Financial Illiteracy: The Real Pandemic

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Avatar for CryptoMax
3 years ago

The real pandemic right now is Financial Illiteracy and how it is serving the system by taking the power from the people.

The school system isn't designed to make competent people, it is designed to make competent workers.

As such, people are reaching the adult stage with no idea of how to handle money or even basic taxes.

This is leading to the gap between rich and poor widening while decreasing middle-class families, which are the backbone of every economy.

Trust me, if you're one of the financial educated and you want to succeed, you need to have a strong middle class in the economy.

It is urgent for people to take control of their own financial education. People need to see that handling their finances is the most important thing they can learn - I'd take financial knowledge over financial gains any time of the week...

Throughout this article, we're going to go over some common problems when it comes to this topic, including inflation, taxes, investments, assets, and so on...

Young Adults Don't Know About Inflation:

As a part-time job and to ensure I always enrich my resumé and climb the social hierarchy, I am a University Professor (a cool side-gig to have with countless benefits).

One of the benefits is that I am in tune with how young adults see life throughout the years.

Inflation is a VERY ignored subject among the 18-30 age group, and this is worrying.

Most people in my classes hear their first explanation of inflation from me and they always say in a shocked and surprised Pikachu face:

  • Professor, that's theft!!

Yeah, inflation is system-approved theft, and people don't know about it.

Even a substantial number of older adults have no clue what inflation is about.

This is something the system doesn't want to fix, of course, but it is a core variable when considering investments and the way you manage your money.

I never thought it'd be that bad until I started teaching... now I just assume that NOBODY in a class of hundreds knows what Inflation is - and that's sad!

People Don't Know Money is Transferred, Not Made:

People in general always say "Making Money", and they actually think about it this way.

They believe money is created, not transferred.

This may sound dumb for many of you - but believe me, it is the rule.

Most people have NO IDEA money is only transferred, never "made".

For someone to "make money", someone else needs to lose it. For countries to make money, other countries need to lose it - and the system works like this from top to bottom.

Capital is never created from thin air, and when money is "made" through inflationary tactics, it is only being transferred from everyone else to those who "print" it.

This is another variable people should be taught in school.

People Don't Know to Invest in Assets Rather Than Liabilities:

I don't know if you ever read "Rich Dad, Poor Dad" by Robert Kyosaki.

Cliché as that book may be, it does really drill down on this:

  • Buy Assets;

  • Avoid Liabilities;

When people are getting more money out of their job, they end up raising their standards of living.

Every businessman and financial expert can tell you one of the most powerful ways to get rich is to constantly live below your means.

With fewer liabilities, by living below your means, you'll have more liquidity and savings, so you can take advantage of opportunities when they arise and so you can invest more each and every month.

Your portfolio will grow nicely if you have more liquidity available at the end of the month.

People Don't Know Even Basic Taxes:

I don't know how it is in your country, but right here in my country, there are a lot of useless subjects kids have to go to these days.

It would be nice for the school system to start teaching kids about financial literacy and, above all, taxes.

If more people knew about taxes, they'd of course be increasingly aware of their state's taxing policies, which can be bad for many countries, including my own where the tax system prohibits investment.

This is why everyone says it'd be great for kids to learn taxes, yet no government no matter the party implements this.

It sucks!

When these kids grow up, they'll be surprised by taxes and most of them will have to pay fines and whatnot for missing their schedules, messing up their forms, or failing to hire someone who understands taxes in the first place.

My Goal as a Father: My Kids Will Learn Financial Literacy Since Birth

As a father, I have a goal in mind when it comes to this.

I will give my kids the tools they need to succeed in life, the tools I wish I had.

If I knew more about financial topics and money before I became an adult myself, then I'd be set already.

I firmly believe those who learn money since birth has their lives cut out for them and can do whatever they set their eyes to - this is how powerful financial and economic knowledge is.

A Micro and Macro Economy Crash Course: Keynes vs Hayek

If you want to learn a lot about micro and macro economy from a cool and simple video, watch the clip above.

This is a great way to learn about two distinct Financial and Economical Schools, the Keynesian and the Austrian Schools of economics.

If you don't know much about how economies work or want to polish that knowledge up a bit, this video is a great tool to get more knowledge in less time.

If you already know about economics, watch it all the same - it is definitely worth it.

Also, here's the second part if you loved the part above:

This inspired me for an article I'm writing tomorrow, telling you about how I grew up with no clue of how economics worked and reached adulthood without knowing most of these things.

That's right, my path getting here wasn't easy.

Cheers!

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3 years ago

Comments

I'm impressed. Just went through all your posts and one thing I noticed is that there's always one or two things to learn from each and everyone of the..

Keep it up!!!

