We’ve expanded our financial knowledge by reading online pieces, consuming books and learning through considerable trial and error.
“There’s a big divide between those who are informed and grasp how to make their money work for them versus others who never received the basic education and then ended up in debt and paid for those choices later,” said Tina Hay, CEO of Napkin Finance.
Savinly recently invited Hay to take part in a conversation about her book “Napkin Finance: Build Your Wealth in 30 Seconds or Less” and various money topics. We held a live Q&A on Facebook where attendees could submit questions and hear directly from Hay.
The following is a condensed transcript of that exchange, edited for brevity and clarity.
Savinly’s Q&A With Tina Hay of “Napkin Finance”
Savinly: Can you describe Napkin Finance?
Tina Hay: Napkin Finance is a visual primer on money and personal finance. We make complicated subjects simpler and easier to digest with bite-sized content — everything from Napkins (our signature infographics) to short videos, articles, storyboards, charts and tables. We also inject humor and a bit of fun to keep the material engaging and appealing.
Savinly: How important are visuals when learning financial ideas?
Hay: Visual learning is a long-standing concept. Great thinkers like Mozart, DaVinci and Freud used images and graphics to tackle major problems. Humans are primarily visual learners and interpret images far faster than text. Also, the majority of information our brains process is visual. The graphics and visual tools we produce are powerful because they make intimidating topics more approachable and lead to better comprehension, stronger retention and easier recall.
Savinly: How do you create a Napkin?
Hay: Our team blends creative talent with financial expertise. We begin with an article or blog post and identify the most compelling or essential elements to condense into a Napkin. Designers then bring the Napkin to life, and we often develop a video or related content from it. Ultimately the key question is: If someone is unfamiliar with this subject, could they look at it and understand it in 30 seconds or less?
Audience Question: How can I persuade my young adult children to begin saving for retirement now?
Hay: One tactic is to automate savings so a set percentage is automatically moved from their allowance or pay into a retirement account each month. Another is to demonstrate the power of time and compounding. Youth offers the greatest asset: time. Showing how much money can grow when someone starts saving and investing in their 20s versus their 30s or 40s can be extremely persuasive.
Audience Question: As a single parent dealing with the pandemic, how can you rebuild credit and rebuild savings effectively?
Hay: Traditionally, we recommend three to six months of emergency savings. The pandemic made it clear that many people need a year’s worth of savings, which is a significant and challenging goal. The key is to follow a budget and consistently set money aside — even modest amounts — and track where income is coming from and where it’s going. We have a section on budgeting on our site and in the book. Having a plan is the most reliable way to achieve your objectives.
Audience Question: How do I start an investment fund for my child? Can kids invest in the stock market? What age do you have to be to invest?
Hay: Many brokerages offer custodial accounts so parents can help their children begin investing, which is an excellent approach because you can guide their choices and teach them over time. You can also save for their schooling via a 529 plan. It’s great to empower kids to learn and demonstrate how markets work. There are plenty of engaging ways to involve them: let them invest in companies they care about or brands they use.
Savinly: What’s the best piece of personal finance advice you’ve been given?
Hay: I have three core pieces of advice I find most impactful. First: diversify — don’t put all your eggs in one basket. Second: keep costs low. Many people underestimate the fees we pay for advisers and financial products. Third: buy and hold. I’m a strong proponent of long-term investing. History repeatedly shows that the most dependable strategy is to buy and hold. Most people shouldn’t be day traders; they aren’t trained for that.
Audience Question: Any tips for moving from full-time work to retirement?
Hay: It depends on your timeline, investments and retirement savings. Many haven’t saved enough and rely heavily on Social Security, which may be uncertain decades from now. Aim to have retirement savings that allow you to maintain a lifestyle similar to your working years. If your employer offers a matching retirement contribution, make sure you participate — you’d be surprised how many people miss out. Even if you start saving later in life, it’s not too late. Don’t dwell on past inaction; be proactive going forward.
Savinly: What do you want readers to take away from “Napkin Finance?”
Hay: The strength of the book is its breadth. It covers a wide range of financial topics — from taxes to retirement to credit. We hope the book motivates readers to become more curious about money and sparks conversations with family and friends.
To listen to the full conversation, watchthe Facebook Live replay.
Nicole Dow is a senior writer at Savinly.
