IDK how much parents “modelling” things really helps.
My parents fell for every scheme they encountered their entire lives.
Watching them taught me to be very critical of that kind of thing. I guess they did model what not to do.
Comment on one step closer to 100%'ing life!!
TrickDacy@lemmy.world 2 weeks agoMy parents did a lot to model being smart with money and only one of their kids (me) picked up on it. Kids often love being the opposite of what they’re taught, no matter how much it hurts them.
im_fine_sandy@nord.pub 2 weeks ago
TrickDacy@lemmy.world 2 weeks ago
Heh, I mean modeling can work in the intended way or by accident in the opposite way you’d expect. So yeah I’d say it worked for you :)
PhoenixDog@lemmy.world 2 weeks ago
I was raised pretty middle-upper class. Only child. My dad made 6 figures. I had a lot of privilege growing up and I knew I did. I was well informed on family finances, investments, etc. We were also frugal(ish) in spending. We went camping every year which I loved, but very few things like vacations, new cars, etc. We had a modest house in a small town. My parents would always just have a shit ton of money saved in savings accounts or investments.
Fast forward to today, they helped my partner and I buy a small farm halfway across the country. We’re a single income house (my partner has disabilities that prevents them from working). We live paycheque to paycheque because I like spending money. Local farmers market, buying things for the farm, and I get a little money spendy because my parents never really did that. I learned all the tips and tricks growing up and once let loose I didn’t really care. Never did.
We’re financially perfectly okay. We have debt like everyone else, but it’s manageable. But we don’t save anything. We’re trying to now this past year but it’s slow because I work in town and my partner will want me to pick up this thing from Canadian Tire, or this from Home Hardware, and always needing new things, or upgrading things on the century old house and homestead.
Basically, I was raised with money and my parents didn’t spend a lot of it. They’re very well off now. I do the opposite. I don’t really care much about the future, as hopefully we can break even on the farm. But we are trying to live more in the now than my parents ever did. Financially, I am very different from my parents.
wonderingwanderer@sopuli.xyz 2 weeks ago
The thing about people who buy NFTs is that they think they are being smart with their money.
They look at what happened with Apple, Microsoft, Google stocks way back in the day and think “huhuhu, I’m not going to be one of those idiots who misses out on an opportunity like that!”
It’s FOMO and “high risk - high reward” gambler mentality, wrapped up in the illusion of being a savvy investor.
captainlezbian@lemmy.world 2 weeks ago
In part because they understand that investment works, but not why. I could be much poorer if I didn’t understand that the purpose of investment is to provide money to create value to get more money later. NFTs failed the “where does the money come from” test as well as the “why am I not too late to make a bunch of money” test.
Nobody’s out there offering guaranteed massive returns to everyone who invests. Legitimate safe investments don’t try to be exciting or induce fomo. They’re boring and reasonable because they can afford to be.
wonderingwanderer@sopuli.xyz 2 weeks ago
Yeah I guess you’re right. The volatility makes them attractive for day-traders, especially on the penny market, but that same volatility makes them awful long-term investments
That’s why I love mutual funds. Stable, low-risk, low-maintenance, and managed by someone who knows what they’re doing (unlike me). I’ve gotten a pretty consistent 5% APY on those.
That’s why that’s the metric I use for “if I invest X amount, I can get Y yearly dividends” calculations. For example, if I had a million dollars invested I could reliably get $50k+ in annual dividends. A modest retirement income, with room for growth.
im_fine_sandy@nord.pub 2 weeks ago
No, I think with NFTs people were just looking at the bitcoin train they had missed out on, and thought NFTs would be the next big crypto thing.
Mostly they thought it was just the next big thing.
I think this unique. Not really FOMO and certainly not investing.
wonderingwanderer@sopuli.xyz 2 weeks ago
That’s pretty much FOMO though. They thought I was the next big thing, *and* they didn’t want to miss out on it.
And it doesn’t matter if it’s really investing or not, because the fact remains that the people who buy it believe that it is. If they didn’t think of it as an investment, they would have zero reason to buy NFTs
(unless they intend to use it on the dark web)im_fine_sandy@nord.pub 2 weeks ago
If that’s FOMO then pretty much every decision could be considered FOMO. I decided to put my shoes on this morning because I was worried everyone else wearing shoes would enjoy the advantages there-of and I would miss out.
TrickDacy@lemmy.world 2 weeks ago
Sure, that’s true. I think in mine and many cases, wrapped up in the “being smart with money” lesson is saving, mitigating risk, and decreasing spending where possible. I at least hope most parents are defining what being smart actually looks like.
wonderingwanderer@sopuli.xyz 2 weeks ago
Yes but some financial advisors will literally tell you that money in savings is slowly decaying and that (besides an emergency fund) you should invest it.
The type of investments they’ll recommend will depend on your risk tolerance and financial goals of course, and probably isn’t likely to include NFTs. But I could see some 19-20 year old reading a post on instagram that says you should invest instead of saving, and with a very superficial understanding of what that actually means, might easily fall for the very next post or sponsored ad that says “Hey you! Yeah, you. The dumbass who hasn’t bought [inset memecoin here] yet. Why don’t you have any [memecoin]?!? Anyone who’s smart has some already, and look how rich they’re getting! Don’t miss out by being a coward. Own your future. Grindset. Yadda yadda.”
I’m not saying that makes them intelligent, but simply telling them to be “smarter with money” isn’t going to solve the problem, and might actually exacerbate it.
TrickDacy@lemmy.world 2 weeks ago
Just telling them to be smart with money is not what I’m talking about though. What I’m talking about is actually modelling and teaching some amount of knowledge about how to save.