We may all agree that financial literacy is important – we should all know and understand how the banking system works, how to balance a checkbook, how to make a budget, how loans work, what depreciation and appreciation means, what investment of money can be done, how a credit card works, etc. Additionally, for people who wish to operate their own businesses it is important to know how accounting /bookkeeping works, how to secure a business loan, how to budget for the business, how to forecast future income and expenses, and more.
However, while we may all agree on the importance of this knowledge it is apparent, unfortunately, that too many young people are completing their school educations without learning any of this – either within the educational system, or from their parents. Additionally, for immigrants, they may need to “relearn” much of this when dealing with banking and financial systems that operate differently from those in their countries of origin.
As a result, individuals and families suffer financially, fall into unmanageable debt, and find themselves falling in a downward spiral toward poverty. Small companies that would contribute to the development and prosperity of the economy and society, often become bankrupt within the first year of their existence.
As of now, the introduction of "financial literacy" as a teachable subject into the school curriculum seems to be a matter for the distant future, primarily because of the shortage of qualified teachers. We believe that the families and individuals can and should take this important matter into their own hands. Magen Mishpacha, with the help of Vladimir Haham, a professional coach in “Financial Literacy” are offering workshops and lectures on this all important topic.