Financial education is lacking in the general public with even people who have degrees in finance and business being financially uneducated. The “ostrich syndrome” is alive and well in the financial world and that is where these institutions want you to be.
Financial education is something that the masses don’t have and because of the lack of it they end up becoming slaves to the financial institutions. Lumped into this category are the people who have degrees in business and finance. Just because an individual has formal education in finance it doesn’t mean that they are financially educated. They have been educated by the teaching institutions into the ways of the financial institutions.
Any person who has financial education, and educated by a teaching institution has been educated to leave the teaching institution and get a job within an industry and assist in making that company within the particular industry stronger. If they are not an asset then they have no value to the institution they are employed by. So all of the financial education is pro-business!
Translate this to the financial industry and look at the financial education that people receive by the teaching institution; it is pro-financial institution. How do the financial institutions make their money? They make their money on the backs of the consumer, by selling products to the end user. The consumer is the end user! You see anything that makes one group stronger will make the other group weaker. So what makes the financial institutions stronger makes the consumers weaker, because the financial institutions make their money selling products to the consumer. They must “extract the cash” from the consumer in some way or another and justify it as right.
So all of these financial planners and advisors are trained by the teaching institutions to make the financial institutions stronger and if they fall down on the job they get fired. The financial institutions operate under four basic rules;
- They must get your money.
- They must get your on a systematic and on going basis.
- They must hang on to it as long as possible.
- They must give it back as little as possible.
If these financial institutions violate these rules they are out of business. Therefore they have to get the consumers money, so doesn’t it make sense that the financial information that they sell to the public, is pro-financial institutions. Take a look around and survey what you do financially. I bet that the majority of the financial things that you do, are centered around the financial institutions in some fashion or another. Sometimes everything that is being done revolves around the financial institution in some way or another, and the financial institution get fees and charges from the consumers in almost everything they do.
Is the majority of your financial activity focused around the financial institutions? If you answered yes than regardless of your financial education, you are financially uneducated. Regardless, of your financial education if you are fueling the financial institutions you are working for them and all of you financial education has guided you right to them. I have worked with clients who think they know it all financially, and end up losing huge sums of their hard earned cash.
If everything that the financial institutions were doing was right then people would not be out living their hard earned money. They would be wealthy beyond dreams. But unfortunately the gains are taken by the financial institutions and little is given to the consumer. I have heard plenty of supposedly highly educated people defend these practices even though they were losing. Usually the people defending these strategies are the people who work for the financial institutions. Don’t get me wrong financial institutions have their place but it’s not fleecing the public.
Actually if you have no financial education you are better off because you have no preconceived financial notions. You are an empty canvas to be painted on and will find it easier to make shifts in thinking. Financial Freedom Radio is conducting a series on “Why You Should Be Rich”, you can listen live to this series of download past episodes. The show is Friday 9:00 AM EST. You can also download to you i-Pod through i-Tunes for free. Simply go to Podcast and type in “Financial Freedom Radio”.