Most of us received little or no education or training in making financial decisions. Smart financial decisions require analysis and careful attention to detail. We need the knowledge and skills to evaluate options and identify those that fit our needs and circumstances. Where do you get the skills and knowledge to understand money? Most people receive their money knowledge through their family and extended family. A much smaller portion receives their knowledge through school or on their own. The largest portion of people who need this knowledge and skills are low income. Yet where do they get their knowledge or skills? The definition of the word common is well known or appearing frequently. If most people do not have the skills and knowledge to make good financial decisions, they will make bad decisions.
Recent Financial Reform Law is an attempt to address some of the problems that contributed to the 2008 financial crisis. Individuals and families need to understand money and financial responsibility. They need to get the knowledge and skills to understand money. Lastly, they need to take the steps required to create financial security. Good financial decisions are complicated! Whether you are buying a car, renting an apartment, getting a credit card, buying a home, buying health insurance or investing in the stock market. All of these transactions involve contracts and a lot of information one needs to understand. Signing these documents acknowledges that you read and understand what you are doing. Money like food is difficult to avoid because we need it to live and enjoy life. One way to learn about money is to subscribe to my blog.
Photo by: Andres Rueda