Why Financial Literacy Doesn’t Work (and how to fix this)

In her Time Magazine article, How to Teach Kids About Money (Jan. 12, 2010) which isn’t really what the article was about to begin with), Barbara Kiviat talks about the fact that teaching financial literacy to kids doesn’t work and why. Lewis Mandell, who evidently has ‘studied’ financial literacy programs for 15 years, says, “We need to figure out how to do this the right way.”

Hello! There is a right way and I’ve been doing it for years. Want to know why financial literacy programs don’t work? I’ll tell you…because they are BORING and IRRELEVANT to the kids who are being forced to sit through them.

You see, most education is taught using auditory methodology, i.e., the teachers attempt to teach by ‘talking’ to students who are supposed to be sitting in their desks paying attention. The main problem with this situation is that less than 11% of us learn by listening. We learn primarily by seeing and by doing which is commonly referred to in Accelerated Learning as Visual and Kinesthetic.

When you examine how the majority of financial literacy programs and curriculums are presented to kids and teens, it is taught AT them; not presented in fun or entertaining and hardly ever is it taught through kinesthetic methods. It is not relevant to them yet and they are simply bored with the whole idea. Not a good context to teach what is perhaps the most ‘valuable’ information and life-skill they need to succeed in life.

So to ANSWER the question that Barbara asks in her headline, How to teach kids about money, here’s what you do…

First, and foremost, you stop talking about it and have kids experience what it feels like to get paid, have taxes taken out of their paychecks before they receive them, make them pay of adult expenses and stage events like car crashes that eat up their savings (the lesson: never let your account get to zero!).

Children must practice ‘paying themselves first’ so that they can experience the thrill of investing in their first asset which then pays them passive income (money they don’t have to trade their time and energy for) for as long as the asset is viable. After all, financial freedom does not come from having a steady paycheck or saving; financial freedom is the result of having enough assets paying you more than enough money to live the lifestyle you want for as long as you want.

Have teens experience what it’s like to invest in real estate, a business and the stock market and know that sometimes these ‘three pillars of wealth’ make you money and sometimes they doesn’t. It’s just part of being able to pave your own way in life so you never have to work for another human being unless you want to.

Our current education systems, for the most part, is busy creating mediocre-quality employees and soldiers who do as they are told and yet we continue to hear the outcry of, “We must create more jobs!”  It’s entrepreneurs who are empowered with the knowledge and skill to go for it, be their own bosses, think outside of the box that are going to create all those jobs; not the 22-year old college graduate who was been brainwashed by an ignorant society that still believes that college is ‘the’ way to a successful life instead of simply ‘a’ way.

Next, you put children and teens in charge of a percentage of the money that is used to raise them. Instead of parents spending money ON their children, they a portion of that money THROUGH them. This way they get plenty of financial practice before they move out and their financial choices really matter. Let’s face it, no practice, no skill and we all know where no financial skill has gotten us as a nation.

Next, as adults, we must recognize the power of practicing what we preach and start setting the best financial responsible example we can for our children. We can not tell them to do one thing while do another. Our largest role model, the federal government (an Uncle at that) regularly spends more money than it brings in and that speaks volumes about whether or not you can live life living on more than you make. If it’s OK for Uncle Sam, why isn’t it OK for our kids as well?

Lastly, we stop making money mean something about who we are as human beings. Money doesn’t make us smarter or better or thinner or more worthy. Money simply makes us more of what we already are.

The Bottom line…the sooner we teach our children that money is simply a tool to reach their dreams AND we start modeling the habits, choices and behavior that leads to financial security, the sooner we can go from a society that is financially stressed and in debt to a culture that is financially responsible and secure.

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Earn to Learn: Paying Your Teen to Learn About Money

When that magical 13th birthday happens and your ‘child’ transforms into a ‘teen’, everything seems to change. At least, we make up that it does. Nothing changes, however, except the continual growing up that our children (hopefully) inevitably do.

One this is for sure though. The earlier you expose them to information (any information), the quicker they learn it AND the easier it is for them to accept that information as matter of fact. Kinda like brushing their teeth!

