I was chatting with a friend today that works as a realtor in Greensboro. Clearly frustrated by an encounter with her last customer, she stated, “Why don’t people realize No Credit + No Job = No House.” Her comments reminded me of a widely unknown statistic – over 50% of Americans are financially illiterate. The fact boggles the mind when you consider America is principally regarded as the richest nation in the world. What does this say about us?
As I pondered this thought more throughout the day, I begin to fundamentally interpret that the “statistic” reveals more about the knowledge divide in America rather than the wealth gap. Achieving the status of being considered wealthy in America requires mastery over your choices with money. Choices flow from your attitude and behavior … in other words, habits will guide your choices. Habits are created based on your value system or how you perceive the world. The way in which you perceive the world is shaped by what you know to be true. Knowledge defines paradigm.
Wealthy people realize that 97% of their abilities are driven by their habits or their choices … the other 3% come from skill or specialized knowledge. The skilled portion too can be learned. The wealth gap in America will not narrow through redistribution of wealth from the “haves” to the “have-nots”, but only through wider circulation of knowledge.
As a country, we should focus on lifting up the “have-nots” by helping them to redefine their paradigm through financial education. More knowledge about personal finance can help people to develop the appropriate value system about money. Clear focus around values will lead to new behaviors and new choices with money. Good Credit + Good Job = New House
