Cash, as a conceptual tool of the essential technology for mankind, finance, is one of the forgotten principles in financial education in our classes, both in early stages and even in the particular University. Money and monetary education in Spain have an inexplicably (or not, as we will see) confusing relationship.
Accepting the importance of financing for the evolution of our culture, since its dawn, how s it possible that even now an economist can complete the career without knowing exactly what cash is?
Fund and capitalism
To be able not to tire the reader in advance, I will advance some summary: teaching and learning budget does not mean turning the instructor or the student into a remodeled capitalist. Finances, despite the poor press they have in certain industries, are not part of a key plan of neoliberal capabilities to disseminate the capitalist seed across the planet. Instead, the opposite could be argued: the particular non-teaching of finance or even, more specifically, a way training partial and superficial financing, helps to barely have practical alternatives (or at least suitable in certain sectors or groups) to the hegemonic capitalist program.
Financial technologies does not arise during capitalism. Quite the contrary, the particular accounting of merchandise trades, the concept of the interest rate since “payment” for postponing intake or investment, a way associated with traveling economic time in to the future and into the previous, are tools that check out the same time (or even before) of the cuneiform writing, in late the fourth millennium a. D. in Sumeria.
What are finances for?
Understanding the key elements of financing will allow us to begin to comprehend the relationship between money plus education and some reasons for bad financial education in Spain. Financial allows society:
- Reassign economic worth along the timeline. Mortgage loans are usually financial contracts that reallocate economic value. Under the guarantee that the mortgaged person can pay their mortgage payments monthly for many years, fixed or variable because agreed, the bank leaves all of us a sum of money that we might surely never accumulate, to get a home. Do you guess that is not interested in explaining within education how interests plus calculations related to it function?
- Reassigning dangers: finances can go through the mop of the uncertainty that sets apart the present from the future, within Goetzmann’s words. Finance permits us to face the risks that can be decreased or restructured, such as the economy in which our mortgage companion would be if we died. All of us cannot be immortal, but we are able to foresee the economic implications for ours at this time. Whom benefits from not knowing how to choose a great life insurance?
- Reassign capital: finance facilitates financial growth and prosperity, when used properly. Stock marketplaces have allowed entrepreneurs to get capital of thousands plus hundreds of thousands of small traders who don’t know you whatsoever. Finance encourages us to prevent consuming today to provide our money to visionaries who may make their financial dreams come true (and therefore better the society from the future), in exchange for possible future profitability. A good monetary education would have saved numerous headaches to the preferentistas, towards the shareholders of Bankia or even, more recently, to the shareholders from the Popular Bank.
- Expands the access plus complexity of the reallocation associated with value, risks and funds. A complexity that may not have to get accompanied by the virtuous discretion of any financial agreement. Thus the interest rate trades, contracted by thousands of customers mortgaged in 2007, are meant to be a cover for the increase of the Euribor, however , with out personal finances, one would not really detect that if the interest price fell, instead to collect through the bank, you would have to pay (as it happened).
Money and training
The keys in order to finance and the true which means of money should begin to be described in the first courses in our education. Not to make all of us more capitalist, but for making us smarter. To go through being workers resigned in order to entrepreneurs of our time and money. To prevent being obedient consumers to understand to invest our savings. In order to abandon the role of the trusted customer and start as being a good financial negotiator. To begin voting proposals with financial sense, instead of believing the particular magical solutions of electoral smoke sellers.
Money and education: 2 fellow travelers who should learn to treat each other, if we like to live in a prosperous plus balanced society.