Posted by Nancy Phillips on Sat, Feb 11, 2012
Happy Valentines weekend everyone! Here is an article I wrote that was recently published in Focus on Women magazine. I hope you enjoy it.
Now more than ever it is blatantly clear how important financial skills are to the well-being of everyone in our society. Problem is, many kids are still not learning about it. Financial knowledge and confidence can transform a child’s life, your child’s life. You are, and always will be, your child’s most influential financial teacher. Why? Because they begin learning about money by watching your actions with it from the time they are toddlers. Your belief system and actions with money are what form your child’s mental “money blueprint” according to T. Harv Eker, best-selling author of Secrets of the Millionaire Mind.
Are you ready to hear some good news? The steps you need to take to help your children learn financial responsibility are not complicated and no, you don’t have to be a math whiz. Because financial skills are just that, skills, they need to be practiced and built upon. Then the level of the skill practiced can be advanced, just like learning a sport – you start with the basics.
So where do you start? Here are a few tips:... read entire article page 4 Focus on Women Magazine
Posted by Nancy Phillips on Sun, Jan 29, 2012
As I talk to more and more parents about teaching their children money skills, the similarity between learning a sport and learning good money skills becomes striking – the basis for mastery is the same!
Learning a sport always starts with fundamental, basic skills which are built upon once those skills can be consistently performed. Whether you’re talking about football, hockey, dance or golf, each sport involves dozens of skills which must be learned and mastered before advancing to the next level.
Money skills work the exact same way. It’s not all academic theory like we may have thought. Financial life skills must be learned, practiced and internalized so they become part of the long term memory. Rather than feeling intimidated about all the theoretical concepts you need to teach your children about money to help them become financially successful, you can give a big sigh of relief knowing that what you really need to do is teach simple, age-appropriate building blocks that you can then add on to over time as your child becomes proficient at each skill. Repetition and consistency are key, not complexity. Keeping it simple and fun will lead to success through building good habits and decision making skills. 
With a young child, if you give them the opportunity to count coins, use cash to buy items at the store and regularly divide up their allowance into the give,invest,save and spend categories, this will give them practice with basic math skills in real-life settings. Once they learn basic hands-on numeracy skills and understand the fundamental concepts, they will be able to learn how to perform multiplication and division on paper and eventually in their heads.
Once they master these skills, they can start to figure out percentages and begin to calculate how much an item is discounted when they see a 'sale' sign in a store. If you are out at a restaurant, ask your teen to check the bill for any errors and work out the percentage for the tip. This will help prepare them to understand interest rates. Exercises like this are invaluable for the brain in order to help make the lessons concrete. Using technololgy to calculate all math questions prevents these learning opportunities from occurring.
Basic financial skills are life skills that will make a profound difference in your child's life as they grow up and forge their own path in the adult world. As parents, one of the greatest gifts we can give our children today is the opportunity to practice real-life financial skills. We take the time to get them to sports practices; we need to be equally dedicated to creating daily conversations and “practice times” to learn about managing money. A few minutes a day can significantly impact their long term financial well-being and success.
Posted by Nancy Phillips on Tue, Jan 10, 2012
Today I had the pleasure of contributing a guest post for Deborah Meredith, a dedicated and inspirational lady who is helping educate and give hope to people all over the world who have experienced bankruptcy.
This blog specifically addresses parents who want to help teach their children about money but aren't sure what to do or even if they can. I want to let you know, "Yes, you can!!" Read below and learn how to get started.
In the past several years people all over the world have experienced major shifts in their financial lives. Millions have experienced job loss, foreclosures and bankruptcy. This has parents everywhere wondering, “Can I teach my children good financial skills when I’m facing major challenges myself?” The answer is absolutely “yes”!!
How is this possible? Because there are very simple things you can say to your children and do with your children that will begin to provide them the hands-on experience they need to develop their self-discipline and decision making skills.
The key concepts for success in teaching children about money are:...(to read the rest of the article, click the link) http://bouncingbackfrombankruptcy.com/
Posted by Nancy Phillips on Sun, Jan 01, 2012
Including financial goals in New Year's resolutions is a fairly common thing to do. This year, with all the news about the economy and the importance of teaching kids about money, more and more parents are looking for easy and effective ways to help their kids learn about finances as well.
