Financial literacy, understanding money has a very important role to play. One needs to know the relationship between time, money and risk and what financial instruments can do. But with income inequality broadening, what about the majority of people who have no money to invest, but rather are always short, struggling to survive in what seems to be an increasingly hostile economic climate? Financial literacy cannot make much money for those who have no money to invest. With the median income for a family of four being below $50, 000, financial literacy may not be a high priority for most.
It may seem a little strange talking about financial literacy and median incomes on a game site. We're supposed to be more upbeat, happy and exciting. We are upbeat. In fact we're so happy and upbeat we would like to make others happier too. How? Read on.
According to Professors Angus Deaton and Daniel Kahneman at Princeton, happiness and income increase together to about an average of $75, 000. Above that amount many are content while others need more to make them happy. So if that is the case, combining the research with the medium income level suggests that most Americans are unhappy and struggling.
What does it take to rectify this condition? A quote attributed to Henry Ford, "Whether You Believe You Can Do a Thing or Not, You Are Right." So, if you believe there is nothing we can do, that may be the case for you. But we believe there are things we can do.
Instead of focusing on financial literacy for those of less than moderate means, we can instead get more practical and focus more on demonstrating a process that everyone can learn to earn more money. Investing is constructive, but first in ourselves to get to that $75, 000 (or so). Then, after the essentials, we may have enough to invest in stocks, bonds and other financial instruments.
This game is about that first-stage process of earning money.