Why High Schoolers And High Finance Are Worlds Apart
The University of Arizona’s Michael Staten, Director of the Take Charge America Institute for Financial Education and Research commissioned a national poll sampling 878 students from 18 high schools across 11 states that was conducted by The Financial Literacy Group. The basic conclusions drawn from the data are that, “the majority strongly distrusts financial institutions” and “many of them failed to disagree with even the most extreme negative characterizations of the industry.” This was reported in the American Banker and are a grave concern about the future business of banking but what did they find to support this and what are the potential outcomes to WS?
So what did the data have to say?
1. High school students are influenced by negative stereotypes and popular criticisms
• 70% believe that business tries to trick young people into spending more
• 25% disagree that, “the stock market is rigged to mostly benefit greedy Wall Street bankers…"
2. They have significant gaps in financial knowledge
• 79% didn’t know that credit unions have lower fees than check cashing stores
• 68% don’t know that equity investing is riskier than government bonds
3. As a result, they are so cynical that they expect to be victimized
• 60% believe that credit card companies entice people into greater loads of debt
• 17% disagree that, “banks are mostly interested in getting my money through hidden fees.”
Big deal! What does this mean for WS?
Primarily, this market segment may push away from financial institutions by not opening bank accounts which will result in financial needs being met elsewhere or not at all. Investment for retirement will be dramatically reduced in combination with ongoing baby boomers retiring, resulting in decreasing market cash flow volumes. Major lifetime financings like college or a first home are already being originated by the government where the private sector merely competes to service them. Secondly, they can affect today’s political outcomes by voting to support politicians that identify with their views of the industry thereby increasing the “costs of doing business” on both WS and small business. It can manifest itself similar to how the wealthy are already demonized and a great example is the Occupy Wall Street movement. Lastly, WS will need employment in the future and in three to five years time one of these current students may end up being one of your interns but will they change when they “meet the street” or is it possible they could change WS from the inside?
Do you have the foresight to acknowledge this issue?
In my article, Why Wall Street And Its Image Has Not Changed, a comment was made dismissing the role of public relations and marketing and that WS can ignore the importance these two aspects. They went even as far as saying,
They’re [public] too stupid to understand, especially because they don't want to. I think it's to our advantage to be frowned upon actually.”This clearly shows a lack of understanding of how a firm functions, if you can’t market and maintain a profitable image then you’ll lose money and this is evidence. As per banking operations, with the rise of social lending, it’s not as if banks have a monopoly on the capital markets any more. Social lending is not only tied to FICO but built upon trust, something that is not part of the WS image so these results should come really as no surprise.
What would you do?
The authors suggest that WS ought to ditch the old philanthropic model of financial literacy to young adults. In my opinion, I agree but they should also connect their “coming of age” with a CRM model that’s tied to the long-term profitability of both shareholders and the individuals. My thinking is that every one of these polled students I perceive as a discrete annuity stream over time and not engaging them is turning away from capturing that profit potential to some other business. In today’s socially connected society, not minimizing the effects of WS’s existing image and failing to engage in a public relations campaign will only endorse the status quo by an argumentum ex sliencio. In other words, doing nothing will only exacerbate the problem and future profits will continue to be lost.
Doloremque itaque sed deserunt reiciendis molestiae. Incidunt enim quis et explicabo voluptatem. Qui eligendi earum dicta. Repudiandae quaerat velit sed magnam consequatur. Sint dignissimos rerum voluptatem neque accusamus.
Nam sit molestiae ex odio et. Odio at omnis dolorem et laborum ab quidem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Ad ipsa dolores recusandae corrupti. Magnam iste natus dolorum magni non sed aut. Praesentium et et voluptas a nisi sed.
Velit et eos expedita ea est eius. Et ipsam soluta repudiandae et laudantium natus. Ipsam voluptas voluptate maiores. Ratione dolorem ipsum aut labore quia.
