Tuesday, 24 August 2010
What Is the Most Important Lesson We Can Learn From the Financial Crisis of 2008/2009
The most important lesson we can take away is to equip yourself with Financial Literacy. We heard of stories of investors who had been burned, swindled or conned into putting their hard-earned monies, nesteggs into investments or structured financial products which they had no idea of what they were all about. Investors who had bought Minobonds, Pinnacles Notes, DBS High Notes, etc. will know what I am talking about. In fact 2 of our PAP Town Councils invested $16 millions of our tax-payer monies into such failed products - a sad and bad relection of supposedly sane and superior minds behind such investments! So before you commit yourself to buying an insurance policy, car or mortgage loan, annuity, etc. understand what you have bought and if you do not understand the product, do not commit or buy it! Let's why understand terms like savings, interest rate, compound interest rates, inflation, etc (in other words Financial Literacy) will protect oneself against charlatans in the insurance companies, banks and financial institutions that are out there to take advantage or worse to cheat you of your hard-earned monies! I believe such Financial Literarcy classes/courses should start at our Secondary Schools/Polytechnics/Universities before our students venture out into the society to begin their careers.