Last week I met with a very senior person in a very very big bank. It took almost 10 minutes of security check before I reached him.

As usual I asked him “How come your bank which has such a high training budget not spend any money on teaching personal finance to YOUR OWN EMPLOYEES?”

He said “The government and organisations like ours need a regular and good source of decent labour which will not think too hard. They will buy a house, a car, a foreign trip…then they will upgrade their house, car. and a foreign trip. Then they will have a couple of kids…and pay for their education and marriage’ – this will keep them busy.

Now if we teach them power of delayed consumption, power of compounding, equity, etc. they will leave us.

When our top management needs money..well they make a foreign trip..and make about 2-3k dollars..and are happy. Frankly they do not care about what happens to people below the line….

I was not stunned..because this is Robert Kiyosaki’s explanation too…he calls it ‘Conspiracy of the Rich’ echoes a lot of similar thoughts…

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  1. subra delayed consumption also covers having a couple of kids right!!

    Pun intended , yet the conspiracy against common sense ( your words) sound eminent here

  2. //this will keep them busy//

    Exactly the same concept is very well used by the rich and powerful in business, politics and everywhere else too.

  3. Hi there, I read your article and find it to be factually correct, since I have heard this before. In India, there is hardly any Financial Literacy prevalent. We Indians have the attitude that “once we start earning money, we will learn how to manage it”. This policy does not work anymore with volatile markets and uncertain business conditions. I have been told by many many people that they made losses initially when they started investing. (That includes me too). And to say the least that I am a Chartered Accountant!!

    India and Indians need to focus on Financial Literacy more than ever before. Financial Literacy is not an option today anymore!!

  4. Agreed Subra Sir. Most of the businesses thrive on mindless spending by the end customer. Keeping them ignorant has its own advantage.
    After all its another facet of – ignorance is bliss – in this case – both buyer and seller feel happy that transaction has taken place :).

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