Quote from: Karmakid on January 19, 2020, 06:18:25 AM

Quote from: drachman on January 19, 2020, 02:41:22 AM

Quote from: Leviathan.007 on January 17, 2020, 08:24:04 PM

"Money makes money"
Also in the other hand. Imagine we have two traders:
1. A Rich one who doesn't need to go out and work and eating best foods and having best pillow Grin

2. A Poor one who needs to go out and work and usually thinking about bills, etc..
Ofcourse, the first one can trade much better than the second one.
I hope all you guys be the first one with a good pillow xD

That is only true if those that have that money know how to use it, if you have done everything in your power to learn everything about trading and investing then you will generate more money with your money, but if you got that money just because you were lucky enough to be born in a wealthy family then even if you have money you will not know how to use it to generate even more money and you will eventually lose it and end up like the trader in your second example.

That is how important is financial literacy. Financial literacy doesn't choose between poor or rich because it is always up to the person if they are going to have a financial literacy. Financial literacy will help a lot because with their knowledge about finances they can identify if something is worth it to try or if it is just a time and money waster.

Financial literacy is critical, it is known that the majority of those that are rich now were not born rich and instead became rich thanks to their efforts, meaning that wealth does not really last long and that most people end up squandering their wealth because they do not understand how to manage their money, this is similar to what happens to lottery winners in which the majority have to declare bankruptcy just years after winning the lottery because they never knew what kind of effort and skills were needed to get that money.