Four Indispensable Money Lessons from Oscar Night

I haven't seen The King's Speech yet and probably won't see Black Swan. So for me the highlight of the 83^rd Annual Academy Awards was when Charles Ferguson, who directed Inside Job, accepted his Oscar with these words: "Forgive me, but I must start by pointing out that three years after a horrific financial crisis caused by massive fraud, not a single financial executive has gone to jail, and that's wrong."

Talk about teachable moments. You're sitting in front of the TV with the family hoping to be entertained and, wham! Dad, what the heck is he talking about?

Well, I'll tell you; he's talking about how millions of people lost their life savings and their homes in the last three years in a financial crisis that might have been avoidable -- and no one is being held accountable. Lawmakers were writing bad policy and regulators were asleep at the switch while bankers were pushing lethal mortgages on trusting clients.

This is the world in which we live, kids. You can't count on anyone but yourself to look out for you and your money. That's why I want you to understand that:

• In any money transaction, all parties involved are after what's best for them -- not you. Other folks haven't the slightest concern for your interests.
• Bankers, brokers and sales people say what they think you want to hear in order to close a deal -- whether it's true or not.
• The advertising you see on TV is just another form of financial fraud, delivering the message that you need something that you can easily do without.
• You may pay for good advice when you need it. But even then you have ultimate responsibility for the decision. No one -- certainly not your adviser -- will be around to backstop you in pursuit of your long-term goals.

Too deep? Then just make it about trust. What the financial meltdown really showed us, and what was at the core of Ferguson's brief rant, is that we cannot take on faith anything we're told where money is involved. You have to find out for yourself if it's true, as best you can.

Photo courtesy Flickr user lorenjavier
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· The Rise of Our On-Your-Own Culture
· 6 Steps to Your Kids' Financial Security
· Kids and Money: Is It All Just Common Sense?

Dan Kadlec

Daniel J. Kadlec is an author and journalist whose work appears regularly in Time and Money magazines. He is the former editor of Time’s Generations section, which was written and edited for boomers. Kadlec came to Time from USA Today, where he was the creator and author of the daily column Street Talk, which anchored the newspaper's business coverage. He has co-written three books, including, most recently, With Purpose: Going from Success to Significance in Work and Life. He has won a New York Press Club award and a National Headliner Award for columns on the economy and investing.

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