“We want our family to be financially savvy, but we don’t know … The program includes more...
Transcript of “We want our family to be financially savvy, but we don’t know … The program includes more...
“We want our familyto be financiallysavvy, but we
don’t know where or how to begin.”
Great Families ProgramI N D E P E N D E N T M E A N S I N C.
2
t the heart of Independent
Means is the Great Families program, a comprehen-
sive, five-stage financial and human capital education
curriculum. The program includes more than 30 customizable,
experiential modules designed for specific age groups and
developmental stages, from children to twenty-somethings.
Each module within the curriculum focuses on a different
topic and includes core concepts and vocabulary that build
financial fluency. Our modules emphasize hands-on experi-
ences so learning doesn’t feel like another day in school.
Exciting live events and innovative stand-alone activities
provide additional opportunities to reinforce core concepts
and values taught in the curriculum.
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1. KNOW HOW TO SAVE: Figure out how to make com-
pound interest work for you.
2. KEEP TRACK OF MONEY: Know where your money goes.
Connect your values and the way you handle your money.
3. GET PAID WHAT YOU’RE WORTH: Your opportunities
are boundless, but you need to know how to ask for
what your work is worth.
4. SPEND WISELY: Your personal financial sustain-
ability depends on careful and thoughtful use of
your resources.
5. KNOW HOW TO TALK ABOUT MONEY: Uncomfortable
when topics connected to money come up? Financial
fluency, like all fluency, grows from exposure and use
of key terms and concepts in open communication.
6. LIVE A BUDGET: This is a way of staying in control of
your life, not being controlled by others.
7. UNDERSTAND HOW TO INVEST: Passive income is
critical to building and sustaining one’s options. Think-
ing “someone else” will take care of investing for you
is one of the biggest mistakes you can make.
8. EXERCISE YOUR ENTREPRENEURIAL SPIRIT: Make
a job, don’t just take a job.
9. HANDLE CREDIT WELL: Aim for a lifelong credit score
of 850; never go below 750.
10. USE MONEY TO CHANGE THE WORLD: Philan-
thropy is not just about giving time, but about stew-
arding real assets to the priorities that matter to you.
10 BASIC MONEY SKILLSThe heart of Independent Means' Great Families curriculum is built around the Ten Basic Money Skills. Developed over decades working with children and families, these skills provide a kind of armor to protect and prepare your family members for the challenges and decisions they will face in an ever-changing global economy.
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THE LAUNCHStage 5 (19+)
Launches a career and/or a serious
labor of love
Understands why and how to develop strong credit ratings
Engages with the community
Takes action to prepare for near- and long-term financial future
Standing TallStage 4 (16-18yo)
Actively saves, spends, invests
Connects goals, future plans, and saving
Experiences responsibility for others and self
Able to talk about money and
plan future
Understands money as power
Shows developing capacity for economic
self-sufficiency
Beginningthe JourneyStage 1 (5-8yo)
Counts coins and bills
Understands the value and purpose
of money
Learns to differentiate
between wants and needs
Encouraging Passions
Stage 2 (9-12yo)
Can make change
Initiating behavior and entrepreneurial
spirit
Can balance simple accounts and keep up with savings account
Breaking AwayStage 3 (13-15yo)
Can shop comparatively
Understands time-money relationship
Begins to earn money; initiates small ventures
Commits to saving goals
Has basic understanding of investment
Practices Philanthropy
Can read bank statement
Identifying necessary financial skills is the first step toward fluency—
learning and practice are the next steps. Independent Means understands
how to connect concepts and skills to the real-world experiences and
learning capabilities of our next-gen clients of all developmental stages.
DEVELOPMENTAL STAGES
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1Stage 1 (5–8 Years Old)Kids take their first step toward lifelong financial literacy through
hands-on modules designed to take advantage of their energy and
curiosity. Modules focus on core skills of saving, spending, and
giving, as well as building fluency and good financial habits.
Beginning the Journey
Money (new in 2013)What is money? How are credit cards and
paper money alike and different? What does
money buy? How else do people get the
things they want and need? This module
answers these questions and more as
participants are introduced to ideas about
money and the economy.
SavingLike learning to brush our teeth, financial
values and language are best acquired early.
This module includes parental messages,
habits, and skills for the beginning saver.
SpendingDistinguishing needs from wants and learn-
ing about cash and spending patterns is
critical for developing good spending habits.
This module includes a variety of games
and activities that build early awareness and
good decision-making skills.
Time, Treasure, TalentPhilanthropy is an effective tool for develop-
ing generosity, ethical conduct, and compas-
sion in children. The activities in this module
help children identify how to use their time,
skills, and savings to help others.
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Tuck Gets An Allowance
Tuck Gets An Allowance
Tuck Gets An AllowanceThis storybook introduces basic con-
cepts of an allowance plan as children
help Tuck the dog save, spend, and
share his bones each week.
