The Financial Education You Never Received
I don’t know about what school was like for you, but when I went through school financial education was pretty much non-existent.
I seem to recall one small class on financial education that covered balancing a cheque book and other basics like that. Other than that though, learning how money works wasn’t a subject we were taught in school.
My Own Financial Education
For over a decade now I’ve been on my own mission of financial education that has included reading books, attending seminars, hiring coaches and working with mentors. It’s through this quest for knowledge that I’ve been able to get a much better understanding of what money is, and how our financial systems operate today.
Thanks to the internet there is a never ending supply of information available at your fingertips. The challenge is knowing what’s good and accurate and what isn’t. I have a select number of sources that I follow because of the quality of the information they provide, and there’s no shortage of information about how our banking and financial systems work if you look for it.
The Financial Education You Need Won’t Come From Schools
While a large segment of the population is waking up to the scam that has been perpetrated against us, the vast majority of “sheeple” are still in the dark and have no idea how our money system works.
Your Financial Education Begins When You Understand That Every Dollar In Existence Is Created As Debt
Once you understand this simple truth, you realize that interest is an instrument of financial enslavement. The money in circulation has been created out of thin air and circulates in the economy, but the money to pay the interest has never been created so we’re simply playing a game of financial musical chairs and when the music stops someone loses their car or home, and the bank gains the asset.
Why Don’t Schools Teach Financial Education?
I’ve often wondered why financial education isn’t taught in school just like math, English and science. In truth, I think it needs to be a core subject. It’s certainly a skill that we’ll all utilize throughout our lives, and without it we tend to suffer.
Perhaps that’s the reason. If you subscribe to some of the theories out there, the modern education system was designed and funded by the elite over a century ago, at that time, the globe was full into the industrial revolution, and there was a high demand for factory workers.
Why not create an “education system” that churns out obedient, well trained workers to man the factories. They’d be used to reporting in at a certain time, asking to use the washrooms, eating and taking breaks when the establishment permits.
Whether you buy into that theory completely or not, I believe there’s certainly some truth there. When you follow the money through the system across the globe, it tends to all point back to the same handful of organizations owned by the same handful of wealthy families.
It’s Time To Take Responsibility For Your Own Financial Education
The truth is nobody cares more about you or your money than you do. Your teachers diddon’t, your banker doesn’t, your financial planner doesn’t and nobody else does either.
If you ever want to get a handle on your finances and escape the rat race of financial enslavement, then you have to take ownership of your financial education and know how money works, so you can get it working for you.
One of the best ways I know to attain this education is to seek out books by authors like Robert Kiyosaki, and Peter Schiff, and seek out mentors online and offline. There’s a wealth of knowledge available to you, and it’s your responsibility to seek it out and apply it.
Why Employee Financial Education Should Be a Priority
Money – the more you make, the more it takes, or so it seems. This statement applies to employers as well as employees. While most businesses struggle with the challenge of doing more with less, employees struggle with the same challenge and are drowning in debt more than ever. While some debt may be necessary for both employers and employees, too much debt is usually the result of poor money management. Financial education, offered to employees by their employer, can be one of the best investments employers can make.
Stress hits productivity
According to to research, more than one-third of employees are stressed about financial issues, with as many as 50% of them slowing productivity as a result. Other studies show that 90% of employees are dissatisfied with their financial wellness, 75% are insecure about retirement, and 50% hold a part-time job. Employers are surprised to learn that about a third of these employees waste 20 hours a month dealing with money matters
on-the-job, are less productive, are absent more often from work, and also suffer from health and family problems.
Teaching employees about money
Since the Enron bankruptcy, many policymakers and other leaders at both the national and local levels have called for a greater focus on financial education. It has been shown that financial education programs can benefit all employees, regardless of their financial status. The National Institute for Personal Finance Employee Education (NIPFEE) has calculated that the first-year return on investment in workplace financial education, even for employees who make only slight improvements in their financial wellness, is more than $400 per employee (e.g., fewer absences, less time dealing with financial matters, and increases in productivity). Here’s an eye-opener – the NIPFEE estimates that the potential return on investment for employers who provide workplace financial education is at least 300 percent.
Some organizations have used financial education to help recruit and train their employees. This type of education also fulfills the requirement from the Department of Labor for employers offering defined-contribution pension plans, such as the 401(k).
Everyone reaps benefits
One popular financial education program, offered by companies like General Motors, US Steel, Exxon/Mobil, Daimler-Chrysler, Xerox and Ernst & Young, teaches employees how to give themselves a 35% raise by eliminating their personal debt. Although this sort of raise doesn’t require a company to touch a dime of its payroll it conveys a message of goodwill to employees and helps them to become more engaged with their work. Employees learn how to reach their financial goals using the money they make now. They have less stress and feel less pressure to make more money.
Besides being a sound investment in employees, a quality financial education program would benefit your business for years to come. Workers will be more tolerant of budget cuts that prevent expected increases in pay, there will be fewer employees working second jobs or looking for higher paying jobs, and employees who are more cost-conscious at home should be more cost-conscious at work.
Companies lose through doing nothing
Unfortunately, most employers ignore workers who have personal money management problems because they do not realize the high cost of doing so. The reality is that workers’ personal financial management problems cost employers a lot of money.
The bottom line for most companies is that you can pay now or pay later. If you chose to offer your employees a good financial education program, the investment you make in your employees will not only enable them to better manage their lives, it will enable your workers to better manage the future of your business. Their future is your future.
