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You may be sitting in your math class when Silicon Valley Bank collapsed in March 2023.

If you blinked, you could’ve missed it—because the whole thing unraveled in just 48 hours.

That’s faster than you can binge a season of your favorite Netflix show.

What actually happened?

Banks are supposed to be the safest place for your money. But here’s the thing: banks don’t just hold your cash. They loan it out, invest it, and and make money using your deposits.

When too many people lose confidence and try to pull their money out at once, the system cracks. That’s called a bank run.

In 2008, Lehman Brothers took two weeks to implode and set off the Great Recession.
In 2023, SVB took two days.

Why? Social media and group chats lit the match. Founders texted each other: “Pull your cash NOW.” Within hours, billions vanished from SVB’s accounts.

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But FIRST

If you are new, welcome to OCE’s weekly newsletter curated for the ambitious youth…here are some articles you missed from previous weeks:

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Lessons learned watching the fall:

1. Don’t put all your eggs in one basket
   • SVB clients had most (sometimes all) their money in one bank. When that failed, panic set in.
   • Lesson: whether it’s savings, skills, or career goals — diversify. Relying on one thing makes you fragile.
2. Liquidity matters
   • SVB had “safe” investments (government bonds), but they couldn’t turn them into cash fast enough.
   • Lesson: in life, having access to ready resources (cash, time, skills) is more useful than something that looks valuable but is locked up.
3. Small risks add up
   • SVB ignored the risk of rising interest rates until it was too late.
   • Lesson: if you spot a small problem (bad habit, poor grades, unhealthy choices), deal with it early — before it snowballs.
4. Perception is reality
   • A bank is safe only as long as people believe it’s safe. Once trust broke, it collapsed fast.
   • Lesson: reputation and trust are fragile. Protect yours. One wrong move (or rumor) can spread quickly in the age of social media.
5. The system is not always fair
   • Tech companies got a government bailout from the SVB fall. In 2008, many families who lost homes didn’t.
   • Lesson: know that rules can be uneven. Instead of waiting for fairness, focus on building independence and resilience.
6. Financial literacy = power
   • Many startups didn’t practice basic money management (spreading deposits, planning cash flow).
   • Lesson: even smart founders can fail without financial discipline. Teens who learn money skills early gain an edge in any field.

Final Thought

The SVB crash wasn’t just about a niche bank—it was a reminder that the world moves faster, trust is fragile, and financial literacy is power.

If you’re a teen, the best move you can make right now is learning how money really works—so when the next crisis hits (and it will), you’re not standing in line outside a bank hoping to get your cash back.

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Like what you read? Share with friends!

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Lena

​https://www.openclassroomexperience.com/​

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