VOO is a solid starting point, but the financial literacy conversation usually stops too early. Index funds are better than savings accounts, but the conversation should include why you need to invest at all.

The reason your savings account loses purchasing power is not because banks pay low interest. It is because the money supply expands faster than the interest rate on deposits. The gap between money supply growth (historically 7-8% annually) and savings rates (currently 4-5%) is a hidden tax on every dollar you hold.

Understanding this changes the framing from 'investing is how you get rich' to 'investing is how you avoid getting poorer.' That is a fundamentally different motivation — and a more honest one.

For options specifically: most retail options traders lose money because they are trading against market makers who have better information, faster execution, and mathematical edge. The options market is not a level playing field. Understanding that changes position sizing and strategy.

#investing #financialliteracy #options #economics