In light of the global financial consequences suffered as a result of reckless investing and over consumption over the last two years, some thinkers and panelists meeting in Davos World Economic Forum believe that enacting some behavioral economic policies to curb spending and debt accumulation is the answer to stopping financial woes before they start.
One of the ideas mentioned was creating a seven day cooling-off period for customers who sign up for a store credit card. Staving off the “natural” inclination for immediate gratification, will keep consumers from making bad financial decisions.
When I was in public high school, we were not taught the principles of personal finance. I had to enroll in a personal finance class as an elective in college – many of the adults, well into their thirties didn’t understand many of the basic principles of long term investing. That, to me, is a huge problem for nations whose aging public are responsible for their own retirements and health care.
While this might sound like a rational idea, I can’t help thinking that this is an easy way to control the financially ignorant rather than taking the time and additional cost to teach basic financial principles to the public and trusting the public to be responsible with their finances.
What do you think? Should you be told how you spend the money you earn? Do you think this is an excellent idea?
