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KIDS (Beginner Ages 5-9) – Money Management – E-Learning
A good way for kids to learn about money management is via interaction with online learning programs called E-Learning (short for electronic learning).
Click on each individual link below to start a new E-Learning module.
You should have the sound turned on. The last two links connect to e-learning modules (invest and loan) that do not yet have sound. Use the forward and back arrows at the top of the browser to go between Cognitra (this page) and the E-Learning modules.
The first e-learning module is from Kids Bank by Sovereign. The remaining modules were created by Cognitra.
Learning About Money
Overview of Money
Earn Money
Save Money
Share Money
Spend Money
Invest Money
Loan Money
ADULTS – Money Lessons Learned the Hard Way
Learning the Hard Way
In most cases, no one has taken the time to teach kids about personal finance and money management. The first conversation about money often happens after money management becomes a problem. Unfortunately, the money lessons learned are too late and the ramifications are too great for many who go down this money management path. So, kids learn about money the hard way, just like the adults before them.
Lifetime of Struggles
For example, those children that do not learn about personal finance and how to manage money when they’re young can face a lifetime of struggle. Some people in this situation live from paycheck to paycheck and get further behind every week. In some cases, trying to stay “above water” before drowning from too much debt. In the worst case scenario, even being forced to declare personal bankruptcy.
Lost Opportunities
Kids that grow up with weak money management skills can also lose out on financial opportunities along the way. For example, saving enough money to purchase a car outright so that a loan with interest doesn’t have to be used to buy the car. Or saving enough money to invest in the stock market so that the value of a diversified financial portfolio can appreciate over time. Using investments to build wealth can help a couple attain financial security. If financial opportunities are not pursued, then quality of life may suffer and retirement may be delayed.
Failed Relationships
Money is also one of the main causes of relationship issues and break ups. The weight of the financial burdens can be so great that it causes the relationship to become strained. Yet most parents want their children to grow up to be happy and successful in a loving, long-term relationship. If we don’t teach children how to manage money, we may be setting kids up for failure in their adult relationships right from the start.
Great American Recession
And with the most recent financial crisis, kids (and adults) can’t afford to be clueless about money management any longer. The Great American Recession has taught us a lot about how things can go wrong very quickly and for a long period of time. Lessons like making sure there is enough money for emergencies (Ex. Losing a job), saving for short-term (Ex. Car) and long-term goals (Ex. College) to minimize borrowing, and so on. Let’s not let this financial crisis go to waste!
Avoid the Same Mistakes
Caring adults should want to make sure that their loved ones don’t make some of the same money management mistakes that they made, when they could be avoided. And the way to avoid these mistakes is to teach kids about money management when they’re young so they can grow up to become financially literate adults prior to becoming independent.
Call to Action
Adults can’t afford to pass along financial ignorance any longer. The time has come to take a stand and help our loved ones become financially literate members of society so money lessons no longer need to be learned the hard way.
Your Feedback?
Do you feel as strongly about this topic as we do? If so, then leave a reply to this post below.
References
1. Clark Smart Parents, Clark Smart Kids (Howard, 2005)
2. Kids and Money (Searls, 1996)
3. Money for Teens (Shelly, 2001)
4. Money Doesn’t Grow on Trees (Godfrey, 2006)
5. Raising Money Smart Kids (Bodnar, 2005)
As an executive, I realized that there was a big hole in personal and professional skillsets with respect to topics that typically were not covered in a school environment. For example, relationship management, project management, money management, and conflict management to name a few. Not only was there a hole in the skillsets, but learning was often acquired the hard way as an adult in a work environment - in other words, the “school of hard knocks”. So, I asked myself, shouldn’t there be a better way?
And then I came up with Cognitra. Check out the ABOUT section of this website to learn more at http://cognitra.cerebralideas.com/about/
ADULTS – Money and Money Management Description
Money
According to Wikipedia, money is any object that is generally accepted as payment for goods and services and repayment of debts. In the U.S., most currency in use is as follows:
- Coins
- Penny
- Nickel
- Dime
- Quarter
- Fifty Cents (or half dollar)
- Bills
- One Dollar
- Two Dollars (rarely seen now)
- Five Dollars
- Ten Dollars
- Twenty Dollars
- Fifty Dollars
- One Hundred Dollars
Money Management
The act or practice of handling one’s personal finances. Money management involves budgeting, having enough money to pay bills, spending for entertainment, saving money for emergencies, making investments, paying taxes, and other uses of money. People will manage their money differently depending on their age, needs, priorities, size of family, risk taking perspective, knowledge of money management best practices, and more.
