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There’s a chance you could become a multi-millionaire after repeatedly slamming your head into other people and suffering through the resulting mini-concussions and minor brain damage, but not everyone can be a professional football player in the NFL. There’s a safer and less harmful path toward financial independence.

Cognitive ability is an important part of your human capital, and your human capital measures, among other things, how likely you’ll be able to support yourself financially, particularly through difficult economic times. Cognitive ability is important because many jobs requiring intricate skills and the best careers that offer opportunities for advancement require the ability to learn and adapt, and that’s the core of cognition.

The ability for the brain to process information changes throughout one’s lifetime, and without stimulation, cognitive ability can decline. When companies like Google or SAS ask puzzling interview questions, they’re testing, among other things, cognitive ability. To be hired as a software engineer, you would need to show that you have a strong command of whatever primary programming language is popular at the time, but in an industry that changes so quickly, strong cognitive ability will show that you can learn and adapt to the changing environment.

Rubik's CubeThe key is instilling cognitive ability in children at an early enough age. As we get older, we can continue to refine cognitive ability, but only to a small extent. These tactics may no longer work for me; the best adults can generally do to keep cognitive skills sharp is to get enough sleep and exercise, and eat nutritious food.

If you’re interested in helping your child prepare for a life full of challenges, there are some tactics you can employ.

Learning a new language

As a child, I enjoyed learning languages. I never became fluent in anything other than English, but I enjoyed the process of learning the rules. As a kid, I was fascinated by languages, and spent time learning a little bit of as many as possible. Like many kids, I learned a little Spanish from Sesame Street. I learned Hebrew and tried to teach myself Yiddish. I studied Latin in middle school, was taken out of usual classes to study Greek independently, and took five years of German. I learned programming languages like BASIC, Pascal, lisp, and C. And as a younger kid, I dabbled with creating my own languages and codes.

Music and mathematics have features in common with languages, as well. Music, particularly learning to play an instrument instead of just listening to Mozart, has been shown to improve cognitive ability.

As an adult, learning a new language or a musical instrument is a time-consuming task. There are programs that help frequent travelers learn languages quickly, but you could get a bigger cognitive benefit by learning a language through a more academic curriculum or through immersion. Rather than focusing on key phrases that help you get by in a foreign land, incorporating a new language into the way you think can help keep your brain active. On the other hand, young children, even those learning their first language or languages, can often learn multiple languages concurrently without being confused. Language skills not only improve cognitive ability, but they can make someone a more marketable employee around the world or increase the chance of international success in their own businesses.

Completing puzzles

Elementary school is a great time to focus on solving puzzles whose solutions require thinking “outside the box.” I seem to remember this being called “lateral thinking” when I was younger, but I don’t know if that term is widely used today. These are the types of puzzles that stymie job applicants at companies like Google. But puzzle solving as an adult won’t have the same impact as puzzle solving when the brain is at its most impressionable.

  • Logic puzzles are kind of like the game Clue. You often have two or more dimensions to work with, and the goal is to pair each of the dimensions together based on a limited number of clues. A grid helps eliminate incorrect pairings to discover what’s correct. The more dimensions included in the puzzle, the more brain power necessary to solve the puzzle.
  • For a child, a Rubik’s Cube can be an engaging puzzle. While the answer now comes packaged with the toy, and there are numerous Youtube videos describing how to solve the puzzle in about twenty moves, the cognitive challenge is in working to find patterns of movement that move closer to the result.
  • Text adventure games open up a child’s mind to being able to control their environment. Video games have changed since I was a kid, but I enjoyed the early text adventure computer games like Scott Adams’ Adventureland. (Classic game lovers can play Adventureland here.)

Reading and writing

Reading and writing help develop important cognitive skills focused on processing information the same way they’ll need to make sense of problems as adults. Writing, particularly creative writing, improves the command of language and can help children find clarity when expressing their ideas. Writing is a skill that will easily set someone apart from the competition, as might be necessary in tough job markets. I’ve personally seen atrocious written communication among co-workers throughout the many jobs I’ve had. I will never say I’m a great writer, but these skills are lacking in my former non-profit and corporate environments.

