Headline Aug 11,2014/



Allow me just one fighter sweep:
Only one thing is worse than the financial industry dangling inappropriate products in front of poor customers:

And that is not providing them with financial services at all.

Some years ago, the Federal Deposit Insurance Corporation released a survey that found roughly one in  12  Americans households, or some   17m   adults are  ''unbanked'',  meaning they lack a current or saving account.

Not all the  unbanked  are poor, nor do all poor people lack bank accounts. But the rate of the  unbanked  among low-income households is more than three times the overall rate.

The proportion of poor Americans without an account compares particularly badly with other rich places!!!

The  unbanked  usually have no alternative but to use cash for all their transactions. Without an account to put pay cheques into, they have to use cheque-cashers.

This does not just mean incurring a fee; carrying a large amounts of cash also increases the risk and harm of theft. To pay their utility bills the unbanked need either a non-bank money order:

For which they have to pay a fee, or a place that accepts utility payment in cash.

And now, to the crux of the subject matter.

Another problem, highlighted by critics such as Lauren Willis of Loyola Law School,  Los-Angeles, is that many financial issues are much more complex than deciding:

Whether to pay off credit-card debts.

How much money you set aside for retirement, for example? 

What is the optimal portfolio mix between equities, bonds and other assets?

The  ''right''   answer to this question may differ from individual to individual and can be known only in retrospect.

Fifteen years ago the conventional wisdom was that equity heavy pension portfolios would earn high returns and that individual need make only modest contributions. That turned out to be wrong.

Furthermore, many consumers do not want to make their own financial decisions, either because they find the issues too complex or because they fear the consequences of choosing the wrong option.

They would rather leave the decisions in the hands of an adviser or rely on the experience of family and friends.

When firms offer a range of pension funds to choose from, the default option is far the most popular.

Governments should focus on making that option as safe and inexpensive as possible.

So should we give up on financial education altogether?

Not necessarily.

''' The purpose of the Education is to prepare children for the challenges they face in life. '''

Coping with finance is one of those challenges. It may be that better designed courses can be more successful replacing yakking lecturers with financially themed:

Video games is one way that people are trying to make education more appealing. 

None of this, alas, will help if  students cannot understand basic mathematics.

As the saying goes:

''There are two types of people:
those who understand binary numbers and those who don't.''

With most loving and caring dedication to Imran Khan/ University of Trinity 
Regional Head Asia and Far East.
From his parents, family, and friends and admirers the world over. And. 
For rare, unique and original approach to the world of finance and for his many ''coffee soaked'' tutorials. 

With respectful dedication to the Leaders,  Students, Professors and Teachers of the World. Thank you for reading,  See Ya all on !WOW!  -the World Students Society Computers-Internet-Wireless:

''' Margin Calls '''

Good Night and God Bless!

SAM Daily Times - the Voice of the Voiceless


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