The Money Academy Blog

How to best use allowance to teach kids about money

themoneyacademy — Sun, 15 Jan 2012 16:49:14 +0000

Probably the most often asked question by parents is “Should I give my kid an allowance?” There is no simple answer, but giving kids the experience of handling their own money is a great teaching tool. The problem with allowance is when it is given with no responsibility involved.

Kids who get allowance that is matched to certain spending areas or in exchange for chores do much better with money once they are out on their own. Read more about what studies are proving…

…By Eileen Ambrose, The Baltimore Sun

The conventional wisdom is that allowances make children responsible money managers as they learn to budget so they don’t run out of cash.

But Lewis Mandell, professor emeritus of finance and former dean of business at the State Universi ty of New York in Buffalo, says that’s not always the case. In fact, says Mandell, who has studied financial literacy, certain allowances may even be hurting kids.

According to Mandell, high school students who didn’t get an allowance performed better on a financial literacy test than those who did, especially teens who received stipends with no strings attached. And children receiving unconditional allowances — no chores required — also were less motivated to get a job or go to college, he says.

Read more of the article: http://bsun.md/y1mb4y

The benefit of letting your kids solve their own problems

themoneyacademy — Tue, 10 Jan 2012 06:24:30 +0000

As parents, we are making choices daily about how to best utilize our resources, including money, to fulfill the needs of the family. Let’s begin to share that responsibility with the kids. When they are given the opportunity to make their own choices with money, they will bump up against a problem we’ve all experienced of not having enough money for all the things we want.

One of the best ways to teach kids how to solve this problem is to have them solve the problem themselves. The key is to not be too quick to step in and rescue them at the first sign of struggle. This tends to stop their thinking and can send the message that we don’t have faith in their ability to come up with a solution.

It’s in the struggles and the disequilibrium where real learning takes place and they get to enjoy the sweet success of figuring it out by themselves. It’s also where they learn that persistence pays off and where real problem-solvers are born. When kids are given an opportunity to succeed at a difficult task, they begin to take on other more difficult tasks with confidence.

As uncomfortable as it can be to watch them struggle with a problem, rest assured that the lesson they learned is going to stick with them forever.

Are you interested in changing the financial future for the next generation?

themoneyacademy — Thu, 08 Dec 2011 21:01:28 +0000

The Money Academy is expanding to offer our programs in more schools throughout Austin. We are looking for new Leaders to deliver our After School programs and Summer Camps.
Here’s what you need to know to get involved:

What Is The Money Academy?
The Money Academy provides programs where kids learn all about money. Can you imagine what your life would be like now if you had learned how money really works at the age of 9? In our flagship program, The Money Academy Summer Camp, kids start and run their own business—and keep the profit! Through real life trial and error experience, kids learn about accountability, teamwork, integrity, business development, business math and much, much more. Kids leave our program saying it was one of the best experiences that they have had.
If you are accepted into our leadership program, you will be trained in a powerful, cutting edge methodology that will alter your experience of working with kids and provide you with valuable experience with money.
Are You Looking For This?
The Money Academy Camp Leader works with approximately 20 young people or teens in developing, testing, and running a successful business during a week long camp. The camp leader sets the kids up with tools and training and then turns the business over entirely to the kids while remaining responsible for our kids’ safety and our relationship with our host.
Are We Looking for You?
The Money Academy Regional Director and Camp Leader is responsible, energetic, causative and inspired by the idea of empowering children. In addition, you…

are a highly accountable and reliable professional.
have experience working with children and delivering some kind of curriculum.
are willing to be trained in another methodology.
are capable of effectively working with groups of people, operating effectively with a time line, and producing results.
can manage multiple objectives at one time while still focusing on the big picture.
are committed to making a difference with kids and open to being trained in a new and cutting edge methodology that may challenge your current understanding about leadership, children and learning.

What It Takes:
1) 1-year or more of experience leading or working with groups of children.
2) Experience managing events or leading from a curriculum.
3) Provide 3 glowing professional references.
4) Be available to lead 4-6 camps (8-5 Monday through Friday) June through August each summer
5) Be available the Sunday afternoon before each camp for a planning meeting
6) Training is provided and includes:

One day at our Annual Team Leadership Training
2.5 days observing at an ongoing camp
TEA Approved On-line training programs (2-3 hours)

Future Business Opportunity
Money Academy will be expanding to offer our programs in new markets through franchising. As a Camp Leader and Regional Representative, you will be in a unique position to continue conducting business in your market through a franchising license. Building a business of your own, utilizing the expertise and curriculum of Money Academy will give you an opportunity to invest in your own future of financial security.

