Thursday, October 1, 2009

Is this the BOTTOM LINE about Financial Literacy? (1)

After an involuntary absence from this forum because of a brief yet important editorial project ( I was invited to offer my written opinion about a Finance book), this is a good time to share some recent discussions about what I've perceived as the bottom line about what Financial Literacy is and its current and critical role -despite what I found and looks like a piece of rant- in order to help people on "Main Street" become more educated about those basic yet crucial financial facts happening and influencing their daily lives.

The video accompanying these comments, presents Mr. Chris Gardner offering a magnificent perspective about the current financial outlook and personal responsibility that people in America should be even more aware of regarding the urgency to become more financially literate given the rude "wake up" call that many of them experienced while realizing that many things (Mr. Gardner even speaks about changes in the way of life that people got used to for many years) changed radically because of the current global crisis.

In my personal perspective, Mr. Gardner has made an equally magnificent critic about the level of Financial Literacy in America as a current hot topic: he mentions that it is "nonexistent" even though the US Government has been doing what I think is a serious effort in helping and educating people financially.

After listening what Mr. Gardner said, I'm also surprised about contradictions that still emerge: a couple of weeks ago, the puzzling blog post "Young adults need to seek Wealth Literacy, not Financial Literacy", in my opinion, looked like some of sort of invitation to consider focusing on learning the basics of Wealth Literacy rather than learning (as a first step) the basics of Money Management which is one of many key basic financial subjects people should learn first (College students are a prime example of ignorance as to how to manage money wisely).

I honestly wonder how we can learn the basics of Wealth Literacy if we don't know the basics of Financial Literacy; Is it possible to skip learning what Financial Literacy means and start learning how to manage "Wealth"? Is this possible?

Financial Literacy provides the basics that will help people make more educated financial decisions, which will ultimately lead to building wealth.

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