Dumb: “Econ majors know personal finance”

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I like hearing dumb things because then I mock them and the person who said them. Here’s the latest: “I’m an economics major! I don’t need to learn about money!”

Just because you’re an econ major doesn’t necessarily mean you know personal finance. That’s like saying if you’re a programmer, you’re expert at using Microsoft Word. Give me a break, please.

Economics is more theoretical and really valuable for some things–and econ majors understand the theory and usually pick up nuances of personal finance that other people don’t. But studying economics doesn’t directly translate to managing your money–just because you understand multicollinearity or Kaldor-Hicks efficiency doesn’t mean you understand how to buy a stock.

Who will I mock next? Send more dumb things my way: ramit@stanford.edu

Now what?

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2 Comments

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  1. I totally agree regarding the disconnect between an economics degree and personal finance knowledge. After I graduated with a BA in Economics, I spent the summer before graduate school reading personal finance and inventment books. The economics and business courses did a lot to enhance my ability to grasp personal finance and investment strategy. The economics degree alone would have left me clueless about money management.

  2. It’s true. I was an econ major and a lot of my profs told me that economists don’t often make good entrepreneurs.