In my previous 12 posts I talked about the 21 reasons for this Mortgage Mess. Now I want to discuss how we as Americans can make sure it does not happen again.
The single most powerful idea that each of us has direct control over is our own financial literacy. In just 4 or 5 hours of writing time I have come up with 130 different financial mistakes that hundreds of millions of Americans make every year, year after year. And I have made and am currently making some of these mistakes myself. So, I am not immune to these mistakes.
Why are we making these mistakes? First, we are passing on what I call generational "sins" of the financial type to our children and grandchildren. We are teaching them what we know and believe to be true, often without realizing that what we are teaching them has not worked for us.
Second, our education system in this country does not teach and has not taught for decades, if ever, financial literacy. Our children learn lots about sex education; but nothing about money, finances, savings, credit, debt, etc. We are leaving them to the wolves as they graduate from high school.
Third, a large majority of Americans I believe are lazy about learning after their formal education. We would rather watch American Idol or Survivor than read a financial book, magazine, or website. Because of this we get taken advantage of by unscrupulous lenders, over promising financial advisors, and crafty politicians.
We have ourselves to blame! But, we can do something about it! We can take back control of our lives, our futures, our kids and grandkids' futures, and our country's future IF we educate ourselves and seek to learn.
Subscribe to a magazine like Money or Kiplinger's Personal Finance, buy and read books such as in the Rich Dad Poor Dad series, etc. I am also thinking seriously about writing a book on the financial mistakes we make.
In my next post, I will talk about my second idea that is starting to take place already. Thank God!
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