Financial Education – Should Banks Set Up Mini Courses?

Banks and financial institutions have a responsibility to people and that is to do what the customer wishes with their money. The idea of having a mini course in financial education is to give customers a realistic look at what happens when money is poorly managed, invested, or spent and what happens when you are stuck trying to figure out what to do with your money. Banks actually offer you a chance to talk to their tellers, but usually a personal banker only gives you so much time to work with. Many customers are coming to this country not knowing the language or anything except the idea of making money so there’s that language issue as well so some institutions depending on who it is will in fact offer small crash courses in financial responsibility and what you should do in terms of how your money is managed.

If they can give crash courses in tax preparation and setting up specific accounts they can give someone who is new to country or even a kid fresh out of high school some lessons in sound financial education where they’ll learn proper management of their money and how much they should take out of their paychecks every week to put into their savings account and even utilizing financial details such as stuff on the internet like Pay Pal when you do business to be able to get your money faster and cut down the expense of having checks mailed out only in certain circumstances that it should be done, but something like running an EBAY business and being able to accept online payments and even credit card payments over a secured network. Someone who can advise you on things financially can explain all that and tell you what to expect and what will come out of the deal.

Some banks will offer the information on their website and usually it will be in a PDF file which will require someone to access a program like Adobe to decipher the size of it to be read, saved and printed out for personal or commercial use. Some financial advisors who work for banks or financial companies will in fact set up mini courses teaching basic or advanced types of financial education whether it’s to educate a regular person or doing it to fulfill certifications to work at banks and financial institutions like Merrill Lynch and Morgan Stanley to perform the task of giving potential and current clients advice on handling their finances and helping them to utilize the most out of the advice that is being given to the person(s). Many people who are giving advice out on finances and can’t answer specific questions then you’ll know they’re not real because a legit advisor wouldn’t give you faulty information that is potentially illegal or not in accordance to federal and state laws. There are governing bodies that handle the certification and licensing of financial advisors to hold them accountable when they give financial education advice to people so that the information they have is what it should be accurate and correct and not just being told to convince someone, but what is considered logic from the mind of a person trained to assist people in handling their money.

There’s More To Making Money Than A Tertiary Education

An education of some sort is a prerequisite these days if you want to start a secure career in whatever field you choose. However, have you thought about where this will get you exactly? Will it help you achieve all your dreams in life, both financial, physical, emotional etc?

This article is focusing on the financial and lifestyle dreams that you may have.

Don’t get me wrong though, being a teacher, I strongly believe that a good education is vitally important. I don’t believe, however, that an education at University, TAFE or any other tertiary institution is enough to enable most people to achieve their goals and dreams in life.

Let’s see what normally happens when you gain that valued education.

You get a job in whatever area you are trained for. Then you buy a new car and perhaps a new house. This is ‘The great Australian Dream’ and possibly the dream of many other countries too.

These are all great goals to have, but if you want to achieve more than being in the ‘rat race’ for the rest of your life, then I believe you need a different sort of education. More on that in a minute.

So you’ve got a job, a car (with a loan), a house (also with a loan). This is where the majority of people are happy to stop and believe they have achieved it all. They go to work every day, being dictated to what time they start, what time they have lunch and knock off. The bosses tell you exactly how much you will be paid and exactly when. They tell you how many holidays you are allowed to have AND when you can take them. To me, that’s not living!

What’s more is that most of the population HAVE to work to pay the mortgage and the car loan. As soon as they’ve nearly paid off the house loan, they’re encouraged to trade up to a bigger and better car or house.

Does this sound familiar?

YOU CAN BE DIFFERENT. You may only be starting out, so start out on the right foot. Set your goals higher than to just be someone else’s lacky. Don’t get into that lifelong debt cycle.

Here’s where I have some tips and secrets to help you ACHIEVE MORE than the average person.

As I said previously, your tertiary education is NOT going to make you rich. A stable job is important, but it’s your HOMEWORK – the extra financial education that will make you different in the long run. So get financially educated, start reading, watching videos, listening to audios, playing financial games, talking to people who are doing it.

The topic I suggest you learn about, based on my own experience, is INVESTING IN REAL ESTATE. It’s sensible really. You buy a property, get a tenant to live in it, and they end up paying off the mortgage for you. Why don’t more people do it if it’s so easy?

