If you have read Robert Kiyosaki’s books you know that one of his big griefs is that schools do not teach proper financial knowledge. After working in the school system, in primarily low income and first generation middle class schools, I have come to not only agree with this statement, but to say that this lack of financial Knowledge is about to seriously hurt us as a country.

I don’t to come across as a doomsdayer here. I don’t believe that we are already in full crisis mode, but I do see us racing toward that. Without the proper financial knowledge the poor and the middle class are just going to get weaker, and the rich are going to get stronger. There is going to be an ever widening gap.

For me growing up in a solid middle class family I was not given any financial knowledge at all. As a matter of fact speaking about money was almost as bad as speaking about sex. My parents were deeply in debt, and they still are. As I learn more I am beginning to realize that my parents are even deeper in debt than they think. It is a shame.

So who has to make up for it? Well in my case it is me, my brother and sisters. But are we going to be in any better shape? Not without learning on our own. The only financial knowledge I got in school was how to balance my checkbook, and an elective class on the stock market crash of the 20’s and the Great Depression, and most of that class was on the Great Depression.

It is an evil cycle to get into and very difficult to break out of. In our school we say we give education about finances but it still is taboo. I run a game at the end of my Algebra class that I call Rich Student. Yes it is a total rip off of Robert Kiyosaki’s books, but it does not have anything to do with his game. The discussions in the class are limited only due to time. We talk a little bit about how Real Estate works, a little bit about how the Stock Market and true investing works, and we talk about developing incomes on line. Some students get it right away and do well, some never understand. But, if the students don’t have me as a teacher they will go their whole career without getting any financial education at all.

Lets talk solutions, not problems. So what is needed?

• Budgeting Skills

  We need to go beyond balancing the checkbooks, beyond saying simple subtract our bills from our paycheck, and start teaching what the rich already know. We need to teach our students to pay themselves first and if they can’t pay their bills they need to either figure out how to eliminate some, or find more money somewhere.

• Credit Scores

  It seems to me that the middle class and the poor must rely on their credit scores more an more to get out of where they are at. How do we protect this? How do banks calculate this. Most students, and probably their parents, have no idea what this means. They need help to get out of where they are at. That help is so dependent on this score. Students need to understand more about this.

• Real Estate

  Not only do the students not understand about houses they are misinformed. Houses may be an investment if bought properly, but they are not an asset. Students have no idea that they can pay up to 4 times the purchase price for a home after all their payments are done. They have no idea that a larger down payment and a better credit score will result in lower payments. They have no idea how to buy a house that will result in an income generation.

• Investing

  Students are completely confused about investing. They think that their parents are investors because they have a 401K or some mutual funds. They have no idea what it means to be an investor and invest in companies. As a matter of fact most students are afraid of investing in companies because they think that it is too hard. They don’t understand how to do it so they don’t. They have no idea what the difference is between a mutual fund, a retirement plan, and what stocks, or shares in a company are.

It is a no wonder that underprivileged kids think that the only way that they are going to make money is to play sports, rap, or deal drugs. It is sad that those are their heroes. If you disagree substitute teach in a public city school and listen to the conversations. You may be surprised at what they talk about.

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“Poor people have jobs, Rich and Successful people have careers.” - Colin Cowherd ESPN Radio

I heard this over the radio one day and it took me a while to figure out what he meant. It was one of those days where I just had a few minutes to tune into the radio. As soon as I turned it on I heard this. I don’t know what lead up to this statement but it struck me and stuck with me.

I brought up this statement with my students, most of whom fall into the poor or poverty social class, and they all understood exactly what I was saying.

I explained it like this:

Poor people have jobs. They work for money and nothing else. So what happens? Is a person who makes $250,000 a year poor? Maybe not by money standards but what is their life like? How much do they work? How much do they enjoy themselves?

If they just have a job that pays well they are probably not completely happy. Actually if they are like most of us they have a job that they just don’t like. It is nice to make a lot of money but are they happy?

What is the sense of making a lot of money when all they do is work? Then what happens? When people work in a job that they are not happy in they need to supplement this unhappiness with something. Some buy toys, a bigger house, new cars, and more. Then what happens? They have to keep working to pay it off. Some are more destructive and turn to alcohol or drugs. Still others take their frustrations out on others.

Rich and successful people have careers. What do they work for? They typically don’t work for money, they get money as a result of their effort and their hard work. Instead of working for money they work to learn. They learn what it takes to get to the next step. That next step may be the next rung up the corporate ladder (something I have no interest in). For some the next step is to open their own business. For others it simply is a case of lifelong learning.

These people may not be rich with money, but they are rich and successful with their life. They are happy because they are doing things that they love to do. They are successful not because they work hard, but because they enjoy their work. Since they enjoy their work they tend to spend more time with it, and they tend to do a better job.

So what are you doing? Are you happy with your job? If you are maybe you should begin to learn and turn it into a career. What is the next step? Where will it take you in the future? If you are just starting out don’t worry about the money right now. If you work for money you will rarely get ahead. If you work for your career then you will find the opportunities will come to you and you will get paid soon. The money comes as a secondary result of how well you develop your career.

