Is Education the Great Equalizer?

Some say that education is the Great Equalizer that will provide social mobility to the poor. Our parents believe in that, which is why they told us all to study hard.

But times have changed. That bastion of hope is getting eroded as branded tuition centres serve to extend the rich-poor gap from a young age, amongst other things that erode the Great Equalizer.

Plus, even as it is, many young graduates have since learnt that their years of studies is only getting them a meager $2 - 4k starting pay. How do you close the income gap with that sort of salary? A $2k salary, even if you saved it all for 40yrs, barely gets you to S$1mn!

Nonetheless, I continue to believe that education is the way to go. Because frankly, there are not many pathways to success. But the substance of said education is where I differ. 

How many have left school and continue to apply quadratic equations and the principles of thermodynamics in their daily life? Shall we compare this to the number of people who grapple with their finances? 

The truth is that some of the things we learnt in school are important, some make us a more well-rounded person, and some are just plain useless. And some really important skills such as simple budgeting and investing are not being sufficiently emphasized.

I would go one step further to argue that the stock market is the Great Equalizer that allows a transfer of wealth from the incapable to the capable and potentially from the rich to the poor. The stock market is agnostic. It does not judge or discriminate against who you are, but just whether you are capable or not. A true meritocracy is what we have here.

Everyone has a good chance of making $ and profiting from Mr. Market, as long as you have the right skills. Skills that you would pick up if you bother to learn. (No ten year series textbook here though)

Some may argue that the stock market is manipulated by the rich and in doing so, the rich get richer. Fair enough, the world is not perfect. But with the right knowledge, you would know when to avoid situations like those and when to take advantage of it.

One of the worst things in life is ignorance. Ignorance is not bliss. It has consequences. To invest without learning how to do so is no different from jumping into the sea without knowing how to swim. 

In short, education is important. Being educated in the right things is even more important.

P.S. I am planning to do some pro-bono financial literacy courses for students. Appreciate any feedback/ideas on course content/delivery and contacts within education institutions.

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