Equality of Financial Opportunity in 3 Steps
65% of the world’s adult population is financially illiterate. In Australia, a developed nation with some of the best living standards in the world, the figure is STILL 35%. That’s a lot of people trying to make their daily 6–10 financial decisions without the resources or knowledge to make good ones.
Financial illiteracy contributes to burgeoning wealth inequality. There is basic infrastructure to be put in place to help close this gap – think clean water, food, roads etc. But financial knowledge or access to good advice can make the difference between grasping the opportunity to climb the wealth ladder and missing out.
Here are 3 steps to equality of financial opportunity:
- Get the basic infrastructure in place – yes this is about water, food, shelter, roads and transport. The basics.
- Increase access to capital – it’s hard to buy seeds to grow things or raw materials to make things if you have no money in the first place. Microfinance is a good answer to this problem.
- Increase access to good financial advice – once you get that capital you need to start creating wealth you need to know how to grasp that opportunity. Access to good, affordable financial advice among the financially illiterate is nigh on non-existent. We need to build platforms to allow those that have financial nous to share their knowledge with those that don’t.