Money, and learning to make, use and invest it wisely, is one of those subjects that are best taught early but, because so many parents (for so many reasons) do not know how to or just don’t expose their children to the financial basics they need, sometimes you have to take a different route to the same goal.

The goal:  being financially savvy adults.

The route: here’s ONE suggestion:

PAY YOUR CHILDREN TO READ FINANCIAL BOOKS!

Yup, you read that right and I’ve talked about this before. Most children love money because they understand that it buys stuff, ‘piddlyjunk’ to be specific (stuff that either goes DOWN in value or has NO value once purchased). What they don’t get intrinsically, unless it’s modeled for them, are the saving and investing pieces.

So if you’ve realized you haven’t done the best job in the financial parenting department, it’s time to get on the ball. Go buy (or check out from the library) a few financial books. Here are a few I always recommend:

• Secrets of the Millionaire Mind by T. Harv Eker
• Rich Dad, Poor Dad and Rich Dad, Poor Dad for Teens by Robert Kiyosaki
• The New Totally Awesome Money Books for Kids by Arthur Bochner, Rose Bochner, and Adriane G. Berg (available on Amazon)

Once you have a book or two ready (so they can choose), here’s what you do.

First, open up the conversation by relating money to something they like. These are called Enrolling Questions and I talk about them in great detail in The Ultimate Allowance. They sound like, “So, how would you like to learn how to have enough money to always have what you need and want?” or “I know you like to have a lot of freedom. Learning how to have more than enough money in your life is the key to that freedom. Would you like to learn how?” Stuff like that. The point is to get them interested.

Next, let him/her know that you have an opportunity to learn and earn. Explain that you’re going to supply a number of money books (it’s great if YOU read them first by the way so you know what’s in them) and for every book they read, you’ll pay them _______. I suggest at least $25 (it’s worth it!) but you can modify to fit your budget. Once they finish the book, they have to do a three page (at least) report on the basic information in the book and then, (here’s my favorite part) have an open conversation with you about how they can apply the information to their lives now and in the future.

Now here’s where it gets challenging on your part. DO NOT start preaching to them or telling them, “If only I had ______ (you fill in the blank).” You want them to be open to having these amazing conversations about money with you. If they ask about your experience or you want to share, ASK if they want to hear about it first.

One of the basic premises behind Accelerated Learning (how we teach all of our programs) is “Ask, Don’t Tell.” In other words, assume they know the answer already and just explore what they know before you go trying to tell them anything. YOU don’t like to be told stuff. Neither do your kids.

So that’s it. Pick a book. Introduce the opportunity. Let them read, do a book report and have a great conversation and then pay ‘em. I promise you it will be one of the best investment decisions you ever make.

Just something to think about.

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Be Do Have: The Power of Self-Hypnosis

This blog post is about how one small thing can dramatically alter who it is you’re BEING in the world. If you’ve ever realized that you’re struggling with changing some little (or big) aspect of your being, then reading this article may give you another powerful tool to help you change whatever it is you want to change.

Though I deal with people and financial issues, this might seem like a strange letter to a former coach. It’s about alcohol but it could easily apply to the financial education arena I work in. I don’t have a problem with alcohol, or an issue with it in any way. However, an experience I had about 4 months ago with hypnosis, gave me new tools to work with when I coach clients who are working on learning about money and creating different lives for themselves.

This is a letter I sent to a man named Harlan Kilstein who is the creator of a visualization that I listen to frequently. His work is profound and at the end of the post, I’ll provide you with a link to his information.

Here’s what I sent him about my experience with his work…

_______________

Dear Harlan,

So, all my life I have been only slightly, a social drinker. I would occasionally have a glass of wine or two with a friend or at a party, or drink a nice cold beer on a summer, sunny day. I can count on three fingers (at age 51) how many times I’ve drank too much. Only problem with drinking is that for me, for whatever reason, I have never handled the two days drinking even a little bit of alcohol.

