On the latest episode of The Tony Steuer Podcast, I spoke with Elhaam Mirmohammadi, financial literacy researcher and instructor about how Financial Literacy can help people improve their lives.
Elhaam Mirmohammadi is a financial literacy researcher and instructor at the Financial Intelligence Academy. Elhaam is using her skills to make international connections with financial literacy authors and experts around the world so that she can share their experiences with financial literacy advocates in Iran. So far Elhaam has carried out more than 30 interviews with experts in different countries.
In this episode we discussed:
- The financial Intelligence Academy
- How financial education improves lives
- Unique aspects of finances in Iran
On the latest episode of The Tony Steuer Podcast, I spoke with Elhaam Mirmohammadi, financial literacy researcher and instructor about how Financial Literacy can help people improve their lives.
Elhaam Mirmohammadi is a financial literacy researcher and instructor at the Financial Intelligence Academy. Elhaam is using her skills to make international connections with financial literacy authors and experts around the world so that she can share their experiences with financial literacy advocates in Iran. So far Elhaam has carried out more than 30 interviews with experts in different countries.
In this episode we discussed:
- The financial Intelligence Academy
- How financial education improves lives
- Unique aspects of finances in Iran
You're listening to the Tony Stewart podcast, where Tony interviews, financial literacy advocates who are changing the conversation on money. So you can catch up on the latest trends and ideas in the world of financial literacy and education presented by paperwork. Be prepared for life.
Speaker 2:Welcome to the Tony stirrer podcast presented by paperwork. I'm pleased to be joined today by mere Mohammadi. Ellen[inaudible] is a financial literacy researcher and instructor, as well as a member of the financial intelligence academy. In this episode, we'll be discussing how financial education can help people improve their lives. Along with what's unique about financial issues in Iran and what are common money issues around the globe. Elle hub. Welcome to the Tony store podcast. Thank you for joining me today.
Speaker 3:I'm delighted to be here telling me, uh, thanks for having me.
Speaker 2:Yeah, well, we're excited to learn more about you and your work. Um, so as a starting point, um, can you share with us about your origin story? Why did you decide to become a financial literacy advocate?
Speaker 3:I sure. Why not? Uh, you know, as we get older, we feel like we're going to do things that are more effective. We want to make a difference and let's say, make the world a better place to live in. Actually I majored in sociology and I broke into economics and financial journalism. At first, I thought, this is where I can help Iranians lead better lives and get informed about things like, you know, how the economy works, the stock markets, uh, the power of saving and things like that. I was writing articles on economic concepts in a simple way that can be understandable for people who have no idea about the economy. Uh, but after some years, you know, I was like, no, that's not, it, that's not what I want to do for the rest of my life. Uh, because I was feeling what I was doing was not at that effective. Uh, later on, I became familiar with the financial intelligence academy, which was trying to improve people's quality of life. And, uh, I thought to myself what they are doing is way more practical as compared to what I am doing. So I started working there and, uh, to be honest, ever since I joined the team, I have found the satisfaction I was looking for, uh, because, you know, due to the lack of financial knowledge and education in Iran, many people do not have enough information about money, what to do with their money. They don't know how to save, how to budget, how to have a secure life, especially when unexpected events like the pandemic happens. And fortunately the financial intelligence academy is bridging this gap right now and they are, um, you know, the financial intelligence academy is trying to boost people's financial awareness and, uh, you know, uh, help them possess financial literacy. And I am, uh, so beyond happy to be part of this.
Speaker 2:Well, that's exciting. And it's interesting that, uh, you had that, uh, I guess revelation for lack of a better word, uh, starting out as a financial journalist is, um, I went through a similar transition, um, being an insurance consultant and doing some writing and finding that, you know, people just, you know, they don't have that basic knowledge to get started. Uh, and so that's fantastic. Um, so, you know, tell us a little bit more about the financial intelligence academy and the work that you're doing there.
