Bandar Seri Begawan - This week's question is about increasing our financial and economic knowledge for our children.

This question hits home for me as my own children could benefit from a better education on savings and managing their money. In addition, I would not object if they took a small break from viewing me as their personal automated teller machine (ATM).

With the global financial crisis, we have a responsibility as parents to ensure our children have an understanding of the benefits and risks they face in today's global economy. I would also like to highlight two important events that are directly related to Southeast Asia and Brunei. As always, I welcome your questions in person or at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Many of you may have read in the Borneo Bulletin about US Secretary of State Hillary Clinton's recent speech in Morocco. In her address she highlights the need for more collaboration with Muslim nations in the areas of science and technology.

The State Department will be sending science envoys as well as planning to increase the number of Foreign Service officers dedicated to working on science, environmental, and technology issues.

Both President Obama and Secretary Clinton have noted that the US is seeking to further our relations with the Muslim world by sharing knowledge and increasing our nations' access to information to better our societies and further educate our citizens.

I would also draw your attention to the visit of Senior State Department officials to Burma this week. Assistant Secretary for East Asian and Pacific Affairs, Mr Kurt Campbell, joined by Deputy Assistant Secretary Scot Marciel visited Burma to continue the initial dialogue with the Burmese government that was begun a few months ago. In addition, they have meet with civil society leaders, such as Aung San Suu Kyi.

As I have mentioned in the past, this is an ongoing process. There is an opportunity for Asean nations, including Brunei, to play a leading role in encouraging the Burmese government to comply with international norms and laws.

Q: Hello Mr Ambassador, What is your opinion in having a financial literacy subject in Brunei's education system as early as possible? Please relate your insight to what happens now in the US. - Yusri

Yusri, I think we can all agree that the past year has shown us that knowledge about financial and economic matters is critical. We must mortgage our children's future by educating them on financial matters starting at early age.

As I'm sure you know, financial hardship has increased throughout the world and, in many cases, hard working people were caught completely unaware as their life savings evaporated like water in a desert.

Many were victims of unscrupulous business practices as well as their own lack of knowledge of basic financial principles. In addition, many people simply chose to ignore all manner of warning signs that their investments, lacks of savings, and spending habits could and would lead to financial ruin.

As we say in the US, they "got in way over their heads". This applies to individuals, companies and even governments. Therefore, your suggestion of improving financial literacy and knowledge is an excellent idea.

I agree that we must begin at early age in the financial education of our children. Our children should benefit from a solid foundation in math, along with improving their ability to reason and critically evaluate ideas and proposals.

As they progress through their schooling, they should gain a better understanding of their role as consumers and investors. Let us be frank, our children are vital consumer group in the global market. Our educational systems must recognise this and look to improve their understanding of their rights and responsibilities as consumers. For example, do our children truly understand the ramifications of debt and credit cards usage? They should have a solid grasp of this and other financial matters before they leave high school.

A fundamental aspect of this training must be the teaching of risk and how to manage risk. As governments look to manage risk through regulation, while not preventing innovation and stifling their economies, so must a consumer and investor evaluate risk.

Our children must know that the choices they make have consequences and risks, both positive and, potentially negative. I think an area that can and should be encouraged is savings. In the US, our national savings rate dropped to unsustainable levels and credit took on too prominent a role in our economy, according to most experts.

However, we are seeing an upswing in our savings rate. The private sector can play an important role in consumer education.

We have seen both in Brunei and the US, financial firms upgrading their consumer education programmes. Some may questions the validity of the programs as simply a way to increase the number of customers.

That is certainly true; however, many reputable companies realise that the day of "fast" profits have disappeared. Today, an educated customer base is a loyal customer base. Because the US educational system is locally based, there are variations in the teaching of financial literacy between our cities and states. However, we are continually working to improve the fundamentals, such as math and English comprehension, which are the basis for financial and economic knowledge.

As you know, Brunei has a strong commitment to improving its educational system. Incorporating financial literacy can be an important part of the curriculum. With today's economies so interconnected and with a complexity that is confusing to many experts, we have an obligation to ensure our children and our citizens are- as educated as they can be on money matters.

As always, I wish you a safe and happy weekend. -- Courtesy of Borneo Bulletin

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