Author Archives: Marie

Junior Achievement Still Teaches Financial Literacy

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Teaching kids about money and finances is becoming much more mainstream today than it used to be. Public schools are offering personal finance classes. Numerous websites advocate for financial literacy and various institutions and organizations are drawing up financial literacy standards by grade level.

But there is one old standby that has been in the game for years – Junior Achievement. It has been around since 1919, fostering youth experiences in financial literacy, work readiness and entrepreneurship.

I was never involved in JA as a youth. I wasn’t even aware of it’s existence. Consequently, I didn’t think to enroll my boys in any of their programs and apparently their schools didn’t push it either as I didn’t receive any information about available programs while the boys were growing up.

Last year, I was excited to discover that JA has summer camps in the city in which my grandchildren live. I’m trying to help my kids teach their kids about finances, trying to do better with my grandkids than I did with my own boys. My grandson is 8 and just finished third grade, so he was eligible to attend the JA Biz Wizards summer camp. I successfully lobbied with his parents to let me enroll him, pay and haul him back and forth to camp each day way back in January. These camps fill up fast so I wanted to be sure and get him enrolled early.

Junior Achievement Summer Camps.

Junior Achievement in some locations has three summer camps.

One is called Biz Wizards – for children who have completed the 2rd grade and who are 8 – 9 years old. In it the kids learn about trading, earning, spending, saving, producing goods and services and about profit.

The second is called Biz Town, for kids ages 10 – 12. It goes more in depth on doing business; diving into making a product, banking, jobs and careers, and actually working a job.

The third, called Young Entrepreneurs is for kids ages 11 – 13. It is focused (not surprisingly) on entrepreneurship.

Although my grandson was enrolled in the Biz Wizards program, they did many of the the things included in the Biz Town program.

Realistic environment.

ja buildingThe facility was in a major metropolitan city. The large main room is ringed with ‘businesses’ which are actually built physically into the space. There is a radio station, a TV station, a city hall, a Bank of America, a Bild-a-Bear store, a market, a warehouse and many more buildings including several local businesses and institutions. The structures are very realistic looking and scaled to kid size!

Fun program.

The program is structured to provide learning experiences and opportunities mixed with fun activities and games. Starting day one, the kids learned about saving, spending and giving. They found out what debit and credit cards really are (hint, not money) and that a check can be written to draw funds from a bank account. They opened their own Biz Wiz bank account and made deposits to it and withdrawals from it. They traded for things and earned prizes.

From the second day forward, the counselors started priming the pump for the last big day when the kids would actually take on a job and perform activities related to it in a company. They taught the kids how to get a bank loan for the business, and how to figure out if the business they worked in made a profit.

The kids had to apply for up to three jobs from a pre-defined universe of jobs that included things like CFO of a company, mayor of Biz Town, radio disc jockey, TV announcer, pediatric nurse practitioner and IRS agent. They had to wait in suspense to find out which job they landed and then had to learn how to perform it.

The last half hour of the camp, the mayor introduced each company CFO, who gave a little speech to indicate how their company did (whether they earned a profit or not). Then each and every camper got to come up in front of the crowd of parents and grand parents to tell what they learned in camp – speaking into a microphone. Many indicated that they learned how to write a check or what a debit card is or told why they liked the job they landed.

After camp.

I was pleased that my 8 year old grandson seemed to really enjoy the camp. I was more than pleased when Mom reported that he was talking to her (correctly) about opportunity cost in his personal life!

After camp, I found out that my daughter-in-law had attended something very similar during the school year – something called Exchange City. I also learned, after 41 years of marriage, that my spouse had attended Junior Achievement when he was in the 4th grade!!!! How did I get left out….??

Did you attend any Junior Achievement programs? Which were the best in your opinion?

How to Teach Persistence

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One of the key traits in becoming a millionaire (or indeed in any pursuit) involves persistence. Without it, you are likely to fail at earning or accumulating that much money.

As Thomas Edison said:

“Many of life’s failures are people who did not realize how close they were to success when they gave up.”

Calvin Coolidge reinforced that when he said:

“Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan Press On! has solved and always will solve the problems of the human race.”

