Using AI To Level Up Your Financial Literacy

Alexa, what’s the temperature right now?

Hey Siri, set a timer for 10 minutes.

Many of us enjoy the conveniences that AI-powered assistants provide us when helping with everyday tasks. We love that Alexa and Siri can set a timer for us so we don’t burn our dinner or tell us what the temperature is so we know whether we need to put on a coat before we step outside. But newer developments, such as OpenAI and its tools like ChatGPT, have created growing concerns about how artificial intelligence will impact data security, confidentiality, intellectual property and compliance, not to mention reports suggesting AI could contribute to more layoffs in 2024.

When you start talking about the possibility of AI replacing human workers, that’s when people become downright scared. That’s when AI becomes more than just a handy tool for creating calendar reminders or setting alarms. It becomes a new wave of technology with the potential to change the fabric of our society.

While a lot is still unknown about AI, especially with newer tools like OpenAI’s ChatGPT, the reality is that AI is here to stay and will only become more prevalent in our lives. Don’t let that scare you, though. AI is a powerful tool that can have a positive impact on our lives. One way it may be able to help us is with our finances.

Use AI as a Tool for Free Financial Education

Think of AI-powered tools like ChatGPT as Finance 101 or “Personal Finance for Dummies.” You can use it to your advantage by educating yourself and discovering strategies for ways you can potentially improve your own financial situation. You can start by simply asking questions about taxes, health insurance or tips for proper budgeting. Tackling the basics first can help you gain more control over your current financial situation.

Then you can take your education to the next level by diving into more complex topics that can support your long-term financial goals. Want to retire someday? To do so, you have to plan for and start taking steps toward that goal decades in advance. Do you want to know something troubling? More than half of Americans feel behind with their retirement savings. Even more disheartening is the fact that one in five Americans don’t think they’ll ever be able to retire. A huge part of this problem is that people simply don’t understand what goes into retirement planning. That’s why education is crucial.

You could start by typing a question into ChatGPT like, “What are some crucial components of a healthy retirement plan?” You’ll receive a comprehensive list within seconds. It’ll give you a thorough overview of savings, investments, debt management, health care planning, tax efficiency and more. And if there’s something in the list you want to know more about, you can ask ChatGPT about any of those specific areas. If you’re like most people, all you know is that every year you have to file taxes. The concept of tax efficiency is probably foreign, but a quick ChatGPT search can give you a wealth of information at your fingertips.

If you open up your mind to a little exploration, you may be amazed at how much you can learn about finance with AI. You can instantly tap into any area you want, whether it’s understanding the stock market, Roth conversions or 401(k)s. And it doesn’t have to take up a ton of your time. A few minutes every day or a half hour twice a week will move the needle.

Then, once you’ve got some basic knowledge under your belt, take the next step by reaching out to a financial advisor who can help you design a holistic financial plan. Remember, while it may be a great tool for getting started, AI should not be the end-all, be-all place for obtaining sound financial advice. Only a human can create a plan tailored to your unique situation and with your financial goals in mind.

Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

Jason LaBarge, financial advisor and president of LaBarge Financial

7 Riggs Avenue, Severna Park, MD 21146 443-647-4321

www.labargefinancial.com

Securities offered only by duly registered individuals through Madison Avenue Securities LLC (MAS), member FINRA/SIPC. Investment advisory products and services made available through AE Wealth Management LLC (AEWM), a registered investment advisor. MAS and LaBarge Financial are not affiliated entities.