The Ant and the GrasshopperThis companion to the Savings
module illustrates the importance
of saving through the fable of “The
Ant and the Grasshopper,” known
for its moral lesson of hard work
and preparation.
Pigs Will Be PigsKids jump into the pages of a
colorful children’s book and learn
in this module based on Pigs Will
Be Pigs by Amy Axelrod. Just like
the pigs in the book, kids search
around their homes and learn how
to recognize coins and bills, how to
create a simple budget, and how
to explain the difference between
piggy banks and savings accounts.
The Ant and the Grasshopper
© Independent Means Inc. all rights reserved
7
2Stage 2 (9–12 Years Old)Increasingly aware and empathetic, tweens are encouraged to engage
their new passions through imaginative modules and simulations that
put them in various roles, from philanthropist to entrepreneur. Other
modules provide practical tools for newfound responsibility.
Encouraging Passions
Self-AssessmentParticipants share what they know, learn more
about their attitudes toward money, and discover
new topics to pursue in this introductory module.
Allowance 2.0An allowance is a tool for practicing money
management. This module helps parents and
children get on track with an allowance program
that successfully builds key financial habits.
SavingSaving in the context of the tween years includes
an understanding of the rewards of compound
interest and delayed gratification. The activities in
this module emphasize sustaining resources and
planning for the future.
PhilanthropyUsing tweens’ own interests as vehicles for explor-
ing philanthropy, this module gives young people
direct experience with making a difference.
EntrepreneurshipThe ubiquitous lemonade stand is a timeless
reflection of young initiative. This module seeks
to capture and encourage that early spirit of
inventiveness, while going well beyond the
lemonade stand.
Hard ConversationsAwkward or difficult social situations begin to
emerge during this stage of life. This module offers
practice and strategies for dealing with difficult
social situations related to money.
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Money$core® AssessmentGet a baseline on financial competency. Score each child on a scale of 1-5.
1 = Clueless and 5 = Financially Fit
www.independentmeans.com
Ten Money Skills Age 5-8 Age 9-12 Age 13-15 Age 16-18
How To Save
How To Keep Track Of Money
How To Get Paid What You Are Worth
How To Spend Wisely
How To Talk About Money
How To Live A Budget
How To Invest
How To Exercise The Entrepreneurial Spirit
How To Handle Credit
How To Use Money To Change The World
TOTAL
MoneyScoreChildren and parents get a baseline for
their understanding of the Ten Money
Skills through our self-assessment.
As children and parents re-take
the assessment over time, they will
observe their growth.
Money StyleIs your kid a spendthrift? A hus-
tler? Oblivious? This quiz helps
families and children recognize their
financial personality as a step toward
self-sufficiency.
Tuck Feeds His FriendsThis book introduces budgeting and
comparison shopping at the grocery
store. Participants help Tuck the dog
plan and budget a meal for his friends.
Tuck Feeds His Friends
A tool for understanding your children’s financial behavior
Money Styles Assessment
1209 1/2 De La Vina Street
Santa Barbara, CA 93101
Telephone: 805-965-0475
www.independentmeans.com
© Independent Means Inc. All Rights Reserved.
Spendthrift
Scrimper
hoarder
beggar
huStler
obliviouS
giver
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3Stage 3 (13–15 Years Old)Teens intent on asserting their independence build on the basics they
learned as “kids” and begin to envision grown-up lives and gain the
skills they’ll need to navigate them. Topics from previous modules are
expanded with new vocabulary and concepts. New modules introduce
credit and careers as opportunities for self-expression.
Breaking Away
Self-AssessmentAn updated MoneyScore® assessment, a
clarification of values, and an introduction to
family legacy and stewardship are activities
included in this module.
Allowance ManagementIn this module, teens develop budgeting
skills as a tool for managing cash flow,
windfalls, and emergencies, and they make
choices based on personal values to guide
their financial behavior.
PhilanthropyA growing awareness of causes and concerns
must be paired with a thoughtful approach
to philanthropic strategy and a connection
to the work done through foundations. Teens
use this module to learn about charitable
giving, social enterprise, policy, and activism.
Saving and InvestingAn overview of savings tools as well as an
exploration of basic investing methods offer
a more sophisticated understanding of sav-
ings financial management.
Credit and TrustThis module covers credit scores, debt, trust,
and ethics as a foundation for managing
personal finance.
Career“Who am I?” is the central question at this
age, and this module helps participants
search for the answer as they identify the
passions and interests that drive possible
future careers.
EntrepreneurshipWhether children have any interest in
family businesses or not, these are highly
creative years. Helping teens link their
most creative urges with entrepreneurial
skills is the focus of this module.
Hard ConversationsThis module provides practice with financial
etiquette and sticky situations so that young
teens can face potentially embarrassing
questions and awkward social situations with
a plan.
