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Written by Blake Allison
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Financial education is not financial advice. Too often people think that these are one in the same. Unfortunately, nothing could be further from the truth. Why? What people often think is financial advice is nothing more than someone's opinion, which holds true whether it comes from your financial adviser, your best friend, your parents, or even the talking heads on TV and radio.
 Yes, it's sad but true that the hot stock tip your colleague shared with you at work is nothing more than an opinion even though they might claim "now is the time to get in. "But even your financial adviser is only sharing their opinion when he or she tells you how to invest your money or how to allocate your portfolio. It may be an educated opinion, but it is an opinion nonetheless. Why? There often is no one 'right' answer when it comes to making a financial decision, much as there is no formula to always make money in any investment. Even the mighty Warren Buffet doesn't win all the time. However, financial advisers will often try to convince you otherwise, and they will try to convince you that they can beat the market.
And remember that financial advisers are in the business of selling - whether it is a financial product like a stock, a service such as portfolio management, or their opinion. Picking a trustworthy and knowledgeable financial advisor is as much an art as it is a science.
With that said, also keep in mind that financial advice is not limited to the stock market or investing. It includes everything from getting input on other financial decisions that impact your wallet like buying a car, buying a home, or paying off credit card debt. As importantly, there certainly is no lack of information and opinions out there. Everyday we get bombarded with 'financial advice' whether it is delivered to us in newspapers and magazine articles, on TV and radio shows, in blogs, from friends and neighbors, and so on. With anything in life, always evaluate the audience or the source.
Hopefully you understand better what financial education is not. It definitely is not financial advice. So, what is financial education? Financial education is one subject that is missing from most Americans lives. It is a topic whose omission from schools as a mandatory subject is manifesting itself through the financial distress that is pervading every aspect of the economy, Wall Street, and Main Street. Not only is financial education largely absent in schools, at work, and at home, but when it is available, it often is not delivered effectively. Why? One of the most fundamental concepts in education is that we all learn differently - in different ways and at different rates - which applies to financial education as well. Sometimes the advice we get does not take this into account.
Effective financial education is about giving people the right information in a way that is meaningful to them. As importantly, it is imperative to assess what people know - before, during, and after being exposed to new information. It is the only way to measure progress and understanding.
Financial education is a discipline that should give us the knowledge, the skills, the foundation, and confidence to make smart financial decisions every day. It should give us the understanding to recognize when financial advice is an opinion or alert us to a scam or fraudulent scheme. And, it is about life planning not just retirement planning. Financial education should empower us to think for ourselves and help us to achieve financial independence.
However, real results don't happen overnight. While we wish we could snap our fingers, skip the hard work, and ensure prosperity for everyone, it does not happen that way, right? But, it can happen over time. But, you have to be willing to roll up your sleeves, do your homework, and commit to making positive changes. Only then can you create a financially healthy life for you and your family.
Financial education is about you. We know that your dreams are as unique as you are - much as your financial struggles are, too. We also know that there is no one size fits all approach or any short cut that is capable of helping you achieve your goals or overcome your hurdles instantly. But, you can start making a positive change. Invest in yourself and take the first step in securing your financial future - educate yourself.
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