Let’s begin with two questions:
1. Do you consider yourself financially literate?
2. If so, how did you get that way?
And now, a third question:
3. How important is widespread financial literacy to the health of a modern society?
These questions open a great article by Stephen J. Dubner (See: “Are We a Nation of Financial Illiterates?” Freakonomics blog, NYT).
I challenge you to read his essay and see if you can correctly answer the first three questions he poses. Or, listen to his brief discussion of the topic at “The Takeaway” podcast.
Here’s an excerpt from his article:
I am all in favor of a well-rounded education, but seriously: what good is it if high-school students learn about Flaubert, biology, and trigonometry if they don’t learn how to take care of their money? One bright side to the increasingly dark economic news these days is that more and more people will learn (albeit the hard way) Rule No. 1: Do not buy what you cannot afford.
How or why do know (or don’t know) about personal finance issues? It’s a question worth asking yourself as you work to change your behavior with money. If you need a refresher, check out our recent “back to the basics series”. It covers topics we all should know—or think we know—that directly impact our personal finances.
What about in your life? Who helped you learn about personal finance? Or, what situations forced you to educate yourself? What would you advise someone just beginning to take control of their financial lives? Share your experiences with us here at the blog or in a related Geezeo group.