What does the financial future look like for college kids?

themoneyacademy — Sun, 04 Dec 2011 04:12:06 +0000

Time Magazine recently wrote of the rising college debt that kids are leaving college with. On top of a heightened unemployment rate, we must prepare our kids to create their own jobs. Entrepreneurship and small business creation is on the rise and will be what pulls us out of the recession.

It is of utmost importance to teach kids about how business and money work and give them the tools to create financial stability for themselves in the face of troubling economic times.

Here’s an excerpt from the Time article

College Graduates Face Record-High Debt In the Age of Record-High Unemployment

The news just keeps getting worse for college graduates. According to a report out today from the Project on Student Debt, college seniors who graduated with student loans in 2010 owed an average of $25,250—the highest level ever recorded and a 5% increase from the previous year.Those debt-carrying graduates also faced an impossibly tough job market, as unemployment for new college graduates hovered at 9.1%. Add to that the fact that the average debt total doesn’t include for-profits institutions, which often saddle their students with much more debt than a traditional college, as too few provide the data to be included in the study — meaning that the state of student debt is likely much worse than we know. The debt figures add weight to the push to curb skyrocketing student debt.

Start preparing your kids to be Money Smart while they are young so they can navigate the economic challenges they will face upon college graduation.

Give kids real-life, real-money experience from a young age. Support them in exploring money through doing business projects, selling their outgrown toys, doing chores for neighbors, or anything they can do to raise money. Then, most importantly, help them start saving to invest a portion of their money.

The Money Talk

themoneyacademy — Tue, 22 Nov 2011 18:41:09 +0000

Sharon Lechter, Author of Rich Dad Poor Dad, shares ideas on teaching your kids about money in her recent blog. Read on…

In today’s economy, it is more important than ever to start the conversations about money with your children before they enter their teenage years. Here are some questions to begin this conversation and encourage healthy spending habits:

* What do Mom and Dad do to earn money? Start this conversation as early as possible so your children understand that money comes from somewhere. Make sure they understand that the money you earn from what you do for a living is how you pay bills.

* What is the difference between a “want” and a “need”? For many children, anything they want in the moment instantly becomes a need. Help explain the difference between a want and a need.

* How do credit cards work? In our “just charge it” society, many children see their parents swipe credit cards for purchases but don’t see them paying the bills. When your next credit card bill comes in, review it with your children. Sharing the “paying” side of life will educate your children about both sides of the money equation — buying and paying.

* So how did that happen? I often say, “We need to allow our children to stub their toes while they are still at home, so they don’t break their legs when they leave home.” Allow your children to have money of their own…and allow them to run out of money and suffer the consequences. They may indeed have to miss that movie with their friends…but they will learn a valuable lesson. If you bail them out, they will keep making the same mistake. Challenge them to think of how they can make extra money to do what they really want to do.

* What can you do to earn extra money? This question will urge your children to think outside of the box and encourage an entrepreneurial spirit. Can they assist with something around the house to earn extra dollars? Can they provide a service that someone might need?

* Do you have a goal? Encourage your children to set little goals…and experience little wins! You will see their self esteem build as a result.

The “Money Talk” is not as terrifying as many parents think. It is as easy as talking about the things you do every day, as you do them. Your children may surprise you by how eager they are to learn! Thank you for providing your children the gift of a lifetime…financial education!

Holiday Break Camp in Austin

themoneyacademy — Mon, 17 Oct 2011 16:20:33 +0000

The Holiday Season is right around the corner. How about giving your kids the gift of a fun week at Money Academy Camp, learning and earning!

Kids come together for the week and create a real business, making and selling a real product, and they get to keep the profits!

Our plans for a Holiday Break Camp are coming together now. Let us know which week works best for you. We’re still deciding on the best dates so give us your feedback and we’ll prepare to give your kids the best camp experience ever! Where else can they go to camp and come home with a check for profits they made during the week?

Vote now:

____December 19-23
____December 26-30

Getting Kids “Money Smart” in Asheville

themoneyacademy — Wed, 13 Jul 2011 21:51:09 +0000

Last week, we completed the inaugural Money Academy Camp in Asheville, NC. For one week, 11 young people from ages 7 – 15 came together to create a successful business project, making almost $200 in just two days of selling. With the help of Lev’s accordion playing to attract customers to the booth, the campers sold hand painted canvas bags and individual greeting cards.

