I
recently came across an online Time article about the big push for mandatory
personal finance classes in U.S. schools.
Apparently, there has been global fight against financial illiteracy
with nations like Australia and the U.K. having voted to make financial
education mandatory to their school systems.
According
to Mr. Richard Cordray, a director of the U.S. Consumer Financial Protection
Bureau, “Young people today and future generations should not have to repeat
the financial mistakes made by earlier generations. This is why we support a plan to bring
financial education into K-12 classrooms.”
Meanwhile,
here in the Philippines, President Aquino just signed into a law the “K-to-12
Act” or the Enhanced Basic Education Act of 2013. This adds three years to the country’s
10-year basic curriculum to make Filipino children at par with their peers in
other countries.
Perhaps
the next logical step is really to mandate for the inclusion of financial
education in grades K-to-12. Apparently,
there is already a “Financial Literacy bill” that has been submitted in 2010
for approval by Congress. Both the
Bangko Sentral ng Pilipinas (BSP) and the Department of Education have also
taken steps to teach schoolchildren about saving and investing.
During
the Citi-FT Financial Educaton Summit 2012, BSP Governor Armando Tetangco Jr.
was quoted that “While financial education may not immediately be considered a
core function of a monetary authority or a supervisor of the banking system, it
is actually quite intrinsically linked to our overarching goal and vision. To us, financial education empowers people to
manage their resources with prudence, instills the discipline of saving
regularly, and safely grow their money.”
All
of these are good news for the future our Filipino children. However, we must not forget that children
learn first about financial management and discipline (or none of it) in their
own families. Psychologists would say
that “children would pay more attention to what an adult does than to what an
adult merely says.” Thus, parents play a crucial role in developing the
character and values of our Pinoy children, especially when it comes to
handling money.
The
Philippines is fast becoming the rising tiger of Asia. With the expected surge of jobs and wealth in
the country, we see Filipinos enjoying their new found purchasing power. Sadly, this leads to the insatiable want for
material goods, with the mindset of having more and having the best.
I’d
like to quote Mr. Greg W. Huffman and his online article on “Materialism and
its effect on culture:”
“Materialism
feeds on weak parenting and children feed on weak parents. Children learn
everything from their parents. Raising children the right way is an
invaluable way of helping them raise their parents' grandchildren the right
way… A culture full of spoiled children extinguishes the fire of earning what
we have. A culture full of spoiled children encourages laziness. A culture full
of spoiled children breeds spoiled and irresponsible adults… The ability of
parents to discuss with their children financial responsibility is paramount.
Showing children reality and not "reality" television will benefit
them and our culture.”
Hope
this helps.
Ge
Gerald “Ge” Cantor’s mission
is to help Filipinos save and invest for their future while protecting
themselves and their families for the present.
Ge is a Financial Adviser of Pru Life UK (www.prulifeuk.com.ph), a
Financial Planning Advocate of Personal Finance Advisers Philippines
Corporation (www.personalfinance.ph), a Registered Financial Planner graduate
(www.rfp.ph), a Certified Public Accountant (CPA), a Certified Internal
Auditor (CIA), a Son of Lourdes (LSM), and a La Sallian (Animo La
Salle!). Ge is proud to be an ex-OFW, a "career-shifter", an
entrepreneur, a baller, and most importantly, a "proud" dad of Gia
and Clarie. You may e-mail him at geccantor@hotmail.com, or contact him at 09177069333 or visit https://www.facebook.com/iPon.ph
for more of his iPon tips.
