Daniel wrote an excellent post around his ideas for a personal finance web engine. His thoughts around this were in part formed around some comments made by Xero CEO Rod Drury about a Xero “personal edition” that they might possibly be considering. I think the idea (and by extension much of what Daniel says in his post) is excellent, but I do have some concerns about the blockers to it being effective. I commented as such on Daniel’s post but I thought I’d also write about it here.
My comments went thusly;
Dan – excellent post – and I can’t help but agree with you. I would say though that much of the problem in this area stems not from a lack of tools, but rather from an inherent lack of knowledge and understanding. Fact is that financial literacy in our country is abysmal (witness the current property crunch occurring and the unsophisticated investment market). It’s a subject I’ve written about before and one I’m really passionate about, but it’s also one that is systemic and widespread rather than localised and caused through a lack of suitable tools.
So my bottom line is – fantastic idea but only if the structural changes needed to make it work are introduced at the same time
What do others think about the dearth of financial literacy out there? Does it exist or is it merely my perception?