blog.weProsper.org

Happy New Year… again! If you’ve had trouble getting those resolutions off the ground, don’t fret. You have a second chance for a new beginning. Today marks the first day of the Year of the Ox in the Chinese Lunar calendar. According to the Chinese zodiac, which is based on a 12-year cycle of animals, the Ox is the sign of prosperity through diligence and fortitude. People born under the sign of the Ox are patient, dependable, and tireless in their work.

Wikipedia’s crowd-sourced astrologers report: “The Ox is not extravagant, and the thought of living off credit cards or being in debt makes them nervous. … Security is their main preoccupation in life, and they are prepared to toil long and hard in order to provide a warm, comfortable and stable nest for themselves and their families.”

Facing the economic forecast for 2009, there has never been a better time to heed the wisdom of the Ox. Work towards your goals. Save for the future. Pay down your debt. Live within your means. By building up good habits this year, you’ll be better prepared when the unpredictable and reckless Tiger takes over in 2010.

Almost exactly one year ago, on January 22, 2008, President George W. Bush signed an Executive Order creating the President’s Advisory Council on Financial Literacy. The Council’s purpose was to “work with the public and private sector to help increase financial education efforts for youth in school and for adults in the workplace, increase access to financial services, establish measures of national financial literacy, conduct research on financial knowledge and to help strengthen public and private sector financial education programs.” For the first time ever, it became the policy of the federal government to “to encourage financial literacy among the American people.”

The creation of this Council could not have come at a more opportune—and desperate—moment in our economic history. Yesterday, the front page of the New York Times reported that 92% of Americans polled felt that the economy was in fairly or very bad condition. With the financial crisis and market turmoil we face today, and the uncertain times ahead in this recession, we must address the financial illiteracy that plagues our nation and take action to improve our economic future.

In its first year, the President’s Advisory Council on Financial Literacy launched the first-ever National Financial Literacy Challenge, endorsed MoneyMath curricula and community-based pilot programs, created a partnership with the USA Freedom Corps that provides a centralized resource for financial literacy volunteer opportunities across the country, and hosted town hall meetings, roundtables, conferences and more. (Read about the Council, its tasks, accomplishments, and recommendations in its first Annual Report: download the Executive Summary or full report.)

When President-elect Barack Obama takes office tomorrow with what promises to be a history-making inaugural presidential address, he will undoubtedly raise the issue that is at the forefront of nearly all American’s minds. But the nation’s economic problems cannot be solved by speeches and stimulus packages alone. Education is critical. We hope that with the support of the incoming president and the help of the Council, we can improve financial literacy in this country and mend our troubled economy.

weProsper.org and our sister site, iThryv.com, were featured on InsideTheSchool.com, a Web site that provides practical teaching strategies and resources to middle and high school teachers in a weekly e-zine. Click here to read what they have to say about iThryv Professor and the future of online banking in education.

Most students in America graduate from high school with no formal education in personal finance. With a population lacking fundamental classroom training in money management, it’s no wonder that our economy is in terrible shape.

Student loan giant Sallie Mae recently found that more than half of college students accumulated more than $5,000 in credit card debt during their time in school, while one-third of college students piled on more than $10,000. Compound this with the mounting cost of tuition and the diminishing availability of financial aid, and the next generation faces a rough road ahead.

Yet there is a way to help students before they get mired in debt. By teaching kids about credit, debt, income, and interest, we can better prepare them for the responsibilities and consequences that come along with the ubiquitous plastic being proffered on college campuses. The Jump$tart Coalition for Personal Financial Literacy, an advocacy group based in Washington, D.C., is working to bring financial education into the classroom by creating national standards for K-12 Personal Finance Education. Currently, only three states in America require a stand-alone personal finance course in the public school system, and 17 states require that personal finance be incorporated into other coursework. That leaves 60% of states with no requirements whatsoever for personal finance education. (See where your state stands by visiting Jump$tart’s interactive map.)

Until we place more emphasis on education, our youth will continue to face financial challenges without the skills they need to overcome them. weProsper is partnering with Jump$tart to encourage school districts around the country to adopt national education standards. By joining our movement, you can help us bring financial literacy to the next generation. It’s easy and free to sign up—just click here to get started!

