In the first part of this two-part series, we talk to Iona Bain about her new book, financial hurdles the younger generation face and common misconceptions about investing.
Congratulations on your new book, what was the inspiration behind it?
I wrote my new book because I needed it! Toni Morrison once said: “If there's a book that you want to read, but it hasn't been written yet, then you must write it.” As founder of the Young Money Blog, I was seeing this explosion of interest in investing among young people, fuelled by greater information online and the evolution of financial technology. Young people have been bored, curious and frustrated with terrible returns on their savings - No wonder they’ve turned to investing.
I started investing when the Lifetime Isa was introduced in 2016 – that was the real game-changer for me. I came to understand that our generation, who’ve had such a rough deal since the financial crash, could harness the power of share ownership to improve our prospects and make society a better place. But I felt that modern investing had also become more overwhelming and hazardous.
I’ve written a book previously and I felt very passionately that young people needed a dedicated guide to this whole area that was on their side, looking out for their interests. Nobody else had done it so I knew I had to step up to the plate! I hope people enjoy and learn as much reading the book as I have done writing it.
Why did you cater to this younger generation in particular?
Financial advice and wealth management caters mostly to older, more affluent citizens – it has left behind young people almost entirely. This is particularly hard to stomach when you consider how our generation has suffered an economic one-two punch as a result of the 2008 financial crash and now the pandemic. We are getting little reward for saving, we’re struggling to get on the housing ladder and our pensions are likely to be far less valuable than those of our parents unless we take decisive action.
Our economic framework, rightly or wrongly, increasingly rewards younger people who take big decisions, understand risk and think about the long-term sooner rather than later. My book helps them to do that.
Plus, younger people represent an incredibly powerful collective force. As I say in the book, we need to come together and engage with investing to give the world of money the kick-up the bum it desperately needs. The world of finance can only become a fairer, more relevant and inclusive place if we get involved.
What is a common misconception about investing that you would like to change?
It’s hard to pick one, as there are so many. But perhaps the biggest misconception I’d like to tackle is that it’s propping up a corrupt system. I do think there is still some residual resistance to investing following the financial crash and Occupy Wall Street movement. But firstly, you have choices. You don’t have to go with the flow, and you can decide where and how you invest. If everybody did this in a more active, engaged way, imagine the difference we could make.
Secondly, you can’t pour from an empty cup. You need to take care of your long-term finances so you can take care of the people you love and your community. You can’t do that if you’re always living in the moment or letting inflation erode the value of your cash under the mattress.
Thirdly, if I’m being frank, there can be an awful lot of hypocrisy out there from many people who are opposed to wealth-building. It’s amazing how many turn out to have been building their own assets up behind the scenes, and I don’t blame them one bit. But it shows that we should take some of the public moralising about this issue with a pinch of salt sometimes.
That’s it from part one, part two coming next week - but if you can't wait to hear more from Iona you can get 25% off her brand new book and free UK delivery with code MONEYHUB25 entered at the checkout stage here.
About Iona: In 2011, Iona Bain established The Young Money Blog, a first of its kind blog dedicated to empowering the younger generation to seize control of their personal finance.
Since then, Iona has enjoyed an exciting career as an award winning speaker, broadcaster, writer and has recently published ‘Own It - How our Generation can Invest Our Way to a Better Future’. You can find out more about Iona and The Young Money Blog, here.