When I compose a well-worded communication, the supervisors shouldn’t be surprised. Every employee with a college education should be able to express himself or herself somewhat eloquently.

These cognitive skills nurtured at an early age can help prepare children for financial success in life. The best careers need smart and flexible employees to take on unforeseen challenges. People often predict what the hottest careers may be one generation from now, but the specific opportunities are irrelevant if children are prepared today to handle any problem that presents itself.

What did you do as a child to improve your cognitive ability? If you have children, how are you helping them prepare for the future?

Photo: Don Wright

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Your personal human capital is an essential part of evaluating your overall worth. Human capital has a number of definitions, but in this case, it refers to a measurement of who you are, particularly in relation to how you might be seen as valuable to an employer or a client. This isn’t the only way to define a person, but since it ties directly into your future earnings and your potential net worth, it is related to finance and shouldn’t be ignored. It’s as important, or even more important, than your net worth measurement.

Consider two job applicants with identical technical skills and education, both pertaining to the job description, and a similar personality that could result in either choice being a good fit for the company. One of the applicants has indicated that he has often been called upon to present information about hie field to the public. Having presentation skills can make a prospective employee more attractive to the employer. The ability to eloquently, entertainingly, and comfortably lead a discussion or present information in front of an audience can open opportunities.

Anyone can throw together a Powerpoint presentation together, but delivering that presentation isn’t as easy as reading the bullet points. Anyone can write a speech, but elocution is a skill that requires careful honing.

Most people in “business” head directly to Toastmasters. Toastmasters uses a standardized curriculum and a safe practice environment that allows people to receive the education and experience they need to take their presenting skills to the next level. My former company, at the satellite location where I worked, had an internal Toastmasters group. We met once every two weeks to critique each other’s speeches or presentations and gain experience speaking extemporaneously about random topics assigned in the moment.

Outside of Toastmasters, you can gain experience speaking and presenting by organizing an event in your community. Libraries offer these opportunities as do community centers and religious organizations. If your field of interest holds conferences, try to get on the schedule of speakers.

Public speaking is acting and performing

Stage fright is a common barrier to increasing public speaking experience. There are two keys to overcoming stage fright or performance anxiety: being overly prepared and breathing properly. Even though the solution is simple, it isn’t always easy. Even veteran actors deal with stage fright, so it isn’t something that is easily cured even it can be managed. Acting experience can be beneficial for public speaking, as many of the skills are similar. In addition to acting, any kind of performance experience — music, dance, etc. — can have positive effects on confidence and the ability to successfully deliver a speech.

Acting also helps develop a performer’s presence. If you’re speaking publicly, you’ll need to have a presence that’s informative and trusted. The best speakers are sometimes described as “larger than life.” You know when they walk into a room that whatever they have to say will be worth hearing.

Actors develop emotional communication skills. Without saying a word, an actor can convey an emotion. The audience will be able to understand what the actor is thinking or feeling. Skilled actors can transmit those emotions to the audience, so the spectators can sympathetically feel what the actor is feeling. This is an invaluable skill for speakers. It could mean the difference between a good presentation and a speech that has the audience on the edge of their seats.

How do you suggest gaining public speaking experience?

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This is a guest article by Kiley Theiring. Kiley is a film student and freelance writer. In this article, she questions the value of private elementary school and reflects on her own experiences to offer suggestions to parents.

As a parent, you are interested in giving your child all the best opportunities that you can find. At the top of this list is your kids’ education. When you are considering saving for your child’s education, college and high school are the first priorities. But what about elementary school? To provide the best opportunities, many parents choose to send their children to a private elementary school.

At costs of at least $3,000 a year, is private elementary school really worth the money?

Why parents choose private school

Parents have many good reasons for sending their kids to private school, but often there are much cheaper alternatives. For example, my mother chose private school for me and my siblings mainly because of the rich extra-curricular programs like band and chess club. However, even after the multi-thousand dollar tuition, these things all cost extra. You could easily take those funds and look into a separate after-school program for an activity that interests your children. This way, your children will also get to interact with other kids their age that they otherwise would not see at school.