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Young Stewards 2011
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ConnectionsCell Phone
Basic Plan/free phone (limited minutes, no text, no data)
Premium Plan/free phone (unlimited minutes with text)
Premium Plan/PDA phone (unlimited talk, text, data)
Digital Cable
Nothing
Basic Service
Premium
Internet Service
Nothing
Cable/DSL
High Bandwidth Cable Modem/DSL
Home FurnishingsYou’ll need a few things for your home or
apartment like furniture, appliances, dishes,
sheets & towels, pots & pans, etc. Will you...?
Raid the family attic
Buy used furniture and appliances
Buy all new stuff
EntertainmentWhen spending for entertainment, are you a ...?
Thrifty Spender ____
(Watch movies online and dvd, go to free concerts,
enjoy hiking and biking)
Moderate Spender ____
(Go to the movies about once a week, see local
bands, buy new books, download music online for
99 cents.)
Big Spender ____
(Attend big name concerts, major league sporting
events, buy CDs and DVDs regularly.)
Participant Guide
Horse Cents
Independent Means, Inc.
© Independent Means, Inc. All rights reserved.
Budget SavvyTeens imagine themselves as newly
independent 24-year-olds in this
immersive preview of adult life.
In this simulation, teens pick a
career, make lifestyle choices, and
experience the outcomes of their
choices as they learn the essentials
of allocating income.
Horse CentsYoung horse enthusiasts explore
the hidden costs and opportunities
of horse ownership in this treasure
hunt. They’ll read the story of a year
of ownership and build a budget by
searching through their stable and
tacking for cards that will tell them
about the most common expenses
related to their favorite hobby.
Economic Life of aMovie TicketIn this parent-led activity, teens are
presented with three movie tickets
and asked: “How much does a ‘free’
movie ticket really cost?” Teens are
encouraged to creatively consider
hidden costs, stakeholder issues, and
leveraging opportunities as they develop
core financial vocabulary.
Indie GirlsTake a summer break in Santa
Barbara to brush up on the money
secrets of independent women.
This two-day live event gives 14- to
17-year-old girls on the brink of
financial independence a chance to
practice the language and skills that
make them financially self-confident.
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4Stage 4 (16–18 Years Old)Teens practice skills for managing independence through modules that
emphasize the real world, including the challenges of credit, money
management, and increasingly complex financial etiquette.
Standing Tall
Self-AssessmentThis module includes a suite of assessment tools. The
goal is a shift from uncertainty to competency, with
teens fully understanding the financial skills they are
comfortable with, and those they need to build.
Legacy and StewardshipThis module focuses on family history, shared val-
ues, and legacy as keys to balancing the privileges
and responsibilities of human and financial capital.
Money ManagementThe module emphasizes budgets, allowance manage-
ment, cash flow, and situational financial choices.
Savings and SustainabilityAn introduction to building and sustaining wealth using
various savings and investment tools. This module is
aimed at helping young people make thoughtful choices
about lifestyle needs and income required to sustain
goals and passions. It includes an emphasis on building
language sufficient to have effective conversations with
the family office and advisors.
PhilanthropyTeenagers care deeply about social causes and the
needs they see in their immediate lives. This module
encourages a strategic, proactive approach to philan-
thropic engagement. Teens develop their own mission
statement and giving criteria through this module.
CareersThis module includes strategies for exploring interests
specific to each participant and helps participants better
understand the process of choosing a career and seeking a
job. IMI can also provide help with internship placements.
EntrepreneurshipThe 21st century requires a more entrepreneurial
approach to life and career. Whether joining the family
business; starting one’s own; or pursuing the arts,
fashion, education, non-profits, or science, the ability to
create and manage a balance sheet and marshal one’s
own leadership potential is vital to sustaining assets and
financial independence.
Hard ConversationsBasic financial etiquette now evolves to a more complex
set of life issues: dealing with the demands of friends
and dating partners as well as contemplating issues
that include entertainment, gifts, loans, and business
opportunities.
CreditThis module ranges from a heightened emphasis
on the power of credit scores to the use of credit as
leverage in business.
Beneficiary DevelopmentDesigned for people on the brink of first meetings
with trust attorneys, this module is an introduction to
trusts and fiduciary responsibilities.
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Participant Guide
The Year of the Car
Independent Means, Inc.
© Independent Means, Inc. All rights reserved.
Year of the CarWhen you get a free car, is it really free?
There are a lot of costs to owning a car
that are not the purchase price. Many
of these costs can be anticipated and
planned for. Depreciation is a sneaky
hidden cost of ownership.
Buck & Bill’sHappy Birthday, Now Sign This
In this interactive cartoon that
accompanies the Beneficiary
Development module, Bill translates
the essentials of estate planning
from “legalese” to plain English for
his younger brother Buck. Quizzes and
off-the-wall visuals help viewers rein-
force their newly acquired language.
