💸 The future of financial literacy

Taxes 101… a class we wish we'd taken. The pandemic + soaring prices have stressed American wallets, highlighting the importance of financial literacy (think: saving, budgeting, investing). Layoffs left millions struggling to afford childcare and rent, and 1 in 10 families had difficulty stocking fridges. Meanwhile, stimmy payouts padded savings and sparked a surge in young retail investors. Now:

• Money is the second-most discussed topic for parents and teens (after Covid) as high food and gas prices eat into family budgets.
• 93% of teens believe financial knowledge is crucial to achieving their life goals, yet most 15-to-18-year-olds fail basic fin lit tests.
• The financial literacy deficit cost Americans $350B last year (think: overdraft fees, high-interest loans).

Whiteboards & wallets... High school often marks a transition from summers scooping ice cream to financial independence — but more than half of teens feel unprepared. For college students, poor money management skills can lead to maxed-out credit cards, late bills, and dropped degrees. Now lawmakers are stepping in:

• Last year: Half of states proposed bills requiring personal finance courses in high school — a trend accelerated by Covid and record student loan debt.
• Last month: Florida became the largest state to mandate that all high school students take a personal finance class to graduate.
• This year: A record 25% of US high schoolers are expected to take a personal finance course before graduation, up from 20% last school year.

Ameri-canna milestone... On Friday, the House passed legislation that would legalize marijuana nationwide and scrap criminal penalties for pot-related activities (feat. an 8% tax on cannabis sales). While recreational weed is legal in 18 states, marijuana is still an illegal Schedule I drug at the federal level (along with LSD and heroin). Now the bill heads to the Senate, where it faces an uphill battle. Big pot companies need federal legalization to grow, but they weren't feeling the buzz: shares of Tilray, Aurora, and Canopy Growth all dipped.

Workers have union dues... America's second-largest employer has union blues. Amazon workers at a NYC warehouse voted to unionize on Friday, establishing Amazon's first US union. Last year, Amazon won a labor battle when Alabama workers voted not to unionize. Amazon has fought against unionization (think: "Vote No" bathroom flyers) and wants the power to quickly hire/fire workers and set hours/wages. But Amazon has been heavily criticized for its treatment of workers. It’s a landmark victory for organized labor that could threaten the Zon’s supremacy.

Skinny jean nostalgia... in a mom jean era. Wall Street's blue-jean baby Levi Strauss unzips earnings on Wednesday. Levi's most recent earnings were a solid improvement from 2020, when WFH sweats replaced denim. Last year, Levi's sales were up 29% while profit 6X'd as it focused on high-margin direct sales (think: Levi's site vs. Nordstrom's). While the leggings life is still thriving (see: Lulu earnings), Levi's is tapping into the soft-pant trend with looser, stretchy fits. We'll see if Gen Z’s love of high-waisted baggy jeans helped Levi's growth.

Inflation in aisle 5… Pantry powerhouses like Kraft and Kellogg have hiked prices as costs surge. Now shoppers are snagging what they can afford, even if it means ditching name brands for cheaper private labels. According to a mid-pandemic survey, 70% of US shoppers said they’d tried new brands during Covid. It’s a worrying sign for household names that depend on consumer loyalty. We’ll get a peek at how some are doing this week when Conagra (Banquet pizza, Reddi-Wip), Simply Good (Quest Bars), and Constellation (Corona, Modelo) all report.

• Tap: President Biden will release a record 180M barrels from the strategic petroleum reserve over the next six months in a push to pump the brakes on soaring gas prices – but relief may be capped.
• W-2: The FTC sued Intuit, the financial software powerhouse behind TurboTax, claiming TurboTax’s “free” filing ads are “deceptive.” The FTC says most US taxpayers didn’t qualify for its free offering last tax year.
• Gold: Apple became the first streamer to win Best Picture at the Oscars with its indie drama “CODA.” Since 2019, Apple TV+ has taken on Netflix with a less-is-more strategy of highly-curated premium content.

• CEO: Kalanick. Neumann. Holmes. The hottest streaming genre right now: shows about tech moguls who’ve fallen from grace. Check out some of the narrative devices used to decode Silicon Valley for viewers.
• SubZa: The pizza principle is an economic theory that a NY slice will always cost the same as a subway ride. Not anymore (thanks, inflation). A plain slice in NYC is running over $3, while train fare is $2.75.
• TM: Fashion label Off-White has started accepting crypto payments at its Euro flagships, as more lux fashion houses open their registers to digital coins as a way to court young spenders.

• Monday: NCAA men’s championship game. Earnings expected from: Comp En De Mn Cemig ADS
• Tuesday: Earnings expected from: Acuity Brands, Lindsay Corporation, Greenbrier Companies, SMART Global Holdings
• Wednesday: Earnings expected from: RPM International, Levi Strauss & Co, The Simply Good Foods Company, Sprinklr
• Thursday: World Health Day. Jobless Claims. The Masters begins. Earnings expected from: Constellation Brands, ConAgra Brands, Lamb Weston Holdings, WD-40 Company
• Friday: Wholesale inventories

Authors of this Snacks own shares of: Apple, Amazon, Aurora Cannabis, Canopy Growth, Google, Netflix, and Nordstrom

ID: 2109159