Be patient, I know it is hard, I fell into those same traps, but there is a payoff in the end.

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Weekend Roundup Podcast

Thanks for listening to our first weekend podcast.  To get more information visit my About page.

In the coming weeks included here will be information contained in the podcast.  Hope you enjoyed it, and don’t forget to leave some feedback.

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Act As If II Podcast

On Sunday I posted an article about acting as if. Simple acting as if you already have something will bring more of that thing to you.

You want to be successful in business? Act as if you are and people will treat you that way. They will offer you more opportunities, more responsibility, and eventually more success.

So what can you do now? If you are spinning your wheels, wondering what can be done to get you out of where you are at, if you are looking for a change what can you do?

I have a little story for you. I told this to my 9^th graders. I hope that you can translate it to something you can use.

I would guess that somewhere in your city there is some sort of financial district. Somewhere that has some really big buildings. You know the nice shiny ones with tinted windows that go right up to the clouds.

If you are in a small city like the one that I grew up in you may have to go to a larger city to find such a place. This will make it even easier since you will not know anyone there.

Go downtown to that area sometime during a normal work day. Make it a Tuesday or Wednesday. Help break up the monotony of a regular work week. Dress nicely but casual. Dress business casual. Dress to make an impression, but be humble, that is the sweet spot.

Look for the suits. They will look like bustling ants scurrying from building to building. Watch them for a few minutes. Look at which building has the most traffic, then follow them in. Ride the elevator up with them. Get out when they get out. Find the largest office on the floor and walk right in.

Now just before you go in look at the name on the door. Companies are proud and they will display on the door their name and what they do. Walk into “KIP Inc. Financial Services to the World”.

There will be a receptionist, secretary, or some other person sitting at a desk right up front. This person is the gate keeper of Midevil times. They will most likely ask if they can help you.

Say “Yes. I would like to get into Financial Services” or what ever else their door says “and possibly work for KIP Inc. I was wondering what I should do to be able to get a job. Is there a manager, or possibly the president that I can speak with for a few moments?”

About 85% of the time it will work. Say it with a smile (see my post on smiling) Stand at the desk and let them call the person in charge, don’t go away and sit down. Don’t leer, just stand there with a nice smile. Act as if they are going to do this for you.

Soon the president or manager will come in. They will probably say something like “Come on in but I only have about 5 minutes for you.” They really don’t but they like to act really busy.

They will probably lead you through the company. Past all the workers at their desks. Casually look around and observe what is going on. This will give you a good idea if you really want to work in this type of company. If you feel good about the people that are working around you then great, you may have found a place that you would like to work. If it is a bit scary for you then that is good too. You may not want to work at this company but you will still get something out of asking the manager for his opinion.

When he sits you down to talk to him simply ask one question.

“What do you do, and how can I do it?”

It is very powerful. Watch the beginning of In Pursuit of Happyness and see what happens. Watch the rest of the movie to see how hard you will have to work to really get what you want.

The manager/boss/president will be very happy to tell you all about what they do and how they got there. You may or may not want to do the same thing, after you ask a few of these people you will begin to see common things come up.

What can you learn? What can you find out? How valuable would this be?

SCARED? Good! How bad do you want change? Try it, it might even be fun.

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There is not a whole lot that I want in life.  I great wife (I have one) a nice tempered dog (got one of those too) and a house on the water (well within reach).

But I don’t want some house on the beach, although it would suit me just fine, I want a house on the water.  Yes a real houseboat.  That would just be too cool don’t you think?

Well guess what I just came across this today, a nice article on MSN about living on a houseboat.  Ahh the nice sunsets, commuting via kyak, the gentle rocking of the boat.  Nice don’t you think?  Or are you one that gets sea sick easily?

Check it out it is a good read.  (http://realestate.msn.com/Buying/Article_bankrate.aspx?cp-documentid=7162126&GT1=35000)

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You want a really powerful technique that will knock the socks off your competitors and your customers? Just act as if.

Act as if you have already made the sale, you will sell more.

Act as if you have already beat your competitors, they will pick up on that and begin to panic.

Act as if you are already successful and people will begin to treat you that way.

My father was a master at this. He was a great salesman and later a great teacher. We would go to a college campus, or a football game, or sometimes just be out and about. I am always curious and would ask about a building, or I would say out loud how I wish we could go in there.

Off he would go, just pulling on doors to see which one was unlocked. I would get scared, but he would turn to me and say, “Act as if you were supposed to be here and no one will say anything different”.

Guess what? He was right, he was always right. We would get inside the private practice facilities of major sports programs (I will not tell you which). One day we decided to go into the science building of a large university. Before we knew it we were in the reptile lab with several graduate assistance and they were pulling out exotic snakes, lizards, turtles, and things that I did not know even existed.

Why? My father just went in and started asking quesitons. He was genuinely curious. When he asked he acted as if he expected them to answer him. He was not rude or disrespectful. He was not loud and boastful. He was not overbearing. He simply asked and waited for them to answer in a very polite and respectful manner.

You know what? They always answered. They always were happy to answer. No one ever questioned why we were there.

