Many times, it seems, the less money we have, the more we focus on money and not just having money but having riches as if riches would be the solution to our financial problems for the rest of our lives. Sure, having loads of money will allow us to pay off bills, take luxury vacations, and purchase new homes. But, wealth, in the absence of wisdom, is only a temporary vehicle for relieving financial strain. Securing long lasting prosperity begins with education, follows with application, and results in wise money management choices. Without knowledge of how to manage and shelter our money, wealth diminishes quickly. The National Endowment for Financial Education has stated, of people receiving a lump sum of money from any source, 70% will run through it in only a few years. The curse of the lottery is a perfect example. Financially, most winners end up right back where they started, or worse, not long after receiving their winnings.
Growing up we are taught the basic subjects of math, reading, and writing because of its importance and relevance to our daily lives. Yet, an equally essential subject is personal finance management. For many of us, the extent of our monetary instruction, at home or in school, is learning to count money, make change, balance checkbooks, and start checking and savings accounts. There is so much more to finances, such as credit, investing and insurance. As we become more educated about money, we can begin to teach the next generation and that generation can teach the next, and so on. The 2015 Teens and Personal Finance Survey documented in Making the Case for Financial Literacy 2016 reveals that “84% of teens report looking to their parents for information on how to manage money, but 34% of parents says their family’s approach to financial matters is to not discuss finances with their children…”. These numbers indicate that almost half of the students who turn to their parents to teach them about money are left to fend for themselves either not ever learning to properly manage their finances or having to find other means to gain knowledge.
Fortunately, living in the information age, practically anything we want to know can be accessed in a matter of seconds on the internet. Businesses such ours, Centsable Dollar, are ready to educate those who are hungry to learn. There really is no excuse nowadays for a lack of knowledge in financial matters in our society. The lack of monetary literacy exposes us to easy destruction. Just think of the many families that struggle financially generation after generation. Why? It is not solely due to lack of finances, but because of the lack of financial knowledge and wisdom needed to properly secure the money we have. Lack of money can play a part in stunting our financial growth, but it is also what we do with the income we make that stifles us. For example, we may know that it is wise to save our money, but are we actually saving and if so, how much are we saving and how? Are we fully aware of the options available to us that will maximize our returns on the money we’re saving? Do we shop around for the best interest baring accounts for our money? Some individuals may invest in company 401k plans to put away for their future, but are you maxing out those options and taking advantage of employer matching? These are just a few of the questions you should be asking yourself.
Celebrated author and millionaire Robert Kiyosaki states that, “it’s true that money is not the most important thing in life, but money does affect everything that is important in life”. Money affects our basic survival and is a part of life from birth to death. So why is something that is such an essential part of our lives excluded from our basic educational needs? Although some efforts have been made to include some form of financial awareness in the classroom, the responsibility of financial education lies in the hands of each generation.