I know you’re wondering where I’m going with this…just continue reading…

Along came menopause and again, for whatever reason, the two days after having a drink became even more terrible for me. I didn’t handle stress well, was irritable, shaky, my workouts suffered and my blood sugar was all screwed up. I toyed with becoming a nondrinker but really still enjoyed the occasional glass of wine with my girl friends or just sipping a nice glass of pinot while cooking a yummy dinner. I just dealt with it knowing full well when I chose to have a drink or two that it would be two days before I felt normal again.

Then, along came your visualization that you gave us about ‘the beach’. I’m not sure how or where, but I know in that recording there is something about choosing something you’d like to change. I’ve only heard it once (it puts me to sleep most nights and you should visit the beach I go to!) consciously but evidently it only took once to hear it in the right space to change everything.

I distinctly recall thinking, I’d really like to be someone that doesn’t drink at all (keeping in mind I rarely drank in the first place). Well, you know, I haven’t had a drink since. When I’m with people who drink, it’s just natural to say, “I don’t drink.” and it’s like it’s always been that way. But the amazing sign of how deeply that change took place reared it’s head Sunday morning when I went next door to visit my girlfriend and just say hi for a few minutes. She was drinking OJ which looked yummy and I asked her for a sip (we do that). She handed it to me (knowing full well that I no longer drank) and then said, “I has alcohol in it.” What happened next was a complete shock. My entire body recoiled like that glass was a snake and I handed it back to her as quickly as I had taken it to her. There was no part of my being that wanted anything to do with that glass with alcohol in it.

If anyone is even remotely skeptical of your hypnosis processes and question whether they work or not, they need not think twice. They do! Even when you have no idea what you want them to do at the time.

Just thought you might like to know how your work affects people.

Thanks, Elisabeth (former coaching client).

________________________

To learn more about his profoundly life-altering products, visit his website at: http://tinyurl.com/hypnoticsecrets and yes, it is an affiliate link which means that if you purchase one of his product, I will receive a small thank you from him. I promise you his stuff is worth it’s weight in gold and if you’ve been trying to change some aspect of yourself, his work will propel you toward your goals in a huge way.

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Taming The Financial Storm Inside Us

The first thing to know, and own, is that we are all in charge of making everything up and we choose, either consciously or subconsciously, the exact path we experience in life.

The challenge is that we often don’t realize we’ve chosen something until we’re almost ‘there’ and then we realize we don’t WANT to go ‘there.’

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So it’s a brand new year…

It’s only January 6th and my decision to be fully conscious and aware of each day is already beginning to have little tiny frayed edges…but I think I’ve caught it in time to mend it soundly.

It seems that no matter what we resolve to do differently, life just challenges us. “Right, show me you can do this differently. I’ll believe it when I see it.” (That’s life talking to you.)

The fact is, we have to know our core WHY before we can join life in its own game and do exactly what we want, regardless of what life appears to be throwing at us.

I don’t believe that we are at the mercy of anything, except ourselves. I believe that we have the power to live our lives anyway we wish, anywhere we wish, with anyone we wish. I also believe that often our definitions of what that must look like gets in our way.

Let’s take for example our desire to be financially free. What does that mean to us? Well, at first, it might mean not working. Examined further, it might mean doing what we want with our time each day. A little deeper, it might mean that we want to be doing something meaningful (to us) each day.

And still, underneath it all, we may simply want to be purposeful in some way so as to justify our very existence on a day to day basis.

How do you transfer all of THAT into a personal core WHY which can then drive you anywhere you want to go? Well, that’s the biggest question of them all because there are other considerations and those considerations are of a very personal nature.

One of my own biggest considerations (or constraints, depending on how I look at it) is the question I ask myself, and others, often. The question is simply, “At what cost?”

At what cost, and to whom, would it mean to ‘do whatever it takes’ to accomplish whatever it is to reach whatever goal you’re talking about? What is the cost to your family, your friends, your health, the community, your dog and cat who simply want your hand scratching their backs on a regular basis?

The happiest people I know are the people who love living a simple life. This doesn’t mean they live cheaply or that they don’t have money. It means they don’t have a bunch of real estate to worry about (sometimes they don’t even own the house they live in…much easier to get up and move this way), they don’t have a bunch of furniture or piddlyjunk laying around their houses (much easier to breathe and move through the day this way), they don’t have a ton of stuff to do, commitments to keep, meetings to attend, emails to answer, etc., etc., etc.

