Imagine living in a house with electricity and plumbing but no one every showed you how to plug something in or turn on the faucet. You are living in the dark, have no running water to drink, cook with or clean with and you have no idea how to change the situation.
This is exactly what it’s like to live in a world where money is the ‘currency’ that brightens our lives and quenches our thirst for the things we want to experience in life but we have no idea how to use it.
AND, we have no idea how to use it because most of us aren’t TAUGHT how to use money wisely and to our advantage by our parents or at school. Parents often think schools should teach it (primarily because they don’t know how) and schools don’t want to touch the subject because they don’t understand it either. There’s also rarely any time or money to support financial education in schools because they are too busy teaching students boring, irrelevant information that they will never use in their ‘real’ lives. But this is a discussion for a different day.
Why We Aren’t Taught About Money
Why aren’t we taught about money? Oh my, the answer to this question is long and has many chapters but I’ll try to keep this short and simple.
Enter the world I call the Financial Education Conundrum, meaning most of us don’t have a clue why we don’t learn this stuff when we’re young!
Here are some very basic reasons why we aren’t taught about money.
We don’t talk about money
The conundrum starts with the fact that we talk about electricity and plumbing like it’s no big deal but when it comes to talking about money, oh my gosh, we all too often make it a taboo subject that’s somehow different.
But it’s NOT different!
Money is the substance that virtually every human being in every culture on Earth uses every day to pay for the things he or she needs and wants.
Without enough money to pay for the things we need and want, life can be pretty miserable and while some people say that ‘money doesn’t buy happiness’, it sure buys the things we need to keep ourselves safe and sound and to most people, that’s pretty darn happy.
Research does show money actually DOES affect our happiness, up to the point that we have enough money to pay for our basic needs. Above that point and money doesn’t seem to have much of an effect on making us any happier.
We have to get so we can talk about money as easily as we talk about electricity and plumbing but why do we have such trouble talking about money?
Because we make it mean something about ourselves and others that’s just not true.
There’s a say, “Nothing has meaning except the meaning you give it.” This is oh, so true when it comes to money.
Too many human beings grow up thinking that the amount of money we have has something to do with the type of person we are or our ‘value’ to others, but nothing could be further from the truth.
Having money doesn’t make us a better person.
Having more doesn’t make us more important.
Having money doesn’t make us cooler, or sexier or smarter.
Having money doesn’t mean we can neglect those around us or stockpile it and not use it to do good in the world.
Money is simply tool to reach your dreams.
That’s it. It’s short and simple. Money is a tool…just a screwdriver or a hammer or a food processor. It’s a tool.
Money buys shelter, food, clothing, water, knowledge, transportation, and all of the wonderful experiences we call life.
Having money does come with responsibility…to use i wisely for yourself, your family, your community. Doing good with money is one of the most rewarding experiences in life and those who have a good deal more than others, quickly learn the power of using their extra money to help others. It brings us purpose and satisfaction in life.
The fact is, you wouldn’t let your child grow up without learning how to use a toothbrush, drive a car or swim. Why, then, do we let them grow up without a sound financial education?
It only makes sense to teach children this critically important information when they are young so they can grow up using it correctly and not have to, hopefully, learn about money the hard way by making mistake after mistake that could have been avoided with enough of the right type of financial information when they were young.
Can’t teach what you don’t know
While it may be that a large percentage of parents are financially clueless, that’s not a valid reason to not making sure your children or students are equipped with the financial knowledge they need to be self-reliant as adults. Our government coffers are struggling to keep up with the demand from uneducated, ignorant citizens who don’t have a clue how to handle money. It’s not their fault but it’s not the government’s responsibility to take care of people due to their sheer ignorance about money. It’s just not that hard to learn about money and investing anymore.
There are thousands of books on money and investing, online financial education programs, money magazines, free curriculums for home and school, mentors who are more than willing to help you learn as well ‘money camp’ type programs where kids, teens and adults can learn about money and investing.
Hey, and ya, learning about money and investing can be quite confusing. There’s a lot of contrary opinions about what to do but in my own experience, if you read enough books and you take enough classes and you ask enough questions, you start getting the same answers. THAT’S the information you go with…and what feels right in your gut after you start to understand the wonderful world of money…and it is wonderful.
Are you a parent or teacher who doesn’t have a basic foundation in Money 101? No problem!
Learn right along side your children. They won’t mind that you don’t know. Contrary to popular belief, children don’t expect their parents to be perfect.
The truth is, it’s easier for children to learn that making mistakes is a valuable aspect of life if they see their parents learning and growing also. Thinking you have to look like you have it all together to your children is actually a disservice to them. Kids need to know that adults are still working on figuring this ‘life thing’ out, too, and that life is simply a wonderful journey.
