Dear Editor,

I have read and reread Jaemar Johnson’s letter of January 9 in the Jamaica Observer emphasising the importance of early financial literacy. I share his pain.

Money management is, however, not going to be a part of the school curriculum anytime soon. That’s just how it is. There are cries for Garveyism, tourism, and other matters to be a part of the curriculum. However, knowing our culture, it’s just not going to happen. The onus is on schools to do something — Garveyism can be taught as a part of history, special guest speakers can be invited to talk with the students; tourism can be taught as a part of geography, the subject is now being offered at the Caribbean Advanced Proficiency Examination (CAPE) level; and money management can be taught as a part of principles of business.

I believe that everyone needs to be financially literate. But if it’s not being taught in school, what do we do? We should educate ourselves and our families. It’s the difference between working all our lives only to die poor and building wealth.

The level of financial illiteracy in Jamaica (and the United States) is abysmal. What would cause a taxi driver, for instance, to drive past three or four passengers because they are “$100 people”? They are going just a mile up the road. You are driving a seven-seater and you have only one passenger. Are you that wealthy that you can turn up your nose at $300/$400? A dollar in is better than a dollar out. We haven’t got that yet.

The average Jamaican believes that if he/she earned more money, he/she would be better off. That’s not entirely true. It’s not how much money you earn; it’s what you do with your money.

I’ll give a few points of my own:

• Make sure that you spend less than you earn. Make a monthly budget. How do people manage without one? You need to track your money.

• Avoid high-interest debt. Avoid credit card debt. Know the difference between good debt and bad debt. Good debt helps you to acquire assets. Bad debt drains your pocket.

• Carpool or take mass transit. A car is traditionally listed as an asset. It is not based on the definition above.

• Cook at home. Take your lunch to work. It might be the in-thing to get your name on the lunch list as someone walks around the office and writes down requests, but think of how much you would gain were you to save $250 per day. That’s $5,000 per month. That’s over $50,000 for the year.

• Read articles on frugality.

I did mention above that we ought to educate ourselves and our families. There is a lot of envy of the upper classes in this country. We don’t have to envy people. I recently read an article entitled ‘5 Things Wealthy Parents Teach Their Kids that the Middle Class Doesn’t’.

Here they are:

• Real-life lessons on the importance of earning

• How to view money as a tool

• Saving vs investing

• Taxes

• Entrepreneurship

I believe that it is in our best interest to read. Better late than never.

Norman W M Thompson

norms74160@gmail.com