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She can add, subtract well enough and multiply and divide (slowly), as well as read and write well in Finnish and somewhat in English. But when it comes to understanding finance, she is lacking. I guess that is "okay" for a six year old, but next week she turns seven, so it is time to start the real education in earnest. 

![image.png](https://files.peakd.com/file/peakd-hive/tarazkp/23wqXTWfxBWYJYRSfB3uUx82GMVakWQP4wF8pzTV4DLGK1tkTv5M4RY9z92tFNsP86kLJ.png)

Without the experience of decent financial role models from my parents, I don't have a good idea of exactly what I am going to do, and while my intuition says one thing, I do not think it is correct. So, I decided to order some books to help me along a bit. The two I have ordered are from Scott Pape, an Australian author, and it has been recommended to me by several sources over the years, but I haven't ordered.

> The Barefoot Investor:
The Only Money Guide You’ll Ever Need

> The Barefoot Investor for Families: 
How to Teach Your Kids the Value of a Buck

There is a third in the series that I couldn't get delivered:

>Barefoot Kids
Your Epic Money Adventure!

The two I could find set me back 70€, but I figure if they are able to help me better guide Smallsteps to find her own financial independence as she matures, it is an investment. If they are not useful in what they offer, it still gives me material to consider, refine, and write about - making them still an investment. 

I do not expect that they are going to fundamentally change my world, and I am sure that there are other sources online that might be better or cheaper (and free), but having hardcopies makes it more real for me and increases the odds that I will firstly read and secondly (and most importantly), *apply* what is learned. I am not a fan of filling my head with information that I am not going to use in some way, because I just don't have the brain capacity to hold it all. 

However, when it comes to financial literacy, I have come to recognize how fundamentally important it is to our wellbeing in this world, and getting started early is highly beneficial. I studied a little economics at university, but I was well into my thirties before I really started paying attention to how it impacts on me and the role I play in my outcomes. If I had started even five years earlier, things might have been quite different now. Ten years earlier and it could have been *drastically* different. 

Now, everyone has some kind of opinion on what kids should know and the best way to teach them, and it is worth listening to the crowd. However, the fact is, that the average person gets average results, so doing similarly will likely yield more average, and if we are looking for above average yields, we have to do differently than what the average are doing. 

In terms of adults, it is pretty obvious that an investment mindset is required, but also, investing habits are required too. The challenge might be less in building the desire to invest, and more in the building of the practical habits and behaviors that lead to good outcomes on the investment. The consistency of putting money aside, the willingness to learn market processes, the understanding and mitigation of loss and fear aversions, and the patience required for investment returns to grow, which requires delaying gratification in a culture that encourages instant gratification. 

There is more to financial health than making money, as at least in my opinion, it has to also consider the impact of money on the person's wellbeing, including mental health. Not having money is a risk. So is having money. Both sides impact on our experience with the potential for better and worse, and society generally builds an unhealthy relationship with money, making it seem something dirty, whilst also something to covet. It is the complexity of it that keeps people from talking openly about it and for Smallsteps, at least with me, I want her to be able to discuss these things without all the stigma - so that conversation should start early. 

While I get why some parents don't want to discuss money with their kids, I also think that not discussing is one of the reasons that we grow up seeing it as a taboo. We desire it, but we aren't allowed to talk about it. We need it for living, but we can't openly discuss how to get it. And, because we can generally see who has and who hasn't got it, it is the source for jealousy, for animosity. It affects families, friends and strangers. '

And because it has such a profound affect on our lives, the more we understand it, the less power it has over us, and then we are better able to stand back and be a little more objective. We can understand ourselves better and, understand the behavior of others. Understanding the structure of money and finance, gives insight into the fundamentals of society, the economics of behavior. There are far deeper lessons to be learned from economics than which asset to buy, or how to maximize returns, but because that gets the focus due to our desires, many of the lessons are lost on us, especially as our time, energy and attention are taken up with getting more money, whether we need it or not. 

In my limited experience, understanding the aspects of economics is one of the most important and valuable things we can do to improve our experience and the experience of others. It influences everything that is important to us to some degree and if we do not learn well, we are not only at a financial disadvantage, but we will also likely miss a lot of other opportunities in our world, unable to recognize the opportunity, let alone participate in the things we care about.

We teach our children to read and count because we believe it is useful for their future, but the biggest risk we can ever take, is leaving them financially illiterate. Is it so hard to learn?

>Add, Subtract, Multiply and Divide

The financial economy is a tool. Understanding economics helps us to build. It helps us to become more efficient. It helps us become more effective. It can be used to conquer.

The economy can be used for much better than it currently is. It can also be used for much worse. There is no stepping out of it, everyone you will ever meet participates, whether they are willing participants, or not. No one is forced to learn about it, and that is how they like it.

Taraz
[ Gen1: Hive ]


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