But can persistence be taught or is it one of those genetic, inborn qualities we are endowed with at conception?

I believe it can be taught. I believe my parents taught it to me. Here is how I believe they did it.

They instilled a moral value.

Often quoted at my house was the saying “Work before play”. Homework had to be done before I could go outside and play. Chores had to be done before fun stuff. This was so often reinforced that to this day, I have trouble pursuing pleasure if there is work to be done.

By reinforcing the accomplishments I achieved, they instilled a work ethic that became ingrained in me. My personal value became tied to the things I accomplished. I learned that being a productive member of the family, the school, the church, the community made me feel good about myself.

They let me have the gift of want.

Unless a person wants something badly enough, they are not going to put forth the time or effort to make it happen. By NOT fulfilling my every desire, they allowed me to thirst after a goal, which inspired me to keep at the tasks needed to get there. One thing I wanted was a two wheeler bicycle. They didn’t rush out and buy one for me.

They helped me figure out the steps towards getting what I wanted.

It’s one thing to have a dream, to be able to envision the end goal of what you want, and another to be able to figure out how to get there. Don’t assume your child can do it, help them discover the small steps that will lead them to what they want. I wanted to buy my first two wheeler. Mom and Dad helped me understand that to do that I needed money, I needed a way to find a used two wheeler, I needed to learn how to ride that two wheeler. They helped me figure out what a kid could do to earn money and showed me the way towards doing those things (like selling Christmas cards door to door).

They helped me learn how to track progress toward my goal.

People get discouraged if they work and work towards something and can’t see any progress. Show your children how to measure progress towards their goal. Help them add up the money saved and talk about how much it has increased and how close to the goal they are. Show them how to check off the small steps along the way as they complete those steps.

They rewarded progress as well as accomplishment.

My parents didn’t wait until I finished getting there to note my accomplishments. They praised me along the way. As I worked towards getting good grades in school, they didn’t wait until the report card came, they patted me on the back for solving the difficult algebra homework problem, or submitting an outstanding report and etc.

They demonstrated persistence.

They showed me, day in and day out, how to persist in accomplishing something. Dad wanted to be an artist. He sat at the kitchen table and worked through a mail order course on how to paint and draw. He took his sketch book on vacation and spent time sketching the scenery. Mom wanted to save and earn money. She showed persistence in that by having her own garden, cutting the family’s hair, giving me Tony home perms and by selling World Book Encyclopedias during the summer.

Do you think persistence can be taught? How would you teach it to your children?

Legacy and Link Love

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Paul Tsongas on legacy:

“We are a continuum. Just as we reach back to our ancestors for our fundamental values, so we, as guardians of that legacy, must reach ahead to our children and their children. And we do so with a sense of sacredness in that reaching.”

Did you hear family stories growing up?  Do you tell them?  How are you sharing your genealogy research?

Family Money Values was included in the following carnivals recently:

Thanks to all!

How to Get the Best Deal on Vacation Rentals

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After owning a vacation rental for several years, I have discovered a few ways folks use to get deals and discounts on their vacation lodging. Here are my ‘insider’ tips.

Negotiate.

Unless you are trying to book in high season, you probably have some negotiating power. If you can’t get a reduced rate, perhaps you can request additional amenities (depending on the property), additional days at no extra cost or a discount on a future stay or off season stay.

Be a repeat customer.

Many owners are willing to offer discounts to repeat customers.  If you enjoy going the same place and staying in the same property each year, ask for a discount!

Snag last minute deals.

Like hotels, nights at vacation rentals that don’t book don’t make money. The closer you get to the date you want to stay, the more negotiation room you have to get a reduced price. If you like spontaneity and don’t mind switching up accommodations at the last minute (or possibly not getting any accommodations!), wait until a few weeks prior to your stay to start making inquiries. However, if you wait too long, vacation rental owners and managers sometimes are uneasy about accepting last minute reservations – especially if the renter wants to pay by check.

Be careful too, that the last minute deal will be worthwhile. Check out the reviews and ask questions to make sure the property is in good shape and there are good reasons it hasn’t rented yet.

