Over the years, various steps have been taken to improve the financial well-being of the average American family. None of those programs, however, have addressed the lack of financial literacy within a vast segment of our society. To this day, many people still do not know the basics of personal financial planning, what retirement planning is, or everyday concepts such as “stocks” or “interest rates”. This lack of financial literacy in no-small way contributes to the income inequality we’ve all been hearing, since facility with basic concepts separates the populations into those who plan wisely and those who simply try to survive day-to-day.
Am glad to see Stanford GSB taking a lead role in tackling this problem. Finance professor Joshua Rauh has prepared a set of financial planning videos aimed not at high-flying MBAs, but ordinary citizens with limited understanding of important financial concepts which impact them. They are great videos: communicating information clearly and directly, and accurately without any hint of condescension. They are very well done, and bravo on Stanford for making these readily available.
Am hoping other business schools and universities, as well as large financial organizations like UBS take on a role in promoting broad financial literacy.
— Tim Shields, UBS