by People for some reason are under the impression that the only ones that need to know about finances and making ends meet in their lives, are professional finance people and accountants. Regardless of whether you are an English teacher, a mathematician, a Physics scientist, an engineer or a medical doctor, we all pretty much need to know how to handle our “business.” I ain’t talking about a company or a local business, but our financials. We need to learn money management, how to grow that money and to live healthy lives.
When people come out of High School and go straight to college, most of them know the very basics: swipe that credit card all day long. They don’t understand how the credit system works, or what’s it used for, what are the cons of using it and having bad credit score etc. As long as that card is paying for product, most Americans (young Americans) don’t really care what happens and who pays for it in reality. You think there is a college debt problem in the U.S.A? Think twice…there is a credit card debt in the US. People think credit cards are a toy they can swipe all day long.
But to be honest, that is the least of our problems…
The biggest problem is that people don’t understand basic business. They don’t know how to take out a mortgage, how to value risk and even take risks. Whenever someone listens to the word “loan” fearful thoughts start crawling into their brains. As if credit cards aren’t debt systems. It’s just the way we’ve perceived these things to be different. And I guess you could say, loans usually handle larger amounts of money (but not always.) The only way for people to grow their businesses and growth their communities, is through loans. As I’ve said over and over again, the only way to create new wealthy is through the credit system. The agreement (if you will) between the lender and person in debt to the lender. That is what has built those tall skyscrapers in NYC. You think it was cash? Hell no! Stock value and loans: the 2 magical assets (yes a loan can be an asset) that make the world spin.
Here’s the thing: when you take out a loan, what happens is you are able to reach a much larger market, with more income potential. So if can only be taught how to balance the owed amount with your income, you would be golden. You could owe money your whole money, but still manage to be rich. You think “the rich” don’t owe money? Of course they do…and they aren’t in a hurry to pay it off because it’s an asset: it’s more money than you currently have (even if it’s not yours.) President Nixon pretty much screwed things up from the time he took the US dollar of the Gold standard and made it the leading currency in the world. The reason is, because there is a lot of money being printed, creating inflation. So if there is money been given away to people, why would you not want to take it? Why would you want to try and fund something using existent cash, when you can get someone else to pay for that money?
I don’t want you kids looking at college tuitions and being afraid. If you are well prepared and know why you are doing what you’re doing (and have something lined up) you will do well. Money management and learning how to balance your finances, isn’t something that is important just regarding your tuition. While living as a college student, you will need to know how to wisely spend your allowance or the money the bank gives you for every day living purposes. After you graduate, you will need to understand how to better pay down that debt. Don’t trust the financial advisers that most likely owe money to banks. Make sure you hang out with smart people that have been in your situation and know how to guide you. If you have questions, of course feel free to ask me.
Because I’ve already written another article today, I will cut this one short. Maybe do a part 2 article? We will see…stay tuned!