Many parents also choose private schools based on their religious affiliation. Unlike public schools, private elementary schools have a portion of the curriculum dedicated to the religion that they represent. Instead of opting for a private school to give your children a religious and moral foundation, attend your affiliated church, synagogue, or other house of worship regularly. You can get the same –- if not better — religious education without shelling out a four digit figure. Take some responsibility and start teaching your child about morality and ethics at home. Your kids look up to you and will inevitably learn from you, so set a good example.

“Isn’t the core curriculum important?”

Of course the basics are important, but are they $24,000 important? If you’re worried about your kids falling behind privately educated students, enroll them in advanced programs or hire a tutor. Either way, it will be cheaper than funding eight years of private school. With all the money you spend on private elementary school, you can afford a whole semester or an entire year of college, depending on where your kids go.

“I want my kids to be accepted at a private high school.”

If you’re considering putting your kids into a private high school, I would definitely recommend private elementary school — but only for the last two years. Private high school admissions offices usually only care about your child’s success in seventh and eighth grades. Your child’s extra-curricular activities and service hours are what make them stand out as applicants, and both of these can be improved on, even while they are in public school.

Private high schools are generally much harder to get into than private elementary schools, so I recommend enrollment for seventh and eighth grade. Even if your local public school’s curriculum lags behind the private schools nearby, the gap will likely be small enough that your child would have no trouble catching up if they enroll starting in seventh grade.

Was my pricey grade school education worthwhile?

In retrospect, probably not.

I’ve never set foot in a public school before, and my parents are in huge amounts of debt because of it. Although I am glad that my participation in service hours and membership in the school band helped me ease my way into a prestigious private high school, many of my extra-curricular activities were programs created by organizations outside of school.

I only played club sports and I completed many volunteer hours outside of the school campus. I can’t say that I got too much out of the material taught in the classes, either. In high school, private vs. public school definitely matters because there is such a wide array of optional classes offered. In elementary school, there is no standard “advanced” program, and even if there is it’s usually just working a grade above your own level.

Avoid private elementary school until the last few years. Private schools may be great institutions, but they will eat up your child’s college fund without any real long-lasting benefits. Remember that you are your child’s greatest teacher, so think about what you can teach them at home before you enroll them in an expensive school.

Flexo’s thoughts: Not every private school is excellent, and not every public school is wanting. In my experience, I’ve seen more and a wider variety of extra-curricular activities offered at public schools than private schools. From a student’s perspective, the right attitude and appreciation for learning can lead to success regardless of the school, public or private.

Because private school is a large financial commitment for the parents, those parents would do their own finances a favor by carefully evaluating the local educational options and recognizing the educational needs of their children before choosing a school.

What are your thoughts on private elementary school?

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I always encourage parents to find interesting ways to teach their children about responsible money management. When I do, I always lean toward behavior modeling. Children who, even at an early age, see their parents engaging in a positive relationship with money will subconsciously take what they observe to heart more than any explicit lessons they attempt to impart. Teaching financial literacy in schools is mostly a lost cause, as teachers aren’t trained for it, there isn’t enough room in the curriculum, and as Ramit pointed out, most students just won’t care enough about the subject for the lessons to have an effect. The responsibilities for teaching these lessons remains with the parents, and with many parents failing with their own money management, a good solution is almost impossible to design.

Using money as a motivational tool for children is dangerous, yet it’s common for parents to reward their children for bringing home good grades on the report card. Policies range anywhere from incentives only for As to a staggered system of rewards for any passing grade, with As receiving the highest monetary prize. These types of reward system broadcasts a few messages:

  • Results are what matter, regardless of effort or method of achieving those results.
  • Good results are rewarded with money.
  • In the case of the tiered system, mediocre results are rewarded, as well.
  • Money is the best type of reward, and success and effort are only worthwhile if a monetary reward is available.