Money Management Knowledge Areas
Money management and personal finance are very large topics. In terms of what we are trying to accomplish at Cognitra, we hope to focus on the following main areas briefly described below:
Earning Money
- An allowance
- Bonus money for extra chores
- Gifts
- Jobs
- Business start up
Saving Money
- Goal is to save 30% every week – 10% for emergencies, 10% for short-term goals, 10% for long-term goals
- Stick with a game plan
- Incentives are usually needed for a child to save money
- Limit impulse buying
Sharing Money
- Goal is to share 10% every week
- Sharing money can be allocated for gifts and charity
- Should be considered before spending money
Spending Money
- Don’t confuse needs with wants
- Delaying instant gratification is key
- Managing expectations
Investing Money
- If debt free and money saved, it is time for investing
- All investments have risk – should diversify
- Stocks, bonds, mutual funds, ETF’s, and more.
Loaning Money
- If debt free, money saved, and money is available for investing, then loaning money may be appropriate
- The money may never be paid back, so risk of losing entire loan amount must be considered
- Help people learn how to manage their money by loaning them money
Money Management Learning Goal
It’s crazy when you think about it. Kids today learn so little about money and how best to manage it, yet they will need to use money nearly every day of their adult life. And there are more financial choices now than ever before (e.g., debit card) making successful money management even more difficult to understand and master.
In fact, some adults and experts believe that teaching kids money management should be just like any other learning opportunity for kids. If we teach kids how to get dressed, brush their teeth, and comb their hair, why don’t we teach them how to manage money? In reality, money management isn’t really all that different. It is a basic skill that is needed for life. So, parents and other caring adults should be introducing good money habits early on. Teaching teenagers or young adults about money management when they are experiencing financial problems is too late. You owe it to the children in your life – help them learn about personal finance and money management now when they’re young - and when penalties for making mistakes are minor.
References
1. Clark Smart Parents, Clark Smart Kids (Howard, 2005)
2. Kids and Money (Searls, 1996)
3. Money for Teens (Shelly, 2001)
4. Money Doesn’t Grow on Trees (Godfrey, 2006)
5. Raising Money Smart Kids (Bodnar, 2005)
ADULTS – Project and Project Management Description
Definition of a Project
According to the Project Management Institute (PMI), a project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary nature of projects indicates a definite beginning and end.
Types of Projects
A unique product that is created via a project could be a new mobile application for the iPhone. A unique service delivered as a project could be the service labor involved in landscaping the front yard of a new house. A unique result from a project could be streamlining the business processes for creating and supporting a product in order to reduce costs.
There are many different types of projects but the most important from Cognitra’s perspective includes preparing students for home projects (Ex. Making a new shirt), school projects (Ex. Working with other students to create a team presentation), volunteer projects (Ex. Getting more food for the local food shelf), and work projects (Ex. Figuring out how to spend less time making a good pizza for customers).
Definition of Project Management
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
Project Management Process Groups
There are five (5) major project management process groups (more information will be in another post under Overview):
- Initiating
- Planning
- Executing
- Monitoring and Controlling
- Closing
Project Management Knowledge Areas
There are nine (9) major project management knowledge areas (more information will be in another post under Overview):
- Integration
- Scope
- Time
- Cost
- Quality
- Human Resource
- Communications
- Risk
- Procurement
Project Management and Operations Management
Operations management is different than project management. Operations management activities are permanent endeavors (not temporary) that produce repetitive outputs, with resources assigned to do basically the same set of tasks. An example is manufacturing operations where the same type of product is produced over and over again each day.
Project Manager
The project manager is the person assigned to run the project and achieve the specific project objectives.
Project Management Learning Goal
The goal is to start out with very simple project management concepts when children are young and get more sophisticated as the age of the student progresses. Each lesson should build on the one before it. If we teach kids how to manage projects when they are young, over time they should get much better at managing projects. Attaining these project management skills at an early age should help in school, at home, volunteering, and eventually at work.