Camp Start-UpOur 12-day residential program inspires
teens to unleash their entrepreneurial
spirit. Team projects, field trips, and
speakers from some of Silicon Valley’s
most recognized companies all teach
innovation, social responsibility, personal
finance, and using shared resources to
achieve greatness.
Fashion & FinanceThis multi-generation program
introduces young fashionistas and
their mentors to different aspects of
business with an exclusive behind-
the-scenes adventure through the
NYC fashion industry.
Camp$tart-Up®
2013FASHION & FINANCENYC
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5Stage 5 (19+)As young adults enter increasingly independent lives, expanded modules offer a more
in-depth look at core topics. Other modules offer tools for meaningful participation in
family ventures, ranging from family boards to businesses to philanthropic endeavors.
THE LAUNCH
Personal Economic Mission StatementPerspective changes as we grow older, and young
adults are faced with new expectations. This module
helps participants take stock of financial values in
order to build a mission statement that will guide
them through big decisions and opportunities.
Investing for LifeTrust beneficiaries have an obligation to understand
reports provided by advisors, to be vigilant about
counsel received, and to make the best decisions
in the face of conflicting advice. This module helps
prepare participants for the complex financial advice
and choices facing them.
PhilanthropyYoung adults become familiar with the tools of family
philanthropy in this module that critically looks at donor
advised funds, due diligence, and how to find, fund, and
sustain a cause for real impact.
Financial AccountabilityFinancial awareness is a basic requirement of
independence. This module helps participants analyze
and assess financial behavior in the context of their
personal mission and fiduciary responsibilities.
Taking Positions of ControlNext-generation members will have many opportuni-
ties to participate in boards and to be engaged in
civic, social, and business activities at an early age.
This module reviews strategies for becoming effective
board members and participants—as well as leaders.
Prenup Prep: Readiness for a New Way of Being
This module explores prenuptial agreements in the
context of family assets and responsibilities. It gives
participants a deeper understanding of the benefits
and objectives of thoughtful preparation while provid-
ing strategies for managing the process.
Why Credit MattersThis module covers the many reasons why credit is
important, even for people with considerable assets.
Learning how to assess investment versus consump-
tion, understanding the role of due diligence, and
knowing when and how to use good advisors are some
of the topics that are explored.
Opportunities andResponsibilities of OwnershipWhat does it mean to be financially responsible in the
context of family? Shareholders, trust beneficiaries,
and members of operating businesses have fiduciary
and ethical obligations to be mindful and engaged in
the assets—human and financial—that encompass
their wealth. This module reviews key issues that
successful shareholders and stakeholders will manage
over the course of a lifetime.
Wealth TransferWhen surrounded by expert tax attorneys, accoun-
tants, and advisors, the issue is not to be an expert,
but to know enough to talk with and use the best
services of those experts. This module explains the
estate planning process in understandable terms.
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Launch PrepIndependent Means’ Launch Prep is
an inspiring and practical two-day
workshop that helps young people
develop intentional plans for careers,
education, and exploration. In
intimate sessions we arm them with
tools to make the best of their assets
and talents.
Global CitizenshipWhether spending a semester at sea,
backpacking across Europe during
the summer, or spending part of the
college years studying in a foreign
country, Independent Means helps
young adults get the most from their
travel by using financial news, current
events, and important ideas about
the global economy to augment the
travel experience.
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Raising Financially Fit KidsJoline Godfrey gives parents the secrets and
knowledge she has gleaned from working with
kids on financial literacy and business in this
book. Centered around colorful developmental
maps for covering 10 specific money skills all
young people should master, Raising Financially
Fit Kids helps parents send their children into
the world as balanced, financially stable indi-
viduals who are contributing members of both
their family and community.
The SourceThe Source is our creative guide to financial educa-
tion and wealth preparation. Each issue focuses
on one core money skill—one issue might be all
about saving, the next might be raising globally
aware kids. Inside each edition you’ll find a letter
from Independent Means founder and CEO Joline
Godfrey, practical advice for teaching the skill no
matter how old your children are, step-by-step plans
for an activity you can run at home, and other great
resources. Think of it as a regular training note from
your family’s personal financial education coach.
White Papers & ArticlesOur client-exclusive white papers provide in-depth
looks at core topics in financial education, wealth
preparation, and family human capital development.
Learning LabsAcquire financial fluency with a community of
people who think of money as a means of making a
difference, not an end in itself. Over the course of
four quarterly courses, each in a beautiful setting,
we’ll help you feel comfortable as a family leader.
Pop-Up Think TankParticipants join with thought catalysts Greg
Brandeau (former Chief Technology Officer Pixar/
Walt Disney Studios), Joline Godfrey (CEO of
Independent Means Inc), Alan B. Houghton
(Senior Vice President and Head of Pitcairn’s
New York Office), and journalist Frank Rose
(Wired) to explore the most innovative uses of
21st-century storytelling technologies to help
families make the journey from “good to great.”