I don’t see how any of these messages reinforce a positive relationship with money.

Results are what matter, regardless of effort or method of achieving those results. Children will link good grades with money. While most students achieve good grades by studying, working hard, paying attention in class, perfecting homework, and performing well on tests, a select frustrated few might take some shortcuts. Cheating is one way to get good grades, at least until the cheater gets caught. On the other hand, for a child who excels “naturally” in a class, they might achieve an A without any effort. In this case, the student could believe they will be ale to sail through life without developing the skills that will be necessary for their success in other tasks. Results matter, but so do attitudes and values.

Good results are rewarded with money. I often hear parents say that they wish to pay students for the work they do because this is how the real world works. I have two issues with this as it pertains to grades. First of all, students will come to expect to receive money when they perform well. Anyone who has worked in an office where people receive a pay increase just for being there or where people receive promotions based on their coziness with the boss rather than performance can attest to financial rewards are not necessarily linked to good results in the “real world.” THe distribution of money is often unfair.

Mediocre results are rewarded. Any monetary reward is enough to associate money with grades, and if there isn’t much perceived difference between the rewards for receiving grades of C, B, and A, then the children subject to this system will aim for the lowest rewarded score.

Money is the best type of reward, and success and effort are only worthwhile if a monetary reward is available. The world needs people who are solely motivated by money. I don’t think this is a complete loss unless every child decides to seek a path that they believe will lead them to the most money throughout their lifetime. This is the result of an increased focus on giving only money to children as rewards. Education and performance should be its own reward. If children see parents who value the lessons taught by schools and if parents reinforce the teachers’ goals and side with the teachers when it comes to completing work on time and accurately, they might have a better chance of getting the impression that what they are learning is important and knowledge is valued in society.

Bribing children with money if they bring home good grades is often a last resort to motivate a student when nothing else seems to work. I can’t fault any parents who have tried everything possible to help their students perform well in school, including finding tutors and seeing behavioral psychologists who specialize with children. Motivating with money doesn’t always have to be bad. If it is balanced with other messages, there is a better chance of children growing up to have a healthy relationship with money.

Disclaimer: I do not have any children, so I haven’t had any practical experience with this. I’m interested in hearing readers’ thoughts, especially from those of you who have children and have considered paying or do pay rewards for report card performance.

Update: A few days after writing this article, I came across this review and summary of Drive: The Surprising Truth About What Motivates Us by Daniel H. Pink. The research outlined in this book confirms some of my thoughts about motivation that can be applied to this situation, and goes much further.

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Reevaluating My MBA From the University of Phoenix Online

by Flexo

From 2003 to 2006, I took classes at the University of Phoenix Online with the eventual grant of a Masters in Business Administration (MBA) degree. After receiving the degree, I wrote about my experiences with the school in a five part series. For some background, read the series in these parts: The Decision, Admissions, Course ... Continue reading this article…

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Study: College Students Aren’t Learning Basic Skills

by Flexo
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A new study following thousands of college students from 2005 through 2009 concludes that students are not learning the basic cognitive skills required for functioning properly in life, namely critical thinking, complex reasoning, and communication skills. The primary assumption that the goal of earning a college degree is obtaining these particular skills is where this ... Continue reading this article…

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Podcast 91: Mint and Scholastic Financial Literacy Lesson Plans

by Flexo

Today’s guest on the Consumerism Commentary Podcast is Aaron Patzer, Vice President and General Manager of the Personal Finance Group at Intuit, and founder of Mint.com. Aaron and Flexo discuss financial literacy and Intuit’s partnership with educational publisher Scholastic, bringing lesson plans and resources to middle school students, their teachers, and their parents. You can ... Continue reading this article…

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Philanthropy, Money Curriculum, and Social Security

by Flexo

Earlier this week, American Express published my second article for the company’s new community website, Currency. I used to think that philanthropy was an activity for the rich. Though anyone can donate a portion of income to charity regardless of their financial health, starting a foundation requires at least a million dollars. Some services offer ... Continue reading this article…

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