Financial knowledge and wealth management isn’t just an individual skill; it’s a vital aspect of family well-being. Today, bringing financial awareness to the next generation is critical.
We’re living in an unprecedented time where the average American not only doesn’t practice healthy wealth management, they don’t even feel confident in their skills to do so. As a matter of fact, the latest report by Debt.org shows the outstanding credit card debt of Americans has surged to a staggering $986 billion, which is a significant increase from the pre-pandemic figure of $927 billion. Mortgages are $11.92 trillion, vehicle loans $1.55 trillion, and student debts $1.60 trillion.
One company we’re watching make financial education easier and more accessible is Zogo, owned by parent company PEAK6. Zogo created an app with a gamified approach that offers a unique opportunity for adults and families to learn and grow together. By fostering open conversations about money, teaching valuable skills, and promoting shared financial goals, the Zogo app can help families build a solid foundation for a financially secure future.
Facilitating Family Discussions
According to Annuity.org, a quarter of Americans lack reliable sources for financial advice, leading to concerns about insufficient retirement funds for 17% of respondents.
This is where the Zogo app plays an important role. While the app wasn’t specifically created for young children, it can serve as a catalyst for meaningful conversations about money within families. By engaging in the app’s interactive games and challenges together, parents and children can discuss various financial topics, such as budgeting, saving, and investing. These discussions not only impart valuable knowledge but also strengthen family bonds and promote a shared understanding of financial responsibility.
For Korene E.J. Smith and her family, Zogo is starting to play a bigger role. “We already talk about finance,” Smith says. “So this is a ‘meet them where they are’ moment for us as parents. The kids were already using Duolingo to learn languages, and Zogo fits with that.”
Empowering Parents as Financial Mentors
When Annuity.org asked teens to define a 401(k), only 41% could answer. The same study shows only 32% of teens don’t know the difference between a credit card and a debit card. Zogo and similar apps empower parents with the necessary tools and resources to effectively teach and guide their children in these important financial topics.
Through the utilization of Zogo, in conjunction with their children, parents are setting a positive example and taking an active role in their kids’ financial education journeys. Smith says, “It’s not me preaching about these topics all the time. They’re learning, and it’s fun for them. I couldn’t ask for more.” Smith says that her and her husband’s active participation in the learning process not only fosters trust and effective communication within the family, but also instills crucial financial management abilities that will help their kids become successful adults no matter how much they earn.
Teaching Practical Financial Skills
Through its bite-sized lessons and gamified approach, the Zogo app simplifies complex financial concepts into easily understandable modules. The same report from Annuity says that 86% of teens were interested in investing. Accordingly, this makes Zogo an ideal resource for teaching practical financial skills — like investing and risk — to family members of all ages. Whether it’s introducing young children to the basics of saving or helping teenagers understand credit and budgeting, the app offers age-appropriate content that can be tailored to individual family members’ needs.
Smith’s daughter McKenzie is 12 years old and has been using Zogo for a few months as a part of her family’s account (users must be 13 years or older to have their own account). She’s gained financial knowledge about ETFs, commodities, and supply and demand principles. “I tried to get my friend Reese to play, but they were already playing,” says McKenzie. With parental guidance, she uses the app to learn more about financial values important to her family: tithing, saving in a high-yield savings account, and investing a percentage of her birthday money. McKenzie’s investments push her to look at the risk every month and make educated and researched decisions.
Setting and Achieving Shared Financial Goals
The Zogo app promotes collaboration within families by encouraging the setting and tracking of shared financial knowledge and goals. Families can establish common objectives, such as saving for a vacation, a college fund, or a charitable donation. By working together to achieve these goals, family members learn the importance of cooperation, discipline, and long-term planning, fostering a sense of unity and accomplishment.
For McKenzie, she wants to keep investing in stocks for fun money. She also thinks saving some of her investments will help when she makes her most important investment of all: herself. “I want a career in animation, and I’ll need money for school, equipment, and software.” She’s also an entrepreneur which helps fund her investments. “I tutor on math lessons,” she says. “Each lesson is about five minutes, and I charge $1 a lesson.” If the topic is harder or will take longer, McKenzie will charge a little more, a lesson she’s learned from the “Supply and Demand” module on Zogo.
Building Financial Resilience
Financial challenges can arise unexpectedly, but adults, kids, and families armed with financial knowledge and skills are better equipped to navigate them. Zogo and similar apps provide students and families with the necessary knowledge to handle real-world financial obligations long before they encounter them — such as rent payments, student loans, and credit card debt. By developing a proactive mindset and learning to adapt to financial changes, families like the Smiths can strengthen their overall financial well-being and face future uncertainties with confidence.
Does Zogo sound like a good fit for your and your family? Get started today at zogo.com.