A new week, a new post, a new lesson learned. During my last meeting with my mentor, we discussed further about banks. This time our main focuses were about the impacts banks brought to the society. We divided the conversation into two sub-points:

a. How the banking system effects democracy

b. Impacts on inequality

Banks being able to create money gives the banking sector more power than the government. Technically, banks have the power to shape the economy since they create money when people make loans, which means that they effectively control where newly created money goes to in the economy. Furthermore, in UK, 85% of the nation’s money exists in just five banks that are controlled by 78 board members. It’s dangerous and undemocratic to leave this much power in the hands of people who have no accountability to society – the financial crisis has shown how severe the consequences of doing this can be. The World Bank aims to eliminate poverty and sharing prosperity. Nearly 1.1 billion people escaped extreme poverty since 1990 and that’s about 200 people per minute. If we tackle inequality, by the year 2030, we will break the goal of poverty.

The concepts I have discussed with my mentor are listed below.

  • The difference between a financial accountant and a regular accountant
    • financial accountants keep the financial records
    • accountant prepares and examines them
  • An effective and efficient way to manage money
    • Create a budget
    • Make a purchasing list
    • Pay in full cash
    • Wait for discounts and sales
    • Which apartment for rent would be the better buy?
    • How would I save up for my college budget?
  • Banking
    • What are the benefits of a bank account?
    • What are some possible issues that may arise when opening up a new bank account?
    • What are some options I can take if I cannot open up a bank account?
    • How does the banking system effect democracy?
    • What are the impacts on inequality?

An alternative my mentor has offered me was to go more into detail about who an accountant is and does. However, my main focus on this in-depth project was specifically about finance that will eventually help me in my post-secondary life and after. Though looking more into an accountant is an excellent idea, I personally strongly believe that an accountant is not a job I will be considering but financial problems will be issues I will encounter later in life. Another mentor might’ve suggested me to do a ton of problems calculating budgets if I was going to focus on financing. Since calculating budgets is a big part of financing, and knowing how to effectively manage it will be a great help, this could’ve been a possible alternative. I also believe that if I had another mentor, the way I would learn about financing would’ve been a lot different. Since my current mentor used to be an accountant and he has taken a lot of head roles, he has a lot of knowledge based on financing. However, a different mentor who was less experienced would’ve taught me much less but, a different mentor with more experience and a higher rank might’ve taught me much more.