Wealth Builder University Blog

Financial Literacy - Simple Math, A Recent History

One of my guru's is Todd Ballenger of KendallTodd, Inc.

Below is part of a recent post to his BLOG which speaks for itself.

What will the standards of financial literacy look like for the next generation?

Good luck to us all.

Alex Weiss, co-founder
www.WealthBuilderUniversity.com

Financial Contagion and the Evolution of Math

 

Last week, I purchased a combo meal at a Burger King NC. The cost was $4.57. I handed a $5 bill to a young man at the counter, and reached into my pocket to see what spare change I could liberate from the dark and noisy front left pocket. He had rung up the 'out of $5.00' when I handed him $.07 in lose change. Expecting him to hand me back $.50, he paused - and calmly called for his manager.

This reminded me of an email I got some time ago about the shifting evolution of math education. Our continued orientation and focus relates to using arithmetic and their own goals to help the consumer navigate through their decisions related to borrowing. Borrowing from an industry that lowered eligibility requirements over the last several years while continuing to the ignore suitability requirements of that borrowing - hence the subprime hangover.

I learned math (basic arithmetic) in the 70's, and really related to a math teacher's recent perspective on how math was being taught in some schools ...

Teaching Math In 1960:

A logger sells a truckload of lumber for $100.  His cost of production is 4/5 of the price.  What is his profit?

Teaching Math In 1970:

A logger sells a truckload of lumber for $100.  His cost of production is 4/5 of the price, or $80. What is his profit?

Teaching Math In 1980:

A logger sells a truckload of lumber for $100. His cost of production is $80.  Did he make a profit?

Teaching Math In 1990:

A logger sells a truckload of lumber for $100. His cost of production is $80 and his profit is $20. Your assignment: Underline the number 20.

Teaching Math In 2000:

A logger cuts down a beautiful forest because he is selfish and inconsiderate and cares nothing for the habitat of animals or the preservation of our woodlands. He does this so he can make a profit of $20. What do you think of this way of making a living?

Financial Literacy for Children

There is a good article this morning at bankrate.com entitled "Four Fiscal Lessons You Need to Teach Your Kids"

It covers the following:

•	Differentiate between needs and wants
•	Share the secrets of saving
•	Instill smart spending habits
•	Keep out of credit quicksand

I just happened to be speaking my one of our grandchildren this weekend and realized that he had no concept of the 'miracle of compounding'.

Here is a interesting and impressive question to get the point across.

How thick would a sheet of 8.5 x 11 paper if folded in half 50 times?

For those of you who want to try doing the folding, assume that the paper is cut on each fold and stacked, since the paper, once folded a few times, would be too thick to fold again.

And for those of you who are really compulsive, here are a few facts. The paper is:

• 8.5 x 11
• Bond
• Cotton Fiber
• Flat Finish
• 24 pound

If you think you have a handle on financial literacy, here is a follow up question.

How thick would the folded paper be if it were taxed at 33% after each fold?

The answer is on the continuation page.

Good luck

Alex Weiss, co-founder
www.wealthbuilderuniversity.com

Financial Literacy advice from my daughter

Hopefully we all reach a stage in life when we get paid back for for our investment in our children with pride in what they are and/or do.

This morning I got the following from my daughter Pessy.

I hope it makes your life a little safer.

Alex Weiss, co-founder
www.wealthbuilderuniversity.com

PS I would have given the name of the person who wrote it but I did not get it in the email.

ATTORNEY'S ADVICE --NO CHARGE

Read this and make a copy for your files in case you need to refer to it someday. Maybe we should all take some of his advice! 

A corporate attorney sent the following out to the employees in his company.

Financial Literacy for teenagers?

I enjoy reading financial blogs from other countries, especially UK.

Here is a great tidbit I picked up from the founder of the Money Gym Club, Nicola Cairncross titled "Financially Intelligent Parents".

It's an audio interview discussing how to become financially intelligent enough to teach your kids about money and creating wealth.

Important stuff no matter how much you have.

Alex Weiss, co-founder
WealthBuilderUniversity.com

A Welcome Message from the Founders

As Founders of the Wealth Builder University ( WBU),we welcome you to this new and exciting blog, www.WealthBuilderUblog.com .

Test Your Financial Literacy: What Are Three Types of Money?

Most people are pretty much aware of how much cash they have in their checking account, saved or invested. This cash surplus represents their 'Accumulated Money' (Type #1). Accountants call this your 'quick assets'. Money that could be tapped in an emergency, for college, a vacation or future retirement. A reality check on your quick assets might cause you to experience a range of emotions: from a peaceful, serenity (if you're sitting on a pile of surplus cash)... to anxiety or even shear panic.

Then, I automatically shift my attention to my monthly spending...the speed at which I burn through that green fuel we call cash. Our monthly consumption defines how we 'show up in the world'; and, it defines what is accumulated throughout the year. Let's call it our "Lifestyle Money" (Type #2).