MoneyScoreThis assessment tool gives you language and con-
cepts for opening the conversation with your children
about money management and financial fluency.
Personal ConsultationsJoline Godfrey offers consultations with family lead-
ers and family office executives who want to explore
taking their families from good to great.
The financial education is a family affair. We offer tools designed to help parents and
money mentors help next-gen members excel between modules. Parent offerings
include live events, white papers, a quarterly client publication, and resources for
parents who may themselves be financial novices.
Tools for Money Mentors
16
1209 1/2 De La Vina Street
Santa Barbara, CA 93101
Telephone: 805-965-0475
www.independentmeans.com
“You can’t make a place for yourself in the
sun if you keep taking refuge under the
family tree.”
The Launch: How Great Families Develop the Next GenerationJoline Godfrey with David Wegbreit
June 2011
© Independent Means Inc.
The Clothing Allowance
Page 1
1209 1/2 De La Vina Street
Santa Barbara, CA 93101
Telephone: 805-965-0475
www.independentmeans.com
Parents Ask:
The Clothing Allowance
Joline Godfrey
CEO, Independent Means Inc.
October 2011
Recently, a parent wrote to ask:
What is a “fair” or realistic budget for clothing for a girl in a family with an income
of $300,000? I was thinking of giving my 16-year-old clothes horse $100 a
month for clothes. She also gets $25 a week for allowance; that’s $200 a month.
I want to encourage a work ethic, but she says there’s no reason for her to
work. She’s not interested in saving for a car; she says she won’t need one.
My daughter became very resentful and bitter when I decreased her clothing
budget in the past, because she feels we can afford to clothe her in the way
she’d like to become accustomed.
Next year is a tough year academically—all honors and two AP courses, so she
may not have too much time to work, except for occasional babysitting. I have
heard of parents who match what their kids earn and put it in the bank if th
e
kids will save half of what they earn. What do you think of this matching policy?
Kids and Money: What’s F
air?
“How much?” is one of the most common questions I get from parents. How much for an
allowance? How much for clothes? They often follow that question with more information that
tells me the “how much?” question isn’t at the heart of the issue.
Indeed, parents’ concerns, though expressed as a question of “how much?” often are not just
about the money, but about how to raise great kids, kids who exercise good financial judgment,
who master financial skills that will serve them for a lifetime and who understand that life is not
just about them, but about how they function in the context of family, friends, and community.
© In
dependent Means I
nc.
Gettin
g Sta
rted
Page 1
1209 1/
2 De L
a Vina S
treet
Santa B
arbara
, CA 9
3101
Telephone: 8
05-965-0
475
www.independentm
eans.com
Getting
Started
:
Kids an
d Mone
y
Joline
Godfre
y
CEO, Inde
pend
ent M
eans
Inc.
June
2011
One qu
estion
more
than
any o
ther e
mbodie
s the
good
inten
tions
of
most fa
milies w
hen i
t com
es to
raisin
g fina
ncial
ly cap
able
child
ren:
how sh
ould
we get
starte
d?
While man
y pare
nts have
aske
d this q
uestion
in va
rying f
orms, f
ew have
convey
ed th
e hea
rt of
it as w
ell as
one f
amily,
whom I’l
l refer
to as
the J
affes.
The Jaff
es sen
t me a
note as
king w
hat
they sh
ould do a
bout th
eir th
ree-ye
ar-old
son N
oah an
d nine-yea
r-old dau
ghter
Hale
y, which
I share
below.
In shari
ng it an
d my r
espon
se, I h
ope t
o con
vey a
few es
sentia
l facts
abou
t gett
ing star
ted: fi
rst,
that fam
ilies m
ust choo
se ag
e approp
riate
approa
ches;
seco
nd, that
repeti
tion an
d consis
tency
are vi
tal—
this is
a proc
ess, n
ot an
even
t; and th
ird, th
at fam
ilies m
ust be c
lear in
the v
alues
they are
trying t
o con
vey.
The Q
uery:
Our bigg
est iss
ue is im
pressin
g upon
the c
hildren
exac
tly what
money
is—what
it mea
ns, how
it rela
tes to
them
, etc.
Gett
ing an al
lowan
ce m
eans n
othing t
o them
; when
we a
sked th
em if
they wan
ted an
allow
ance
, and ev
en af
ter we e
xplain
ed th
at it m
ean th
ey wou
ld rece
ive m
oney
from us o
n a peri
odic
basis,
the kids lo
oked
at us b
lankly
and sa
id no. They’
re pret
ty much
a
blank s
late.
