Financial Education

Financial education is the key to accumulation and retention of wealth for the long-term.

Small decisions we ignore

Do you know how many financial decisions you make everyday without knowing?

  • Do I make breakfast at home or do I buy it today?
  • What about lunch? Bring it from home or buy it?
  • Do I fill gas at the closest gas station or go to the one that is slightly out of the way but is cheaper by 20 cents per gallon?
  • Should I learn how to do my own taxes or just pay someone to get it done for me?

These are just a few decisions. We have many more over the course of a day. If you count a family of four, it quickly amounts to about a hundred financial decisions per day.

Are you losing millions of dollars?

I know, these don’t seem like big decisions but without being financially educated, you will lose hundreds of thousands of dollars, possibly millions of dollars over your lifetime. I know it can be hard to believe this, so let’s calculate

Say your decisions cost you $20 a day. Between you and your wife, it would amount to $40 a day. Let’s not count kids in here hoping they don’t have any power to make financial decisions in your household. $40 a day multiplied by 20 working days a month = $800 a month. That’s losing $800 a month (without counting the wastage that happens on weekends).

$800 a month X 12 months a year = $9,600 a year. That would amount to $96,000 a decade.

If you began this practice in your 20s and it lasted until your 70s, that would be about half a million dollars.

Again, can you afford to lose money?

If you can afford to lose that much money and not care, well … good for you.

But, if you cannot afford losing money, it’s time for you to get serious about your money.

Adults deal with money their entire lives. Yet, rarely anyone taught about money at home or school. It’s really mind-boggling. Don’t you think so?

Try this exercise. Ask the following three questions to the next person you meet.

  • Can you explain inflation?
  • Why is your FICO score so important?
  • What does APR mean?

A financially educated person will provide you the answers to these questions.

I truly believe that financial education is the key differentiator between the rich and the poor. When you understand money and the rules of money, you can play the game better.

The importance of financial education

Ben Bernanke, the Chairman of Federal Reserve from 2006-2014, has this to say about financial education.
Smart financial planning – such as budgeting, saving for emergencies, and preparing for retirement – can help households enjoy better lives while weathering financial shocks. Financial education can play a key role in getting to these outcomes. – Ben Bernanke
 Robert Kiyosaki, the author of Rich Dad, Poor Dad has to say this:
The rich continue to get rich the same way they always have – by understanding how money works and making their money work for them. – Robert Kiyosaki
 I am not going to beat the importance of financial education too much. You’re a smart person. You know what a difference it can make in your life.

Here’s how I will help

These are the areas one needs to master when it comes to financial education.

  1. Thinking economically
  2. Earning income
  3. Paying taxes
  4. Budgeting
  5. Saving
  6. Financial planning
  7. Investing
  8. Borrowing
  9. Banking and Financial Information
  10. Insuring

I will send you one email every day (Monday to Friday) on a different financial topic, explaining the topic (without overwhelming you) to help you get a better understanding of it.

The cost is $20 a month, or $200 annually (you get 2-months of education free).

Step 1 – Sign up for your financial education
Step 2 – Enter your name and email to begin learning

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