Some reasons good properties may not be booked early during high season could include:

  • The property has changed owners and just come on the rental market
  • The property has changed managers and had to start fresh with reservations for the season
  • There has been bad weather (such as tornadoes or hurricanes) in the area and it has scared travelers off
  • They economy has made it difficult for people to travel
  • The property has been in remodel mode and just started accepting reservations.

Check out the last minute deals on this Branson lake front condo. The property management just changed, all prior reservations being moved to another property so the new management is stuck filling June with last minute dates. They are offering 10% off midweek June nights (Tues Wed or Thurs) if you book 2 consecutive nights. Mention Family Money Values in your inquiry for an extra 5% off!

Note: We do get compensated if you follow this link and reserve this property.

Pick off season dates.

Many vacation properties can be rented at very reasonable prices and for shorter stays or even by the month than in high season. Once the kiddies are back in school, many vacation destinations suffer reduced visitor levels.

My spouse and I always try to travel after school starts but before winter sets in.  The weather is better, you get better deals and there is less traffic!

Pick mid-week dates.

Weekends are obviously more popular during the in between seasons, when travelers are just on a quick get-a-way as opposed to a week long vacation.

Trade.

If you own a vacation home, try one of the many sites around that facilitate trading homes. You might also be able to trade vacation home time for other things, such as consulting, advertising and etc.

What methods do you use when searching for vacation lodging? How do you get the best value for your dollars?

 

The Road to Wealth Requires Insurance

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As a project manager, I learned from experience that to get your project done you need to cover your risks. There is a whole sub-section of project management dealing with risk identification, assessment and prioritization.

Covering your risks is essential to implementing on time and in budget with quality.

Covering your risks on the road to wealth is also essential and insurance is one big way to do so. Your need for insurance coverage rises as you grow your wealth. Once you accumulate enough to get into your first home, you will definitely want (and be required to have if you borrow) homeowners coverage.

One home disaster can set you back significantly on your road to wealth.

Our first home was located in a neighborhood that was totally destroyed by a tornado in the 1950′s (we bought in the 80′s). We made sure our homeowner’s policy covered tornadoes. Luckily we had no tornado destruction while we lived there. Although we have moved, we are still here in the Midwest, and get more tornado watches and warnings than most. It is almost a springtime ritual to haul out the emergency kit and hide out in the basement a few times when tornadoes have been spotted. I just checked and, hey, as I write this, there is a tornado watch for our county – fun times!

The EF5 tornado in Joplin was devastating and in our home state, but most residents are re-building, thanks in a large part to having the right insurance coverage. The recent Moore Oklahoma EF5 tornado took out 12,000 to 13,000 homes. We watched as the news interviewed one family who lost their home. As they picked through the rubble that used to be the house, looking for anything intact, the newscaster talked about how they had rebuilt this home after their prior home on the spot was destroyed by another tornado in 1999! My spouse and I just shook our heads. If you know you are in an area with such a high tornado risk  why would you rebuild there again. The most amazing part of the interview was that this family is staying and rebuilding ON THAT SAME SPOT yet a third time. It’s a good thing they had insurance coverage.

We saw similar situations after the floods in our area the past few years. There is a residential area around Big Lake State Park in Missouri that floods with regularity. Yet the residents keep rebuilding at that lake. For flood insurance and insurance against hurricanes, policy holders usually have to pay extra to purchase a rider.

At least for tornado damage most people are automatically covered, according to the USA Today article: Policies cover tornado damage, but coverage may fall short. You still need to make sure your policy is updated to keep covering the cost of replacing your home if disaster strikes.

As I write this, a bulldozer is hard at work on the lot next door. A week before Christmas last year, the house that used to stand there went up in a blazing fire that consumed the entire house and left just a shell standing. Luckily our neighbors were not physically hurt.  Now they are re-building –  because they covered their risks.

So many things in life can go wrong. Protect your castle. Make sure you can recover financially if it burns down, is flooded, or lost in a hurricane, tornado or wind storm.