Our end go
al is f
or them
to ap
preciat
e how
fortu
nate th
ey, an
d we as a
family,
are
compara
tively a
nd also
to help
them
learn
abou
t budge
ting a
nd savin
g, to
give t
hem to
ols th
at
will stic
k with
them
later
on in
life.
1209 1/2 De La Vina Street
Santa Barbara, CA 93101
Telephone: 805-965-0475
www.independentmeans.com
“One cannot train a child haphazardly to
shepherd financial and human capital and
expect they will become proficient adults any
more than the weekend athlete will make it to
the national trials for Olympic competition.”
Financial Education as World Class Preparation
Joline Godfrey, author of Raising Financially Fit Kids
2011
Raising Financially
Fit Kids
Joline Godfrey
Revised and
Updated
January–February 2011The Source © Independent Means Inc. 2011 all rights reserved
Page 3
Money Map Giving BetterInstill conscientious giving: give to make the world made better, not to feel better.
Age/Stage Activities Resources
5-8 • Each week, set aside a portion of their allowance (say, 10%)
in a giving jar. Once a quarter, let them decide where to
donate.
• Start an Annual Day of Volunteering as a family tradition.
Those Shoes by Maribeth Boelts and Noah Z. Jones conveys the spirit of philanthropy through one boy’s decision to give away the shoes he thought he needed.
In Mal Peet, Elspeth Graham, and Juan Wijngaard‘s wonderful picture book Cloud Tea Monkeys, monkeys save a young girl forced to work on a tea plantation after her mother gets sick.
9-12 • Giving is a forum for sharing (or developing) family mission
statements. Let kids listen in on (and add their two cents to)
your giving decisions this year.
• Questioning philanthropic approaches is a critical thinking
skill.
21/64’s Picture Your Legacy cards help families share their mission visually. Ask us to use a set during our next session. http://bit.ly/IMI_2164
This month’s Money Skill guides ‘tweens through seven questions they should ask before giving Page 4.
13-15 • Encourage teen philanthropy by offering to provide seed
funding for a friend’s-only giving circle.
• While teens are still figuring out what their priorities are,
encourage them to do one-day projects. A day off from
school can be the incentive that helps them find their
philanthropic passion!
Viso’s YouTube channel Give features great videos from non-profits around the world.http://bit.ly/IMI_Give
DoSomething.org makes it easy for teens to find philanthropic initiatives by area of interest, location, or time span (including one-day projects).
16-18 • Encourage autonomy by sending teens on philanthropic field
trips.
• Microlending can engage kids in thoughts about giving
critically in a place where they’re already comfortable:
online.
Habitat for Humanity is recruiting for its Disaster Corps, a group of volunteers that will respond to short-term, post-disaster needs and long-term recovery. Find out more or register online.http://bit.ly/IMI_Habitat
Last July, Google hosted a Tech Talk introducing the fundamentals of strategic philanthropy.http://bit.ly/IMI_GooglePhilanthropy
19+ • Help teens prepare for the next stage of their lives (college,
the family board, etc.) by inviting them to join (or establish)
a next generation committee.
• Send adult children philanthropic conferences this year. The
people they meet may change their lives.
Credit Suisse has written an insightful white paper on engaging the next generation in family philanthropy. http://bit.ly/IMI_CS
The Council on Foundations, Lido Family Consulting, and the Bioneers have exciting conferences in 2011.
1 March-April 2011 © Independent Means Inc. all rights reserved
Letter from Joline
The New TWA
Today’s kids are global and wired in
a way that brings Ray Bradbury sci-fi
to life. They tweet friends around the
world, live for semesters overseas, and
are as comfortable using Skype to chat
with traveling parents as their grandparents were sending Western
Union telegrams (remember those?). For months, the news has
been driven by events somewhere off of our shores. From the tumult
in the Middle East and North Africa to the disasters in Japan, young
people are sharing what they see through media their parents and
grandparents still use awkwardly: Twitter, YouTube, Facebook, etc.
But worldly travel and net access is not the same as worldwide
understanding, and a recent business trip to London gave me the
perspective to think about the difference. Standing beneath sky-high cranes
building new office towers (yes, somewhere in the world construction is
still going on) and speaking with wealth managers for some of Europe
and Asia’s most prominent families, I was reminded that the competitive
advantage for 21st century families will be the extent to which their kids
have their fingers on the pulse of the world. And fabulous vacations to
exotic destinations aren’t enough to build a deep understanding of the
international currents affecting family assets—financial and human.
Twenty years ago, the threat was American manufacturing jobs going
overseas. Six years ago, when Thomas Friedman wrote The World is
Flat, the challenge was middle-skilled workers in India replacing call
center operators at home. Now, it’s something closer to our families. Our
children—who have had the best tutors and have been sent to the best
prep schools and colleges—are facing competition not only from each
other (youth unemployment is still at its highest rate since 1983) but from
graduates from abroad with at least equal skills and greater motivation.
