Thursday, August 17, 2017

Financial Literacy... Still a "key" subject today? (1)

Why choosing Mr. Crocker the teacher giving an F (as usual) to Timmy Turner his pupil in the cartoon series Fairly OddParents?

I could try to establish a sort of analogy between a consistently bad student and how the US population (particularly teenagers and college students) have been acting in the process of realizing and learning how important Financial Literacy is in the post global financial crisis era (an event that many of them didn't experience)... This could lead us to formulate the following question:

Is Financial Literacy still important after the global financial crisis of 2007 - 2008?
 
Let's see... What has happened 9 - 10 years after a cascade of corporate mistakes, greed and fraud causing that "too big to fail" giants like Lehman Brothers declared its bankruptcy? What is going on when many Americans also went into bankruptcy because of ignorance and greed causing them to lose their homes, jobs and ending up (in many cases) living in the streets? Do you remember that both events were key hallmarks of the global financial crisis in America?

Do you remember those events? No? It's OK if you don't, therefore, it is convenient to share with you a little reminder via first-hand testimonies from Anton R. Valukas (as a Examiner of Lehman´s bankruptcy, he offered an impressive testimony about what he found), average Americans who lost their homes as well as what the subprime crisis meant for many of them:



 

 
 
 
From a current global perspective, the outlook does not seem very optimistic: last May, the Organization for Economic Cooperation and Development (OECD) published a report addressing the case of teenagers in member countries struggling to understand money matters; in addition, also last May, Professor Annamaria Lusardi published her views as to how young people in America, as they grow older, are struggling to gain financial knowledge. Even though I wouldn't like to continue nagging you with recent events -also according to Professor Lusardi- involving the same difficulties that teenagers in America are facing to understand Financial Literacy, also last April, according to an online survey from Morning Consulting on behalf of the American Bankers Association, a significant percentage of people, assumed that "their own financial literacy skills are good" but in the meantime, a lower proportion of those surveyed perceived that the average American possess "good or excellent" financial literacy.

What does this mean? Well... Maybe you could disagree with my modest perspective but, anyway, here I go: when only few American citizens are "convinced" they are "financially educated", What do they know about their financial "safety"? Do they know what is the meaning of financial safety? How do they know the average American is not? Whether the average American is in fact financially safe or not, I think there's a serious educational problem that deserves an "F" for many Americans particularly, teenagers and college students (in the end, Mr. Crocker is still right about Timmy Turner).

As a consequence, if the average American doesn't care about his financial safety, then the following report makes emphasis about a serious problem: America lack financial awareness... 

 
 
You may wish to consider the following final idea... Do you deserve an F? No problem if you say yes or no; it's just for your information, consideration and (immediate) action:


 
 
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 Financial Culture / Financial Literacy ©

Tuesday, August 1, 2017

Financial Education, Wealth and... Race. A silent yet sensitive issue in America

There is no doubt in my mind that America possess a brilliant history where many events have shaped how a citizen feels and perceives himself as an active and productive element of his society, however, it's been also an unpleasant part of his existence even though he probably has nothing to deal with it but doesn't know how to deal with it: how he feels about being part of his community according to his race.

Despite I must clarify that an historically complex social subject involving how races interact in America given its own nature is beyond the scope of this blog, it is difficult to ignore the fact that African Americans and Latinos as ethnic minorities in the country, still experience a social - financial gap in their community welfare versus the White community that becomes more notorious if we talk about their access to jobs and the income they need for health care, their families, savings and (key subject) the possibility to become more financially educated and create lasting savings.

This new comment aims to share some efforts that members of the African American community have been doing in recent years in order to ask for our attention towards those issues involving their welfare as well as a recent and very interesting diagnosis about the racial wealth gap between communities:
 









The Political Economy of Education Financial Literacy and the Racial Wealth Gap by CP Mario Pérez López on Scribd


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 Financial Culture / Financial Literacy ©

Thursday, July 20, 2017

Greetings... We're back ready to work again

Greetings!

Due to a series of circumstances that changed most of my daily professional routine, I was forced to stay away from this blog for a long time: personal, professional and health issues (a serious illness I had to deal with) prevented me from being here but as of today, I'll be working on catching up by updating information and content on this blog.

Once again, I invite you to consider waiting just a bit more for new content and information.


I look forward to continue having you as a reader.

Thank you.


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 Financial Culture / Financial Literacy ©

Friday, July 26, 2013

"Money out of Politics..." Does this make sense?

Even though I think (based on my own modest experience while interacting on several occasions as part of their constituents with some government officials as well as reading regularly opinions as to how they should "manage" the Economy and the Money) that politicians and money don't get along, I'd like to share some basic information about what a couple of Massachusetts Lawmakers (Senator James Eldridge and Representative Jason Lewis), have been working with: https://malegislature.gov/Bills/188/Senate/S1727.

President Obama seems to be concerned about the urgency to help people on Main Street to strengthen their Financial Literacy (at least the basics) what is good, however, if the relationship Politics - Economy - Money is a complex one by itself, a candid question arises in my mind: supposing that the bill presented by those lawmakers is "approved", The US Government (for the sake of Politics and National Wellbeing) should "outsource" financial - budgetary national decisions in order to "alleviate" the burden of the crisis that Main Street has been facing?

At least to me, this idea sounds "interesting" but if politicians have been considering "limiting the influence of money in the US political system", focusing on Financial Literacy... for the sake of it, what would you think about it? Politicians should stop "interfering" too?




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