Here are three ways to get your children on the right track. A key concept to keep in mind is that managing money wisely is a skill, not an academic concept that can be learned simply through a lecture. Kids need consistent hands-on experience so they can learn from their successes and mistakes.
1. Parents, you are your child’s most influential financial teacher - commit to playing an active role. Look for everyday learning opportunities such a s at the store or while unpacking groceries so you can talk about real-life things such as what things cost. If your child asks you a question, this is a perfect teaching moment because you know they are interested. Try to take the time to give a good explanation and not just shut the conversation off with a short answer. Helping your children find ways to earn money for their “wants” teaches them to be resourceful and become a good problem solver (not to mention creative!) Use cash as much as possible so they can see the money exchanged in a tangible way. One of the most important lessons for children of all ages is learning the difference between needs and wants. Learning to prioritize and make good choices is one of the fundamental factors of good financial decision making. Give your children the opportunity to distinguish between what is truly essential and what is a desire. Use a “wish list” to allow them to print out what they want and learn to prioritize.
Repetition is fundamental to learning and learning is an active process. Financial topics are something that need to be discussed and practiced regularly. Repetition and “relearning” trigger new ideas and understandings because they build on themselves. Your child will begin to see things differently as their foundational knowledge level builds.
2. Demonstrate good habits as much as possible. Plan your purchases and talk about how you make your buying decisions so your child can see the thought processes behind decision. Save and talk about the importance of saving for the things you need and want in the future. Don’t make impulse purchases, and don’t waste what you already own. Take care of your possessions and show how you value things as well as the time it took you to earn the money to purchase the item. Because children learn by modeling your actions, these lessons will have a significant effect on their future attitudes and actions. Don’t talk negatively about money, try to be objective and factual as you can when you discuss financial matters. You want your child to grow up feeling that they can learn how to effectively manage their money. If they grow up with a negative attitude towards money, they will have a hard time changing their thoughts and feelings towards it in the future.
3.Teach the different uses for money with the “GISS” method of money management – a powerful and simple wealth building practice.
When your child earns or receives money, help them divide it up into these four categories.
Give (10%)
Children are natural givers and giving is a very powerful concept for them because as they begin to give, they realize they have the ability to help and make a difference in the world. This increases their self esteem and feeling of community.
Invest (15%)
Many people save but end up spending their savings on material items such as cars, boats etc. and not on assets that will create cash flow such as rental properties, businesses etc. Investing is an abstract concept for really young children but can be learned about gradually. Initially this segment can be explained as the money they grow and grow and use when they are older. Everyone needs to commit to learning about investing so they have money to live on when they retire.
Save (25%)
It is critical that children learn to set and achieve goals, including financial goals. It is much easier to start earlier in life when there is no risk or fear involved. As a child works toward their goal, they learn the steps necessary to achieving their goal. This allows them to experience and understand their personal capability and helps increase their confidence for setting even bigger goals. Saving helps develop self-control, a key factor in future financial success. It also helps a child learn to prioritize and think through their purchase decisions beforehand, reducing the likelihood of buying mistakes.
Spend (50%)
Once a child uses their own money for purchases they begin to consider the cost and value of things. It’s much better for a young child to have a chance to handle money and make mistakes with a few dollars than it is to send them off to college and expect them to learn on their own. Mistakes are not bad things; they are lessons that need to be learned. Buyer’s remorse over a cheap broken toy teaches a strong lesson about quality even to a pre-schooler.
The power of the “GISS” method: The weekly experience of dividing money into “Give, Invest, Save and Spend” categories is powerful for many reasons. The process is repetitive which is important for learning and developing new habits. It is full of memory making movement such as counting and sorting coins. The method also incorporates thinking and decision making skills when the child sets their short and long-term goals. These experiences all work together to make a memorable learning experience and create the foundation for good financial habits.
You Can Do It!!
You have an incredible opportunity to help your young children get off to a good financial start by giving them the time to learn, practice, and discover the many facets of financial decisions. The most important thing you can do is start!
The lessons don't need to be complex. You can begin simply and effectively just by raising their awareness of everyday financial decisions and giving them an opportunity to partake in some decision making as well!!
