I’d be lying to you if I told you I learned about finances in school. I’d also be uttering false statements if I said my parents made sure I was financially literate from the day I learned about what money is.
I first learned about what financial literacy actually is around 7 years ago. Back when I made the big decision to move to the Bay Area from Orange County, California. Back when my credit card debt was starting to spiral out of control and I was in dire need of a solution.
I learned out of necessity and desperation.
“Mom, when do you think I’ll earn my first million?” A million in Philippine Pesos, that is.
The year was 2011. I asked my mom this when I was a fresh graduate from college and had just entered the workforce after passing the Board Exams. I decided to work with my dad building houses and developing our subdivision instead of being employed by other bigger companies like my friends did.
“You are good with money,” she said. “You save money just like me. I’m not sure when but I bet it won’t take long for you to save up a million pesos.”
Saving is easy. Keeping the value of that hard earned money? What about growing that money you saved? Now, that is a different story.
Save. In the words of Robert Kiyosaki, “Savers are Losers.”
What does that even mean? Is my mom wrong? What am I supposed to do?
In 2018, I started looking for ways to make the most of credit cards and how to pay off accumulated debt. I thought this was the simplest solution.
One YouTube video led to another. From budgeting to debt management, to insurance, to taxes, to investing, to retirement, and so on.
This is how I came across personalities like Dave Ramsey, Robert Kiyosaki, and many others. I learned more about saving especially for emergency funds, and investing in assets that put money in your pocket.
If I didn’t struggle with debt, would I ever take the initiative to learn about tackling finances?
A few years later, I finally got out of that hole. Debt is now minimal and I have even started investing.
Now, I get to keep more of the money I make. Sure, there are the essentials like housing, utilities, other bills, groceries, gas, etc. But now, I am more responsible with my finances.
I am not afraid to spend but I am mindful of where my money goes, all thanks to Financial Literacy. I am aware I still have a lot to learn, but at least I’m in a better spot than where I was.
Did I really need to struggle first before learning about Financial Literacy? At 28 years old (at the time) and after more than 5 years in the workforce?
I wish I had learned all about this sooner. Heck, I wish this was even taught in school! If this was so important in our lives, how come we were never told this to prepare us for what’s ahead?
I believe Financial Literacy should start at home. Whether school teaches us this or not, it has to start at home. Within the family - the building blocks of society.
If more of us came in prepared as we entered adulthood and the workforce, I think we would all be living in a much, much better place.
Going back to my mom’s words of wisdom, I agree with her statement. Saving money is important. But more important than that is making your money grow.
Just saving is not enough. You lose value due to inflation. Your $100 today will not be able to buy the same value of goods or services years from now.
This is what Kiyosaki meant by “Savers are Losers.”
I learned this from reading books and regularly watching videos about money and finances.
Not only did I save a million pesos (in its US dollar equivalent), I also learned how to grow it by investing it.
It is safely stashed somewhere where its value can keep growing, and growing, and growing.
I also learned how to acquire other assets that have the potential to increase value over time and can put money back into my pocket and I am not afraid to spend more to get more of these. Just gotta find the right balance, as with anything.
I do wish I learned about all this sooner, but you know what they say…
Better late than never.
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