7A - Testing the Hypothesis - Part 1

Opportunity

-      Every year more and more people are being set back in their finances and making poor decisions simply because they are misinformed or uninformed about how to handle basic “adult” challenges. Challenges that if handled improperly, could have major negative implications. Things like retirement planning with a 401k, home HVAC basics, basic understanding of interest rates, how to buy a home, healthy credit card utilization, etc… The list could go on about things that people in the early stages of adulthood are simply uneducated about. 

o  Who- graduating students at the high school/college level and any young adults 

o  What – Opportunity to make better and more informed decisions and have a better understanding of those decision’s implications. 

o  Why – because of a lack of real-world information provided to young adults. 

Testing the who-

-      This information would be extremely helpful to anyone that feels like they could make better decisions or be more informed. Knowledge is power when it comes to making the best financial decisions, or understanding what things are available to you about the major life things that pop up. 

Testing the What 

-      I don’t think anyone would not want to lower interest rates if possible, or not want to understand implications of paying that “minimum” payment. What parts of your air conditioner are the expensive ones? What is the first step in buying a home? These things, if handled improperly can affect quality of life, in my opinion. 

Testing the why

-      I had no clue how to do my taxes when I got out on my own. I had no idea about creditors or implications of a poor credit score. I believe there is a major disconnect about real life situations and what is being emphasized in schools and as young adults. These situations are tricky.

Interview #1

-      24/F

o  This interviewee recently graduated from a major university, as an engineering major. She feels like she could have been better equipped to do her taxes last year, and also could have been better informed about a retirement plan when she arrived into the workforce. 

Interview #

-      30/M

o  This interviewee thought his early years were quite turbulent. He wished he had gotten into his employer’s 401k program earlier and understood the “company match” policy better. This person also has credit card debt and feels like interest rates are his “worst enemy”. He felt like his accounts would be in better shape if he was informed earlier. 

Interview #3 

-      28/M

o  This interviewee was very animated. Apparently, he is drowning in student debt, and has to pay on it every month for the foreseeable future. He states that he wished his interest rate was lower so that the payment isn’t as high. He also feels like his parents did a good job preparing him for adulthood. 

Interview #4

-      47/F

o  This person has 3 children, one of which is 18. She feels like her oldest is not equipped, but blames her son and his lack of desire to do “pretty much anything that is good for him”. She clearly was recently disappointed by her son, so I cut the uncomfortable interview short. 

Interview #5

-      17/M

o  This young man is a senior in high school. He states that he will “cross those bridges when he gets to them”, and didn’t think the needed to understand about retirement things at this time. I did not gather that he was a very budget-conscious individual. 

Given your interviews, what do you know about the opportunity that you didn't know before?

-      Most of these interviewees said the same thing, that they wish they had known more about a particular thing. I don’t’ think this is limited to this sample. I’d have to say that the biggest thing I took away from the people I interviewed is that this may be something that every single person feels. I think everyone makes mistakes, and that we have to respond to them to the best of our abilities with the information that we have. Who doesn’t wish that they “knew then what they know now”. This information isn’t locked away somewhere to be opened at a later date…It is available now. There isn’t any reason that someone can’t reach out for help.