Financial Literacy – The Education We Often Lack

Warren Buffett, a world class investor, often says… “You have to learn to be an investor, if you want to be wealthy.”

Have you ever noticed why a lot of Filipinos are in poor financial state? Or why, even if most are educated, often are failing to achieve success to their path to financial freedom and escape the rat-race of financial liabilities?

The one to blame is none other than our lack of financial literacy; the knowledge of creating money – a knowledge so simple, but yet neglected due to the lack of realization our relatives, friends, and even society had come to accept.

Nowadays, people want to go and establish their own careers in life, create a name for themselves, and live the best life one can only dream of. From the teachings of our parents, teachers, and relatives; we now have to achieve scholastic success in order to create a brighter future…” anything else is useless.”

Therefore, as we follow the footsteps of our predecessors; most came to understand that the path to success is to study and be the best at it – Sad to say, most students who will graduate from College or at High School, fail to realize the pit-falls of not learning financial literacy. Often you’ll see graduates who want to have a job – but can’t have it because there was no opening or they are not qualified yet; so, in order to support one’s self, he or she decides to do something else – but they get stuck on it, because there’s nothing else they can do. Even high school graduates face these problems; some are just unfortunate to not be able to continue college, and now they are stuck with a less than qualified status just to get a measly job with minimum wage.

Financial literacy is a key knowledge on how to establish entrepreneurship; the science of creating money out of anything. It is a basic survival knowledge required in order to achieve financial freedom and success. You need to learn to sell, create profit, practice supply and demand, balance assets and liabilities, and establish businesses or investments. They don’t teach that at school. Nobody teaches how to invest in stocks or funds, or even how to start a business… That’s why after graduation; graduate often have jobs – but are not wealthy or successful. We now are trapped within the conventional education’s idea that the only people who can succeed are the one’s who get in top of their studies at school – even if it is wrong, how would you change something so deeply ingrained in the first place?

There’s no difference on creating profit by selling a product as an entrepreneur, versus having a job doing what you have learned in school or college – you still provide something in the end, question is… “Who do you make rich? Is it you or the company?”

This is the simple reason why the poor gets poorer, and the rich gets richer; forget politics, government, and trends – if you can’t even learn how to invest, or create a business, sooner or later you will suffer the consequences of relying only through a job or your conventional education.

Although, I don’t mean you will not get rich by having a good career; but what I do mean is that, even if you have all the money in the world – you risk losing it if you fail to invest or even establish a business out of it. Then eventually, when the company gets tired of you, or you get sick, or if your tenure is up – then your only primary source of income will vanish.

That’s why learn to be financially literate, learn how to make your money grow by investing; learn how to invest in stocks, trust funds, mutual funds, or even establish your own business. It doesn’t have to start big; start small – slowly and surely. Buy investments in small quantities, then later, when you have enough experience, then go ahead and invest more. When you start a business; create a business where you can manage and use your knowledge in order to facilitate that business to success. Do not just get stuck in a 9-5 job, hoping that one day you have saved enough… because what you have saved in the bank will not grow, without it being invested in financial vehicles. You are risking your life’s legacy by not preparing for economical crashes and financial downfalls – the money that you earn, kept, or saved right now, will be less valuable in the future due to currency depreciation.

Learn to be an Investor. – Jay Penn.

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"Jay Penn" is a Financial Literacy Mentor and Investor who is best known for his Book "Polymath's Profit". He is also an expert in the field of Maritime, Engineering, and Emergency Medical from his past careers. Experienced with Security Analysis, Crisis Prevention, Contingency Planning, and Global Maritime Distress Safety System. Currently instructs Nautical Sciences and is an avid Researcher of Business and Economics. He is also recognized as the "Top Maritime Instructor" for 3 consecutive years in the Maritime Education from 2014; raising the standard for the Maritime Industry and Training.

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