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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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Having ready many books about personal finance and money management over the last decade, I recognize most new books as offering nothing particularly new to readers. Some of the world’s favorite money gurus rehash the same ideas repeatedly, some on a predictable yearly release schedule, and these books become best-sellers due to the names attached. There have been some notable exceptions to the endless supply of old ideas, and I try to recognize them when I can.

There is a reason for repetition, though. Here are a few:

  • You might have missed “Get Out of Debt 2012″ because you weren’t thinking about money at the time, but “Get Out of Debt 2013″ was released at the perfect time for you.
  • “Wealthy Dad, Middle-Class Dad” might not have been a book that caught your attention, but “Wealthy Sister, Middle-Class Sister” was recommended by your favorite talk show host.

Kimberly Palmer's Money PlannerKimberly Palmer, the author of Generation Earn: The Young Professional’s Guide to Spending, Investing, and Giving Back, has decided to take a different approach with her latest project. Kimberly has been a guest on the Consumerism Commentary Podcasttwice — and she also writes for U.S. News and World Report.

The author has created a series of workbooks, meant to appeal to those of us who are more creative, designed to help guide participants through the financial aspects of life. The workbook approach transforms readers into participants, and if the workbooks are engaging, they can be much more effective in someone’s life than just reading a book.

Normally, I’m not a fan of worksheets. These are great learning tools for elementary school students, and any time I’m asked to complete an assignment like that, I begin to think that the author is treating readers like children. As I’ve discovered by maintaining this website since 2003, writing things down works to change your life. Once you complete a worksheet that asks you to write down your financial goal for the year, that goes becomes real. It adds a level of commitment. While there are no consequences for missing your goal other than self-reprimand, writing things down can add motivation.

Kimberly Palmer is offering several self-published money planners on Etsy.

  • The Money Planner is designed as a companion workbook for Generation Earn. The activities match the book’s chapters.
  • The 2012 Money Planner breaks down the coming year by month, with tasks appropriate for the time of the year.
  • The Debt-Free Planner focuses on the one specific task of eliminating debt.
  • The Baby Planner helps expecting families get ready for the new financial responsibilities of having kids.

Kimberly Palmer's Money Planner, Page 1The first three planners are also available as a bundle.

To get an idea of whether these planners are right for you, I’ve included the first page of the Money Planner. Kimberly indicates the creative and visual approach will appeal more to right-brainers like herself. Whether your mind is ruled by the logical or creative aspects of thought, anything that inspires you to take action will help improve your finances.

The key to success is maintaining your motivation over a long period of time, and workbooks can inspire success more than typical books. In the end, however, success depends on a family’s or individual’s ability to maintain focus and motivation.

If you’re interested in one or more of Kimberly Palmer’s Money Planners, visit the author’s Etsy shop.

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Many Consumerism Commentary readers have written in to let me know that they recently received a check for about $98 from Bank of America. This check is not a result of the Bank of America overdraft fee class action lawsuit, but it is the result of a similar lawsuit. First of all, the overdraft lawsuit has only recently entered an appeal process. It could be another year or more before customers see any benefits from this latest class action.

The check is the benefit that customers are receiving due to an earlier class action lawsuit, Closson v. Bank of America. Customers who are eligible had a Bank of America, Fleet Bank, LaSalle Bank or U.S. Trust Company debit card and paid an insufficient funds fee, overdraft fee or similar fee before December 31, 2007. In order to receive a benefit, customers would have needed to file a claim form before May 1, 2009. The deadline to receive any benefits has long since passed, so even if you fit this description, it is too late to become a member of this lawsuit.

This is one of many class action lawsuits against Bank of America, some of which pertain to companies that were purchased by the bank, like Countrywide Financial.

  • Ross, et al. v. Bank of America, et al. This lawsuit pertains to the bank’s forcing of customers into mandatory binding arbitration, much like Wells Fargo is doing today. This is a new class action lawsuit.
  • Closson v. Bank of America. This is the class action lawsuit I described above. Bank of America encouraged its customers to use debit cards that were designed to increase the number of fees. If you received a check in December 2011, it is likely a result of this lawsuit.
  • Bank of America overdraft lawsuit. Nearly 1,000 Consumerism Commentary readers have offered their thoughts about Bank of America’s processing of customers’ debits in a certain order that ensured that they could maximize fee revenue from overdrafts. Read more here.
  • Homeowner lawsuits. Class action lawsuits in several states, including California and Washington, allege that Bank of America or its related companies withheld taxpayer money designed to help homeowners facing foreclosure.
  • Foreign currency conversions. Bank of America was one of many defendants (also including Visa, MasterCard, Chase, Citibank, and more) in a class action lawsuit regarding a conspiracy to set fees for foreign currency conversions, eliminating competition in this particular aspect of business.

Class action lawsuits are usually settled by the defendants, often without admitting any wrongdoing. As a result of settlement, affected customers often only receive a small award while the lawyers representing the class receive significant payments for their work and time. For example, in the overdraft fee settlement, lawyers will receive $123 million, or 30% of the settlement fund, unless the verdict is successfully appealed. At the same time, each affected customer will only receive a portion of the overdraft fees paid. That could be $35 or less per individual.

Are you included in a Bank of America class action lawsuit? Have you received a check in the mail from Bank of America and you don’t know why?