Speaker 3:Yeah, sure. Um, the financial intelligence academy is working in three areas, first gathering resources. I can education and third, uh, promoting financial literacy, uh, for the time being, uh, we are doing our best to provide a first, uh, rate and, uh, rich, uh, educational resources. Because as you know, the three pillars of, uh, training courses are, um, you know, educational resources, um, lesson plans and instructors, which are all based on the resources. So the result of these efforts so far has been the publication of more than 100 volumes of books in the second area, which is education. We are trying to provide, uh, training courses depending on the needs of different peoples different audiences. The main mission of the financial intelligence academy is to research and, um, you look to, to develop training courses based on the standards, uh, for financial literacy and, uh, finally, uh, publishing more than 300 articles in different newspapers attending more than 40 radio programs and 20 TV programs are some of our activities in order to, uh, you know, for most financial, uh, with, uh, literacy. Uh, we are also interviewing experts around the world so that we can analyze their experiences and find a way to, uh, cooperate with them. Uh, one of our greatest activities in this area, which I like very much is the PI token field festival, uh, which has been held by the financial intelligence academy for two years. And this festival are experts. I mean, uh, members of the jury watch, uh, a ringing fields produced here and, uh, evaluate them from the financial literacy perspective and, uh, directors, uh, producing films containing more financial literacy concepts get rewarded.
Speaker 2:Oh, that's, that's interesting that that's a great way to do it. Um, have you found that there's been a positive reception to that?
Speaker 3:Yes, actually we have got great feedbacks from, uh, you know, some, some directors and, uh, they have a set that they're going to cooperate with us and making more movies in order to, to, to make people educate, uh, financially and help them, you know,
Speaker 2:That's, that's a wonderful idea is, you know, um, you know, with the, um, I guess entertainment industry, for lack of a better word. Um, but the media having accurate portrayals of financial matters, if that is a way to get through to people, um, on financial issues, because that's how people consume is, uh, by watching TV, watching movies, uh, you know, just through those interactions. Uh, unfortunately, uh, people don't read as much as they probably should. And, uh, I'm sure that I know that's the same all over the world is just human nature. Uh, so that's, that's great. Um, so, you know, tell us a little bit more about the resources, you know, there's books, are you guys concentrating also on videos, um, and that type of learning,
Speaker 3:Uh, you know, uh, the, the best resources in the world or translated, uh, prepared and adapted based on, uh, our environment and people's needs, you know, some of the books translated or, um, some reports like, um, you know, financial education in Europe, uh, the OACD IFE guidelines on financial education and, uh, um, financial education status, uh, financial education policies in Asia and the Pacific for students. Um, in addition to the 12 volume, uh, you know, training books as 17 volume setup, uh, storybooks financial literacy storybooks for preschool. Uh, first, second and third grade of elementary students has been translated and published both printed and audio books. Um, it's 27 volume set of storybooks for, uh, fourth, fifth and sixth grade. Um, elementary students has also been provided. Uh, we are also working on domestic educational resources, which will soon be published, as you said, some videos, educational videos, uh, you know, uh, at the moment, um, mostly we are focusing on, uh, kids and women. These two groups are very important. Um, we need to invest on them more, uh, because you know, kids should be taught at an early age that there is power in saving. They should be taught, uh, to avoid, you know, borrowing or living beyond their means. So they ended up, uh, becoming financially responsible adults and women are important because they are the backbone of society. They're the ones who are transferring this knowledge to the younger generation. And they're also important because they live longer than men and make less money.
Speaker 2:How boy that's, that sounds very familiar. I, you know, I've interviewed a lot of female, uh, uh, financial authors or, uh, female financial literacy advocates. And that's one statistic that always comes through is that women live longer and women earn less money, but yet women are making the majority of financial decisions and sometimes control majority of the wealth as a result of living longer. Um, so, you know, that's great. And of course, I completely agree that, you know, it should be a part of the finance of the education system, financial education, uh, because you know, uh, different studies and I'm sure you have those studies, uh, as well as you know, that kids learn stuff by second or third grade, and they're already set in their patterns, uh, in so many different ways that early intervention is so important. That's exciting that you guys are focused on that. Um, and not just focused on, you know, Hey, you got to say if, you know, but there's more to it. Uh, it's really get the whole person. Um, so you know, that you're doing all these things is how do you feel that financial education helps people improve their lives?
Speaker 3:That's a great question. Financial education is important. You know, an integral part of our life is managing livelihoods, uh, and thinking about, um, income and expenses. Uh, so, uh, lowing how to manage our finances w w will bring us peace, uh, comfort and financial security. You know, financial education is about freedom of choices. Possessing financial literacy means having more options and choosing the best ones. So if people are not able to plan ahead for the future, if, um, they don't have savings for their kids, or they don't know how to get their money work for them, they're limiting their choices. You know, uh, being aware, having a budget, uh, saving a little part of our income on a regular basis will give us more options in the future. Financial education can also help the younger generation educate they'll have better jobs or even, uh, launch their own businesses. You know, uh, another significant role of, uh, financial education. I is, uh, to make people have true beliefs about money. You know, that includes, uh, knowledge perception and, uh, financial skills. Our cultural belief pattern around money is still somehow let's say negative or limiting. You know, there are still people who believe that money is the root of all evil, or it takes money to make money and stuff like that. Uh, what financial education can do as to help them overcome these limiting beliefs or support them to have a better perception about money, and it could be done with financial skills. Uh, we should never forget that money is a very important, very important, not just for the sake of it, but because it changes life. It gives us more opportunities and it helps us live the fullest life.
