We ordinary people call it education. Global corporate human resource departments call it investment in human capital.

Education, specifically financial education is always at top of my mind. Recently, when our firm participated in the Bermuda College Career Fair, the vibrancy and interest of so many young people as wave after wave poured into the conference centre was so enjoyable.

They carried their hopes and dreams for their future with them, readily sharing some of their ideas with us. Many students were eager to understand career paths available to them; others were already quite definitive in their choice of business endeavours.

One young lady was seriously focused on opening a salon after graduation, but hadn't really thought yet about her business financial plan. It is so good to have dreams, but the reality is that dreams don't pay the bills.

No matter your career goals in life, your ability to manage your cash flow and expenses is a firm predictor of financial success.

The most touching conversation of this event was with a young man, and his friend, both aged ten. Ordinarily, financial planning is not a concept a ten year-old would necessarily think important, but these students were accompanied by their committed teacher.

She shall remain anonymous, as I have not sought her permission. However, she had prepared her class well - each student had a list of three questions that they were required to use for interviews at each booth they approached.

The articulate, poised young man asked us what we did and we explained how we help people plan to manage their money. Then, I asked if he received an allowance of pocket money. He replied that he packed groceries after school several days a week. What did he do with the money?

He very, very seriously looked me in the eye and said that he helped buy groceries for his family. Did he get to keep any of his money to spend?

With no hesitation, he said "only get a little bit, my mother makes me save the rest".

I then asked his friend the same question; his friend laughed. He spends it all, but listening to the first conversation, he thought that maybe saving some now might be a good idea.

There was a huge pool of human capital at the Bermuda College Career Fair; hundreds of bright, curious, eager to learn, hopeful, and determined to succeed students. Defining the path for the extraordinary.

What is human capital? One key phrase: Education and the production of economic value. Source Wikipedia is succinct: Human capital refers to the stock of competences, knowledge and personality attributes embodied in the ability to perform labour so as to produce economic value. It is the attributes gained by a worker through education and experience.

Human resources consultancy Aon Hewitt stated in an article (and survey) dated February 22, 2010, that analysis shows a clear link between investing in human capital issues and exceeding deal objectives. Focus on leadership and key talent is critical in driving deal success.

Are countries that focus strong commitments to investment in human capital more successful than others?

To have a clear picture of the vital role of human capital in society, I refer you to a summary of part of a research presentation, 'Addressing Global Challenge', that Michael Milken, chairman of the Milken Institute recently gave at the Russia Forum 2010, the leading annual Russia investors' conference (Troika Dialog).

How important is human capital? In the 1960's, two island nations stood at the crosswinds of change: Singapore and Jamaica. They shared many similar characteristics: size, population, weather, limited natural resources, per capita Gross Domestic Product, and recent separation from the Commonwealth.

The challenge in the decisions to be made for the future of each country's financial successes would lie in each leader's prescient vision of long-term sustainable commerce.

Remembering that the electronic world of today did not exist, Singapore chose to pursue investment in human capital emphasising excellence in education, with one of the goals to achieve a 100 percent literacy rate in a highly skilled workforce.

Bi-lingual (English and native) language fluency from early school age was initiated, while cultivating the best and the brightest in knowledge industries within and without their borders.

Jamaica chose to stay the course with its natural beauty resources as a tourist destination, mining, and agriculture export. Mr. Milken needed only one chart to demonstrate the results of those decisions made so many years ago.

In the 2009 Gross Domestic Product comparison of the two countries, Jamaica's GDP had doubled, but Singapore had an outsize GDP, a multiplier of 17 times larger than the per capita number of almost 50 years ago.

The key - EDUCATION and investment in human capital.

The final statement of Mr. Milken's presentation summarises his prediction succinctly: The 21st century will be defined by a worldwide competition for human capital.

A bibliography on education history in Singapore states that the education landscape is very dynamic and ever changing. It also reflects on how the government has adopted education as a social engineering tool to align with other sectors like the economy, national defence, and community support.

Enhanced human capital skills are seen as crucial to Singapore's economy leading to new educational changes and bigger investments into educational resources and infrastructures

Now, let us replace the word Singapore, and insert the word Bermuda. We have the capability, the resources, and the new education leadership in place to effect change.

It won't be easy; it won't be quick, but it can be done. We want, not ordinary, but extraordinary education for everyone. Can we unite in community support for this initiative - our future depends on it?

Sources: Editors Chow Wun Han, Senior Manager, Contributors: Ong Hui Pheng, Reference Librarian Jason Chang, Reference Librarian Year Lee Kong Chian Reference Library http://www.hewittassociates.com/Intl/NA/enUS/AboutHewitt/Newsroom/PressReleaseDetail.aspx*?*cid=8147

Michael Milken's Russian Forum speech on Human Capital complete with chart can be found on YouTube at http://www.youtube.com/watch*?*v=wIe0EyzJJjE His press release, the Value of Human Capital http://2010.therussiaforum.com/news/press-releases/news-02022010-2/

Human Capital Measurement: How Do You Measure Up? By Peter Cheese and Bob Thomas, Accenture: Human Performance Insight, May 1, 2003

Martha Myron is an international Certified Financial Planner™ practitioner in a multi-family office for private wealth management. She specialises in independent fee-only cross border investment, tax, estate, and strategic retirement planning services for Bermuda residents with cross-border and multi-national connections, and US citizens living abroad. She is also a Masters candidate in International Tax and Financial Planning at Thomas Jefferson School of Law. For more information, contact martha.myron@gmail.com">martha.myron@gmail.com or 296-3528 at Patterson Partners Ltd.