The older I get, the simpler I want things. I continue to look around my home and get rid of things that don’t serve me. Books are being donated, clothing discarded if I don’t love it (and it’s not purple!), kitchen utensils are being regifted and a whole lot more.

And it feels good. It’s easier to move about my planet here in Elisabeth Land (my boyfriend calls his place Club Steve and I’ve always found much delight in that!). It’s a constant exploration into ‘what exactly do I want around me to be comfortable at this point in my life.’ (Note: I’m 51.)

The answer is always “LESS”!

So less it is becoming and the lighter I feel…and the knowledge that I am free to do as I please with as little or as much as I like? Now that’s a freedom I’m willing to work for.

And…that’s MY WHY.

What is yours? It will take some thinking on your part and I promise you, knowing your why is worth the process. If you want help uncovering YOUR why, give me a call because helping people uncover their why is one of my favorite things:-).

Just something to think about…

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Financial Freedom Takes Knowing Your Why

We want this and we want that…all while knowing to be grateful for what we have. Yet, there are so many questions we spend our lives answering…

• Is it OK to want more than you have?
• Is is OK to want when you have ‘enough’ and others don’t?
• Is there a right way and a wrong way to want things?
• But shouldn’t I just accept my lot in life and be grateful for what I have?

And a whole lot more.

All the answers to these questions have to be answered by you and none other. My own take on it is that life is here. We are here. And we make too much out of what it’s supposed to be.

It somehow gets all wrapped into religion and purpose and sometimes it’s just too much for one to handle. Bottom line is that you have to decide for yourself what is OK and not OK with you and you alone and when you get that figured out, just know the answer will probably change over time.

Regardless of what you want, when you want it, where you want it, etc., the ONLY way to really get anything in life is to know WHY you want it. This why has to be so strong that you organically attract it into your life because it’s what drives the fiber of your being.

Here’s a little video I did about The Why for you to enjoy…

Do you know why?

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The Shiny Object Syndrome: What Keeps Us From Our Dreams

So there you are, journal and pen in hand. Your goals are poised to take their first step toward becoming a reality. You’re about to officially write them down and commit to making them happen.

This year it’s going to be different. This year you’re going to reach your goals, or else!

The Shiny Object Syndrome

And then, along comes… ‘the shiny object’. You know…that thing that looks so enticing that you just have to take a teeny, tiny detour to check it out.

Only problem is that once you get close enough to check it out, you realize it’s not really as shiny as you thought it was.

So, off you go, back to your original goal but now it’s days, weeks or even months since you’ve been on this path. You have to get your bearings back but it feels so right to be working on your goals again.

Until…yup, you guessed it. Out of the corner of your eye you spot ANOTHER shiny object and off you go again.

What happens when we allow ourselves to be distracted, sidetracked (literally, back and forth and back and forth) instead of heading directly toward a goal is that we delay reaching our goals for days, months or even years. Or, worse, we never reach it at all.

The question is, “How do you stay focused on that original goal?” Let’s look at some of the powerful strategies you can put into place to do just that.

1) Get a Coach.

Having a business or life coach is one of the top two strategies successful people use to accomplish their goals. Having someone to be accountable to helps you stay on track, keeps you focused and helps you avoid going off to check out those shiny objects.

Finding a mentor, business or life coach is much easier than it may sound. The first step is to make a list of successful people you know who may be willing to mentor or coach you. It’s best to find someone who has been successful in the area you want to be successful in. And always ask how you can help them in exchange for them helping you.

Next, check out the internet for great coaching resourses. The web is overflowing with business and life coaches ready and willing to help you reach your goals. For those of us who serve as coaches, it’s our highest honor to help you be successful. We love helping people succeed! (Always get at least two referrals before you start working with someone and ask for a complementary session to get a feel for their style and process.)

2) Join a Mastermind Group.

A mastermind group is a collective of minds who not only keep you accountable, they provide invaluable feedback, suggestions and guidance along the way. It’s a business support group that allows you to go together to places you might not be able to go so easily on your own.

3) Write your goals regularly.

