Financial literacy is competence in and a knowledge of money. This competence and knowledge is anchored in the skill of self-directed learning. There are an abundance of courses, trainings, advisors and counselors. But lasting success requires the one who would be an earner, saver or investor to learn principles not available through normal channels of formal education. The successful wealth builder and legacy creator will need to develop and implement a highly personalized, self-directed plan.
My working career as training director stirred up interest in all aspects of learning. After retirement I participated in an array of financial literacy businesses and projects. I continued to explore how people learn, what we learn, and the best ways to make practical application of learning and methods of evaluating results. I have concluded that self-directed learning is a key. Although I struggle to explain the concept in a concise manner, I could not live with myself if I ignore this vital topic. So, I invite you to join me in this introductory discussion of self-directed learning.
Learning is not optional.
Every living human is continually learning. But surprisingly, the primary question is not “What are we learning?” but rather “What is the source of our learning? What are we plugging into for learning? The source of information is the source of ideas, and ideas have consequences. The lives we currently live are the consequence of the ideas that we have embraced.
In times past, a person considered to be educated was schooled in one or more formal institutions of higher learning and perhaps was degreed. Yet, history shows us that many highly accomplished people did not have access to formal education. I recall reading about the great poet and novelist of the of the 1800’s, Walt Whitman, who dropped out of school at age 12. Or consider Les Brown, the fabulously successful motivational speaker and trainer of modern times who was officially labelled slow in elementary school. Also in my own family, two aunts living under extreme racial suppression in East Texas with little access to education. And yet they banned together and created what we would call a catering/banquet business that broke through all the gender and racial restrictions of their day.
These people, and many more, accessed the power of self-directed learning to overcome social and economic barriers and create a life and a legacy for themselves. Most of us today are facing obstacles that are quite different from theirs. Ours is characterized by information explosion and technology expansions which create new forms of money and payment systems. We must avail ourselves of new opportunities while protecting ourselves from fraudulent scams, inflation and taxes that plunder our resources. And we must wrap our minds around all this in an environment that changes at the speed of a keyboard click. Just when we think we understand how programs work, a (mandatory) upgrade changes everything. We must continually learn to navigate these waters.
Education is no longer something that another can bestow upon us.
A formal education may be a steppingstone, but it does not guarantee success. Financial success comes only to the self-directed learner, who understands a few basic principles. Without delving into great detail yet, I want to outline a few key questions to guide self-directed learning:
- Where is the wealth of this country and who controls it? How can individual contributions increase the size of the pie? Can anyone just serve up a generous slice to create a desirable life for personal and family legacy?
- What is the role of formal education? How is it useful in certain situations? What are its limitations? Can it be insufficient or even a hindrance to the financial success of the individual?
- What is the historical development of money and economic practices?
- What do we, as individuals and as a collective society, believe about our present economy, and are our beliefs serving us well?
Addressing these questions will drive the self-directed learner to become a voracious reader. Yes, reading is still the foundation of all learning and it’s becoming a lost art. The stats are abysmal. Only about half of all college graduates read books. Many read only one book a year. And, sadly, those who will not read are bound by the chains of illiteracy just like those who cannot read.
At one of his trainings, Stephen Covey asked the question, “Why are people not reading?” A reply from the audience stated, “Because books don’t ring!” In the rush of daily living, the urgent ring and ding of devices are crowding out important things – like reading and thinking. And yet achieving excellence, maximizing personal and natural gifts and creating lasting, legacy wealth all come through intentional learning supported by reading.
Through books we can participate in the greatest conversations of the deepest thinkers who have ever walked the earth. Our minds can sharpen themselves on great minds – of our choosing. Becoming acquainted with ancient thought, to my surprise, provides a solid foundation for understanding modern practices and strategies.
One note of caution is needed.
We now have more information than any other generation, and yet we have less education. Information engages the mind. But education and training engage the entire person—spirit, mind and body—in a transformative process that brings about desired results. Education is an improvement in thinking to bring it in alignment with reality, leading to workable solutions.
The self-directed learner assumes personal responsibility for her world, understanding that the so called “powers that be” are not responsible for fixing the broken parts of the system, we are. Our leaders are a mirror, reflecting us. As we change ourselves and become more knowledgeable and as we take action to own the domain of personal finances, the world will reflect the leadership that we exhibit individually.
The leadership that begins at home will change the economies of the world. More on this to come. In the meantime, keep on reading!
Read more of Gail’s article on Plaid or connect with her on her website.
