FINANCIAL LITERACY ESSENTIAL IN SCHOOL CURRICULA

Sir,

One of the most significant shortcomings of formal education, particularly during my time, is the glaring omission of financial literacy from the curriculum. It is evident that traditional schooling was not designed to cultivate financially independent graduates; rather, it aimed to create a compliant workforce. Consequently, the widespread financial illiteracy observed among graduates is not merely an oversight of the educational system, but rather a deliberate outcome orchestrated by those in power. The struggles faced by the working class are not coincidental, but rather a reflection of this systemic failure.

Predicament

As author Robert Kiyosaki aptly describes, many of us find ourselves trapped in the ‘rat race’, a situation where our money often runs out before the month does. This predicament can drive us into debt as we strive to make ends meet, forcing us to remain in jobs we dislike simply to repay our obligations. The burden of interest on our debts further erodes our already limited disposable income, creating a vicious cycle of financial despair. Kiyosaki suggests that to escape this cycle, one must stop behaving like a rat, his words, not mine. It seems paradoxical that once we earn money, we are often advised not to spend it.

This notion may appear absurd at first glance, but consider this: The longer your list of expenses, the more of your income you must allocate to those bills, leaving you with less to invest in ventures that could yield financial returns. To mitigate expenses, consider reducing social outings to save on fuel costs, limiting your social media usage to conserve data or even postponing parenthood. Financially, the latter can yield significant savings. Indeed, ignorance is the most expensive burden one can carry; hence, it is crucial to read widely and often.

Purpose

Personally, I hold reservations about insurance; while I understand its purpose is to safeguard what you already possess in the event of misfortune, I find the entire concept rather complex to articulate fully. It is essential to cultivate multiple streams of income. Explore investment opportunities in the stock market, engage in currency and commodity trading as this can be quite enjoyable and consider purchasing real estate. Begin with your current situation, whether through employment or entrepreneurship, and gradually build your financial portfolio. Embrace risks and pay little heed to the opinions of others. Regrettably, I cannot provide specific advice on which job to pursue or which small business to establish, as I lack comprehensive knowledge of your situation. It is crucial to assess your unique skill set to identify suitable opportunities. For some, the challenge lies not only in knowing where to start, but in grasping the very concepts being discussed.

Ignorance

Referencing my earlier point about ignorance, only you can ascertain your understanding. Do not wait for a hypothetical ‘someday’ to overcome your lack of knowledge; let today be the first step towards enlightenment. Kiyosaki encapsulates this wisdom succinctly: “Spend on assets, not liabilities.” He categorises liabilities as anything that drains your finances, such as your car, your home (I know what you’re thinking) and any debts you may have. In contrast, assets are those that generate income, such as rental properties, investment accounts or even a car that you lease through ride-sharing platforms. To the accountants who may take issue with these definitions, please remember that I am merely the messenger.
The simplified version is, after all, more poetic in its essence.

Mangaliso

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