I am probably preaching to the choir on this one but an interesting WSJ column from AnnaMaria Lusardi about the shortcomings of a just-in-time approach:

But there are problems with the “just in time” concept. For starters, all education—not just financial knowledge—erodes over time. If I were to re-test my undergraduate and graduate students a few months after they finish a course (any course!), the results would deviate from those of their final exams. This hardly means we should sidestep teaching entirely, to replace it with targeted information that is dispensed only as needed. Do you want to go to a Shakespeare play tonight? Here is what he wrote and why he is so famous. No need to bother with a literature course in college. “Just in time” ignores the value that comes from education.

The second reason I question “just in time” is that my academic research shows that financial literacy brings benefits. Financially knowledgeable individuals are more likely to plan for future events, to save, and to invest in higher return assets. But that knowledge is important before they take those actions. Indeed, it is what positively influences their behavior.

One of the commenters on the site summed it up quite well:

This reminds me of what my father told me so many times. Your education is a foundation. Relearning is much easier than learning for the first time. We get the formal education once, my was a long time ago. Then when something arises, we recall and have the start point to relearn. It is quick and it works. Both are a must.

What do you think?  Send along your comments and we will post them.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.