Speaker 2:Well, that's great. And I live all the positives, uh, that you put in there is it, you know, knowing these sayings knowledge is power essentially, and that if people take control of their money, rather than letting money take control of them, is that it will help improve their lives in so many ways. That's, that's fantastic. Um, so, you know, with that said, and with the work that you're doing, do you feel that financial literacy is improving? Um, are we making a difference?
Speaker 3:Yes. Um, actually I think, uh, it is improving, you know, because over the last two decades after the financial crisis and now with the pandemic, uh, there has been growing need for, uh, financial education. I think the more, uh, we go through this path, the more we see, uh, the results and the positive impacts of financial literacy education, more, um, educational materials, like books, videos, and games are produced. So more people, schools and institutions pay attention to this issue. I think a wide range of individuals, large and small companies have begun activities in the field of financial literacy as economic education. So, uh, this trend will grow exponentially
Speaker 2:Well. That's fantastic. And I agree with you. I think, you know, sometimes it may seem like a little bit at a time, but you know, every little bit helps move, uh, towards a goal of helping people become a little bit more financially educated. Uh, that's fantastic.
Speaker 3:Yes. For example, we can see that financial literacy is becoming, um, you know, a compulsory course in some schools around the world. It seems like educational systems are changing their approaches from being subject oriented to skill oriented. And this is great news.
Speaker 2:Yeah. I, I completely agree. I think that, you know, be nice if our education systems add a little bit more skill based and practical knowledge. Um, so that's fantastic. So, you know, we're, we're here in the United States, you're in Iran. What do you feel are common financial issues for people all over the world? What do you think we all share?
Speaker 3:Yes. I think, um, one of the most, uh, common financial issues around the world is obviously consumerism. You know, consumer society is growing so fast around the globe. People just tend to buy that, but then say they feel like getting the latest gadgets, cars or clothes are supposed to make them happier or even more successful. Uh, worst of all, they sometimes borrow money to get the things they don't even need. You know, I assume that, uh, people use products as a means to feel a psychological void in their life. You know, they usually misjudge what will make them happy. So, uh, they get a temporary boost from a particular purchase. Um, what the pleasure tends to fade with time as they adapt to having it, you know, leaving them on satisfied. Ironically, they search for another product that can provide an even stronger pleasurable feeling. But, uh, the feeling will, uh, again, fake the way, uh, people, I think people choose, uh, you know, things worth having, rather than things worth being and media advertisements or the promotions that encourage people to purchase on installments. Um, play a big, big role in, uh, you know, consumer culture, uh, and another may add something else And other common financial issue. Uh, we're I think as, uh, the lack of awareness, uh, on investment opportunities, especially in developing countries like Iran, um, you know, many people do not know why they should get their money work for them or, or how to do it. Uh, um, we need to create more awareness so that people can understand the importance of investing, uh, and also the existing investment opportunities in their countries,
Speaker 2:A hundred percent yet, that that all resonates with me is, uh, uh, you know, you, you mentioned installment is people don't always understand how credit works and how that spreads out. And also what you mentioned, I think is interesting, um, about people consumerism and which you mentioned earlier movies and things like that is some, is that something that the financial intelligence academy works with? Uh, the directors of movies on is consumerism. Is that something that's broached?
Speaker 3:Yes, actually it, consumerism is one of the topics. Um, I, I'm not sure actually about it, but I think, um, over, I know one year or two, a movie will be produced about this.
Speaker 2:All right. That's fantastic. You know, it's so great that you guys are able to help, you know, on that issue. Um, because, you know, I mean, people tend to think, and they don't realize that the directors of movies may not be more financially educated than anyone else. Um, and so that they need the education as much as anybody else. So that's fantastic that you guys have taken that.
Speaker 3:Yes. That's why we're holding, you know, some meetings with, uh, with the directors, so that can first, they can be educated and then start making the films.
Speaker 2:Definitely. Yeah. If you don't educate them, if you don't educate the educators, he can't get anywhere. Right.
Speaker 3:Exactly
Speaker 2:Fantastic. So, you know, every country has things that are unique to the country, to the culture, to the people what's unique about finances in Iran.