He acted as if. It was great fun, it was harmless, and I got to see many things that I never thought I would see.

Just act as if, and see where it gets you!

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You know the old phrase, ’smile, it will make people wonder what you are up to.’ Well a simple smile can go a long way.

You ever wonder how that person gets his or her way all the time? You know that person. The one who always gets the best tables, the one who always gets the free give aways, the one who never seems to get in trouble for anything. You know them. How do they do it?

Watch them. Most likely (there are always exceptions to every example) they do not get this through intimidation, they do not get their way through being grumpy and gruff, they do not get their way yelling and throwing a fit. Watch them. They probably have a really good smile and are not afraid to show it.

I admit it, I am a sucker for a good smile. There are students that I have that will get away with a lot more than others, simple because they smile. Not just the girls either, the guys can do it just as well. They will do something silly or dumb. They will bend the rules to the point where I have to say some thing and they will turn around with a smile and say “Sorry, Mr. Coach Kip” and somehow it will be all right. Another kid will do the same thing and I will say the exact same thing to them and they will instead give me an attitude about the whole thing. That never ends well, usually ending with them in the principles office and me continuing on with class.

In the book How to Have Confidence and Power in Dealing with People Les Gibons says

A smile is relaxing, a smile shows confidence. A smile shows that you “just know” the other fellow is going to come through

There are two ways you can apply a simple smile in your every day life.

For You: William James once said that it is impossible to feel pessimistic when you have the corners of your mouth turned up. So smile during your day. You will feel better. This will translate to others. Be happy with you life, who you are, and how things are going. If they begin to turn sour just smile. You will be surprised how this works wonders. Looking at things optimistically will help you solve problems, not add to them.

For Others: Smiling when asking someone to do something for you will almost compel that person to do it for you. A smile will tell that person that what you are asking will make you happy, and is probably not that bad. People want to please others so they will feel compelled to do it. Smiling also takes the sting out of less than pleasing news. Now you wouldn’t want to smile when you tell someone that their Mother has died, but a smile while saying “I am sorry but you will have to do this report over again, I know you can do better” will greatly soften the blow and tell the person that you still believe in them.

A good smile takes little practice unless you have not used it often lately. A good smile does not come from a combination of muscles in your face that turn the corners of your mouth up. A good smile comes from deep down inside. It comes from the heart. Smile from the heart and you will find that life will be more enjoyable, more fun, and a heck of a lot easier.

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We have always been taught backwards. This coming from a teacher.

I remember going into the guidance office and they said “Coach Kip, what would you like to do with your life?”

Heck I didn’t know, at that time I still wanted to be a professional football player. I had no idea what my career was going to be. I stammered “A teacher I guess?”

And so it was, from that point on I was defined by what I wanted to do. I was put in classes that helped me get into college. I was advised on the best colleges for teaching. I went to one of the best Universities in Michigan for teaching, Northern Michigan University. I then promptly dropped out of the teaching program.

Why?

I was beginning to see how that would define me. As I got into my teaching classes I found that students were already getting cynical. I found that I was not getting support for math and sciences in our open discussions in class. I was finding it difficult to write papers on philosophies and issues that I did not agree on. I would not let it define me.

I got a degree in physics instead. Why? I thought physics was cool. I had no idea why. I had no idea what I was going to do with it. I just liked science and physics. So I graduated.

I got a good job but it did not satisfy me. Heck I lived in Russia for four months, I lived in Argentina for a month, and in Dubai for three months (I stayed in the original buildings that are shown with the arrow). Besides that I traveled all over the United States. Still not very fulfilling to me. It was not me. It was not the definition of who I wanted to be. So I went back to school.

I got a teaching degree along with a mathematics degree. I became a teacher. I was lucky. I did not get a teaching degree because I wanted a job, I got one because that is who I am.

So what does that mean to you?

Define - Learn - Do.

The better question that the guidance counselor could have asked is “what do you want to be?” I may have answered a professional football player, but hopefully she would have steered this 145 pound weakling in a different direction. I could have decided who I wanted to be. What I wanted to be. How I wanted to live. What I wanted to have. I could have formed a decision on that

Define

Instead of finding something that you want to do, define who you want to be. Once you define who it is that you want to be the steps are more simple. The steps are also in reverse order that we usually take them in.

Learn

Once you have defined yourself you learn how to become that person. For some it is education, and schooling. For some it may be an internship. For others it may simply be setting a stricked budget to get what they want.

Do

Once you have learned how to get what you have defined for yourself it is a matter of doing it. This can be very difficult because you are bound to make mistakes. Guess what, making mistakes is part of living. It tells you that you are alive. So make mistakes.

Let me give you a little secret. Instead of doing what it is that you think you need to do to get to your definition of life…that sentence and the process is very difficult to understand, I know I have done it that way for a long time…FIND SOMEONE WHO HAS DONE IT BEFORE AND DO WHAT THEY DO.

I am not yelling, just using it for emphasis. Don’t reinvent what has already been done. Just find someone who has the life that you want and copy what they do. Will that make you successful alone? No. But it will get you started. It will then be your task to make it your own. Making it your own, and living the way you want to live will be your success.

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