Learning by Doing

Today’s email post from my favorite parenting group is about how kids learn from their mistakes.  This is key to how kids learn in Money Academy Camp, by trial and error.  It’s the process of coming up with their own ideas, trying them out and then adjusting their plan according to what they learned from the experience.

Enjoy this article and imagine how you can use this to make a difference in your relationship to your child’s learning.

:: Go With the Flow… Even If It’s ‘Wrong’ ::

Sometimes we think we’re doing our kids a favor
when we tell them the “right” way to do something:
“No, dear… Do it *this* way.”

We think we’re just saving them the hassle of
reinventing the wheel, or preventing something from
being “wasted,” or saving time. But our corrections
also send unintended, unspoken messages, like…

* The end result is more important than the process.
* Efficiency is more important than joy.
* There is no value in making mistakes.
* Better to go with a “sure thing” than to take risks.

In other words, frequently correcting children
undermines their (and our) creativity!

So next time you see your child doing something the
“wrong” way, ask yourself if it’s really so bad that
you can’t go along with it. See if you can relax and
enjoy witnessing his or her process of discovery.

Children who are allowed to find their own way
learn that they *can* find their own way.

http://dailygroove.net/wrong-way

The New Science Behind Your Spending Addiction

A recent Newsweek article reported that science is jumping on board to study and reveal the issue of how we use our resources.  It’s fairly commonsense that we are going to operate in the mode that we’ve been trained, and for decades we have been exposed to strong messages of immediate gratification.  We are told that we “Need” all kinds of stuff to make our lives normal, happy, even fulfilling.  Humanity is up against a powerful corporate influence that is driving our economy and ultimately creating false realities of consumption.

In our own subtle way, the Money Academy message is busting this reality for young people, setting their brains on a trajectory for wealth building.  The article points out that we have to “rewire the brain to find pleasure in future rewards.”

If our reality from a young age is that money is a tool that we can use in multiple ways (Spending, Earning, Giving), the choices we make with our money dramatically change.  It’s imperative that the brain be wired for this from the start. Probably the most influential conversation about this in Money Academy is when we address the issue of what contribution the kids want to make in the world.  Kids are naturally altruistic and we tap into that emotion, we create an incentive to build wealth.  We ask them what difference or what contribution would they make if they had money to donate.  The conversation for philanthropy is what motivates them.  Building wealth will give them the opportunity to make a difference.  We quote Spiderman:  “With great power (wealth) comes great responsibiltiy”.  They really get it.   And then “saving to invest” makes sense.   And then,of course, making money with money (passive income)  is equally exciting.

The shortfall of most initiatives that want us to save is that there is not motivation.  If you talk to a young person about saving to retire, they have no concept of what that could mean.  In their world, they are never going to be that old.  And they’ll deal with tomorrow when it comes.  The immediate gratification issue is at play.  The best way we have found to shift that thinking is to have them realize that they can start making a difference NOW.   When we do the “Financial Freedom Plan,”  the first thing they do is save for investing, then Charity.   Spending is last on the list after we’ve managed the areas that are critical to our financial stability and to a world that works for everyone.

Create a wealth building mindset in kids while they are young and that will be their roadmap for the rest of their lives.

How to best use allowance to teach kids about money

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 University 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

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?

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?

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.

Holiday Break Camp in Austin

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

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

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?

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)