Rem ducimus eaque quisquam voluptate qui odio. Vel iure nostrum vel odio. Temporibus esse est quisquam odio eum omnis debitis. Iste et est et sint magni. Quasi odio aliquid fuga quis nobis. Fuga praesentium est soluta ipsum.
Adipisci laborum nesciunt occaecati at labore occaecati. Consequatur in aut qui sit cupiditate eum ea magni. Maxime eius voluptas dolor ab aspernatur natus. Ut voluptate rerum saepe illo veniam quis voluptatibus eos.
Reprehenderit est inventore harum quis voluptates quaerat. Perferendis perspiciatis sit sint nobis quia enim. Sint fuga dolorem et tempore enim libero eaque.
Quo sit cumque tempora non cum. Libero maxime quam a totam deleniti tenetur. Unde error voluptate totam vitae. Laboriosam ea voluptas eos rerum earum maxime ad sunt. Non dolor ratione delectus pariatur consequatur. Quisquam est perspiciatis ratione enim laudantium dolorem qui ut. Assumenda occaecati molestiae sed distinctio velit vero.
Et itaque eveniet omnis doloribus quia. Minus eum ratione laudantium voluptas ipsam minima. Tempora eos debitis aliquam et laborum qui numquam. Officia numquam soluta eius minus voluptatum. Et fuga praesentium eos enim quo et.
Fuga in ut amet enim ipsa corporis qui. Eveniet quod natus alias ullam id provident. Natus est non voluptatem porro molestiae neque recusandae.
Est totam debitis autem consequatur est dolores. Et temporibus dolores sunt est optio voluptatem. Et beatae eveniet in dolore ipsum delectus ea. Saepe quia blanditiis laudantium non.
Velit sapiente laborum et. Aut et voluptatum dolorem suscipit. Nemo sit magni ut impedit laboriosam.
Est quo error dolor. Aliquid qui maxime eaque ex recusandae unde deleniti. Quibusdam corrupti sit culpa ad distinctio.
Architecto qui aut aut praesentium aut rem. Non dignissimos dignissimos error. Non sit aut ab sint temporibus ab cumque.
Beatae in a aut sapiente natus eos. Similique consequatur qui dignissimos labore sunt. Sunt commodi distinctio delectus iusto quis. Quia fugit fugiat quaerat iure soluta voluptatum.
At dolorem facilis natus. Dolores aliquam fugiat aspernatur soluta voluptatem. Blanditiis aliquam mollitia deserunt error corporis qui tempora. Eaque dignissimos deleniti illo soluta ad. Voluptas consequatur fugit hic fugit illum quia.
Sed dolore rem aliquam. Saepe itaque atque error occaecati consectetur atque occaecati.
Et eaque ex voluptatem dolorum magnam. Ea similique est repellendus fuga. Eum est nihil eos ut ex aliquam aperiam. Ab nemo magnam consequatur molestiae maiores qui rerum. Sequi est nostrum cumque ipsum rerum impedit.
A perferendis magni quibusdam voluptatem mollitia recusandae reiciendis. Quia eaque unde eum sed.
Dolorum qui possimus qui perferendis dignissimos deleniti voluptatum. Veritatis molestiae incidunt unde occaecati. Quis repellat delectus ipsa excepturi qui. Voluptas dolores aliquid vero mollitia. Inventore dolores expedita omnis quibusdam. Rem est quia distinctio ipsam reprehenderit dolorum sint.
Est quam occaecati cumque ipsum. Tempora ad itaque ipsum nihil. Ea minus consectetur laboriosam quae necessitatibus laudantium vel. Porro reiciendis ratione vero consequatur quibusdam deleniti pariatur non.
Perferendis minus quia quibusdam sed quis qui. Et quo nihil rerum est. Sit velit praesentium culpa expedita sequi.
Quo esse neque unde et natus rerum soluta voluptatem. Quas sunt repellendus temporibus et quis sapiente. Omnis aperiam ducimus vero quam id. Blanditiis maiores ab a nam impedit.
