The Haves and the Have-Nots

Financial Literacy

I got into a spirited conversation the other day about financial literacy, as it is a topic near and dear to my heart.  I always said we learn so much useless junk in higher education, yet they spend virtually no time educating us on financial literacy.  I can’t think of many more important topics to have a good understanding of when you are thrown into the real world.  Think about it for a moment, who taught you about employer benefits, 401(k)’s, IRA’s, mortgages, or car loans, to name a few.  I’m guessing very few of you reading this are saying oh I learned that in high school or college.  Instead, most of us learn about these things about 30 seconds before we are forced to choose a path. 

Solution 1

My top solution is, of course, to make financial literacy 101 a staple in high school and college so that graduates leave with at least a working understanding of handling their personal finances.  Sadly, the United States curriculum board (assuming we have one) has yet to invite me to share my thoughts formally.  That said, if anyone has pull, feel free to put in a good word for yours truly.  This leads me to my natural progression of how to best learn.

The Haves and the Have-Nots

There are two camps here that very early on help shape our financial lives, and that is parents/adult mentors.  I find children of active and financially astute parents fare much better than those without.  Their parents get very involved in encouraging them and helping guide them through their financial lives.  I’d be remiss if I didn’t share that I was one of the lucky few.  Out of school, I had my parents to guide me through home-buying decisions and car purchases.  They encouraged me to make smart financial decisions, and let me tell you, boy, has it paid off.

The have-nots, however, come to my office every day, and these are the folks who weren’t as fortunate as the haves.  They didn’t have a strong, financially astute family structure or mentor.  They were left fending for themselves, and many times sit down with us in a much worse off situation.  It always breaks my heart as these are equally wonderful people, and you can see the moment their bad decisions began.  These decisions, whether a good or bad one early on, can often have a compounding effect on one’s finances for many years to come.

Solution 2

Here comes the slightly trickier spot, as not a lot of financial professionals are in the market to help out college students or those just starting out (I know).  That said, there are places that can give you standard out-of-the-box guidance.  That said, however, I am partial to those early years of finding a mentor.  Someone who will spend personal time with you, like a parent would, to be your financial sounding board.  Eventually, you will outgrow them and find a professional to work with directly, but while you are in those beginning years, having someone help prevent you from making a novice mistake can be huge. 

The point being, there is certainly a dividing line when it comes to social classes and finances.  I find it isn’t necessarily having a better starting point, but the guidance once you get there.  These mentors can be super accretive in not only guiding you financially, but also giving you career advice as how to achieve your life goals.  Note that these two disciplines don’t even have to be the same person; simply put, find someone willing to take the time with you and be invested in your successes. 

As always, stay wealthy, healthy, and happy.