MONEY IS NOT EVIL

MONEY IS NOT EVIL

One of the greatest failures of the educational system is the failure to provide financial education to students. Educators seem to think that money has some sort of quasi-religious or cultlike taint to it, believing that the love of money is the root of all evil.

As most of us know, it is not the love of money that is evil—it is the lack of money that causes evil. It is working at a job we hate that is evil. Working hard yet not earning enough to provide for our families is evil. For some, be- ing deeply in debt is evil. Fighting with people you love over money is evil.

Being greedy is evil. And committing criminal or immoral acts to get money is evil. Money by itself is not evil. Money is just money.

OBSOLETE ADVICE

Today, many financial experts continue to recommend, “Work hard, save money, get out of debt, live below your means, and invest in a well-diversified portfolio of mutual funds.” The problem with this advice is that it is bad advice—simply because it is obsolete advice. The rules of money have changed. They changed in 1971. Today there is a new capitalism. Saving money, getting out of debt, and diversifying worked in the era of old capital- ism. Those who follow the “work hard and save money” mantra of old capi- talism will struggle financially in the era of new capitalism.