There’s no magic formula for financial literacy but talking about it is step one – The National

There’s no magic formula for financial literacy but talking about it is step one – The National

Every few days another sore in the global economy is exposed: inflation rose to a 40-year high in the UK on Wednesday. The US Federal Reserve bumped its target interest rate up by three quarters of a point last week. Parts of Europe are braced for a summer of industrial action, as people protest against high prices and stretched pay packets. In this region, Lebanon, already beset by political problems and stalemate, reported an inflation that reached 211 per cent in May. If Lebanon is an extreme example, inflation is a clear and present danger across the world.

The markets are also spooked – stumbling and then tumbling in the early months of the year. Gold, a traditional safe haven asset, has endured an equally rough ride in 2022. Cryptos, the much-talked about newer asset class, have dipped by so much that our money pages were prompted to ask this week whether Bitcoin was in a death spiral. Those who used to fear missing out on the crypto-wave of huge profits that was supposedly there for the taking now wonder if they should hold or fold. There are many sore heads watching the sea of red evident in digital portfolios.