$57 Billion
It is curious that while we live within a capitalist economic system, most public schools offer no courses in economics and personal finance. It could be true that ignorance is bliss in politics and sausage making, but in finance, it is deadly. When you do not know how wealth is created you could be led to believe that wealth is something that only belongs to the privileged. Those who do not know or understand how to participate in owning corporations and how to lend money to companies, governments, and banks are disadvantaged. Just knowing that through life insurance an estate can be created, one that builds generational wealth and can change the course of family history.
Fighting financial ignorance is fighting for justice. It is justice because financial literacy allows individuals, families, and communities to be released from the cycle of poverty. People from all backgrounds and levels of education can create wealth, and some of this wealth can be extremely large.
As an example: this week it was reported that Elon Musk gave $5.7 billion dollars of his company’s stock to charity. He created the Tesla Corporation, which is how he created his great wealth. This vast wealth has added to the economy and the investors who participated in his company’s creation, in turn, increased their own net worth. Those investors can also make charitable gifts of the Tesla stock.
Now some will say Elon Musk has too much wealth – $236 billion give or take a few million. Does that mean he has too many ideas, or too willing to take a risk, or too much a leader and entrepreneur? When he sold a large block of company stock last year, he was faced with a huge tax bill, but his charitable giving will help offset the capital gains tax.
His wealth does not take away from mine; if anything, my index mutual fund holds some of his stock – thank you very much. For us in the not-for-profit world, individuals who have created wealth are both partners and sustainers. If Elon Musk asked how he could help your church’s ministry, what would you say? Is what we are doing as a local church or Conference, so profound as to attract a billion-dollar gift? Elon Musk and other wealth creators have big – no huge dreams. It would seem, that to attract big money, we must dream much bigger.