Thursday, August 28, 2008

You can't teach money

Law professor Lauren Willis suggests that we just give up on financial literacy - she says it's a waste of time and can even get you into trouble.

(Money Magazine) -- When Americans are in financial distress, politicians often call for better education. Case in point: The Economic Recovery Act of 2008 allocates funds to improve borrowers' knowledge of home loans.

Lauren Willis, an associate professor at Loyola Law School in Los Angeles who specializes in financial products regulation, says that's the wrong move. She argues that trying to teach consumers to make wise money choices is not only a waste of time and resources, it may be dangerous.

Question: What's so bad about financial education?

Answer: It doesn't work. Sellers of financial products spend billions drowning out well-meaning messages to consumers from nonprofits or government agencies.


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