By Amanda Morrall (email)
1) Reading, writing, arithmetic and bank runs?
Despite the dark debt shadow hanging over the U.S., Federal Reserve chairman Ben Bernanke sees a bright future for today's children.
At a recent town hall meeting with American educators, he explained that his confidence was vested in "technology gains that make workers more productive, great universities, an entrepreneurial culture, an efficient market-based economy, and a diverse workforce."
Time Money, which covered the speaking engagement, also reported on Bernanke's strong view about personal finance taking a more prominent place in the curriculum. He goes so far as to suggest that kids should be learning about subprime mortgages, recessions, bank runs and monetary policy in order to navigate their way through an increasingly complex financial world. I think he's right.
Read the full article here. An excerpt from his prepared remarks below:
“Financial education supports not only individual well-being, but also the economic health of our nation. As the recent financial crisis illustrates, consumers who can make informed decisions about financial products and services not only serve their own best interests, but, collectively, they also help promote broader economic stability. 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.”
2) Slim pickings
Okay, I confess I hadn't heard of Slim Thug, the rapper, until reading on the HuffingtonPost that he'd published a personal finance book. Apparently, the recession got to him bad enough that he felt compelled to share his lessons from it. His ebook, which retails for US$9.99 lectures against squandering money on such things as strip clubs, and drugs (that you aren't selling) and also how to make money out of the sluggish housing market; by flipping for profits. A slim contribution indeed Slim.
Still I had to laugh after reading that he made his girlfriend pay half her flight to come see him in concert. Shrewd.
3) Building blocks
The fundamentals of personal finance are simple and boil down to three core areas: earning, spending, and saving. Getrichslowly.org reviews the basics and offers some constructive tips to help get or stay on track.
4) Failure to launch?
So you have a great business idea but just can't seem to get it off the ground? Analysis paralysis can be your worst enemy. In this interview with business coach Marie Forleo, writer, entrepreneur, and public speaker Chris Guillebeau shares some of the insights from the scores of start-ups he interviewed for his book The $100 Start-up.
Marie is a bit of a valley girl which can grate, but you'll find good value in what Chris has to offer.
5) Getting smart from stupidity
We all learn from making mistakes and personal finance is no different, although I wish it were otherwise. Money writer Stacy Johnson discloses his mistakes and how he gained from them.
To read other Take Fives by Amanda Morrall click here. You can also follow Amanda on Twitter @amandamorrall
3 Comments
Was it Muldoon who said, most people wouldn't know a deficit even if they fell over one?
But seriously, basic financial literacy could be covered in a few lessons at High School, and it won't make much difference because we live in a consumer society and consumers have psychological needs/wants, very little to do with financial literacy insights. Heard of 'retail therapy' and the likes. But the boffins think it's just a matter of telling people what to do and that shows their naivety about the human condition in the modern, materialistic consumer society.
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