Millions of Americans lack basic financial illiteracy in today’s increasingly complex world. In the US, the education system makes great efforts to teach reading and writing, while refraining from teaching financial literacy. Although each financial literacy definition is varied, most have similar components. The President's Advisory Council on Financial Literacy defines personal financial literacy as "the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being." The most stressed subject that Robert Kiyosaki talks about in Rich Dad Poor Dad is that the biggest difference between rich and poor people is their financial intelligence. Financial intelligence is more than just knowing
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Which means students can graduate with a degree and learn nothing about personal finance. Kiyosaki stated that “a person can be highly educated, professionally successful, and financially illiterate” (77). Therefore, doctors and attorneys can open their own practices not knowing how to read financial statements. Financial literacy is the expertise to expand if the goal is to build wealth and security. Kiyosaki states that "the rich are rich because they are more literate in different areas than people who struggle financially", inferring that financial education is the best investment (67). Developing financial education requires time and effort, which is the only disadvantage that stops people from doing so. If someone commits the time, they can gain many advantages to set the path to becoming financially literate. Making financial education the biggest investment is not a difficult decision, but few people make the wise choice. Without financial education, people lack the base of financial success. Financial education is one of life's greatest bargains that cost little, risks nothing, and returns huge. More often than not, the poor don’t invest wisely for the reason that developing a financial education takes time and effort. Developing financial literacy is one way the rich stand out from
Which means students can graduate with a degree and learn nothing about personal finance. Kiyosaki stated that “a person can be highly educated, professionally successful, and financially illiterate” (77). Therefore, doctors and attorneys can open their own practices not knowing how to read financial statements. Financial literacy is the expertise to expand if the goal is to build wealth and security. Kiyosaki states that "the rich are rich because they are more literate in different areas than people who struggle financially", inferring that financial education is the best investment (67). Developing financial education requires time and effort, which is the only disadvantage that stops people from doing so. If someone commits the time, they can gain many advantages to set the path to becoming financially literate. Making financial education the biggest investment is not a difficult decision, but few people make the wise choice. Without financial education, people lack the base of financial success. Financial education is one of life's greatest bargains that cost little, risks nothing, and returns huge. More often than not, the poor don’t invest wisely for the reason that developing a financial education takes time and effort. Developing financial literacy is one way the rich stand out from