Prof. Samuel D. Bornstein

Is More Financial Advice Really the Solution?

Most Americans are like a “Boat without a Paddle” when it comes to the ability to use Financial Understanding for sound financial decision making affect our lives. Our level of Financial Literacy has lagged far behind the pace of the complexity of financial matters. This is the cause of our problems.

Traditional Financial Literacy has been shown to be a failure because it soley presents "information" but not "education". Learning is the key to education. There is a need for “financial guidance” as is evidenced by the Subprime Mortgage Crisis, the growing number of personal bankruptcies, the dangerously high level of credit card debt, the low savings rate, the lack of retirement planning, etc. Financial guidance will be especially effective for the Subprime Mortgage borrowers who are currently at risk of mortgage default, foreclosure, and financial distress.
We will repeat our financial errors, UNLESS we direct our national attention to addressing this weakness in our national character.

I have been an educator for the past 30 years as well as a CPA/Consultant. I have researched this issue for the past 8 years and have concluded that the "Delivery System" for education is flawed. We require a new means of delivering Education that delivers "Understanding and Comprehension".

There is a Chinese proverb..TELL ME AND I FORGET, SHOW ME AND I REMEMBER, INVOLVE ME AND I UNDERSTAND. We need a delivery system that follows this proverb.
Samuel D. Bornstein
Professor of Accounting & Taxation
Kean University, School of Business, Union, NJ
Tel: (732) 493 - 4799
Email: [e-mail]