Don’t burden our children with money…WRONG!
This attitude about kids and money is downright dangerous to your children and your community’s children. You are keeping the basic information they need to grow up and live successfully away from them. While it doesn’t seem as harsh as not feeding them or giving them water, if you think about it deeper, you see that it’s incredibly harmful to their overall well-being and future.
What good is social studies, geography, history, math and writing if young adults graduate from high school and college with little to no knowledge of how to use and utilize the money they will hopefully go out and start earning on their own? They are now graduating with tremendous amounts of debt that can’t begin to understand, pay back or cope with and the social ramifications of this situation are tremendous.
Adult children are moving home because they can’t find jobs that will pay them enough to pay back debt, they are committing suicide from the financial pressure and are using drugs and alcohol to try to cope.
This is no way to raise children!
The definition of child abuse, according to Wikipedia and several other sources on the web is “the physical, sexual or emotional maltreatment or neglect of a child or children.”
By neglecting to make sure your children and the children in your community learn about the very substance that makes the world go around, as they say, you are indeed harming the child, sometimes in unimaginable ways.
Just as neglecting to teach a child how babies are made, that sugar causes cavities, that vegetables are important to your health, that wearing a seatbelt may save your life some day, neglecting to teach them how to make and manage money keeps them from living life to the fullest and is absolutely a form of child abuse in my book.
Your primary job as a parent and teacher is to make sure your children and students grow up to be fully functioning, responsible adults who can think through challenges on their own and take care of themselves. Not exposing them to money…the good, bad and the ugly…makes it hard for adult children to really create great lives.
What you can do instead:
Stop thinking you are burdening your child or students with adult information they can’t handle. We ARE raising adults, right? They have the right to receive the information they need to live well on this Earth and they WANT this information.
Even if you don’t know what to teach them, start today and teach yourself. There is NO excuse. There is an abundance of free financial education information and videos on the Internet and in the library for you to become an expert on money and investing.
Involve your children and/or students in topics involving money. Know they are interested and the information will help them more than you know in the future. Even if you think they aren’t paying attention, they are. The point is to get everyone talking about money. Start today!
Think of ways you can teach everyday topics through the context of money. Money often makes life lessons far more relevant to students.
Make sure your children get plenty of practice with money. Give them an allowance and then help them budget, save money in a bank and start exploring ways to make that money grow, i.e., invest. We don’t get good at anything without plenty of practice and practice with money is critical if you want your chkids to grow into financially savvy and responsible adults.
One of the best (and most fun) ways to introduce children to the topic of money is to find youth summer programs that focus on money and investing. Here are a couple of great ideas…
1) Look on line for a money camp. There are many offered around the United States and some internationally. Type the following search terms into Google:
KEYWORDS: money camp, financial camp, millionaire camp, teen money camp, Moving Out for Teens, Camp Millionaire, money game, personal finance camp/class.
You’re sure to find at least one program within driving range. We have many parents bring their children from hundreds of miles away to attend our Camp Millionaire camp. Why? Because it’s worth it to them to know that their children have the tools they need to live successfully on their own after they move away from home.
2) Check your local summer camp locations to see if anyone is offering a camp or class through an already established youth program.
3) Look for a financial advisor or planner who is offering an educational event. While these types of events can be boring and more advanced, you may find one that is basic in nature.
4) Check out your local banks and credit unions. They often offer programs for both kids and adults on basic money management skills.
5) Take a financial education or personal finance class with your older teen.
6) If all else fails, find a financial education curriculum online and teach yourself and your child at home.
7) Lastly, consider hosting a summer financial camp yourself. You can work with us at Creative Wealth or some other organization and make sure your local children get the financial foundation they need.
OK, you don’t have any excuses now for not arming your child or students with the financial knowledge and skills they need to live a happy, healthy life full of the most amazing experiences possible.
It doesn’t matter how you do it…just get it done. Our kids are depending on us. Let’s show the ropes and give them a leg up on living the most awesome life possible!
Santa Barbara, California – Creative Wealth Intl., LLC announces their exciting new women’s financial workshop, Celebrating Women & Wealth, to be held in Santa Barbara, CA, March 12-13, 2016 at the fabulous Fess Parker Resort.
It’s not a secret that many women have a difficult time understanding money in a way that helps them be financially successful. After all, we’re rarely taught about money and investing in school or at home. Fortunately, help is right around the corner.
