Sunday, May 19, 2013

My closing letter to my students: I Passed Personal Finance, What's Next?

What happens after you pass Personal Finance? Does the knowledge you exhibited in your assessments and on your final examination guarantee you will live a financially sound life? Unfortunately it does not, because the financial choices you choose to make in the coming days, months, and years will be driven as much by your emotions as they will your knowledge.

So you passed Personal Finance, what's next? You have to bridge what you have learned to how you will apply it. To begin to do this you should first internalize that this course was not just another period in the day, but rather a series of tools and concepts that improved who you are and the choices you are capable of making.

Comparatively speaking, our overall test scores are competitive on a national level. Depending on which Personal Finance class you took, you have either passed a college level course or the first comprehensive semester long personal finance course of it's kind. You are capable of applying financial tools and concepts to your own goals that many adults do not even know exist. 

1. You are now the type of person who sets goals and makes wise and informed financial choices to reach your goals.

You understand the rewards and consequences of financial choices. You set financial goals for yourself and make choices to reach your goals. You will be motivated to make financially appropriate choices such as establishing three direct deposits once you get a job; a deposit into a dedicated emergency savings account, a deposit into a dedicated retirement account, and a deposit into your checking account...

2. You are now the type of person who knows how to put a financial plan into action.

People will recognize that you are studious and confident in the financial choices you make. You appear happy and secure to others... 

3. You are now the type of person who people identify as being financially savvy. 

Embracing and internalizing the previously outlined steps as a part of who you are matters, and is relevant to almost every aspect of your life. Let me explain... 

Imagine throwing a pebble deep into the center of a crystal clear pond. The result is ripples that wave one after another throughout the pond, deep from the center, slowly to the periphery.

Whether you want to hear it or not, your choice to both prepare for your final examination and apply what you have learned in this class to your everyday lives is much like the pebble hitting the pond. Your future financial choices will send a wave deep into every aspect of your life and the lives of others.

Your first wave will begin just after high school with your post-education choices and subsequent college debt. While at the same time, you will be testing your discipline with a credit card and future car debt.

Before you know it, you will be a young professional deciding whether to fill your bartenders’ pockets with your discretionary income or fill your own future pockets by adequately investing for retirement.

Sooner than you may imagine, it will shape your family’s quality of life and your subsequent peace of mind.

Eventually, it will guide your opportunity to reach financial freedom at a young enough age to enjoy retirement as others struggle to live on a fixed income, working well into their seventies.

In the periphery, lies the legacy for your future children, and your ability to prepare them for a world full of financial trickery and hidden wealth.

Just as the ripples in the pond get bigger and bigger, so will your financial responsibilities. Being financially responsible is not the result of a high school or college course, nor is it the result of being disciplined and conscience of your choices. It has to be both, and your financial education has to be ongoing.

Now as you have envisioned what you can expect as you move forward, I want you to imagine the waves of choices you will be faced with in a different lens. For a moment, envision shouldering a responsibility much greater than your own financial future. For this moment - - internalize your responsibility as a next generation American.

Our country desperately needs waves of economic change that will transform where we are and the direction we are heading. Our country needs a generation full of financially astute and responsible leadership that will guide us out of consumer and government debt massive enough to change the United States as we know it.

My challenge for you is to understand how to responsibly manage the waves of financial challenges that you will face throughout your life, while making waves for your country that will better the lives of the generations to come.

Let what you have learned in this course be the pebble that creates the first wave of change that we all need.

No comments:

Post a Comment