Financial Education

The topic of financial education has been on the front of my mind quite a bit lately. As I work with a lot of potential home buyers and sellers I find that there has been a lot of misinformation spread and there are a lot of misconceptions that are being perpetrated by people in the news and media. 

I believe that lack of financial literacy is one of the primary causes of the stagnant poverty levels and slow wage growth in the country. I remember sitting in a class in grade school where the teacher was telling us about the stock market. She said that it's unlikely that your stock portfolio will outpace inflation as time goes on, so the risks of investing in the stock market were simply not worth the rewards. The fact that she was wrong is not what frustrates me. Sadly, she might've been speaking from direct experience. Her losses in the market were probably more caused by a reluctance or inability to take control than by poor money managers.

Owning real estate takes work. It is naturally less passive that investing in stocks. Even if you are not the one unclogging toilets, you probably know the name of the company that manages your property and does that for you. When you buy real estate vs. stocks, you're much more likely to pay attention to the purchase process, and the condition of the asset you're buying. I understand that it is tough to manage, but it's not as tough as some think - and per hour, sometimes it's better than any side job you can get. 

I have met so many real estate investors that didn't understand real estate before getting in, but stuck with it and learned a ton in the process. That's how I got started too! That said, I think there is a much better way. I feel that lack of good financial education in schools is keeping a whole lot of people out of the market unnecessarily.

What are your thoughts? Are we in need of better financial education in grade school & college?