Creative Wealth, well-known for their unique, eye-opening, highly-effective, fun and engaging youth money camps on all things wealth related, recently announced the kick-off of their new women’s program with a special women’s workshop called, “Celebrating Women & Wealth” for women age 16 and up.
Experts agree, money is one of the most misunderstood substances on the planet, especially among women in a culture that often leaves them at a distinct disadvantage. Here are a few reasons women struggle with money:
Women live longer than men requiring more money needed for retirement.
Women’s health-care is often more expensive than men’s and high health care costs often make a huge difference in women’s ability to stay healthy.
Since 50% of marriages end in divorce, women often wind up raising children on their own with little to no alimony or child support.
Women lose, on average, 14 years of earning potential due to raising children on one end and taking care of elderly parents on the other.
Women have a hard time talking about money…they are full of shame embarrassed because they don’t understand it.
The truth is that women, however, are often better investors than men once they learn the ropes. Clearing up confusions about money and creating wealth can quickly transform a woman’s life.
In that spirit, Creative Wealth, a leader in financial literacy education, recently announced this new women’s workshop focused on teaching women a whole new way to think about money…a feminine way. Celebrating Women & Wealth is scheduled for March 12-13, 2016 and will be led by Elisabeth Donati, creator of Camp Millionaire and The Money Game, and Marjean Holden, Actress and International Transformational Trainer. Both instructors are experts in Accelerated Learning Techniques that promise to make the workshop fun and engaging for everyone.
Asked why offer a financial program just for women, Elisabeth Donati, owner of Creative Wealth stated, “Because money means different things to women. We think about it differently and it’s just easier for us to learn about money and investing in a room full of supportive women like ourselves.”
According to Donati, the program will include a look at “The Six M’s of Money” (minding, making, managing, multiplying, mending and mentoring), the art of making peace with money, the critical difference between earning and making money, a simple money management system that really works, a get-out-of-debt fast technique to help reduce cut stress and put women back in control of their money, how to talk to a spouse or child about money, and much more.
Registration is available at www.CelebratingWomenandWealth.com/workshop. Tickets are $50 per seat, scholarships and volunteer positions available. Ages 16 and up are welcome.
Testimonials from past attendees have been quite passionate. D. Allen stated, “It is fabulous to know that I now have the potential to create financial freedom for myself. The skills and habits taught in this workshop gave me hope where I had given up. I believe everything is possible now because of this workshop. Thank you!”
Plastic…it’s everywhere. We have come to accept its insidious use in our lives…but should we?
If you think I’m talking about plastic bags or plastic food containers or the plastic used in almost every toy known to man, think again.
Nope…I’m talking about plastic money!
If you listen to most financial experts they’ll tell you you must get a credit card to start building your credit. Why is that do you suppose?
So you can borrow money later! In other words, you can more easily use ‘other people’s money’.
Now there may be reasons to use other people’s money (OPM) in the future, but the fact that kids and adults are indoctrinated into this culture of using credit cards to pay for things from the time they go into college or leave home, tells you where our ‘money minds’ are.
We are focused on the wrong side of this transaction. Instead of thinking about, and preparing to, borrow other people’s money, we should be thinking about how we can ‘loan’ our time, energy and money out to others to create assets that then produce a cash flow for us. But more about this another time.
What I’m talking about in this short article is something much more dangerous and risky than other types of plastic. Read on…
Credit Cards and Technology
The newest technology known as RFID (radio frequency identification) isn’t nearly as cool as the credit card companies might have led you to believe. Watch this video to learn how YOU could be vulnerable and have your credit card information stolen from you without even taking your new card out of your wallet or purse. Kinda scary if you ask me!
OK, now that you know, go check your wallet to see if your cards are at risk. If they are, either cover them or call your bank to have new credit/debit cards issued with out this new technology.
Every so often, I get an email that warms my heart…financial literacy wise. It’s usually from one of our Camp Millionaire instructors or Money Game instructors around the globe and often it’s from a parent who is so happy their son or daughter learned about money in our camp program.
The following came as an email from our Money Game instructor in New Zealand. She’s been teaching The Money Game to school classrooms for a while now and is being sponsored by a great company in New Zealand called New Zealand Home Loans. Congrats to them for helping Anita make a huge difference in those student’s futures.
Here’s the email…
My 10 year old twin boys made their first ‘big’ purchase today and I just wanted to share it with you!
They have been receiving pocket money since they were 5. They get half their age, and it is always split 3 ways (Spend/share/save). So at 10 they get $2 to spend, $2.50 to save and .50c to ‘share’.