In order to achieve wealth, you need to hedge your bets along the way with insurance that makes sense for your stage of life, whether that is renters; health; auto; home; umbrella; liability or business insurance coverage. One disaster can wipe out years of hard work and financial wealth building.

Have you suffered a home loss due to disaster? What was your insurance experience?

 

 

 

 

 

What Can a Pre-Schooler Learn About Finances?

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Children and moneyYou may think your 2 – 5 year old child is way too young to start building a firm financial foundation, but there are many things they can and will learn as pre-schoolers, and you can give them a head start.

What money concepts CAN pre-schooler’s learn?

Based on my research for Grandma Rie’s Money Camp as well as my experience as a Mom and Grandma, I’ve found they can actually learn quite a bit.  Here are some of the concepts I’ve found they can and do learn.

People trade to get good and services.

Kids understand money is medium of exchange – credit cards and checks work like money, and some stuff costs more than other stuff. After all, if they go to the store with you, they probably see you using all 3.

What you can do to help.

Children this age typically love imaginative play, so set up a pretend store, service station, restaurant or ice cream shop and play with them. Use pretend money, grab that toy cash register and shopping cart and take turns selling, servicing and shopping.

Start showing them your checkbook and checks. Take them to the bank (physically, they won’t understand online banking yet) and let them watch you cash a check.

Use a credit card when you pretend play and start telling them even at the early age, that you get billed later for using it.

I did all of the above when my grand-kids were just 3 and 5. We had a great time and it helped re-enforce the lessons they learned from their parents.

Identify coins and dollars.

Although they won’t understand the relative values of the coins or dollars, they do understand that they can trade them for that gumball in the machine or that candy bar at the counter. They can learn to name a penny, nickel, dime, quarter, and dollar (although they will call all denominations a dollar even if it is a fiver).

What you can do to help.

Build a money chart with them as an arts activity. Using poster board or other heavy paper, glue on coins and write what they are while talking about what that coin is. You can even start showing them that different coins have different values by making the chart show a nickel = followed by 5 pennies and etc.

Pre-schoolers can usually compare a few items and know that some are the same and some are different. Make a pile of change on the floor, with different values of coins mixed together and have them practice sorting the one pile into individual piles for each coin value.

They love, love, love repetition, so let them watch some Sesame Street You Tube video counting songs. My grand daughter drove me nearly to distraction playing this video over and over again when she was 3!

Count coins.

Pre-schoolers can usually count up to 10 by the age of 4 or so. Use coins to help them count.

What you can do to help.

Money and math are intertwined, as you teach math, use money! Here are some lesson plans from the Education Oasis for pre-schoolers to learn counting, sorting, patterning, matching, size order, uses of money.

Money is limited and can be used up.

Pre-schoolers begin to understand that sometimes they have to choose one thing over another and that things can be used up. Show them that the same thing holds true with money.

What can you do to help.

If you give your child a dollar or 5 to spend at the store, don’t bail him or her out if they want something that costs more. Let them learn that when it is gone, it is used up.

Last year, we took our kids and grandchildren to Yellowstone National Park. They were 4 and 7 years old at the time. One day, we gave the grand-kids a $20 account each to spend in the lodge gift stores. They already had learned the lesson that money can be used up. They shopped carefully in several stores before committing to purchases and both bought multiple items with their $20. As they bought each one, they consulted with us on ‘how much do I have left to spend?”. It was a surprising and revealing experience for us – and fun!

In your pretend play, you can also reinforce the concept by setting up rules of shopping and spending.

People earn money by working.

By ages 4 or 5, children can begin learning that people work. They will observe people all around them running businesses and doing jobs. You will talk about having to go to work.

What you can do to help.

Reinforce the concept that you go to work to earn money to buy groceries, etc. As you go about your weekly chores, if your child is along, point out the things people are doing and the businesses and services and products they are using to earn money.

Read to them. Books like the below all show different things people do to earn money.

My own children loved the Busy Day Busy people book. We read it over and over again. The grand-kids loved it as well.

What do you think pre-schoolers can learn about personal finance? How do you help yours learn those lessons?

Note:  By clicking on the book links above you will go to Amazon.com.  If you buy something we get a small commission which is used to help support this site.