In his best-selling book, The World Is Flat, Thomas Friedman assessed the impact of globalization on the American economy.
His title, which points to a “flat” or “level” playing field, suggests that advanced economies are now under severe pressure to remain competitive. Their strengths, as he sees it, are now quietly slipping away.
He was raising a big question for all of us to consider:
Will our country be able to keep up with the intensifying competition now coming from
all corners of the globe?
But he was also asking us a more personal question:
Are we truly preparing our children to succeed in this new era?
I don’t think so. And I don’t think you do either.
Another best-selling author, Thomas Stanley, conducted a study of millionaires in America. His book is called The Millionaire Next Door. Guess what he discovered in his research?
Surprisingly, American millionaires aren’t all floating around on yachts in the Caribbean, collecting European sports cars or preening for cameras like Donald Trump. No, most affluent people live in our neighborhoods. You might even fit the profile.
Listen to what else Stanley learned:
80% of them are first generation rich.
They live well below their means, driving $30K cars and living in $300K houses (without adjustable rate mortgages I might add).
They allocate their time, energy and money in ways that are conducive to building wealth.
They believe that financial independence is more important than displaying high social status.
Their adult children are economically self-sufficient.
They are proficient in targeting market opportunities.
They chose the right occupation.
I wonder: Are these the values and principles that kids are learning in American high schools these days?
Well, if not, then why not?
Given the grand economic challenges we face in the coming years as a nation and the personal challenges of ensuring our kids are prepared to realize their own financial independence, I’m thinking we should be thinking differently.
What I’ve seen is that schools that once were very accessible to parents in the elementary years become opaque as our kids enter middle school and high school. They often become bureaucratic black boxes that we have little power to influence.
If we can influence them, we should. We should take steps to bring financial education into the schools and ensure that our kids are exposed to key principles of money management.
We should encourage school programs that give kids access to core business knowledge and even valuable internships. Organizations such as Junior Achievement have been doing this in public schools for years, but they seem to be a voice in the wilderness – and their impact is relatively minimal.
Just don't expect too much. How, after all, does one change a monopolistic system? Ma Bell was pretty unresponsive until she was broken up in the early 1980s. And the protected U.S. Postal Service remains slow and sclerotic – though increasing competition from UPS, DHL and FedEx have certainly led to improved service levels in recent years.
But we aren’t powerless in this situation. That isn’t my point at all.
Rather, we may have to take this challenge into our own hands.We need to teach our own – just as we do every day that we spend time with them. We need to seek out the resources and identify the opportunities necessary to give our kids a proper financial education.
How might we do that? There are, quite literally, 3.5 millionaires in America -– and, as I pointed out, many of them live right next door. Maybe we could seek them out and encourage them to share what they’ve learned.
Do you think they would? I’m anxious to find out. How about you?
See, I think we all want our children and grandchildren to thrive in a flat world. I believe that’s something we want for everyone’s children and grandchildren.
But if we want them to experience the supreme confidence that comes with financial freedom, we have to provide new options and opportunities. If we want them to breathe free and fearlessly pursue happiness, then we – you and I – will have to be the catalysts of change.
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