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Financial Literacy In The Schools

16 August 2009

The first time I heard about Financial Literacy, it was when my mother brought home the book, Rich Dad Poor Dad by Robert Kiyosaki. You could say I had a "Road To Damascus" experience while I was reading that book because it opened my eyes to other possibilities that were within my grasp but were initially not part of my context.

Before my encounter with that book, I was among the financially illiterate, people who didn't know anything about investing, personal finance, and those other "complicated" financial stuff. I was among those who believed that to be financially stable in the long run, one must have a good, well-paying job and must learn how to save for the future. I wasn't aware of any alternatives to prosperity at that time other than to work and save.

In hindsight, I would have known better if I had chosen a business course in college, rather than indulging my creative side by being an English major. Reflecting on it now, I guess that was one shortcoming of my education; that I wasn't taught about Financial Literacy.

Being the avid reader that I was, I turned to other books on finance after reading Rich Dad Poor Dad. I learned about stocks, bonds, mutual funds, real estate investments, insurance, networking, credit, good debt, business management, cash flow, and a host of other equally exciting buzz words. And although today, I'm still the poor schmuck I was then, at least now I know how to be financially stable ( or wealthy!) and I know what it takes to get there fast.

Despite my discovery, it still bothers me when I think about those other people who simply won't get the same chance as I did. What about those students who will go through college without ever knowing how to manage their finances? Or how to be rich? Or how to be secure in retirement? Now, that's a recipe for disaster ( just ask those Americans who owe more than than what they earn).

I believe that in a subject such as Financial Literacy, self-initiative is an important factor in knowing more about the subject matter. In my case, it was through my initiative that I learned more about it. I read books and asked a lot of people. However, I started somewhere and that was when my mother brought home that book. After which, I was made aware of the importance of the subject and acted accordingly.

And I guess this is where schools ought to step in. As I've said, one shortcoming of my education is that I was not oriented about Financial Literacy. My proposal is that schools, particularly colleges, should start giving classes about this subject. These classes need not be comprehensive enough that they require a full semester. They can be just short one-hour overviews. The important thing here is that students are made aware of the subject and hopefully, when the class is over, they will be motivated enough to do their own research and make their own plans. Again, the important objective here is to give students a legitimate starting point in securing their own "destinies".

Knowledge is power, as the cliche goes, and educating everyone about Financial Literacy is a step towards empowering the masses.

2 comments:

mack said...

There are many young adults between the age group of 18-34 are hopelessly lacking in money management skills. Reasons for such financial illiteracy in youth is because many parents think that children are given sound financial education in school. For more details on why financial literacy is much important and how we can improve it refer financial literacy

Unknown said...

Thanks for the input Mack. By the way, nice site you have there.

 

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