Speaker 3:Well, to be honest, uh, nothing is unique about finances, anyone, except that except the financial problems that people are encountering in this country. I'd rather talk about, um, the unique financial problems, uh, anyone, if that's okay. Um, you know, uh, because of the rise of inflation, I mean the sharp rise of inflation, uh, the value of cash savings is lowered, especially in the past four years. And this is, uh, partly due to due to the sanctions, you know, as many experts suggest, uh, one of the inflation hedging investments is, uh, buying stocks. But even before that many people did not have enough information about the stock market. As I pointed out before, um, about other investment opportunities, uh, it has become, I mean, the stock market has become more accessible right now for Iranians, but lack of awareness about it, uh, can cause people troubles. And it has actually, you know, many people lost their money in the markets recently. Uh, I think we need more trainings on how to have a plan, how to be patients have a long-term, uh, think long term and, uh, you know, understand the market volatility, uh, because on one hand, patients can earn us money. And on the other hand, a real and long term investments can financial investments can lead to economic growth. Teaching children, financial literacy is something we need to take into consideration very seriously because they're the ones who are making the society in the future. And if we in west, uh, on the weekend prevent the problems and challenges we are encountering right now from happening in the future.
Speaker 2:Well, that's great. I, I loved that answer. I mean, inflation is definitely a concern and that, that that's part of the financial education is, you know, understanding how to change or adapt, you know, with inflation. Um, and also as you point out is patience is so important. Um, people oftentimes, you know, invest in something and they expect an overnight return, uh, and you know, the best investments really don't often work that way. You know, they, they take years, decades before they really show fruit. So, you know, that's, that's fantastic that you guys are addressing those issues and thinking about that, because those are, you know, I, I think those are so core beyond, you know, asset allocation. It's very important as you mentioned, but it's like understanding that people may not be patient and understanding that people don't have a plan and that the, you don't have, the knowledge is the one sheet you have to tackle those issues before you can talk to people about, you know, whether mutual fund a or stock a is better than stock B. You have to start at the beginning.
Speaker 3:Yes, exactly. Financial literacy courses are actually where we can start teaching people. And right now, because of the pandemic, we are holding, um, many online courses for different audiences, for women, financial literacy for women, for, for university students, for adults. Um, and actually even for kids.
Speaker 2:That's fantastic. That's fantastic. So, you know, as we wrap up, what is your number one tip on being financially prepared?
Speaker 3:Um, my number one tip as a cultivate, the habit of saving and budgeting know exactly where your money goes and pay yourself first, no matter how little you save, uh, just make sure it is consistent. Also start an emergency fund ASAP because no one can tell when an emergency situation will arise. You know, um, if people are prepared financially, they're not taken aback and, um, effected by, you know, unexpected events like the pandemic.
Speaker 2:That's great if I say, I mean, and I think so many people start there is, you know, the emergency fund and the pandemic is of good reminder the importance of it because it brought so much uncertainty across the world. Um, I can't ask for a better advice than that. Uh, so definitely, uh, so how can people learn more about you, the financial intelligence academy and, uh, to learn about your work?
Speaker 3:Yes. Uh, you know, we have a website, uh, which is mostly for Iranians because an English version of it is not available yet. Www intelligence that I R uh, you can find, you know, different articles on financial literacy and, um, you know, our interviews events and, uh, training courses. Uh, there are non Iranians can follow us on LinkedIn financial intelligence academy. We share our videos and interviews and stories there in English. Uh, we are hoping to exchange views, you know, with experts around the world. Um, I mean, financial literacy authors experts around the world so that we can cooperate and, uh, carry out, um, activities, mutual activities, both in education fields and promoting, uh, financial literacy. Uh, we're looking forward to getting connected with other organizations and institutions active in this field. Uh, they can also reach me on LinkedIn, uh, L harm your Mohammad, D E L a w a M M I R M O H a M double M a D I, or email me, uh, at, um, a D E L i.me Mohammad D with the same spelling, eighty1@gmail.com.
Speaker 2:Fantastic. And for all our listeners and viewers, uh, the links to, uh, Elle Hom, um, then links to down-home mentioned will be on in the show notes. And of course you can always reach out to me or find these links on my website. Uh, L hum. Uh, thank you so much for taking the time to join us today on the Tony Stewart podcast.
Speaker 3:It's my pleasure, Tony. I appreciate the chance to reach out to your listeners.
Speaker 2:Yeah. What this is fantastic. Um, thanks again. And thank you everybody for tuning into the Tony Stewart podcast until next time.