The fact that we are still in the throes of a global pandemic that continues to kill, and that many Americans have permanently lost their previous jobs, yet today the stock market closed at an all-time high, is why so many in this country feel like the system is rigged.

Much (digital) ink has already been spilled on #fintwit about the disparity between Wall St. and Main St., so I won’t rehash all of that here. But there’s no getting around how someone who lost his or her job in the pandemic and has never owned a single share of any mutual fund

probably feels about a finance professional who still has a well-paying job and routinely bought stock funds throughout the whole ordeal, now ending up in a better position than when the pandemic even began.

Technically, the system isn’t rigged against anyone, but for many, it sure has to feel that way.

Moving past a “the financial system is rigged” mentality and into a “I need to have the financial system working for me as soon as possible” mentality is something that can be accomplished through financial literacy, especially if begun at an early age.

And it’s regardless of socioeconomic status. I’ve read stories of financial literacy programs enacted in inner-city schools predominated by kids from lower socioeconomic backgrounds that have helped them understand—among others—two key principles of financial success:

1. The need to invest early and often, preferably with a steady stream of regular, automatic contributions on a monthly basis
2. The need to avoid high-interest debt

Kids can be taught this, and have. Teenagers can be taught this, and have. Adults can be taught this, and have.

This isn’t to say that many individuals of lower socioeconomic statuses won’t be disproportionately financially harmed by major economic downturns like the one this year, regardless of how well they have implemented principles such as the two above. They probably will.

But the extent to which they are harmed can be mitigated by years of sound financial decisions leading up to the crisis.

Back to this thread, here’s a sad statistic and article:

“The per­cent­age of Amer­i­cans who own stock, ei­ther di­rectly or through re­tire­ment or mu­tual funds, is fall­ing. It most re­cently stood at about 55% . . . down from a high of 67% in 2002.” https://www.wsj.com/articles/when-the-stock-market-and-economy-seem-disconnected-11598002220?st=i11lgt2mphtq7ys&reflink=article_copyURL_share