Why Most People Never Learn Money Management Skills in Grade School

Education systems often prioritize core subjects over practical life skills like money management. This gap in financial education has led to numerous challenges for adults as they navigate complex financial decisions later in life. Furthermore, parents may not feel equipped to teach these skills and may not prioritize them. Additionally, there is often a cultural taboo around discussing money openly, leading to a lack of formal education in financial literacy.

My Perspective on Financial Education for Kids

My kids were taught financial management from an early age, and as a result, they have Roth IRAs and take advantage of their employer's match in other qualified plans. This early exposure to financial concepts is invaluable. Yet, I wonder: who should be teaching money management?

Back in my own educational years, the importance of financial knowledge was not a significant focus. We were more concerned with simply earning a living and providing for our families. However, in today's rapidly changing job market, financial literacy has become increasingly important, especially with the rise of private sector jobs and a lack of pension and retirement benefits.

Robert Kiyosaki emphasizes the importance of financial independence and management. Today, youth are being prepared for financial independence, and high-paying jobs are often the goal. To meet this need, educational curriculum changes could be beneficial. Organizations like Cerebro Kids now offer in-depth financial learning through blogs, vlogs, YouTube videos, webinars, and write-ups.

A Personal Story of Financial Ignorance

Reflecting on my own financial education, I find myself wishing for earlier guidance. No one disputes the necessity of financial skills, as they are not innate. However, we lack any formal instruction in this area. Teachers, who lack interest and expertise, often fail to teach financial education effectively. For instance, a neighbor who is a teacher could not even provide a rough estimate of her retirement plan balance, indicating a severe lack of financial knowledge.

My mother's financial management skills were equally poor. Her concept of money management involved paying off credit cards after a month of shopping. Her idea of frugality was storing attractive but potentially infested wood instead of utilizing it. These examples highlight the dire need for proper financial education and the potentially dire consequences of its absence.

The Need for Financial Education

The reasons for this lack of financial education are multifaceted. There could be a fear of stepping on toes similar to the controversy around sex education. However, a more intriguing speculation is that big business and tax collectors do not want well-educated, financially skilled individuals, as it could hinder their plans for total confiscation.

Despite numerous financial education lessons aimed at various age groups, the effectiveness of these resources is often questionable. The financial simulations and computer games available may not provide much useful knowledge, but they can be entertaining and educational in smaller ways. I am considering developing a financial independence course, but progress is slow due to my tenants' reluctance to take steps towards wealth accumulation. However, if anyone is interested in learning experientially, leave a message or comment below, and we can collaborate on creating effective course material.