We had a special surprise when WLOS (the local ABC affiliate) came by and interviewed a couple of the kids to share the news with their viewers. Watch for a link to that news story later this week!

Thanks Asheville and Neo Cantina for embracing us with such warm hospitality! We’ll be back July 25-29 to deliver one more session of the camp this summer. See you then!

Like our Facebook Page for Asheville and get $25 off the next session of camp!

Mystery Shoppers Wanted for Kid Business Camp

themoneyacademy — Fri, 01 Jul 2011 22:23:19 +0000

In the Money Academy Camp, we don’t tell the kids how to run their business. We let them make their own mistakes and learn from the experience. This creates an environment where they take complete ownership of the experience and get to fully enjoy their accomplishments for themselves.

This is where you come in. There will be two campers outside the business location with a table set up selling their wares. You will pretend to be a customer for the kids’ camp business, just as you would at any place of business. Immediately following your shopping experience, you will meet and consult with the team of young business owners as they evaluate their approach.

Steps to the process:

1. From a distance where the campers won’t notice you, observe how they are set up, how they are behaving, their appearance and interactions with customers. Inconspicuously record your impressions.

2. Visit the camper business establishment and pretend to be a customer. When you approach, notice how they engage you. Ask the kinds of questions you would ask if you were a customer who happened to be coming to the host business establishment. You can make a purchase or not, it’s up to you.

3. Notice the Money Academy Staff and how they handled themselves in relation to the Campers. Their role is to support the campers in being safe and help them notice their presentation and interactions. The Staff is not there to make sales or answer questions about the Campers’ Business. They will have information about the Money Academy to share, if there are customer questions about the program.

4. Proceed to the Camp meeting room, where you will be greeted by our staff and they will prepare the Campers to meet with you.

When should you start talking about money to your kids?

themoneyacademy — Tue, 28 Jun 2011 15:26:10 +0000

Another great article from The Economic Times:

Money Academy Camp, CEO for the day leading financial analysis of product

“Teaching kids to count is fine but teaching them what counts is best.” Bob Talbert, American columnist.

This quote lies at the core of the philosophy behind teaching fiscal responsibility to children. Parents and teachers focus on math and other artistic skills, with kids as young as four years old being enrolled in esoteric classes to get a head start in life.

But amid all these classes, we forget to impart an important life skill-financial literacy. How many of us realize that when our kids enter the real world, the first thing they confront is money?As a wealth adviser, I have seen that when it comes to money, smart people commit blunders, whether it is in dealing with banks, taking loans or making investments.This is the reason one should begin teaching money management to kids at a very young age.

The best time to do this is between 5 and 12 years, which is not to say that those above 12 years do not appreciate this concept. They do when the content is interesting, but it takes a little more time for them to understand the importance because they have developed deep-rooted habits and have turned into consumers.

As they enter the teenage or beyond the sixth grade, they become hardwired because of peer pressure and external environment. So it becomes difficult to get them to adhere to a financial literacy program. At this stage in their lives, they are keen to buy mobile phones, gadgets, branded clothes and do things that their friends are doing. Telling them to act sensibly and responsibly might be a tall order if you have not inculcated good habits from an early age. In fact, it is a good idea to introduce financial literacy as a subject in school from Class I itself.

Many of you probably give your children pocket money, but what you don’t realize is that this does not teach them the value of money or how to manage it. Most parents do not take the initiative to teach their children about money. They may touch on the concept of piggy banks and savings early on, but are usually reluctant to discuss money and family finances with their children.

The best way to teach kids about money is to let them deal with money early on for they need to understand its power and the consequences of their decisions. It’s far better that they commit mistakes at a young age with smaller amounts of money than financial blunders when they grow up.

By starting early, you can give your children a strong competitive edge for their future financial success. The key learning points for kids should include having healthy values about money, setting goals and priorities, making prudent choices, delaying instant gratification and understanding the virtues of hard work.

Also, don’t forget that even though you might not teach your kids directly, they are learning by observing you.

(The author is Financial planner and author of The Art and Science of Teaching Children about Money, Amar Pandit)

Money Academy Camp at two locations this week!

themoneyacademy — Tue, 21 Jun 2011 18:53:17 +0000

This week, June 20-24th, camps are going on in two locations: Book People and Brick Oven-Arboretum! The kids have come up with a business product and start selling tomorrow. Stop by and check out their unique products and watch kids getting “Money Smart”.