Why Financial Literacy Doesn’t Always Make You Good with Money

Why Financial Literacy Doesn’t Always Make You Good with Money

April 01, 2024

In a world of instant information, we know we can find answers at the click of a button. But is more information and better financial literacy the path to prosperity? You may be surprised to hear that at Truman Wealth, we don’t actually think so. 

In the reality of advising clients, we find lack of knowledge about money is rarely the issue. And we have smart, sophisticated clients who are uniquely successful, so we are well positioned to understand this truth. 

So if there is no shortage of online guidance on the whys and wherefores of every financial topic imaginable, why are we not all reaping the rewards of this vast knowledge base?

The reason so many people lose wealth is not because they make bad financial decisions, it’s because they make emotional decisions that happen to be bad financial decisions.

Mo’ Money, Mo’ Problems

So much of what is published in the media about money and wealth focuses on the “features” of money. Blogs, articles, Tik-tok videos and influencers will suggest if you only were somehow smarter about money characteristics, you could live the life of your dreams.

Financial literacy is focused on providing information about strategies for increasing the amount of money you have. This is necessary and important in the first half of life, when you are accumulating money. 

But as our successful clients who experience wealth transitions know, having more money doesn’t solve all your problems, it just “upgrades” them.

In fact, we often find that money problems are not about money at all. 


The Power of Financial Unlearning

The wealthiest people are not immune to life’s challenges. 

They too, need to unlearn unconscious habits and negative mindsets that are holding them back from the freedom and options money can provide. 

It is often the case that the more you EARN, the more you need to UNLEARN. 

 

The Power of Money Talk

Unlearning is the process of letting go of old habits, beliefs, and ideas that no longer serve us. Much of what we consider true about money has to do with how we grew up and what we think we already know about money.

A great way to help unravel some of these ingrained money beliefs is by talking to people. Yet sadly there remains a chasm of social construct that all too often stops us from doing so. Talking about money is one of our last big social taboos – perhaps because of how highly emotionally charged the subject can be.

But talking about finances is an important way of learning and understanding. Try bringing the topic into conversation with your friends and ask them how they feel about their financial life. 

Imagine what it would be like to be able to ask your friend or colleague how they made their last big purchase decision to buy a car or a house? You could even start up a regular mastermind group where you all get together to discuss money issues and hold each other accountable as you work towards financial targets.

Find a Financial Expert Who Feels Like a Friend

Helping people take the next right step is at the heart of Truman Wealth Advisors. Our purpose is to propel individuals toward the life they've longed for through unlearning old beliefs about money and forming a new mindset that better serves them.

We understand that everyone has a unique financial journey, and we are here to guide the way forward. 

Replacing old beliefs about wealth can be challenging, since it requires individuals to confront their biases and preconceptions. We turn towards discomfort, making space for the powerful transformation that happens when people escape the quicksand of uncertainty. 

The toughest conversations often lead to the deepest freedom. We’re committed to taking the road less traveled to propel people in the direction they want to go.

What might you need to unlearn about wealth and money to discover your true potential? Get in touch today.