Take a few seconds every morning to write down your main goals at the top of your ‘to do’ list (you DO have a to do list, right?). This will keep it in the forefront of your mind every day, all day long.

4) Create a Vision Board of your goals.

Create a picture (by drawing or using images) of what it will look like to reach your goal or goals and put this picture where you can see it every day. Put this same picture in several places in your office and/or home to remind you where you really want to go and what you really want to create for yourself.

5) Find a friend or business associate to help you stay on course.

Most of us are prone to the ’shiny object syndrome’ at some point during our lives. Admit it and put a system in place to help you deal with it.

Call a good friend or business associate and say, “I’ve spotted a shiny object! Can you help me talk through it for a few minutes and then remind me of my goals?”

This way you have a fun way of dealing with all of the great ideas that come your way without letting them take you away from your main goals.

6) Keep a Shiny Object Journal.

This is where you simply write the idea, concept, opportunity or project down for safe keeping. This way you won’t forget it and you can even go back and visit it once in a while to add little details if you choose to think about it once and a while, but it doesn’t take you off your predetermined path.

The key to dealing with the ’shiny object syndrome’ is to put systems and strategies in place that help you deal with it before it happens. This way you, 1) recognize it’s happening and 2) initiate the strategy that works best for you to keep you focused.

So here are your next steps:

1. Decide which one (or more) of the above will work best for you.
2. Contact the person/people who can help you put the systems in place.
3. Role-play the system so you know exactly how it will go.
4. Write an agreement with yourself and the other person/people so everyone is on the same page.
5. Put it into action and use it regularly.

There you have it. You will no longer be distracted by another shiny object again!

Next stop is Goal Completion! Enjoy it, savor it, visualize it finished! Remember, shiny objects are fun to look at briefly, but if you look at them too long, they will blind you from your goals.

Coming soon..How to recognize a shiny object for what it is.

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Financial Awareness is the first step to Financial Freedom

OK, so there’s are hundreds of financial words out there floating around and many of them can be a little intimidating at first. But here’s the thing…when you want to get really good at something, do you usually let a few letters get in your way?

Think about the last time you decided you wanted to learn a new skill or hobby. Did you let the language of that skill or hobby get in the way? Probably not. You just learned what you could, asked people who knew more than you to explain what you didn’t understand, and slowly but surely, you got good at your new skill or hobby.

The same thing works with money…except that we entangle who we are in the world with our net worth, bank account, credit cards, debt, number of houses we own, and on and on.

It seems everyone wants to be financially free right now! Or at least as soon as possible but appears that many aren’t willing to do what it takes to get that way.

The process isn’t difficult, but it does take some education, learning a new language, letting go of your preconceived beliefs that learning how to handle and grow money is difficult. It’s not. It’s just learning one thing and then applying it to your life and then repeating those steps over and over again.

So, next time you hear or read a financial word of sentence that you don’t understand, instead of shivering and avoiding it, write it down, look it up, call a financial advisor or ask your local bank employee. My money’s on the idea that there’s a lot of folks out there who are more than happy to help you on this financial freedom journey of yours.

And if you have children, take them on this journey as well.

Just something to think about…

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Many Minds Make Success Easy…The Power of Mastermind Groups

This blog is courtesy of Karyn Greenstreet of TheSuccessAlliance.com…Enjoy!

What is a Mastermind Group?

There is synergy of energy, commitment, and excitement that participants bring to a Mastermind Group. The beauty of Mastermind Groups is that participants raise the bar by challenging each other to create and implement goals, brainstorm ideas, and support each other with total honesty, respect and compassion.  Mastermind participants act as catalysts for growth, devil’s advocates and supportive colleagues.

The concept of the Mastermind Group was formally introduced by Napoleon Hill in the early 1900’s. In his timeless classic, “Think And Grow Rich” he wrote about the Mastermind principle as:

“The coordination of knowledge and effort of two or more people, who work toward a definite purpose, in the spirit of harmony.”

He continues …

“No two minds ever come together without thereby creating a third, invisible intangible force, which may be likened to a third mind.”