All the best for a very healthy, happy and prosperous 2012!
Nancy
Click here if you would like to learn more about the Build a Bank book and building the GISS bank with your children.
Posted by Nancy Phillips on Sun, Dec 18, 2011
In this rapidly changing world, our children need a good foundation in financial life skills more than ever. We want them to feel optimistic about their futures, feel inspired about the opportunities that exist for them, and confident enough to pursue those opportunities. How do we provide our youth the necessary knowledge and tools to feel that confidence? Today I want to address one such organization that is working hard to help make this happen.
For more than 60 years, the Council for Economic Education has been providing K-12 economic and personal finance education programs for teachers and students. Each year, the Council's programs reach more than 150,000 K-12 teachers and over 15 million students in the United States and in more than 30 other countries.
Recently, the CEE held their awards banquet and had the award recipients discuss what they felt were some of the key factors regarding financial literacy in the future.
Here are a few points the 2011 Honorees highlighted when asked,
“What do we need to do to advance financial literacy in America”
Maria Bartiromo – Anchor of CNBC’s "Closing Bell with Maria Bartiromo" and host and managing editor of the nationally syndicated "Wall Street Journal Report with Maria Bartiromo"
*Teach teachers
*Adults need to feel comfortable discussing the topic and not embarrassed
*Children need to see the basics at a young age
For example, when Mary was young and asked her mom for an ice cream cone, the answer was, “well, you can have one, but how will you pay for it?”
Henry Kaufman – President of Henry Kaufman & Company, world renowned economist and author
*Parents need to hold children accountable, something that has become very difficult in the “land of many choices.”
*It is easier to acquiesce rather than to say “no.”
*It has become even more important to teach young children about choices.
Harold Burson – Founder and Chairman of Burson-Marsteller public relations firm
*Basic economic education would prevent people signing mortgages and creating credit card debt they can’t pay.
*Get the message to parents
*Parents need to put pressure on the school system.
The economy today demonstrates how important is that we teach our children financial life skills for their future well-being. What could you do differently tomorrow that would help your child become more financially literate?
Click here to view the full 3 minute awards video.
Click here for more information on the Council for Economic Education.
Posted by Nancy Phillips on Sun, Dec 04, 2011
On Friday I had the pleasure of meeting twenty five enthusiastic and passionate fifth graders at Anne McClymont Elementary School. We talked about personal goals and dreams and the fact that success is defined differently by every person. I read the students The Zela Wela Kids Learn about Becoming Entrepreneurs. After the reading, we discovered how many young entrepreneurs and philanthropists were in the class. We had a lively discussion about the many ways they had already earned money and given back to help others despite their being only nine or ten years old.
Talking to kids this age is inspiring. They are so full of optimism and personal belief as they look to their future, to 'adulthood.' In the class there were aspiring artists, dancers, singers, pro hockey players, veterinarians and designers.
When we talked about money and some of the important things to think about in regards to money, their words were insightful, especially given the economy we see before us and one they will be forced to navigate.
What are some important things to keep in mind when it comes to your money?
*“It is good to learn how to save early so you will know how to save when you are older and you won’t end up with no money to spend on what you need.”
* Don’t buy stuff you don’t need.
* “Don’t spend all of your money on one thing.”
*” I think you should spend it wisely, and save up for later on.”
* “Give some away”
Some of their questions and concerns:
* “I’m worried about spending too much money”
*” I am concerned because I have to have control. You must have control on money and where to spend it.”
*” House prices and how they go up and down.”
*” I don’t make a lot of money so I don’t know how to make more money.”
*” How does putting money in the bank get you more money?”
*” How do you not spend as much money?”
These children were clearly eager to learn. The hands kept going up, the personal stories continued one after another. This experience demonstrates yet again that education is most effective after interest and inspiration is ignited. Once children see how financial skills relate to their future and the fulfillment of their goals, they are more than ready to learn.
As parents, we have wonderful opportunities to engage our children in discussing their interests and goals and then helping them uncover the tools they need to reach these goals. Relevancy and consistency are two of the most important factors for teaching our youth financial life skills, and for keeping the interest to learn them alive.
