Submitted by Amanda Clayman (not verified) on May 6, 2008 - 9:36am.
Giving people the right information is only part of the challenge. In reality most of us make financial choices not based on rational consideration of our self-interest and opportunities but rather driven by feelings, hunches, and biases.
In addition to providing information I believe we also need to address the circumstances under which decisions are made. Helping people to recognize that financial decision-making can involve learning to moderate strong emotions of anxiety, exhilaration, or disappointment does a more complete job of giving them the tools they need to make good choices. Developing a set of "financial values" is a positive way to get people to think about the greater role of money in their lives.
Financial problems can be complex - involving family systems, public benefits systems, and more. One of the reasons our teachers, human resource professionals, therapists etc. tend to resist engaging people around money is because they have their own financial issues and concerns. In order to serve the true need (because otherwise why waste all that time and effort) we need a comprehensive solution that addresses not just the "what" of money but also the "why" and "how."
Financial Literacy - what, why, and how
Giving people the right information is only part of the challenge. In reality most of us make financial choices not based on rational consideration of our self-interest and opportunities but rather driven by feelings, hunches, and biases.
In addition to providing information I believe we also need to address the circumstances under which decisions are made. Helping people to recognize that financial decision-making can involve learning to moderate strong emotions of anxiety, exhilaration, or disappointment does a more complete job of giving them the tools they need to make good choices. Developing a set of "financial values" is a positive way to get people to think about the greater role of money in their lives.
Financial problems can be complex - involving family systems, public benefits systems, and more. One of the reasons our teachers, human resource professionals, therapists etc. tend to resist engaging people around money is because they have their own financial issues and concerns. In order to serve the true need (because otherwise why waste all that time and effort) we need a comprehensive solution that addresses not just the "what" of money but also the "why" and "how."