In a Mastermind Group, the agenda belongs to the group, and each person’s participation is key. Your peers give you feedback, help you brainstorm new possibilities, and set up accountability structures that keep you focused and on track. You will create a community of supportive colleagues who will brainstorm together to move the group to new heights.

You’ll gain tremendous insights, which can improve your business and personal life. Your Mastermind Group is like having a objective board of directors.

What Will You Get From It?

• Experience, skill and confidence
• Real progress in your business and personal life
• An instant and valuable support network
• A sense of shared endeavor – there are others out there!
• Design things to be the way you want them to be, not as you’ve been told they “should” be

Who Should Attend?

People who:

• have a similar interest (such as a group for self-employed people, or a group for spiritual thinkers, or a group for people in a certain corporation or industry)
• have a similar skill and/or success level
• have the desire and inspiration to make this year extraordinary
• want a supportive team of Mastermind partners
• want to reach or exceed their goals
• are ready to let their desire to be passionate about their life and work overcome their fear of change
  

How Does It Work?

Mastermind Groups can meet in person, on the telephone, or via online message boards. For those groups that meet in person or on the phone, typically a once-a-month meeting is scheduled. You can find a Mastermind group here, or create one of your own.

Because of the group nature, a commitment is required. Look for highly-motivated people who are willing to ask for — and give –help and support.

How Do You Screen Applicants?

Before agreeing to let any new applicants into your group, it’s important to screen them to make sure they’ll fit into the existing group and that their commitment level is high. Decide in advance how many people should be in your group (5-8 is recommended), and only allow new members into the group with the unanimous consent of everyone in the group.

• Do you have a personal or business mission or vision statement?
• What are your five-year goals?
• Where will you find time to participate in the Mastermind Group?
• What is your commitment to moving forward in your business and personal life?
• Why should you be chosen to participate in this group?

Even with a screening process your group is likely to run across people who say that they’re committed but then don’t participate, or who say that they’re honest but then fail to keep the trust of the group.  Be prepared to ask people to leave the group who are not participating up to the group standard and do it quickly once the poor behavior becomes evident. A “slacking” member will bring down the energy and fun level for the whole group.

To get Karyn’s FREE E-book: How to Create a Mastermind Group or to learn more, visit Karyn’s site at www.thesuccessalliance.com.

A little bit about Karyn:

Karyn Greenstreet

Karyn Greenstreet is the owner of Passion For Business and  The Success Alliance^TM. She is an internationally-known speaker, author, and self-employment expert who has taught over 250,000 people worldwide. She has been creating and running mastermind groups since 1994 and is the author of How to Start a For-Profit Mastermind Group (now in it’s 2nd edition!)

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Money is all around us; all we have to do is look for it…differently.

If you saw the wonderful movie, August Rush, about the musically gifted (that is an understatement) little boy who grew up in a home with other boys without families but knew down deep that his parents were alive, then you remember his saying…

“The music’s all around us…all we have to do it listen.”

Well, what if the MONEY was all around us…and all we had to do was look for is?”

It’s one thing to grew up thinking that we have to get good grades in high school in order to get good grades in college in order to get a good secure job which doesn’t exist for the most part anymore. It’s entirely another thing to learn early on that that isn’t the truth.

Preparing your children to go to college isn’t a bad thing. Leading them to think that it’s the only way they are going to be successful in life is child abuse. And here’s why…

When children grow up to be adults who think that they must depend on others for their own livelihood, it’s like preparing them to be in jail for the rest of their lives.

To be dependent on others is one of the worst ways to live. Instead, let’s empower our children to make their own way, use their natural born genius to build products and services that make the world a better place and more.

In order to do this you have to begin instilling these ideas and philosophies early and if you, the parent or guardian didn’t grow up with these ideas, it can be rough going at first.

The best way to teach your children a different way if you can’t set the example yourself is to ask for the help of another adult who can. Help your child find a mentor, help a friend who owns a business, makes money on the internet, has a product or service business that works with other businesses.

Here’s just one example of thousands who figured out a different way while they were young…

In allowing your child to see another way, you provide him or her with endless possibilities in terms of being able to take care of themselves.

This, in my opinion, is love.

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