It’s amazing that as advanced as our society and technology is, our education hasn’t evolved to include the basics of life success. Whether someone becomes an entrepreneur or not, there are essential skills necessary for anyone to achieve success and financial security in their life. One of these is the ability to manage basic finances.
An excellent article from CNN’s blog discussed the lack of financial education in today’s educational system. The youth of today have limited understanding of economics, finance or how to manage their money. Yet, at age 18 most are able to get a credit card and take out loans. A scary proposition for those who are ill-equipped and ill-prepared for the financial responsibilities that come with adulthood. It’s no wonder that young adults often find themselves in debt before they graduate college.
Many young adults want to know how to become financially stable, self reliant and competent in matters of finance. A personal finance course at Wellesley College in Massachusetts is one of America’s 10 Hottest College Classes according to the Daily Beast. That’s great news! The CNN article is incredibly interesting and includes details of a survey conducted amongst high school and college students. The results of which are startling. If you choose to read the survey (which I would recommend), the results are very revealing…most students are clueless when it comes to concepts such as taxes, stocks, bonds, cost of living, interest, how credit cards work, etc. All fundamental basics to managing personal finance. This understanding is critical to a person being able to be responsible with their finances. With almost ever department store cashier pushing credit cards to “save 10% today”, what most kids don’t realize is that 10% savings today can cost far more than the regular price.
So, why is the education system so far behind? Our schools have integrated anti-drug curriculum to address drug issues so isn’t it time to integrate financial education to handle the debt problem?
To read the full article, click here
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There seems to be something of a cultural taboo about talking about money–I know my parents never talked to me about it.
As a parent I have striven to be very open with my kids (who are only 7 and 9) about how much money we make, where it goes (including taxes!), etc.
Hopefully this will lead to them feeling more comfortable and competent around it than I did as a young adult.
I was never taught other important things about money…..
Money is energy.
Money moves into and out of form.
Money has no essence in and of itself, but it allows us to persue the essence we desire, like freedom, travel, adventure, liberation, creativity, health and wellness, etc.
People seeking money are really seeking essence.
If the “system” is inherently designed to limit personal access to essence, the “system” will ultimately fail and come to an end.
For the “system” is no match for mans sovereign desire for essence.
In joy now,
Dr. Susan Duve
Terrific article PMG – I agree whole-heartedly, there needs to be more open communication in families, as well as educating young adults in the areas of personal finance. In fact, if one understands even the basics of personal finance, it would lend toward more young adults choosing a path of entrepreneurship rather than setting a goal of simply getting a “job”. Imagine how our economy and world finance would change if this were the way of the future…
Shane I think there is still way too much belief that you grow up and get a job, change your job, change your job…. When the world is changing and the opportunities expanding especially for young people who have a suite of possibilities in front of them.
It is time for the early education systems to catch up with the tertiary ones who have caught on to the entrepreneurial spirit and are providing education and heavy marketing for their programs.
Time to grow entrepreneurs, however there is too little certainty in that as a career path in the minds of many educators. The current plan is passive when the world needs active.
I agree with you Margie, life skills such as managing money must start at home. Children need to learn these skills, they don’t just acquire them when they turn 18 years old.
I too talk with my daughter about where our money comes from and whay we do with it. This started when as a younger child she thought that I could endlessly go to the bank anytime I needed money, without the concept that I had to put the money in the bank first before I could withdraw it!
If we begin making bad choices with money, it will take a long time to create and live our dreams!
There are endless opportunities for financial education, to which end you empower or free you children, or choose for them, is part of that education process, money a fabulous invention.
Remeber that saying Shane…it is not the world but the way we see the world, therefore to see the education you love or see financial success as part of education, a shift in your own pardigm would perhaps transcend what you currently see toward that which you wish to.
Reflecting on education, I like Napoleon Hill’s statement that it is taken from the latin word which translates to draw out from within, or another says, to lead out,….or perhaps you could also say …know for yourself.
thought you’d like that last one..haha,
….I have $5 in the bank, $15,000 in debts approx., very little in the way of equitable assets, and am in receipt of my income by way of unemployment benefit, was I educated financially, economics and book-keeping were included in my education, yet I believe it is emotional, social, environmental and spiritual tangabilities and accord to that which is within you that will bring you to your own financial freedom….all that said; meaning or the translation of word is based upon the acceptance of someone who has gone before you or “lead out.”
What if money were replaced by flowers, you could grow your own, what determines how much money is created?…and who does it?… Jamie McIntyre from 21st Centuary Education, wrote an e-book (free) “What I didn’t learn at school but wish I had” and covered this quite well I thought.
So “achieve success”is accepting that you already are
Great articles, inspiring, thank you.
Marcia Daly
Director, Polaris Media Group
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