Speak English? Graduates from Spain, China, India, and South Africa
do too—and they speak two or three or four other languages. Went to a
great school? They did too, possibly the same one your kids attended—
and they’re finishing their MBAs right now. And, if you think youth
unemployment is bad here, look at the rates in Europe.
Call it the new TWATrans World Awareness
The Source 2
10 Basic Money skills1. KNoW hoW To SAvE: Figure out how
to make compound interest work for you.
2. KEEP TrACK oF MoNEy: Know where
your money goes. Connect your values
and the way you handle your money.
3. GET PAID WhAT yoU’rE WorTh: your
opportunities are boundless. But you need to
know how to ask for what your work is worth.
4. SPEND WISELy: your personal financial
sustainability is as important as environmental
sustainability—and the two are connected.
5. KNoW hoW To TALK ABoUT MoNEy:
Uncomfortable when topics connected to
money come up? Being able to converse
about sticky issues like “who pays”; what
you can afford; privilege and need, etc.
will give you greater self-confidence.
6. LIvE A BUDGET: This is a way
of staying in control of your life, not
being controlled by others.
7. UNDErSTAND hoW To INvEST:
Passive income is critical to building and
sustaining one’s options. Thinking “someone
else” will take care of investing for you is
one of the biggest mistakes you can make.
8. ExErCISE yoUr ENTrEPrENEUrIAL
SPIrIT: Make a job, don’t just take a job.
9. hANDLE CrEDIT WELL: Aim for a lifelong
credit score of 850; never go below 750.
10. USE MoNEy To ChANGE ThE WorLD:
Philanthropy is not just about giving
time, but about stewarding real money
to the priorities that matter to you.
Employment protectionism isn’t enough to guard young people. What
will is the ability to imagine products and services the world will demand
in the next century. Call it the new TWA: Trans World Awareness.
I’m not an oracle. I can’t tell you what the future holds for a generation
that can choose to watch not only the 24/7 content stream of top-down of
news from the BBC and Al Jezeera as well live bottom-up information from
YouTube and Twitter feeds. The challenges for this generation are great,
not just in work but in finding and managing love across geographic and
ethnic borders and in feeling secure in a world that can seem borderless.
Great families are meeting these challenges by being mindful of the
preparation their kids need for life as global citizens.
In this issue we offer support to help develop globally aware children.
Our Money Map offers big ideas about small things you can do to
pique their interest in the world. Our Money Skill shares a game
that might actually get your kids reading the news. Finally, our
Great Families feature shares a great summer program that will
let young adults learn about global philanthropy while traveling.
With my best,
11. KEEP a FinGeR on
THe PUlse oF THe WoRlD: Understand how the news from thousands of miles away impacts your assets—human and financial.in
TH
is is
sU
e
March-April 2011
Your creative guide to financial education & wealth preparation.The Source
Raising Globally Aware Children
Letter From JolineThe New TWA: Page 1
Basic Money SkillFinger on the Pulse of the World: Page 2
Money MapGlobal Kids: Page 5
Money SkillSunday Times Trivia: Page 6
Great Families Are…Learning on the Ground: Page 7
Save These Dates!Live Events in 2011: Page 9
Coming Events: More on Page 6
Camp Start-UpJuly 29-August 7, 2011
Indie Girls Two-Day AdventureAugust 8-9, 2011
Launch PrepMay 23-24, 2011
www.independentmeans.com
Inside this Edition:
Trans W
orld Awarene
ss
17
The Great Families curriculum makes delivering engaging educational experiences easy.
Each module includes a step-by-step trainer guide, participant guides, and activities that
make learning fun. A sample from our Stage 2 Savings module shows you how it works:
Saving
2
Saving Time Frame: Approximately 2 hours
The PlanThis module is designed to give participants an overview of key saving concepts. Part One examines the
reasons why people save and the idea of creating short and long term saving goals. In Part Two Partici-
pants will discuss saving options and learn about the benefits of interest and compound interest. Part
Three introduces participants to the concepts of delayed gratification and opportunity costs. Lastly, Part
Four provides a review of the Big Ideas and concepts covered in this module.
Goals• Orient participants to the habits and function of saving and sustainability, why and how.
• Explore familiar savings vehicles: a piggy bank and a bank savings account.
• Emphasize goal setting in relation to successful saving and sustainability practices.
• Introduce compound interest, delayed gratification and opportunity costs.
Big Ideas• We save money, time, and resources so they will be available in the future, for emergencies, continued
use, and big goals.
• Piggy banks are good for collecting money in the short term, bank savings accounts help your money to
grow.
• Compound interest is a reward for saving money.
• Compound interest is money that is made when you deposit money in a bank.
• Set big and little goals, then keep track of how you reach those goals.