The most important lessons we learn in life are often not those that we study in books or memorize in a classroom. Rather, they are the ones we encounter in everyday life by watching others, interacting with our surroundings, and learning from experience. A real-world scenario creates the best opportunity to teach youngsters important skills at a moment when they are actively engaged in seeking out knowledge.

When parents and teachers recognize situations that can translate to teachable moments, they can offer valuable life lessons to children of all ages. Fractions instantly become relevant when halving a recipe for double-fudge brownies; percentages make all the difference when shopping for new clothes at 60% off; and the standard grocery checkout line question of “credit or debit?” presents a tidy introduction to money management 101 when you take the time to explain the difference to a curious kid.

As you gather up the bank statements, credit card bills, and other household accounting receipts you’ll need for tax planning, why not use the opportunity to talk to your kids about income and expenses: the fundamental building blocks of any budget.

Plus, with the volume of news about the current economic crisis on television, in the newspapers, and online, there is a wealth of opportunities to translate headlines into discussions with your children about fiscal responsibility. Teenagers can learn a lot from the same articles that you’re reading if the content is relevant to their interests. Test the water with this eye-opening article on text messaging, a subject near and dear to any teen’s heart, from last week’s New York Times. They may be surprised by just how compelling the business section can be.

Start the new year off on the right foot by creating a family budget! The end of the year is the perfect time to take stock of your finances and map out a plan for reducing debt and spending wisely in 2009.

During this recession, you may also be facing tighter economic constraints as a family. By involving your children in discussions about saving money, it will help them understand why you may not be eating out at your favorite restaurants as often, or taking as many visits to the movies or the arcade. Your children don’t need to know all of the details about the family’s finances, particularly if they are young, but the more truthful you are and the more you involve them in the process of family budgeting, the less likely they will be fearful of hard times—and the better prepared they will be for the future.

Here’s a simple way to approach the budgeting process with your children. As a family, make a list with two columns for “wants” and “needs.” Discuss with your children the difference between the two, and help them prioritize the many things that will inevitably fill up their “want” column. Tally up the monthly cost of your needs, and subtract that from your family’s monthly income. The leftover money is what your family can choose to spend, save, invest, or donate.

Every family will make different choices about how to use their money. By including your children in this decision, you will not only teach them valuable lessons about financial planning, you’ll also create the opportunity to work together all year long to meet your budgetary goals.

This time of year, it’s easy to get wrapped up in a spending frenzy and lose track of your savings goals. But with a little planning and a bit of creativity, you can minimize the financial impact of the holidays on your wallet—and teach your children some valuable, life-long lessons along the way.

Here are 10 simple ways to save during the holidays:

