Financial Education Is A National Emergency

  
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This installment of The Pomp Letter is free for everyone. I send this email to our investors daily. If you would also like to receive it every morning, join the 185,000 other investors today.


To investors,

The lack of financial education should be a national emergency in the United States. Only about 50% of states require high schools to teach students personal finance and there are many statistics that point out just how financially illiterate our society is currently:

  • More than 53% of adults say thinking about their financial situation makes them anxious (source)

  • 44% of adults say discussing their finances is stressful (source)

  • About 66% of American families don’t have savings that are equivalent to 6 weeks of expenses (source)

  • 78% of adults live paycheck-to-paycheck (source)

  • 80% of young people (people under the age of 35 years old) couldn’t answer majority of financial literacy questions accurately (source)

  • 54% of millennials are concerned about their student loan debt (source)… there is currently over $1.5 trillion in student loan debt

  • Less than 20% of adults feel confident in their savings habits (source)

These are just some of the statistics that highlight how bad the problem has become. There are plenty more. Here is the craziest part in my opinion — most people believe they will never be able to build a life of wealth because they don’t inherit anything and they don’t have a large salary.

While counterintuitive, here is what the data says:

  • Approximately 80% of millionaires inherited $0

  • 33% of millionaires never made $100,000 in a single year

The truth is that you can build a life of wealth by simply being educated and having a disciplined approach. It is easy to learn, but obviously difficult to execute.

It has become more apparent over the years that our school systems are not going to solve this financial education problem. Rather than waste time complaining about the lack of change, my brothers and I have decided to do something about it.

Today we are launching The Best Business Show, which we hope will become the most entertaining way for people to learn about business, finance, and investing. Simply, it is the business show that we wish we had when we were learning. Here is the announcement video:

The idea here is that we will livestream for 2 hours every weekday from 11am to 1p EST. We’ll explain what is happening in business and investing, why it is happening, how it impacts the average person, and explain various timeless investing principles.

We aren’t journalists. We will leave that important job to the real professionals. We are simply three guys who educated ourselves over the years and have been able to build a nice life through those acquired skills. Now we’re going to share that information with young people by bringing it to them on the platforms that they are already on.

The internet is powerful. We don’t need a cable news network and we don’t need to ask permission from anyone. With just an internet connection, we can create what we believe will become the largest business show in the world. It won’t be easy. It will take a lot of hard work. But it is the single most impactful thing we can think to do in an effort to make an impact on this pervasive problem.

It would be awesome to see you there each day as we build this :) Hope each of you has a great day. I’ll talk to everyone tomorrow.

BONUS: If you’re really passionate about this, you can purchase a “Day One” t-shirt from our new merchandise store. We’ll only sell these through the month of July, so we’ll always know who was actually tuned in from the beginning! Check it out: Go to the merchandise store

-Pomp


🚨 BONUSWe are running our 5th cohort for the Bitcoin and Crypto Training Course starting tomorrow, Tuesday July 13th. Graduates have already been hired at Coinbase, BlockFi, Gemini, Kraken, and many other great companies. Want to increase chances of being hired? Apply here: https://pompscryptocourse.com


THE RUNDOWN:

USDC Assets to Be Disclosed in SEC Filings, Circle CEO Says: Circle CEO Jeremy Allaire reiterated his pledge to pull back the curtain a little more on the USDC stablecoin a day after he announced plans to take his company public. “Stablecoins are a more powerful innovation than the closed-loop, wallet garden proprietary types of payment systems of the past,” Allaire said Friday on CoinDesk TV’s “First Mover.” “They deserve a greater degree of transparency.” Read more.

Another Large Bank in South Korea to Provide Custody of Crypto Assets: Woori Financial Group, one of South Korea’s largest banking companies, is getting into digital asset custody. According to a report in The Korea Economic Daily, the bank is setting up a custody joint venture with Coinplug, one of the earliest bitcoin exchanges in South Korea and a blockchain financial services provider. Read more.

Single Buyer Apes Into Mooch’s ETH Fund for $5.7M, Docs Show: SkyBridge Capital’s Ethereum fund has officially launched with a solitary investor committing $5.7 million to the vehicle in its first week, new regulatory documents show. It is now the second crypto-specific private fund offered by Anthony Scaramucci’s investment firm. The other, a bitcoin vehicle, disclosed $46.7 million in sales to 170 investors on Friday. Read more.

Sotheby’s Sells Rare Diamond for $12.3M in Crypto: Sotheby’s, the 277-year-old British auction house, sold a rare 101.38-carat diamond for HK$95.1 million (US$12.3 million) in cryptocurrency on Friday in a Hong Kong auction to an anonymous buyer. The auction house said the sale of the gemstone shows that a “milestone was reached in the adoption of cryptocurrencies.” The diamond, dubbed “The Key 10138,” is the second-largest pear-shaped diamond ever to appear on the public market and came from the world-leading diamond company Diacore, said Sotheby's. Read more.

UK Ad Watchdog to Clamp Down on Crypto Marketing: The U.K. Advertising Standards Authority (ASA) plans to tighten its monitoring of crypto marketing. The advertising regulator said it will ramp up steps to identify and remove misleading or irresponsible ads for crypto products, the Financial Times reported Friday. Efforts will particularly focus on online and social media platforms, with companies being warned or required to add disclaimers to their ads. The authority has identified crypto as a "red alert," said Miles Lockwood, the ASA's director of complaints and investigations. Read more.


LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE


Gagan Biyani is the co-founder and CEO of Maven, a new platform for cohort-based courses. He was a co-founder of Udemy, a large online education company, and was co-founder and CEO of Sprig, a food delivery company.

In this conversation, Gagan and I discuss:

  • online education

  • cohort-based courses

  • building a startup

  • importance of focus

  • scaling platforms

  • Bitcoin & crypto course

  • what students want from online education

I really enjoyed this conversation with Gagan. Hopefully you enjoy it too.

LISTEN TO THIS EPISODE OF THE POMP PODCAST HERE


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Nothing in this email is intended to serve as financial advice. Do your own research.