flickr / Christopher Saccaro
I ran across an article last week (Young Adults Need To Seek Wealth Literacy, Not Financial Literacy) which suggested that there is a problem with current financial literacy programs and that we ought to be teaching young people about building wealth instead. The author argues, “there is a loss of translation in somewhere between the sound principles of financial literacy and its usefulness in creating wealth… none of these traditional business or financial literacy courses really teach any student how to create wealth.”
On a certain level, I agree with the assertion that basic financial literacy doesn’t always offer specific solutions to wealth generation, but I certainly don’t think basic, sound, financial literacy doesn’t have a place in a person’s overall financial education. In fact, I would argue the opposite: that these “basics” such as budgeting, saving and credit management are the foundation of wealth creation. Having lots of money is no guarantee of future financial security. There are plenty of once wealthy people who have since become destitute which proves this.
Is there a disconnect between basic financial literacy principles and the creation of wealth? Leave a comment and let us know what you think.