The current financial crisis has caused finger pointing, consternation, worries and a bail out that may or may not prove to be the solution. In the discussion and finger pointing “greed” is often named as the culprit and underlying motive. While it is easy to use “Wall Street” as the personification of this deadly sin, the problem is not limited at any institution, segment of society or business. The problem can be traced to investors desiring a good return on their money, mortgage brokers eager to make a loan, realtors eager to close a sale and home owners pressing the limits of their income and using their homes as ATM’s are all culpable.
Public policy dating back to 1999 began to loosen credit so individuals and families could realize the “American Dream.” This has been viewed as home ownership, being a key to financial stability and growth. However, in the translation, what was lost was the critical qualifier of affording a home. The bottom line is that an individual who is purchasing credit should understand what constitutes an acceptable offer and monthly payment in comparison to family income and their financial condition.
The financial crisis has brought to the surface many important issues including the need for financial literary. I have a personal interest in this area as a former business teacher and as a pastor as working with families related to financial matters. That is why in this past session I was the co-sponsor of a bill sponsored by Rep. Rosemary Marshall that would incorporate financial literacy through out the K-12 educational process. The financial future of our state and nation is dependent upon the choices made by individuals and families. The principles of savings, living within your income, the timing of making major purchases, the wise use of credit, knowing the difference between a want and a need are foundational concepts for personal financial stability. Regardless of the product sold of the service provided someone has to pay for it. That someone is individuals in families and in businesses that need a solid foundation of both personal finances and basic economics.
Public policy dating back to 1999 began to loosen credit so individuals and families could realize the “American Dream.” This has been viewed as home ownership, being a key to financial stability and growth. However, in the translation, what was lost was the critical qualifier of affording a home. The bottom line is that an individual who is purchasing credit should understand what constitutes an acceptable offer and monthly payment in comparison to family income and their financial condition.
The financial crisis has brought to the surface many important issues including the need for financial literary. I have a personal interest in this area as a former business teacher and as a pastor as working with families related to financial matters. That is why in this past session I was the co-sponsor of a bill sponsored by Rep. Rosemary Marshall that would incorporate financial literacy through out the K-12 educational process. The financial future of our state and nation is dependent upon the choices made by individuals and families. The principles of savings, living within your income, the timing of making major purchases, the wise use of credit, knowing the difference between a want and a need are foundational concepts for personal financial stability. Regardless of the product sold of the service provided someone has to pay for it. That someone is individuals in families and in businesses that need a solid foundation of both personal finances and basic economics.
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