The purpose of financial education

WEALTH IS HOW HISTORY SHOWS UP IN YOUR WALLET.

— CONNIE RAZZA

When I tell people what I do for a living, the most common response I hear is that all schools should teach financial literacy to young people. As if teaching young people topics like how to budget, write a check, and complete applications for financial aid so they can take out loans to fund their education, will meaningfully alleviate our country’s systemic income and wealth inequality crisis. 

Now that this conversation has played out dozens of times, my response is something like: “I agree. And an important part of financial literacy is financial history, so we can learn how our financial system and institutional practices have stripped wealth from black, brown, and poor white communities for centuries. Then we can develop the tools to reverse this historical and current economic oppression to right the wrongs that have led to massive wealth inequality in our country.”

If the person hasn’t left the conversation to get a drink yet, I might also say: “Also, learning about financial history helps alleviate the shame that people feel about money, especially if they do not have enough or less than what society tells them they should have saved if only they were responsible with their money.” 

In case you haven’t figured it out yet, I am really bad at small talk.