How Bloom Helps Teens Build Financial Literacy Skills

Young people leaving school may know a little biology, a little geography. They may be able to relate famous historical figures or explain the Pythagorean theorem. But many will enter the workforce with only basic financial literacy skills. Why?

Allan Maman, Samuel Yang and Sonny Mo, co-founders of Bloom

Educating teens and young adults about financial matters early can help them manage their finances and save for the future more effectively, as well as avoid potential pitfalls.

Luckily, a plethora of fintechs spotted this glaring lack of knowledge and decided to do something about it. One of them, Bloom, was launched in the United States and gives teenagers the tools and skills to acquire financial knowledge.

The Bloom team is a multi-generational group of fintech operators and builders. Its three co-founders are Allan Maman, Sonny Mo and Samuel Yang. Its investors include Y Combinator and a former 2020 US presidential candidate.

“Today, more than 50% of Americans still do not own any share of the American economy in the form of stocks. It is very clear that this has to change, ”says mum FinTech future.

Children, children, future, future

Bloom helps teens start building wealth by investing in the stock market and learning about finances. His vision is for every teenager to start building wealth in a safe and educational way.

“There’s a huge underserved divide where teens aren’t financially educated in schools, and they often make poor financial decisions around investing, student loans, and credit,” says Mom.

The app allows teens to start investing with as little as $1 through Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA) custodial accounts – created under the law of the State to hold gifts or transfers that a minor has received and are managed by a custodian.

“To guide our audience towards financially sound behaviors, we also offer over 18 interactive educational modules and quizzes, which teach concepts such as why diversification is important and what an ETF is,” says Mom.

Down with the children

Teens are getting smarter when it comes to marketing. Although they are the most coveted demographic for marketers, they know when they are being sold. Embarking them, although a good strategy, could be difficult.

While Bloom has partnered with edtech Juni Learning and youth organization VFiles to sponsor some teen accounts for investing and education, for example, Mom thinks the best marketing comes from the product. -same.

“We believe we’ve created a product that teens and parents love and can’t stop talking about – word of mouth is our best marketing tool.”

Additionally, Bloom has partnered with several nonprofit organizations that are also working to educate the next generation.

Mom is no stranger to growing awareness of a product or brand. He has a wealth of experience working for US Democratic presidential candidates Andrew Yang and Michael Bloomberg, growing their online audience and bringing in donations.

In charge of viral growth marketing for the Andrew Yang 2020 presidential campaign, Mom’s team was tasked with raising $1.4 million for the campaign.

Financial Wellness 101

Bloom covers a vast majority of financial literacy basics, and new resources are added every week. For example, Bloom currently offers modules such as: “Why invest in stocks?”, “What is a stock?”, “Diversification” and “Budgeting for your future”.

Bloom

Bloom’s vision is for every teenager to start building wealth

Content guides Bloom learners toward financially sound habits. “For example, we strongly discourage day trading or gambling and encourage diversification and long-term investing,” Mom says.

The ramifications of a financially under-educated population, especially the younger generations, manifest themselves in all sorts of ways, leading to all sorts of social and economic ills.

Predatory loans and mountains of debt lurk in a society where spending is king. Even if you don’t necessarily have the money in your bank account.

But it’s not just about avoiding pitfalls. Opportunities to save and build wealth can also be missed by those who are simply unaware of them. Interest, savings, and responsible investing can generate returns if people start early and are sensible with their hard-earned money.

Albert Einstein reportedly said, “Compound interest is the eighth wonder of the world. Whoever understands it, earns it… whoever doesn’t understand it…pays it.

“We believe that teenage owners provide them with a great opportunity to learn, particularly because existing financial content is often confusing and dry for this audience. We also believe it is essential to start early and capitalize on the interests compounds to increase wealth,” Mom says.

In times of inflation and economic uncertainty, one of society’s most pressing needs is to provide the next generation with an easy and early way to own assets and gain financial literacy.

mom and dad bank

Admittedly, Bloom has stepped in where the state has left a vacuum. But parents also surely have skin in this game.

“As a parent, if you believe in educating your kids, it’s become crucial to incorporate financial education into dinner conversations,” Mom says.

What is the responsibility of parents in teaching the basics of financial literacy is a matter of debate, and of course there are challenges. “We met parents too busy with their daily chores to make ends meet. Too often we’ve spoken to dads and moms who haven’t been exposed to financial education themselves,” Mom adds.

In order to break this cycle, parents and their concerns and knowledge gaps are brought into the Bloom experience. Parents can follow their children’s educational journey and learn alongside them. “This relationship has resulted in many great conversations around the dinner table around financial concepts, and we want parents to support their teen on their financial journey,” says Mom.

When it comes to investing, Bloom offers granular parental controls to ensure security. For example, parents can allow teenagers to buy only ETFs or buy low-beta stocks. They can also review every transaction and order before execution and have complete control over the experience.

One brick at a time

The financial habits you form as a teenager often stick with you for the long haul. Guiding the next generation of Americans toward healthier financial habits by encouraging them to start building wealth early and educate themselves about their finances is the first step to changing America’s financial health.

“We believe that teenagers are at the age when they start to be financially conscious. They learn that college is expensive and they may need to take out student loans or apply for scholarships. They receive their first paycheck from a summer job and start imagining what their dream careers might look like,” Mom says.

In a financially healthier society, teens would be more aware and in control of their financial future. This would trickle down to the rest of society, which could mean lower debt levels or greater diversification of personal assets, for example, both at the individual level and at the macro level.

A teenager is more willing to take initiative and educate themselves when they have skin in the game, whether it’s having $20 in the S&P or $1 worth of individual stocks in their own portfolio. . “Ownership is crucial for them to learn, and we’re in the very early stages of this movement,” Mom concludes.

Sarah J. Greer