$ 0.00
3 years ago

a really informative post if you are just beginning in crypto at the same time learning the financial curves that affect the volatile market

$ 0.00
3 years ago

good

$ 0.00
3 years ago

Honestly I'm also not so knowledgeable about crypto, there are many crypto currency Professors giving tuitions online but very few students can understand the financial facts here. I didn’t attend any class yet as its hard for me to manage time to make myself educated in this field but I've plant in upcoming days I may learn something.

$ 0.05
3 years ago

Another excellent post...You had me at "The school system isn't designed to make competent people, it is designed to make competent workers."

That is so true and I am sure that your endeavour as a father to teach your child will be a great success. These institutions claim to teach entrepreneurship as well. Sadly they don't. They provide a window to the family who has the most money to make their child a success, which in a way is the truth - you need money to make money. They do not however provide any actual knowledge of how to sustain yourself.

On a side note with education failing to provide basic education, first aid is not part of a syllabus of any school I have attended, nobody teaches you how to change a flat tyre or any other useful things that one needs as an adult. They teach you about how to think in the box though so you can remain a stagnant obedient citizen.

$ 0.50
3 years ago

Indeed, it can be called a pandemic. In my country, people do not have elementary financial grammar. Not all of course. This is used by banks and other financial structures. If children were taught a number of useful lessons at school, which include financial literacy, then the population would live better. Interesting article!

$ 0.05
3 years ago

Thank you for this informative article. I have learned a lot from reading on this one. Probably will try to read financial literacy books. My cousin introduced me to Robert Kiyosaki he has great books about financial literacy.

$ 0.05
3 years ago

Hi! I'm an incoming mom, just wanna know HOW are you gonna teach financial literacy at an early age. I plan to do the same, but kinda blank on how I'll do it (except give her a crypto wallet as inheritance).

$ 0.05
3 years ago

Well, if you know about finance and economics, then teach them yourself. If not, get them to read "Rich Dad, Poor Dad" as a start!

$ 0.00
3 years ago

"The school system isn't designed to make competent people, it is designed to make competent workers." So Much This.

$ 0.05
3 years ago

Hello,

An article that makes you think; it is worth reading, even if one has reservations about it.

I agree that the system does not educate you enough in economics, even if you choose it as a career. Sure, without being suspicious, we understand why.

The videos are great since their playful method entertains while teaching. It is in one, deepen and broaden the perspectives.

$ 0.05
3 years ago

One of my favorite books. Rich Dad Poor Dad ❤️

$ 0.05
3 years ago

Wow didn't know that you're a professor, what subject you are discussing?


I really love the book Rich dad poor dad I am reading it but still not finished. It's really great book for financial literacy. Now I know what to choose between the assets and liabilities.

$ 0.05
3 years ago

I'm a teacher of Marketing and Business Administration.

$ 0.00
3 years ago

I see, no doubts why you know how money works.

$ 0.00
3 years ago

Sad but true, we learn almost nothing at school, and later at college only the basics. In fact, from my studies, I have learned that economists are playing dice and quite often don't know the outcome of their decisions. It is up to the most experienced to decide. Macroeconomic events are also different each time, however, the economy has boom and bust cycles and traders try to pick the signs. I have studied Keynesian economics only, as this is the prevailing model and the Austrian school is only a reference in the books. I'm not totally in favor but probably would go with the conservative side of economics as lives are at stake and we shouldn't gamble with the economy. However, like most, I have not in-depth knowledge of the differences between the two models. I hope that this video maybe will enlighten me.

$ 0.05
3 years ago

These videos are undoubtedly very good.

$ 0.00
3 years ago

Hello sir I read alot of your article you are so amazing I admire you and keep motivate to write. Here is my article if ypu want to read it thank you.

https://read.cash/@SenseiZero/my-short-experience-in-noise-cash-f5cc805a

$ 0.01
3 years ago

I totallly agree on this one. On our 9th grade, we were taught some basic economics but it's only as far as knowing about supply, demand and equilibrium. Now that i'm in college, our only economics subject was about microeconomics, I had a better understanding about how things work but it's still not enough. Education system really sucks when it comes to this topic. And it's also true that even those students who are pursuing economics doesn't know that much.

We also had a subject about taxation this semester yet I didn't learn that much.

You're a cool professor and a father, btw. :)

$ 0.05
3 years ago

Although people don't know basic taxes,but everyone pay a pile of taxes in every country.At university level,students are educated about Crypto but not about inflation that all we need.Of course!it is as essential as to drink water in thirst to know about Financial Literacy.Not bad idea to give your family a proper education about it.

$ 0.05
3 years ago

"Capital is never created from thin air, and when money is "made" through inflationary tactics, it is only being transferred from everyone else to those who "print" it." And This.

People really don't get it. High School students have the brain capacity to understand economics. They need to teach it.

$ 0.00
3 years ago

Oh so you're a father. For sure a good one.. I also thought money are made.. In central banks. 🤣 And yes I love that book rich dad poor dad..too many lessons to learn

$ 0.05
3 years ago