Schools do a terrible job of teaching people how to manage their money.
I went through elementary school, high school, and college and no one ever taught me even the basics of personal finance.
Sure, I learned about the pythagorean theorem, the Boston Tea Party, and Newton’s laws of motion.
But what about the important stuff??
How come no one ever taught me how to create a budget, why you need an emergency fund, how to responsibly use credit cards, or the importance of paying yourself first? What about dividend stocks, life insurance, or 401(k) plans?
That’s the kind of stuff you need to know if you want to get anywhere in this world!
But since schools skip right over these vital lessons, we have to depend on our parents and other family members to guide us.
And if our parents struggled to manage their own money, how can we expect them to teach us those money lessons they never learned themselves?
This is part of the reason why there is a growing disparity between the rich and the poor and the middle class. Rich people teach their kids how to handle money, but the poor and middle class don’t.
And so the cycle continues on and on with each generation. The rich get richer while the rest of us work our butts off and never seem to get anywhere.
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