Ever wondered why? Why was (and still is) Financial Literacy not taught in schools?

In schools:

(1) Maths - We learnt how to solve logarithmic equations, how draw quadratic graphs to find x or y, how to measure angles and solve simultaneous equations.

(2) Chemistry - We learnt which cations combine with which anions to form what compound, how much chemical we need to titrate in order to reach equilibrium.

(3) Physics - We learnt how every action creates a reaction and how much force is needed to move an object over a distance and how to distinguish whether work is done.

(4) Biology - We learnt how to dissect frogs, the blood circulation & respiratory system in humans and transportation system of food and water in plants.

(5) Geography - We learn which rock formation is caused by what type of soil or which tectonic plates move and how migration occurs/human demography changes.

(6) History - Which powers colonised which country, who/how started World War 2, how sultanates rise and fell, how fishing villages developed into ports and thriving city.

DON'T get me wrong, the above are important as part of our educational journey, definitely enriching (maybe not when we were slugging thru them during school days haha, but at least when we look back now).

Well, schools even taught us how to saw wooden pieces, drill metal plates, bend acrylic, file/sandpaper materials to make key chains, photo frames, book-holders (in D&T, Design & Technology). And in FCE (Food & Consumer Education, yes it's no longer called Home Economics!), students are taught to identify and count calories, read ingredients, bake pizza, fry udon, make buns, make cup cakes, bake cookies.

Some stuff that my son made/baked/cooked during his FCE class

BUT have you ever wondered why we NEVER learned financial literacy in school? For example, how to budget our expenses, how much to save for emergencies, or the difference between needs and wants? How can we make our money work for us through investments? How to cater for our insurance goals and medical needs? What about short-term needs versus mid-term plans and long-term goals? These topics were never covered during our school days and still aren't today (trust me, my children are in Primary and Secondary school, so I know! Plus, I've taught couple of dozens of Pri/Sec tuition students over the years since my Army, University, and early working days, and I'm familiar with the syllabus).

Isn't it equally or even more important that we learn FINANCIAL KNOWLEDGE like how to:

(i) budget our pocket money/income and plan our purchases/expenditure?

(ii) knowing what are our needs vs what are discretionary or wants?

(iii) importance of savings and the benefits and how to do it?

(iv) catering to our insurance needs and medical expenditures?

(v) setting aside emergency cash for short term needs?

(vi) putting money to work in the middle term plans and

(vii) investing for long term goals like retirement?

Admittedly (iv) to (vii) may be more advanced for students, but surely (i), (ii) and (iii) should be taught in schools? Why is it left to parents and maybe even banks (think the POSB squirrel mascot and the OCBC might savers) to teach our kids (i) to (iii)?

In any case, if schools do not teach us these, then it's up to us to learn and find out (sometimes through knocks/bruises here and there) along our growing up journey since money and finances is definitely something we NEED to use and engage in throughout our lives!

As for myself, as briefly mentioned in my ABOUT ME section - Even though his friends and colleagues attempted to introduce him to financial literacy and investing during his early working years in the 2000s, I was too stubborn, lazy, busy, or find it an alien language (insert any excuses you can think of) and chose to ignore the importance of financial knowledge and literacy in everyone's lives.

It wasn't until the mid-2010s that two of his friends (let's call them WK and RC), to whom I am eternally grateful for, finally helped him experience the aha moment regarding the power of investing, compounding dividends, and distinguishing our needs from wants. I can still remember vividly - RC delivered the <Millionaire Teacher> book to my house on Xmas eve as a Xmas present and WK started me on the OCBC Blue Chip Investment Plan (BCIP).

From that point, I gradually became aware of the power of making my money work harder for him, rather than just working for money! I realized there's a limit to how much time you can sell to earn money (a maximum of 24 hours per day!), but there's no limit to how much your money can earn for you as you eat, sleep, travel, play, etc.!

Since then, I have embarked on a lifelong journey of self-education, reading books, news, blogs, and listening to podcasts, while also subscribing to investment courses in pursuit of achieving FIRE. Just as it dawn on me that Singapore's formal education system does not teach one of the most crucial life skills, I was equally surprised by the lack of interest, knowledge, and time his family and friends had regarding their finances and investing. Therefore, I have taken it upon myself (at least I try) to promote discussions about financial knowledge among those around him and to enhance financial literacy among his loved ones!

What about you? What are your thoughts on the Financial Knowledge (i.e. the section highlighted in green above)?

Don't you want to improve your financial knowledge? Gain insights throughout your lifelong journey with finance and money? If this resonates with you, I encourage you to read more, listen more, think more, and open your mind, ears, and eyes (don't me like stubborn/lazy me in the past) to various aspects of financial knowledge in your everyday life. Whether it's news, conversations, financial blogs, or professionals' views in different forms and shapes. After all, money impacts every aspect of our lives, from birth to death!

To your financial knowledge,

Mr MH