We all know them – people who are ALWAYS crying poor. They could win the lottery and within a few short years they would have their hand out again. Some of us are married to them. Some of us have them as parents. They come in the form of sisters, brothers, friends. But they ALL have one thing in common…
“Can you lend me a few dollars/quid/rupees until next week?”
And next week comes and goes and that person does everything possible to avoid you. It’s embarrassing to ask for the money back. They don’t care, or maybe they do but they are so hopelessly out-of-control financially that they are already lining up their next mark.
So, why are these people such hopeless money managers?
First, money management is NEVER taught at ANY school. It’s not on the school curriculum. Governments do not want it taught.
Next, many people have NO role models or mentors. If parents are poor money managers, chances are relatively high that their children will be too.
Therefore, if money management is not taught at school or in the home then there is only one other avenue – self help. This can be via higher education or through self-education. If it is through higher education then the education stream may or may not have financial units at the forefront of the learning curriculum.
The ONLY way that most people receive a financial education is through self-education. And that is where the biggest problem occurs. Many do not bother. They think that if they work hard then everything will turn out alright.
Enter the twin demons of taxation and inflation. These two combine to eat away at every person’s wealth.
Then we have the syndrome of those who just cannot see any benefit in educating themselves. Then there are those who simply do not want to work at all. They find it far easier to live of the generosity and pity of others. Until these people learn to “fish” for themselves they will always be asking or pleading with others to do the fishing for them.
Self-education is the power behind every person’s ultimate wealth base. To remain uneducated in the ways of finance and financial matters is to be at the mercy of those who are educated in them.