Mean Aversion

Risk is the fact that more things can happen than actually will.

Earlier this year the TIAA Institute and The Global Financial Literacy Excellence Center released the results of their 2022 P-Fin Index, an “annual barometer of financial literacy based on a 28-question survey”. Overall scores continue to hover around 50%, as they have since the inaugural survey in 2017, but the area of study defined as “Comprehending Risk” is where respondents scored the lowest, 36% in 2022, and is also where the largest decline in competency was measured compared to the 2017 survey.

In addition to rising inflation and market volatility, in a world where new financial instruments, opportunities to access exotic asset classes, and unregulated or uninsured financial accounts are on the rise, understanding risk has never been more important to long-term financial well-being.

At Mean Aversion, as part of our Finance4Life course, we’re developing high school curriculum aimed at helping students understand the various types of financial risk they’ll encounter as well as giving them tools to manage it, a critical part of sustainable financial wellness.

And of course beyond our curriculum, you can follow us ☝️ for actionable insights on topics ranging from risk management to generational wealth creation and everything in between, in the personal finance ecosystem.

Personal Finance Curriculum with a Twist Mean Aversion is aimed enabling and empowering both students in the classroom, and all people along their journey as life-long learners, by teaching them how to think rather than what to think about personal finance.

If you want to be a millionaire, start with a billion dollars and launch a new airline.
-Richard Branson

“Airlines are underpriced and look attractive because of COVID”, they said. 🦠
“Once these high gas prices normalize, airlines will surge”, they said. ⛽️
“Don’t worry about it, they’ll bounce back, the airlines always do…”, they said. 🙈

Total returns since 2000...
S&P 500 Index: +158% 🔥
NYSE Arca Airline Index: -63% 🤕

Total returns since 1992...
S&P 500 Index: +804% 🚀
NYSE Arca Airline Index: +29% 👎🏼

Personal Finance Curriculum with a Twist Mean Aversion is aimed enabling and empowering both students in the classroom, and all people along their journey as life-long learners, by teaching them how to think rather than what to think about personal finance.