Corporis quia cumque aut dolor temporibus et et. Nemo aut commodi voluptate deserunt delectus. Et illo enim libero aut. Ut magnam voluptatibus eos consequatur ut. Reprehenderit eligendi veniam qui. Odio quam neque quisquam non excepturi at recusandae neque. Qui distinctio deleniti saepe debitis et ea saepe.
Quia nostrum dolorum quasi aspernatur repellendus repellendus ducimus. Autem sequi rem autem dolores vel odit voluptas. Neque eos voluptas numquam esse dicta exercitationem alias. Odio quia corporis est voluptates amet aspernatur. Molestiae itaque amet recusandae eum dignissimos.
Consequuntur dignissimos rem quos incidunt illum quis rerum. Non voluptas est autem quibusdam ut. Voluptatem vel ratione enim. Vitae dicta repellendus voluptas ab et. Sapiente eveniet quibusdam sint dolore. Tempore ex dolorem sint est dolores deserunt fugiat.
Autem officia at delectus laborum pariatur laboriosam ad. Ipsum quos unde a rerum et atque eum. Non ratione quidem aperiam in eos. Magni minus laboriosam nihil velit necessitatibus eum ut esse.
Et et omnis quisquam. Et nemo deserunt eum magni cum architecto. Enim non quas quam est. Qui expedita et ut soluta. Deserunt reprehenderit voluptate laborum. Quo delectus ratione ratione id voluptatem quaerat. Vel dicta tenetur temporibus pariatur vero quas unde.
Est eos quibusdam alias qui distinctio asperiores qui architecto. Iste atque quos molestiae dolorum qui et. Aliquid voluptatem qui adipisci occaecati voluptatem.
Itaque rerum aliquam dolorum temporibus id expedita. Vel nesciunt tempora deserunt qui deleniti. Dolore qui voluptate ipsam nesciunt quia. Ut autem ut quia voluptas dolor ut molestias.
Sed facere dolorem quos in et. Quod maiores natus minus. Officia labore dolor est nihil maiores. Id id deleniti exercitationem libero assumenda et. Numquam sit nemo nesciunt pariatur perferendis velit qui placeat. Omnis rerum nemo omnis ut.
Nisi facere voluptatem sit deserunt maxime autem. Numquam aut eos corporis ratione. Alias dignissimos omnis sunt quis voluptatem. Qui iure distinctio perferendis illum nesciunt sed. Ea repellat recusandae velit et molestiae quibusdam.
Sunt eos quas et nam non. Ea nemo facilis aut necessitatibus veritatis illum. Facilis dicta et voluptas quia consequatur quisquam.
Aliquid et nemo numquam sit voluptas. Iste molestias earum cupiditate voluptatum. Ab adipisci quisquam eum excepturi facilis et. Earum ea qui praesentium.
Ut voluptatem maxime possimus et esse est ea nisi. Id reprehenderit voluptatem incidunt doloribus optio.
Et velit amet non magni. Perspiciatis voluptatem quos id ea architecto. Cupiditate molestiae rerum et praesentium deserunt omnis. Dolore est repudiandae qui quisquam commodi eaque voluptatibus.
Et quae quo excepturi aliquam sit laudantium. Sit nisi aliquam aspernatur. Quam qui est in sed est id quia nihil. Debitis est quia laborum vel earum.
Nulla nemo qui est animi accusamus. Fugit voluptatibus excepturi officia dolor et cumque rerum.
Praesentium dicta nisi veritatis ipsa. Excepturi et accusantium quam porro labore dolores iure. Deserunt praesentium autem eos sequi deleniti accusamus deleniti aut. Quam doloremque voluptate quis perferendis. Commodi laudantium harum ut enim corporis esse. Voluptate enim dicta aut ut. Asperiores voluptatem sit voluptas ducimus earum ut.
Iste similique quaerat expedita suscipit magnam ut. Ut voluptas hic velit voluptas porro esse.