If you are interested in learning more information for your family, please go ahead and download the Zela Wela Kids Financial Life Skills Tip sheet by clicking on the icon. I hope you find the information valuable.
Posted by Nancy Phillips on Thu, Dec 01, 2011
For today's blog I am interviewing Alisa Weinstein. She has researched and created the book Earn It, Learn It to help kids learn about the skills involved in different careers along with different ways to make money. This book is full of interesting information you won't find compiled elsewhere.
Nancy: In this world of incredibly rapid change that our children are growing up in, scientists are telling us that flexible and creative thinking are two of the most important things we can help our children develop. Your book certainly provides this opportunity for children. I also like the re-introduction of the age old concept of "mentoring," which has all but disappeared in today's culture. I think this book will really help give children ideas and exposure to information they may never get anywhere else, including in school. Bravo to you!
Alisa: I’m flattered Nancy, and excited, too! I agree with everything you said about the importance of flexibility and creative thinking, as well as fostering the concept of "mentoring." I think what adults can fail to remember is that we grew up in a very personal, human world. While the adjustment to technology for us was more challenging than it is for the younger set, at least there was an adjustment!! We knew about human concepts from experience and then moved to things like email and direct deposit. But kids today are starting with the electronic "face" and are therefore not given the opportunity to develop these basic, human skills. They don't understand the "man behind the curtain" because they never even knew he existed!!
Nancy: I hear your idea for this book began in the make-up aisle with your four year old daughter. What exactly inspired you to take on this massive project?
Alisa:My inspiration did come from a "gimmies" moment in the make-up aisle. Mia wanted another sparkly pink lip balm and I told her to "Get a job!" to pay for it. So I gave her a "real" professional job! She started with her dad's career (market researcher). She surveyed friends and family about their favorite ice cream flavor and then I paid her. We all loved the process so we decided to keep going. The problem was, I didn't know exactly how Marine Biologists...or Curators...or Toy Designers did their jobs, and the information wasn't anywhere that was kid-friendly (online or otherwise). It quickly became apparent that to really bring my idea to life, I'd have to interview these folks, learn what they do for a living, and then translate their responsibilities into kid-friendly tasks. What an amazing thing to get to do! I simply couldn't turn down the opportunity to build this for my children, so I went for it. The end result is the Earn My Keep program: 50 careers and more than 950 kid-friendly tasks, all described in the book, Earn It, Learn It.
Nancy: Tell us about what you are hoping to accomplish with this information. What is your ultimate goal for the book?
Alisa: My ultimate goal is to br
ing to life the entire money process, starting with how adults earn money to how they spend, save and give it once it's earned. I want to kids to learn to love working for the sake of working -- and it takes practice to learn how to appreciate how great it feels to work and reach a goal.
Nancy: The professional "activities" presented would make fantastic school projects. Do you think teachers will begin to incorporate some of the information into their curriculum?
Alisa: Yes, the process has already begun and I'm busting-at-the-seams about it. The Earn My Keep method has been tested in one of America's top public school systems to rave reviews. And I'm in talks to pilot in multiple cities. What's exciting is seeing that light bulb go off in the students' faces, and seeing their teachers' delighted surprise when they realize the positive effects of combining career exploration with fiscal education. These two subjects have traditionally been taught independently -- bringing them together is a whole new exciting world!
Nancy: That is fantastic news Alisa, congratulations! How do you explain the method and value of this process when someone says it sounds like too much work?
Alisa: I tell 'em to stop looking at Level 3 tasks. :) Earn My Keep tasks are ranked Level 1, 2 or 3. And every single career includes Level 1 tasks, which take 15-20 minutes to complete -- such as creating a fingerprint log as an Investigator. Or researching the Earl of Sandwich as a Chef. Or keeping a Nighttime Log as an Astronomer. That's the BEST part about Earn My Keep: it's so unbelievably flexible, families are able to mold it to suit their lifestyles. What's more, you can change it up at any time. And the exponential benefits are amazing. It takes less time than you'd think to make a big difference.
Nancy: Given all the research you have completed and lessons you have learned during the development of this book, what do you feel is the most important lesson a parent can pass on to their child to help them lead a happy and successful life?
