Financial Empowerment
Not Literacy
My friend Chris Gandy and I were talking. Chris used to play in the NBA. We both went to Illinois, and he reached out to me the first time we met. We are both good networkers and crappy golfers. When I stand next to Chris, it looks like I am in a hole because he towers over me. For the record, I am 6’5”.
Chris recently became the president of NAIFA. He’s perfect for it. When you click the link to their site, you will see why. He and I have been concerned about people and finance for a long time. After we met, we sketched out a business plan to help athletes with finances. So many were going broke, and it shouldn’t have been happening. Once we saw the initial startup hurdles to the business, it made no sense to pursue it. There was no way to scale it.
As an athlete, you have a very limited time to put hay in the barn. Once it ends, it truly ends. A large percentage of them aren’t equipped with the skills necessary to make sure the hay stays in the barn.
One thing that always bugged Chris and me was the term “financial literacy”. Bleh. What is that? It’s ambiguous. Not quantifiable. As I have written here in the past, businesspeople hate non-quantifiable.
We like the term “financial empowerment”. It’s not quantifiable in the truest sense of quantifiable, but it is more actionable because you can more clearly define a mission and goal.
We talked a while about that.
Empowerment means giving someone the ability to be self-reliant.
That means if a person has no or a poor education, they can still be empowered. They aren’t helpless. Arthur Brooks writes about that in his book The Conservative Heart.
Financial empowerment is a core goal of what we will do if I get elected State Treasurer. Join the team here.
Literacy is where it starts, basic literacy.
If I were designing a high school curriculum with the understanding someone in the class would never go to college or get an MBA in finance, I'd make sure they understood how money works.
Many years ago when I was involved in fundraising for a chi chi private school, I proposed the following curriculum:
1. Budgeting and Expense Tracking
The absolute foundation—most experts call it the #1 skill for entry-level and blue-collar workers to avoid living paycheck-to-paycheck despite good earnings.
2. Job and Income Management
Understanding paychecks (gross vs. net, deductions, overtime), negotiating rates, handling variable/seasonal income, and decoding benefits—essential since trades start earning right away.
3. Understanding Credit and Debt
Critical to avoid traps with high-interest debt (credit cards, vehicle loans for work trucks, tool financing) that can derail early career progress.
4. Taxes for Individuals and Self-Employed
Tradespeople often deal with self-employment taxes, deductions (tools, mileage, home office), and quarterly payments—many regret not learning this early.
5. Saving and Emergency Funds
Vital for covering gaps in work (layoffs, slow seasons, injuries) and building a buffer before bigger goals; aim for 3-6 months of expenses.
6. Insurance Essentials
Health, auto (for work travel), liability (especially if self-employed), and workers' comp understanding—trades have higher physical risks and vehicle/tool needs.
7. Small Business Finances
Many tradespeople go independent or subcontract quickly; covers invoicing, separating personal/business money, basic bookkeeping, and business budgeting.
8. Consumer Rights and Scam Awareness
Protects against bad contracts, tool/equipment scams, or predatory loans—common pitfalls when starting out with big purchases.
9. Retirement Planning
Start early with IRAs/Roth or SEP for self-employed; compounding works powerfully over a long trades career, even if not "sexy" immediately.
10. Basic Investing
Lower priority initially (focus on stability first), but introduces low-risk options like index funds once basics are solid—helps build wealth long-term without get-rich-quick risks.
Of course, all the PhDs on the committee shot it down because it wasn't considered "college prep."
My thought was to include support of educational institutions as part of the teaching to get students to become financial supporters before they left school. The average age of initial support of one's alma mater is 15 years post graduation.
A few years back, a self serving member of the Illinois state legislature put forth a bill to mandate that high schools teach financial literacy, budgeting etc. I remember clearly laughing at the ridiculous tone deafness and hypocrisy of it and remarking that perhaps they should do the same for all elected government officials.