1.    Set a budget: Before the holiday panic sets in, take a look at your finances and work out how much you can comfortably spend while maintaining your long-term savings goals. Make a list of the people on your shopping list and determine a maximum spending limit per person.
2.    Shop early: Last-minute purchases can quickly rack up exorbitant charges. Many online companies offer free ground shipping if you can allow the extra time for delivery. Next-day or 2nd-day air charges for rushed shipping can often double the price of the gift you’re sending. Also, by giving yourself some extra leeway, you can take the time to research competing stores to find the best prices.
3.    Get crafty: As anyone with small children can attest, handmade gifts are often the most fun to create—and receive. Decorate a picture frame, create your own ornament, knit a scarf, crochet a potholder, make a friendship bracelet… the options are as endless as your imagination!
4.    Support local merchants: If crafting is not your forte, check the local listings in your newspaper to find a holiday craft fair in your neighborhood. Schools, churches, and community centers often sponsor fairs to raise money for charity, and local artists often use these opportunities to sell handmade gifts. You’ll find one-of-a-kind items at great prices, and you’ll support the local economy. One of my favorite spots for holiday shopping is the neighborhood second-hand bookshop. There are all kinds of treasures to be found tucked into the shelves, and independent bookstores need our support more than ever these days.
5.    Be a secret Santa: A few years ago, my family decided to start a new holiday tradition. With a family tree that was extending well into the double-digits with siblings, stepsiblings, in-laws, and childhood friends that had long ago been adopted into the fold, our gift lists became unmanageable. To put a stop to the madness, we agreed to all throw our names into a hat on Thanksgiving. Each person selects one family member and everyone agrees on a spending limit. On Christmas morning, everyone gets a gift from their secret Santa—and a reprieve from their credit card bills come January.
6.    Bake: A giant batch of holiday cookies divided into small portions and wrapped in festive packaging is a delicious, and efficient way to spread the holiday cheer. Just avoid the fruitcake, please. Your neighbors, your friends, your second cousins, and your kid’s schoolteacher will thank you.
7.    Experiential gifts: One way to avoid feeding the holiday glut is to give away experiences rather than material goods. Think of some things that you are particularly good at, and share that knowledge! An old-fashioned IOU can be whipped up for any number of treats: cooking a favorite meal, giving a massage, Italian language lessons, igloo building tips, Guitar Hero demonstrations… let your talents shine!
8.    Gifts that keep on giving: We all know the tale: give a man a fish, teach a man to fish, etc. The moral of the story is simple. It’s always a better choice to give a gift that keeps on giving. Embrace this philosophy for the holidays and it opens up a vast array of opportunities. A packet of seeds, some planting soil, a few small terracotta pots, and brightly colored ribbon is all you need to give your loved ones a full year of blooms!
9.    Consider those less fortunate: When the holiday marketing machine is in overdrive, there is no better time to remind your children that there are many people in the world that are less fortunate than we are. As a family, research different charity organizations and donate to a cause that has meaning for you.
10.    Remember the true meaning of the holidays: Sometimes it’s important to take a step back and remember that the holidays are not all about the presents. It doesn’t cost a dime to go outside and throw snowballs, to sing carols by the fireplace, or to linger around the dinner table sharing stories. The holidays are about spending time with the people you love—not spending money on them.

Have a safe and happy holiday, from all of us at weProsper!

Get a sneak peek of iThryv Professor, the state-of-the-art software we’re developing to help kids improve their financial literacy, right on our home page!

Designed for youths aged 5-24 and customizable to age, skill level and learning objective, iThryv Professor allows parents, teachers, and group leaders to create financial lessons with simulated bank accounts. Though an ongoing learning continuum structured around teachable moments, students acquire and apply real-world financial skills in authentic financial transactions.

Screen by screen, see how our online teaching tool works to familiarize students with the basics of online banking through a safe and friendly interface. Youngsters will learn how to track their accounts, manage their deposits, and increase their savings score. Helpful info boxes explain the “hows” and “whys” of finance in easily accessible terms, while simple graphics and charts give students the opportunity to visualize their transactions and earnings over time.

iThryv Professor even teaches kids how to start making money with its exclusive “My Business” plans. Students will be able to build a business plan, gain an understanding of important business metrics such as start-up costs and ROI, and learn how to grow their business with tips and hints from financial experts.

You can check out a sample business plan and get an overview of iThryv Professor simply by clicking the Preview button on the weProsper.org home page. Take a tour and then join us to be first in line to test-drive the software when it is released in beta this spring! We’ll be posting updates about iThryv Professor here, and in our monthly newsletter, so be sure to check back often for the latest news.

We’re thrilled to announce the launch of weProsper.org, the new home of the financial literacy revolution. Formerly known as Shryk, weProsper is a community of people committed to improving $Literacy in the next generation. Since you have previously expressed interest in our work, we wanted to offer you the first opportunity to join. 

weProsper empowers young people to take control of their financial future. With our free online $Literacy software, iThryv Professor, and our network of $Literacy Advocates, we give parents and educators the resources they need to teach students, aged 5-24, how to manage their finances for a lifetime of financial well-being. 

The economic outlook for our country looks bleak today, but with your help we can achieve our goal of a brighter financial future. If we work together, we can bring national financial education to our youth and improve the economic future of our country. Become a $Literacy Advocate and tell your friends and colleagues to join us, too. You can make a difference. 

To learn more about weProsper and to preview our online $Literacy software, visit www.weProsper.org today. 

Join the $Literacy Revolution! Together, we will prosper, 

The weProsper Team.

Here you’ll find the latest news about weProsper and the $Literacy revolution. We’ll be posting links to great articles and financial literacy resources, tips for brightening your financial future, and updates on iThryv Professor — our free educational software scheduled for release this spring.

We’re just getting started, so stay tuned for more in the coming weeks!