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There have been times in my life, while working for other people or companies, that I’ve thought to myself, I should have more job responsibility than this, or, I should be getting paid more than I am. A disagreement with the boss over my skills, potential, and value to the organization created tension. For some people, this tension could be demotivating.

Dissatisfaction with career progress is often not something that could be blamed on the company on the boss. Sometimes it’s due to a bad fit between people, but more likely, employees can look at themselves to find the barrier to success in a career. Here are a few possibilities.

Ladder1. You haven’t defined what you really want. The first step to getting what you want out of a career is having a clear goal with a series of steps that will get you there. Knowing where you’d like to be in your career helps you carry a sense of purpose in your job. If career advancement isn’t important to you and you haven’t found a need to define any goals, chances are your boss will keep you right where you are. If you have a goal in mind and are willing to put in the effort to show why you can accept more responsibilities, you have a better chance of moving ahead.

2. You haven’t discussed your career with your boss. While the best organizations are partners with employees in the career-building process, the initiative must come from the employees. After you have clear career goals and a personal job-related mission, you must share that with the people in your organization who can help make that happen. I’ve been too quiet about my desires in the past, and it has hurt me. After the fact, I’ve had bosses tell me that they didn’t know I wanted more responsibility. You may think you are showing the organization what you want through your actions, but in most cases, career desires need to be discussed explicitly.

3. You aren’t passionate about your work. Not everyone is lucky enough to be able to follow passions. The missions that people are more likely to be passionate about are in fields in which is may be difficult to make a living. If your passion is fine art and the only job you can see yourself doing is a painting artistic landscapes, the competition to become one of the few painters who can earn a solid living on their art is tough. If your passion is in a field that pays well, like engineering, you have a better shot. Most people settle, and particularly in job markets that favor employers, people often take the jobs they can get and don’t factor passion into the equation.

When you’re not passionate about your work, it’s more difficult to summon up the intrinsic motivation that’s required to not only do what’s asked of you, but to go beyond the call of duty and excel, impressing the decision-makers in your organization. Find something about your job to be passionate about, even if it’s not the job itself.

4. You haven’t clarified why you deserve more. Few people enjoy talking about themselves, particularly if it could be seen as bragging. Unfortunately, managers are busy and often don’t see everything you do. This information should come out in annual performance reviews if your organization participates in this ritual, but these reviews tend to be formalities after management has already decided whether you receive a promotion or a raise. Set up time to review your progress with your boss on a much more frequent basis. Even if discussed informally, let her know that you’re succeeding in ways that may not be immediately visible to a busy manager who focuses on many different people every day.

You may also need to make the connection for your manager. Explain not only what you’ve done but the effect these activities had or will have on the organization.

5. You’re not talking to the right decision-maker. You may have had all the right discussions with the wrong individual. At one company, I knew my direct supervisor had a good idea of where I wanted to be, but she wasn’t the person who could help move my career in the right direction. While she always claimed to be working on my behalf, for my to see career success, I needed to have more open communication with her supervisors — not her direct supervisor, but her boss’s boss, two layers in a corporate hierarchy up. When you need to jump ranks in order to move your career forward, it can tend to be intimidating. You don’t deal with your boss’s boss’s boss on a regular basis, but she might be the one who needs to know what your goals and desires are. She needs to know how you’ve succeeded, and she needs to she your passion.

Relying on long communication chain may be respectful of rank, but in the end, it’s not going to get you anywhere.

There might be other reasons you’re unhappy with your career progress. Perhaps the company just isn’t a good match for you. Perhaps your management plays favorites. Perhaps you’d succeed further working for yourself. Perhaps your management isn’t lying when they say the company has no money. Rather than focus on these external factors, look within. If you believe the career path you’re on is the right path for you and you’re undervalued, you can change your approach to increase your chances of being noticed positively.

Photo: plastAnka

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What I Learned as a Financial Planner

by Neal Frankle

The following is a guest post from Neal Frankle, a Certified Financial Planner in Los Angeles who owns the financial blog Wealth Pilgrim. Neal has been a financial planner for the past twenty-seven years and is writing this article on Consumerism Commentary to share what he has learned from his experiences with clients over these ... Continue reading this article…

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My Interview on Talk Credit Radio, Plutus Awards

by Flexo

A few weeks ago, I was a live guest on Talk Credit Radio, hosted by Gerri Detweiler, on radio station WSRQ. We talked about my sordid financial history pre-Consumerism Commentary, in which I confess to owning a car without knowing how to maintain it or how to handle my traffic tickets. We also talk about ... Continue reading this article…

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Department of Justice Blocks AT&T Acquisition of T-Mobile

by Flexo
Cell Phone

Earlier this year, AT&T announced its plans to acquire T-Mobile, a plan that would change the landscape of wireless service in the United States and pave the way for an industry dominated by two large players: the new AT&T and Verizon Wireless. Today, the U.S. Justice Department stepped in, issuing a complaint to block the ... Continue reading this article…

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Money Magazine’s Best Banks 2011

by Flexo

In early October, I will announce the winners of the Second Annual Plutus Awards, which will include the best bank, best credit card, best brokerage, and a number of other categories. Later today, the Plutus Awards website will list the finalists. Money Magazine has already completed its survey and announced the publication’s editor’s picks for ... Continue reading this article…

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