They used to have a ‘moonjar’ to divide these amounts but at 10 we decided they could get a ‘real’ bank account. Today they withdrew some money from their savings, and bought a digital camera each!! They have been watching prices for a while now and noticed the camera’s were on special. So as well reaching their goal, they have learnt delayed gratification AND managed to SAVE $67 at the same time! ($50 on the camera, and $17 on the case).
WE must be the proudest parents on the planet right now!
Anita Stokes
Hamilton, New Zealand
PS: NZ just had their first EVER Money Week last week!! Exciting huh?!
Anita…thanks so much for doing what you’re doing for those kids. Their lives will be different and better because of you. Keep up the great work with your children and your students.
Living within your means doesn’t equate to living less well.
You not only save money by not buying candy, sodas, coffee, alcohol, or cigarettes, but your body will celebrate!
Maybe you bike to work to save money on gas. Again, you’ll find an added mind and body benefit.
That 20 year old sweater—if it’s a classic, it’s still in style. If it looks nice, and still fits, why would you part with your money to replace your sweater with a trendy, poor quality version?
There are so many opportunities and temptations when we venture into the store.
Do you have a shopping list? Not just for grocery shopping, but to keep you on task when you stop at the garden center, or the mall?
If you’re looking for something to compliment an outfit, or room decor, do you bring a color or style with you to ensure it doesn’t become an unnecessary purchase?
Suggestions:
Have a self-made list of agreements:
If something isn’t on the list, but begs to come home with you, you’ll leave the store for a cool down period before buying.
If you buy something BUT remember when you get home that your priority or goal is more important to you than what you bought, keep the tag on the item, dig through the garbage if needed for the receipt, and return it to the store as soon as possible. (Ladies…sometimes UNshopping is as fun as shopping in the first place!)
Don’t shop when you’re bored, upset or lonely. Go out into nature, instead! It will help shift your attitude.
If getting outside is going to cost you, weigh the cost of the activity. Maybe you really want tennis lessons. Once you learn tennis, the game can be free.
But it’s not about not spending money. It’s about being aware of what you have, and the purchases you make.
YOU have the power…not the money and certainly not the stores.
Stand tall and continue to live within your means. It takes backbone.
And if you don’t like your means? Change it by choosing differently!
You all know that I’m big on getting financial literacy done instead of spending valuable time, energy and money on more development of more ways that don’t work to teach money.
Here’s another example. I just got this in my email and copied it as is.
It’s a letter from our ‘trusted’ treasury department, specifically the Office of Financial Access, Financial Education, and Consumer Protection. Now I don’t know about you, but I have no desire to put my financial literacy faith in a government agency on financial education when the government itself is in HOW MUCH debt? You get the picture.
So here they are…sponsoring a contest to develop an APP! APPs don’t teach financial literacy! Teachers and experience with money teach financial literacy! Jeesh.
I would venture that if we took the $1000 from the first ‘challenge’ and the $10,000 from the second ‘challenge’ and combined that with all of the time, energy and money being spent on these two ‘challenges’ we could teach a whole lot of kids a whole lot of things about money and end up with a few more financially savvy politicians in the long run.
But that’s just me. What do YOU think? Please leave your comments on the blog. Thanks.
I am pleased to announce that Treasury will launch the MyMoneyAppUp Challenge today, Wednesday, June 27.
Background
The MyMoneyAppUp Challenge is a two-component competition:
The IdeaBank Challenge – the public will be encouraged to submit brief (140 characters or less) ideas for apps. The public will get a chance to vote for their favorite ideas on the challenge website, and a panel of judges will select the winner. The winning entrant will receive a cash prize of $1,000.
The App Design Challenge – individuals and teams will compete by submitting comprehensive design proposals for apps. Finalists will be invited to come to Washington, DC to participate in a special event in Fall 2012, where competitors will pitch their app designs to a panel of national experts and winners will be announced. The winners will receive prizes ranging from $2,500 to $10,000.
Treasury is sponsoring the challenge in partnership with the D2D Fund and the Center for Financial Services Innovation. Support for cash prizes and the administration of the Challenge by CFSI and D2D for the MyMoneyAppUp Challenge come from the Ford Foundation, Omidyar Network, and the Citi Foundation.
How You Can Help with the Challenge
We welcome your assistance with spreading the word about the challenge. Please share the attached fact sheet with your networks.
The Challenge will be launched officially today, June 27, via press releases by the Treasury, the D2D Fund and the Center for Financial Services Innovation. A special Challenge website will go live today, at this address: mymoneyappup.challenge.gov
This is exactly what it’s like to live in a world where money is the ‘currency’ that brightens our lives and quenches our thirst for the things we want to experience in life but we have no idea how to use it.
