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Thread: Financial Education in Schools

  1. #1
    Moderator Speedy1's Avatar
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    Dec 2013
    San SebastiŠn, San Josť, Costa Rica

    Financial Education in Schools

    A friend emailed me this morning, with an attached magazine article regarding financial education in public schools. The article made several good points...

    We teach computer classes and support athletic activities in our schools... Which is great... It really is...

    But we discard music education and basic education as "unimportant", on a regular basis.

    Music is one of the few disciplines which engages the mind, body, and soul... all at the same time.

    Basic education, such as home economics... "Home Ec"... is routinely considered to be education for the inferior students, just like "Shop" class.

    Personally, I think that all students should be required to take a "Home Ec" class, a "Shop" class, and a Basic Finance class. Other "technical" classes should also be promoted. Quite honestly, the most useful class that I ever took in high school was Typewriting/Word Processing. I graduated from high school in the early 1980s with a firm grasp of low-level computer programming, and able to type over 60 words per minute... all because I opted for a "low level" class.

    But... the most important "low level" class that I think most students should be forced to take is a Basic Finance class. This magazine article drove the point home...

    The children of the rich tend to stay rich... simply because they know how to manage their finances. As a travel professional with over 35 years of experience, I can assure you... Rich people don't become rich, and they don't stay rich, because they are stupid with money. We've all heard the stories about lottery winners who blow $200 million in less than 3 years.

    Well... "Trust-Fund Millionaires" tend to stay rich, simply because they understand how money works. A basic 6-month financial management class can teach any kid the same techniques and concepts used by Warren Buffet. Buffet isn't rich because he cured cancer or invented warp drive. Buffet still lives in the same old house and drives a used car... and he makes sound, solid investments... What a Concept!

  2. #2
    Moderator Speedy1's Avatar
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    Here are a few tidbits from another great article regarding rich people...

    This is from an article addressing the subject of the "Typical Millionaire" in the USA... with my personal comments added... [in brackets]...

    1) Over 60% of the millionaires in the USA are over 60 years old and are/were self-employed.

    [I believe that this statistic proves the value of long-term accumulation of wealth and self-motivation. In other words, "Slow and Steady wins the race."]

    2) Most millionaires are married males, and earn over 80 percent of the total household income.

    ["Traditional" family values naturally encourage the accumulation of wealth. Married males tend to accumulate more wealth than single males, who are more inclined to spend.]

    3) The wives of those married males are most likely "Stay-at-Home Moms." Over 50% of the women in the USA who are married to millionaire males do not work at a "regular" job.

    [Despite the common modern perception of such a wife being a "Gold-Digger", I believe that most of those women take their stay-at-home duties seriously. Once again, it's the traditional family concept at work. The woman takes care of the home and the children, while the man works outside of the home to provide for his family. I believe that society has grossly undervalued the worth of the stay-at-home wife/mom. Interestingly, of those women who DO work outside of the home, most of them work as Teachers.]

    4) Most millionaires earn far less (less than 7%) of their net worth, per year.

    [Once again... It's all about the accumulation of wealth... Slow and Steady wins the race.]

    5) Most millionaires own their own home.

    [Personally, I don't believe that the ownership of real estate is a smart financial decision. Usually, you're better off renting. Interestingly... of those millionaires who DO own their own homes, the market value of the home is usually less than $350,000.]

    6) Even if a millionaire didn't have a higher education himself/herself... Most millionaires contribute lavishly to the education of their children, if they have children.

    [Most millionaires place great importance upon education.]

    7) Most millionaires earn their income from very mundane and boring jobs, which usually require long hours and/or hard work. Millionaires tend to be engaged in businesses such as Lawn Maintenance, Construction, Shipping, Farming, etc. Most millionaires work/worked over 50 hours per week.

    8) No matter what, millionaires almost always use 15%-25% of their income for savings and investment.

    9) Millionaires tend to define "Wealth" as the accumulation of solid, reliable, reasonably liquid assets. For example, most millionaires would consider a celebrity sports or movie star who earns $30 million per year, lives in Beverly Hills, and owns 5 Lamborghinis... to be worth $0. On the other hand, a person who has a solid asset portfolio and operates a substantial, viable business would be considered to be worth millions of dollars. Earning power, income, salary, wages, etc. are nothing, without the long-term investments to back it up.

    10) I have mentioned this one in many threads... The rich don't mind spending money, but they absolutely hate being ripped off. If a rich person really has a passion for vintage automobiles, he'll happily give you $800,000 for your vintage Aston Martin. However, if you're a taxi driver, and you charge the guy $40 for a ride to the airport, when everyone else is charging $30, the guy will be absolutely livid. Rich people didn't become rich because they are stupid with money.

  3. #3
    Moderator Speedy1's Avatar
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    San SebastiŠn, San Josť, Costa Rica
    A few personal observations. This isn't scientific at all, but it is based upon my observation of over 100 rich people (I wish that I was one of them)...

    1) Rich people almost always go to bed at a "reasonable" hour (before midnight) and wake up fairly early in the morning (before 7:00 a.m.).

    2) After waking up (early in the morning), most rich people will take a shower, then eat a small breakfast. They almost always read their emails and/or watch the news while eating breakfast. I believe that this is all about getting the brain working as quickly as possible... getting the mind "engaged." About 50% of them will exercise for about 20 minutes, prior to the shower and breakfast.

    3) Rich people are almost always "Positive" in the morning. They'll greet you with something like, "Good Morning! It's going to be a great day... I can feel it!"

    4) After the shower and breakfast, most rich people will work up a sort of "rough sketch" of their day, making mental notes of all the things that they have to do and any appointments. A rich person doesn't walk out of his front door without a plan.

    5) Rich people will take risks... but they won't take unnecessary, frivolous risks. Rich people always wear their seat-belts, and they won't go swimming during a thunderstorm. Rich people will go skydiving, but they won't do it with a company that has a bad safety record.

    6) Rich people are generous with their advice, but as soon as you say "But..." they will respond with something like, "I'm sorry. I didn't mean to overstep my bounds." They don't like giving away the information that made them millionaires to jerks who don't want to hear it.

    7) Rich people tend to be "Traditional." It's up to you if you choose to take offense, but a rich guy who meets an attractive woman is very likely to say something like, "I am delighted to meet you, Sweetheart." If you do take offense, the rich guy will most likely withdraw and avoid speaking to you in the future.

    8) Rich people are usually very kind to their employees, but they are rigidly intolerant of any failure or incompetence. Be on time for all appointments (a little early is even better). If you fail to fulfill a requirement, you had better have a very good reason.

    9) Rich people don't like brown-nosers, but they do like people who perform as required, at an exceptional level. I have worked with many pilots who will greet the client with something like, "Oh, Sir... The airplane is ready to go, and the caterers have already serviced the airplane. May I take your bags?" I usually think to myself, "Ass-Kisser!" My usual greeting is something like, "It's good to see you, Sir. Are you ready to go?" I use a more "no-nonsense" approach. If the guy is used to hearing "the caterers have already serviced the airplane", he might be taken aback when I don't say that. If he asks me, "Are the food and beverages that I ordered on the airplane?", I'll respond, "Of course they are. You ordered it, and I made sure that it's on the airplane... That's my job." He learns quickly that if he looks down his nose at me, I'll look right back up his nose at him.
    Last edited by Speedy1; 09-05-2016 at 09:05 AM.

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