Alisa: Undoubtedly, to learn that the work we do can be worth more than the numbers on a paycheck. You can be financially successful and unhappy at the same time. But folks who achieve a state of self-satisfaction from performing a job well done -- they're the ones who are truly fulfilled.
Nancy: Well said Alisa. Thank you so much for your time today and best of luck with your book.
Alisa: Thank you Nancy.
For more information go to Alisa’s website at http://earnmykeep.com/
Posted by Nancy Phillips on Sun, Nov 20, 2011
This month is financial literacy month in Canada and there are approximately 100 financial education events occurring across the country. One such event occurred this past week in downtown Toronto. Hosted by Credit Canada, featured guests speakers from some of Canada’s largest non-profit financial organizations. There are numerous free online resources that exist to help you with your personal finance questions and I want to share a couple of them with you today.
Financial Consumer Agency of Canada - fcac.gc.ca
Created ten years ago, it promotes and monitors compliance of Canadian corporations and is working hard to promote financial literacy at a national level.
They have sixty free online resources, some of which include:
*tools which help consumers comparison shop for credit cards, bank accounts etc.
*calculators for budgeting
*information that will help you understand your credit report and credit score
*explanations of your rights and responsibilities in regards to consumer legal contracts
*The City – a financial literacy tool for students and teachers
Investor Education Fund – getsmarteraboutmoney.ca
The IEF is a non-profit organization founded by the Ontario Securities Commission that provides:
*information on topics including saving, TFSA’s, taxes, managing debt, financial planning and getting advice.
*information on how to approach life events like finishing school, getting married, having a baby, going through a divorce, planning for retirement.
*calculators that help you find out how long it will take to pay off a credit card, whether it’s better for you to buy or rent, how much you need to save for your child’s education.
*basic investing information
I hope you find this information useful. If you find one particular tool especially helpful, please let me know!
Posted by Nancy Phillips on Thu, Nov 17, 2011
Last night, the super successful entrepreneur, Debbie Travis, engaged the audience at the Credit Canada financial literacy month awards ceremony. A number of high school students were awarded sponsorships for their award winning essays about “the dumbest thing I ever did with money and what I learned from it.” Well, the winner gave a hilarious recount of the money he spent on a new “gorgeous” girlfriend who turned out to be a "leech" that sweetalked him out of $700 worth of gifts in twenty one days. His entertaining story was a perfect introduction into Debbie’s interview as she is very funny in her own right with her northern British dry wit.
Debbie is hugely successful by any definition although she came from very humble beginnings. Her father died when she was twelve years old which left her mom, who had never worked, to care for four children. Debbie dropped out of high school at 16 years of age. Here are a few of her accomplishments:
*self-taught interior designer, and former fashion model.
* the host of Debbie Travis Facelift and Debbie Travis' Painted House, From the Ground Up with Debbie Travis, All for One with Debbie Travis.
*weekly syndicated column and author of 8 books
*launched her own paint and home products line available from Canadian Tire, which sells over $100 million annually
A few key points she made for the next generation:
- Entrepreneurialism, being “problem solvers” is critical for the next generation. There are no jobs out there for new grads because the boomers are not retiring and formal education isn’t preparing them for the real world (she has two sons who have graduated university and can’t find jobs).
- Being broke from the age of 17 to 25 is the way it should be. You shouldn’t “have everything.” This is when you learn your critical life survival skills and it’s the best time of your life.
- Follow your passion, you will learn what steps you need to take as you go along the path. No one knows all the steps when they start out.
Her comment on money - "I don’t waste anything, I worked too hard for my money."
A good message for our youth indeed!
Posted by Nancy Phillips on Mon, Oct 31, 2011
Happy Halloween! This is a short post to give you some critical concepts you will want to keep in mind when teaching your children about money.
Because you are your child’s most influential financial teacher, it is critical that you are aware of the most important factors deemed necessary for success when teaching these essential life skills. One such factor is the understanding that financial skills are like any other skill, athletic, artistic or academic – they require practice and a foundation of basic skills which are then built upon with more advanced skills. Another critical tip is ...
Have a great time with your little fairies and goblins. I will be enjoying the festivities with Spiderman and a cheerleader!