritt* a questa community. Stai compiendo un passo importante verso il miglioramento del benessere finanziario tuo e della tua famiglia. Le ricerche dimostrano che chi possiede solide competenze finanziarie tende a risparmiare di più, evitare forme di indebitamento poco sostenibili, vivere con minore stress economico e investire con maggiore efficacia per il futuro. L’educazione finanziaria è una competenza chiave per la vita. Promuove autonomia, riduce le disuguaglianze e rappresenta uno strumento concreto per costruire un futuro più stabile e consapevole. Essere qui significa aver scelto di investire su te stesso. È una decisione che merita riconoscimento. Metto a tua disposizione la mia esperienza accademica e professionale per accompagnarti in questo percorso. Ho conseguito un Master in Finanza, un Dottorato di Ricerca e la certificazione internazionale Chartered Financial Analyst (CFA). Sono coautrice di diversi articoli scientifici e di un libro dedicato all’investimento consapevole. La mia attività si concentra sull’educazione finanziaria per adulti e famiglie e ad anche ai bambini con l’obiettivo di fornire strumenti pratici e conoscenze solide per costruire una ricchezza duratura.
14d •
Did you know?....the power of compounding
If you invest 10K a year and your money grows at an average rate of 8% (the average return of a global diversified basket of stocks), you’ll reach 100K in about eight years. After that, the pace speeds up. The next 100K takes around FIVE years, then THREE, then TWO. Your money starts doing more of the work for you. Stay consistent. The first 100K is the toughest part. Once you get there, momentum and compounding begin to carry you forward. Your main task becomes staying committed. This journey isn’t just about reaching a number. It’s about learning to pay yourself first, building habits that give you stability, and proving to yourself that you can create your own sense of security. What is one small step you can take this week to move closer to that first 100K?
4d •
Year End Financial Review
1) Max your retirement account. Wherever you live, there is usually a tax-advantaged way to save for your future. If you live in the United States, this means your 401(k).For 2025 the limit is $23,500. If you are 50 or older you can contribute an additional $7,500 as a catch-up. A 401(k) is different from an IRA. You cannot wait until April.Contribute before year end or lose the opportunity forever. This is often the simplest tax break you will ever get. If you live in Canada, your equivalent account is the RRSP. Contribution limits depend on your earned income and are published each year by the CRA. RRSP contributions reduce your taxable income and many employers offer group RRSPs that work like a 401(k). If you do not use your RRSP room, the unused amount carries forward. TFSAs are another tool. They do not give you a deduction today but your investment growth and withdrawals are tax free. If you live in Europe, most countries have an “integrative pension” option that gives either tax deductions today or tax advantages in retirement.Italy has the “previdenza complementare.”The UK has workplace pensions with auto-enrolment and tax relief on contributions.Germany has Riester and Rürup pensions.France has the PER (Plan d’Épargne Retraite).Spain has “planes de pensiones.”Check your local rules. In most cases, contributing before year end increases your tax benefit for the current year. Saving for retirement is universal. The structure changes by country. The principle stays the same. Use every legal advantage available to you. 2) Donate and receive tax benefits. This is true in many coutries. In the US, qualified charitable donations may reduce your taxable income, especially if you itemize deductions. In Canada, donations generate a federal and provincial credit. In most European countries, registered charities allow you to deduct part of your gift or receive a credit. Giving creates impact. It can also lower your tax bill. 3) If you are in the US, use your FSA before it expires.
4d •
Important Notice. Protecting Our Community
Dear members, This morning I noticed that a recently joined member began posting content related to his own niche. This sits outside the focus and purpose of the School of Money, which is meant to remain a safe. curated space for learning. Recently something else happened that I feel important to address. My Instagram educational profile was hacked. A copy of my account was created and used to lure people into a WhatsApp group that offered stock-picking tips. I would never provide stock tips. I strongly advise you never to follow anyone who does. This experience pushed me to take down my educational profile. As someone who works in the financial sector, the risk of identity misuse is simply too high. All of this is understandably concerning. I’m looking into how to restrict posting permissions for new members to keep this community safe. Thank you for your patience and understanding. Have a great weekend
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