Quite frankly, I don’t know. Many people just aren’t financially educated. You need to learn HOW to do this in a profitable way to ensure it’s secure. But this is certainly possible and I’m speaking form experience.

By using positively cash flowed real estate you can create your own wealth and live the lifestyle that others only dream about. You are never too old or young to learn how to start doing it.

If you only learn one thing from this article, please let it be that it is VITALLY IMPORTANT TO GET FINANCIALLY EDUCATED. After all, your future depends on it.

Do We Need to Improve Our Financial Literacy

Speaking as an ex-teacher, I find it very sad that our students are leaving school with little if any financial literacy. Our young people for the most part leave school without receiving any financial literacy education.

The problems are even more deep seated than just not receiving any financial literacy education. As Robert Kiyosaki states in his book “If You Want To Be Rich and Happy Don’t Go to School?”. “It is my belief that the first duty of any society is to teach its people the basic skills necessary to be successful, happy, contributing citizens. Judging by what I have observed, our educational system has a long way to go before we can give it a passing grade. In most schools, students can get straight “A’s” throughout twelve, sixteen or more years of education, yet still not even have a basic understanding of those money-oriented skills that we need to survive and prosper in our society.”

Students, in many schools, are still being told that the key to a successful life is to get a good education, then get a good job where you are permanently employed. In this day and age very few employment positions are permanent.

It’s not. What do they need to learn in good financial literacy education? I believe the bare basics of financial literacy would include:

o Setting financial goals
o Creating your budget
o Itemizing your expenditures
o Planning for high-budget expenditures (including buying a home)
o Basics of banking (account types and interest rates)
o Basics of investing (into stocks, bonds and mutual funds)
o Planning for retirement
o Insurance
o Taxes
o Understanding the impact of inflation and interest on money and investments.

However there is more, much more. Our students need to know that they have to work towards a financial situation where they are not dependent on their employment as a source of income. One strategy would go something like this. Their car shouldn’t be a new one. A good reliable second hand car is all they need.

The first house they buy should be a rental property. When their equity increases in the first house, this increased equity is their deposit on a second house and so on. They will get to a stage where their rental income will be enough to let them buy their own house and their dream car. There’s more top the strategy but that can come later.

Financial Education – An Investment That Works

The hard times that we are facing now should prove to be a challenge for all of us. We need empowerment to deal with such hardships and conquer them successfully in the end. With a good amount of financial education paired off with the right kind of attitude, every storm that rocks the economy and our own financial situation can be dealt with and triumphed over.

Education is a great tool. This is an undeniable fact. It does not matter on what specific field it is, but being amply educated in any field that one chooses can empower someone enough to know what to do and be able to do so accordingly. This is a starting point in every attempt to win over any forms of antagonists, living or not. One of such fields, where being educated is a good asset to have, is in one’s financial life.

There are four categories deemed to be mandatory in determining and maintaining one’s personal finances effectively. The effectiveness is determined by the individual’s financial security and not just the mere presence of money at a certain point in time but extended over a long period of a life time. These four categories includes one’s account, soft savings, pay down debt balances and the last, but definitely not the least valuable one, is the financial education of the individual.

In this specific light, the investment placed on this category is manifested by the number of books, newsletters and software one possesses and has read and understood, over the time it was owned by the individual. Further specifics under this investment include attending seminars, seeking out financial advisors and tax accountants to name a few.

For people who are unable to read and understand or consume the masses of information available, this signifies something new to start on. Being ignorant or miss informed about your financial needs in today’s advanced technological world is not helpful at all. The ability to learn and comprehend new ideas and strategies to ensure one’s wealth and success, should be of prime importance and should be developed and worked on constantly. With out continued education, development and growth within each individual, the struggle for survival will be easily lost.

The return of investment in this case comes in the form of how one is able to handle and manage every financial situation at hand in order for it to reach its utmost potential. Although there is no monetary values involved, the overall impact of having enough knowledge and wisdom on how financial affairs can be made to work to your advantage can be become quite clear.

Financial education plays a key role in the complete cycle of making sure that one’s future is fully secure, regardless of whatever unexpected financial or personal tragedies may occur. Investing in one’s education to ensure a sound financial future is one of life’s primary objectives. In today’s ever changing world, financial education is the only way to drive towards secure and long-term financial security and comfortable living.