It is a new month and like clockwork the bills are due. Geico wants their car insurance payment, Sallie Mae is expecting your student loan payment, and there is a growing office rumor surrounding layoffs. It is clear that there is far too much on your plate and as the thought of your checking account dwindling further incites more fear, you start to wonder if your fears are tied to your overall lack of money management skills. As you continue to jog your memory, you feel certain that at least one adult sat with you to discuss money (and its uses), but you know this to be false. There is no more time to skirt around the fact that you may be both unaware of what money is and how the functions influence one’s relationship with finance. If you feel as if you "missed the boat" on acquiring the necessary skills from an adult, the opportunity for self-education is abundant.
Reflecting upon my first conversation with my parents about finance, I remember how confident, yet nervous, they were. Ultimately, their anxiety subsided once they settled on their approach, tone throughout the conversation, and how collaborative they would be in articulating the topic. Candid and open, they went as far as showing me their pay stub, explaining the intricacies of their paycheck such as gross and net earnings, Medicare, and federal taxes. Likewise, they explained how money the earned was dispersed throughout our household. While this proved to be successful in my early development and understanding, I grew to comprehend that every family is different and every interaction would yield different results. Nevertheless, no matter if the conversation starts at six, or the independent research begins at 26, putting forth the maximum effort should occur and consistency is the key. While conducting your research, it is important to understand that one’s relationship with money is ever-changing, evolution is inevitable. Thus, as a matured, my understanding of money evolved from the initial concept that it was (literal) paper that “grew on trees” to being one source in defining wealth. Moreover, upon sitting in my weekly Money and Banking course at NYU, I discovered that the 6.14 inches long by 2.61 inches wide rectangle ultimately held more weight and value than I could imagine. As such, ascribing one, solid definition to money would be difficult. However, after conducting further research and immersing myself into dialogues, I comprehended an essential takeaway: there are three functions of money -- medium of exchange, unit of account, and a store of value. As you continue on your journey of financial self-reliance, begin building the confidence needed to help develop healthy fiscal habits!
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Have terms such as APR, big banks, interest rates, refinancing, and student loans consumed your waking thoughts? I am certain that a majority of you have raised your hands. Now, can any of your confidently define these terms? I see you now slowly lowering your hands, and a sudden look of embarrassment has washed over your face. Do not fret and do not be ashamed. Whether you are 20, 30, or even 40 years-old, defining these terms can be challenging, and comprehending money and banking (plus all of its nuances) can be overwhelming. Currently, imagine how different your knowledge of finance would be if your first interaction with the concept had occurred at an earlier age, the age of six to be exact. At this age, you would have earned a relatively small stipend for helping to either clean around the house, mow the lawn, take out the trash, or wash the dishes. As a result, the payment received would have been a formal introduction to capitalism.
In the beginning stages of writing on the topic, I was 22 years-old and had just completed my undergraduate studies at New York University, where I graduated with a Bachelor’s degree in Economics. I heavily doubted my ability to properly guide families on how to raise fiscally sound children due to my lack of “real world” experience, and of course having no children of my own. Although this seemingly characterized me as unfit to disseminate information, I decided to overcome my fears and write. Throughout the writing process, I discovered that I possessed the knowledge of how money flowed and carried a personal narrative of financial success and failure. The failure came in the form of a dwindling account due to an excess in spending. Moreover, I also discovered that when it came to the topic of finance and economics, there were many that believed they were experts. I, too, shared the same sentiment. Our conclusion was rooted in the fact that we could engage in long-winded conversations on all aspects of finance, we habitually read the Wall Street Journal, and we could thoroughly explain the Dow Jones Industrial Average. Essentially, the reward for dedicating years to studying the craft, and applying theory to practice, was entitlement. Seeking to channel my entitlement into a venture worthwhile I decided to forgo working on Wall Street and soon began teaching Financial Literacy to high school students. What started out as a six-week summer test run transformed into a year-long course. The course continues to be successful and I am now ready to increase the age of new learners to those over the age of 18 -- adults. Therefore, through the visual aid of PowerPoint, it my hope, and subsequent goal, to teach you how to acquire wealth through the comprehension of money and banking. It is my belief that in order to be a successful player in the game of capitalism, one must know the intricacies of the financial system that governs daily life. So, are you ready? |
WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
September 2020
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