Seek Wealth Literacy, Not Financial Literacy

However, despite the fact that millions of individuals have read “Rich Dad, Poor Dad,” one of the best financial literacy books available, there is a disconnect between the basic ideas of financial literacy and their application in the pursuit of financial independence. There is still a bridge to wealth-building that novels such as “Rich Dad, Poor Dad” have failed to cross, and it is somewhere out there.

This is not a bridge of financial literacy, but rather a bridge of financial wealth literacy. In the event that I were the president of a university, I would make certain that my business program included the following courses:

(1) What is Leverage and How Does It Work?

(2) The Four Pillars of Financial Success

(3) How to Make Money Investing

(4) Cryptocurrency , Gold and Precious Metals

(5) How to Make the Most of Your Time

(6) Exposing and dispelling common investment myths; and

(7) Networking

Following the completion of the fundamental curriculum, I would deliver numerous more classes, including the following:

(1) The Relationship Between Politics and Investing; and (2) The Relationship Between Politics and Investing

(2) Taking Advantage of Technology to Increase Wealth

The knowledge gained from all of these courses would provide an adequate basis for building wealth without the need for considerable trial and error, hardship, or outright failure on the part of young adults. Instead, traditional institutions of higher learning do not provide such courses at any level and instead remain entrenched in curricula that are geared toward theory rather than application, such as statistics, economics 101, marketing, and financial management.

After all is said and done, even at the Master’s level, none of the typical business or financial literacy courses will truly educate any student how to accumulate wealth. This is precisely why young folks need to seek a completely different basis in order to grasp how to actually accumulate wealth in the long run.

In my experience, surveys that assess financial literacy in young adults are insufficiently structured because they place too much emphasis on traditional concepts such as stocks, options, and real estate rather than providing an assessment of whether young adults are knowledgeable about any concepts necessary to build wealth, as I have discovered.

A person’s ability to manage their finances and their ability to manage their wealth are two completely different things. I believe that it is possible to be financially literate without also being financially wealthy.

What distinguishes financial literacy courses from wealth literacy courses is that the former focus on financial literacy. Young folks rarely think about financial literacy subjects such as budgeting, basic comprehension of investing ideas, funding retirement accounts, and so on.

These are topics that young adults rarely contemplate, but they are not concepts that will help them develop wealth. Financial literacy classes educate young individuals what they need to do in order to accumulate wealth, but they do not provide them with any of the skills they will actually require in order to accumulate wealth successfully.

Furthermore, they never educate them of any concrete strategies to develop wealth other than common sense, such as learning how to invest, maximising your 401 (k) payments, and so on, to help them achieve financial independence.

When comparing financial literacy courses to basketball players, the comparable level would be to tell power forwards that they need a good array of post-up moves close to the basket, a sweet outside shot to make opponents respect his range, a quick first step to create off the dribble, and a solid defensive game so that opponents do not exploit him for being a one-dimensional player, as an example.

Except after telling the power forward that, there would be no additional explanation but a wish of “good luck” and a pat on the back. A wealth literacy course would truly teach the athlete just what he would need to do in order to attain success in each area of his game that would distinguish him as a champion athlete, rather than general financial knowledge.

Teaching young adults what to do will have minimal impact on their quality of life or ability to make a successful transition from being young adults to financially independent adults in the long run. It is significantly more necessary to provide a toolset that explains how to do so.

This makes it far more vital to look for courses that teach wealth literacy rather than financial literacy to young adults in this age group.