As featured in The Wall Street Journal, Money Magazine, and more!

Search: processing

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

{ 18 comments }

Weekend Reading

This article was written by in Link Sharing. 6 comments.

Here are a few articles I’ve spotted recently.

Are you superstitious? Superstitions can extend into your finances; the belief that the stock market’s performance on January 1 signals the performance for the entire year can be classified as a superstition. Frugal Zeitgeist offers a compilations of several superstitions and their origins.

I’m a customer of Amazon.com’s Prime service. It provides free two-day shipping on all items, not just those priced at $25 and above. A myth is circulating that Amazon Prime members are shown higher priced items by default, resulting in these customers spending more money than those without Amazon Prime. Money Beagle debunks the Amazon Prime myth.

Get Rich Slowly offers advice on fending off financial trolls. It seems like there are always some people who insist on attempting to sabotage your ideas, your reputation, or your finances. I like the way J.D. presented the idea that we have internal trolls, as well. Sometimes we must battle ourselves.

Krantcents explains how access to information and entertainment is ubiquitous.

My choices for the best credit cards in 2012 and thoughts on industry trends for the year was included in the latest Carnival of Personal Finance at Wealth Pilgrim. If you’re a blogger interested in hosting the Carnival, find out more here.

With the results of a customer satisfaction survey, Insure.com has developed a tool that lets you browse insurance companies to determine how they compare with each other from the customers’ perspective. The companies are rated on a five-star scale among several different criteria, including claims processing, customer service, and value. The tools covers auto, home, life and health insurance.

{ 6 comments }

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?

{ 20 comments }

Around the holidays, for-profit companies see an opportunity to do something charitable, even though they’re not technically registered non-profit organizations. The concept reminds me of college. I was in my university’s marching band, and we frequently traveled as a group to performances. At the end of the trips, someone on the bus collected money from everyone else to give to the drivers to thank them for their time and for getting us to the destinations alive.

PayPal is one of the many companies that makes collecting cash from many people easier.

If I were to decide to collect money from people all around the country to give to a non-profit organization all of us supported in one transaction, I might choose to simplify the collection process by setting up a website where people could transfer money online from their bank accounts or pay with credit cards. PayPal is the most popular tool for these transactions. Unfortunately, PayPal’s policies are confusing, poorly written, and inconsistently enforced.

Regretsy, a website that brings attention to odd items available on the shop Etsy, created a gift exchange program to help 200 kids receive Christmas presents this year. Families applied to be recipients, and Regretsy verified that those who made the list of gift recipients were truly needy. After publicizing the plan, Regretsy raised enough money not only for toys for the kids, but for cash gifts for the families. This was made possible by PayPal, and the company collected its usual fees on every transaction.

Regretsy used the PayPal account to buy some of the gifts, transactions on which PayPal collected its usual fees. The PayPal account also contained money for other purposes, but PayPal froze every cent in Regretsy’s account a few days ago. Hellen Killer, the operator of Regretsy wasn’t able to get anywhere with a customer service representative. You can read her side of story here. The representative claimed only non-profit organization can use the “Donate” button, but that is incorrect, and it is one of the few clear items in PayPal’s terms. PayPal insisted that Regretsy return the gifts it bought for the 200 families (while keeping at least a portion of the transaction fees) and return the contributions it received (while keeping at least a portion of the transaction fees). Apparently this became a charitable endeavor for PayPal rather than for the 200 families.

After outcry from the internet and significant proof that PayPal did not follow their own policies, Anuj Nayar, PayPal’s Director of Communications, announced that they were following federal regulations that govern all payment processors, released the funds, and is making its own contribution to the cause. This was done without an apology for PayPal’s misapplication of policy, stubbornness of the customer service representative who refused to allow Hellen to speak with anyone with better knowledge of the situation, or the inconvenience it caused.

Operating a payment processing business like PayPal is a risky endeavor, but this is not the only story about the company freezing an account without good reason. The website SomethingAwful raised money following hurricane Katrina and faced similar issues dealing with PayPal, documented here.

Here is how these issues could be avoided, other than simply choosing a payment processor other than PayPal.

In a perfect world, anyone who wanted to create a charitable project of any scale could create a registered non-profit entity and legitimize the endeavors. Unfortunately — or perhaps fortunately, to prevent fraud — creating and registering up a non-profit organization is not that easy. It’s a long process, and if your initiative is in response to an event like hurricane Katrina, getting the proper paperwork together, consulting with lawyers, assembling a board of directors, and raising the significant financial requirements would take away from resources you need to just collect money from others and give it to deserving recipients.

The next best option for an outfit like Regretsy or an individual with a big idea is to partner with an existing non-profit whose mission statement matches the mission of the project. A partnership would be much more practical for short-term projects like Regretsy’s initiative. All money could flow directly from the donor to a non-profit organization, through the group’s own collection methods, to the recipients. This way, the paper trail uses an already-established process, and the contributions are tax-deductible for the donors.

{ 8 comments }

My New Gym Membership: Good Idea or Foolish Move?

by Flexo

After years of failed self-improvement in a number of aspects of life that most people tend to consider important, like organization, time management, and self-motivation, I’ve come to accept some of my flaws while taking advantage of my strengths. I haven’t completely given up on the strive to improve facets about myself that could lead ... Continue reading this article…

32 comments Read the full article →

Netflix Increases Subscription Price for Some Customers

by Flexo

My Facebook feed exploded the other day with news that Netflix was changing its pricing scheme. For some customers, those who subscribe to unlimited streaming and DVD plans, the new price would be a 50 percent increase. I subscribe to Netflix. A few months ago I re-instated my account to take advantage of the streaming-only option ... Continue reading this article…

37 comments Read the full article →

Upromise Review

by Flexo

Upromise takes the concept of earning cash back on everyday purchases and aligns this benefit with saving for college or paying off student loan debt. You buy groceries anyway; Upromise helps you earn cash back on what you buy and use that money for your education expenses, the education of a relative, or for any ... Continue reading this article…

14 comments Read the full article →

Free Triple Credit Score with GoFreeCredit.com

by Flexo

Recently the FTC cracked down on companies advertising free credit reports. These companies — the credit bureaus — created confusion between the government’s truly free AnnualCreditReport.com and their own websites that advertised free credit reports but sometimes nefariously charged customers’ credit cards after a trial period expired for a service they didn’t realize they signed ... Continue reading this article…

13 comments Read the full article →
Page 1 of 512345