Financial Literacy

Each day, I receive a few requests from consumers asking for advice. In many cases, I find the following weaknesses:

• The standard of financial literacy is quite low
• The consumer likes someone to decide for them.

It is risky for consumers to be so dependent on somebody else for advice. They are likely to fall prey to unscrupulous people who can take them for a ride. They can be harmed financially and lose a lot of money that should be earned on their savings.

The consumers do not know what kind of question that can ask or should not ask from another person. For example, it is difficult for anybody to know how high the stock market or gold will go, and when they will reverse. If you are not familiar, do not take this type of investment risk.

The consumer should also be aware about the vested interest of the people that they are asking for advice. If there is a vested interest, the consumer is likely to get bad advice. Your loss becomes the profit of the vested party.

There are some consumers who want me to give advice for free, when they are not even prepared to read the FAQ in my website (which is free anyway) or to buy my Financial Planning book for $12 or attend the FISCA educational talk for $30. This is dangerous. They will fall prey to a dishonest cheat sometime in the future.

Financial planning book can be bought here.

Tan Kin Lian