Materials• Participant Guide
• Saving Digital Presentation
• Computer with Internet Access and Projector
• Easel Chart and Markers
• Pencils
• Colored Pencils
• Cookies (Two per participant)
• Savings Option Kit (Contains a piggy bank, a jar, a
wallet, a purse, and a coin collection book)
• Compound Interest Kit (Contains 3 envelopes, ex-
tra play money and coins for the bank, calculators)
• Situation Cards
• How Patient Am I? Poster
Saving
3
Expectations• Participants will appreciate the importance and possibilities of conserving and sustaining money and
other resources.
• Participants will practice setting short-term and long-term goals.
• Participants will grasp the concept of compound interest.
• Participants will be exposed to delayed gratification and opportunity costs.
Key TermsCompound Interest: Money that makes money. The money you put in a savings account earns interest.
The bank then pays you interest on your interest which is called compound interest and makes your
money grow faster.
Delayed Gratification: The ability to ‘save for a rainy day’, a choice to put off getting what you want
right now so you can have something more important down the road.
Deposit: Money put into a savings account at the bank, or into your piggy bank. The deposit in the bank
will earn more money. Money in the piggy bank stays the same.
Goal: A good reason or purpose for saving money, time, or resources. There are short-term goals,
(something you plan for that will happen in a few days) and long-term goals (something you need time to
make happen, like becoming a good tennis player or saving enough money to buy a car).
Interest: Money the bank pays you to keep your money in a savings account.
Opportunity Cost: This morning Jake decided to go to the beach with his friend Thomas. This means he
gave up any other opportunities that might come his way later in the day, (like when his friend Rachel calls
and invites him to a movie.) The cost of going to the beach with Thomas is an opportunity cost. If he really
likes Thomas and didn’t want to see the movie anyway, it’s a low opportunity cost. If he doesn’t have fun with
Thomas and really wanted to see the movie, it’s a high opportunity cost. Many of our decisions about money
involve opportunity costs. If you spend the $25 you saved in the piggy bank on a new game or sweatshirt
instead of putting the money in the bank where it could earn more money, you paid an opportunity cost.
Piggy Bank: A container that holds the money you collect; it’s usually in the shape of a pig, but not
always.
ExpectationsUnderstand what suc-
cessful completion of
this module looks like
before you start.
Key TermsTurn to our glossary
for stage-specific
definitions of all the
vocabulary introduced
in the module.
PlanRead a quick overview
of what’s happening in
the module and in each
section within it.
GoalsTeach with the confi-
dence that you know
the module’s aims.
Big IdeasStress these core ideas
during the session
and review them with
participants afterwards.
MaterialsSee what you need
before you start teach-
ing. Will this require a
projector? Colored pen-
cils? Internet access?
How the Materials Work
18
Saving
13
Trainer Action Trainer Prompts Materials1. Display the items
in the Saving Options
Kit and discuss. Write
participants’ responses
on the easel chart.
These are all ways to save money. Where do you keep your
money?
We use these containers to hold and collect our money. The
coin collection book helps us track the coins we’ve collected.
How do we keep these collections safe?
Like cash, we keep anything we want to collect in safe
places. Sometimes people keep a safe in their house, but
often we use a bank to keep things safe. A bank keeps our
money and collections safe. For what other reasons do we
put the money from our piggy banks and wallets in the bank?
Saving
Digital
Presentation
Computer
and
Projector
Easel Chart
and Markers
Saving
Options Kit
2. Explain and discuss
the differences between
piggy banks and savings
accounts.
Click to slide 13
Let’s compare piggy banks and bank savings accounts.
A piggy bank is a place where you can store your money
at home. People usually keep their piggy banks in their
bedroom and they can reach their money easily and quickly.
3. Introduce interest,
deposits, withdrawals,
and statements. Show
participants an actual
bank statement, if
possible.
Click to slide 14
Click to slide 15
Click to slide 16
Keeping money inside a piggy bank is better than storing
money inside your wallet or in your pockets. Why?
Answers will vary but may include:• If you keep money in your wallet you are more tempted to
use it.
• If you keep money in your pocket you may lose it.
What can a bank do that a piggy bank or a home safe can’t?
Answers will vary but may include:• The bank has a vault, where money and other valuable items
are kept. The bank protects you money but you have to physi-
cally go to the bank put you money into your account.
• Have you heard the saying ‘make your money grow’? One of
the best things about a savings account is that just by leav-
ing your money in the bank, you can earn more money. The
bank pays you to keep your money in a savings account.
The money the bank pays you is called interest.
Trainer ActionKnow when you need to change
topics, distribute materials, or
advance to the next slide.
Trainer PromptsFind your own words or
use our script to explain
tough concepts easily.
MaterialsQuickly see what
participants need and
when they’ll need it.
Gimme Now!
I can Wait.
Stage 2 Saving
How Patient am I?
Situation #1
Candace is the new student on campus and she just got invited
to go to the mall with a group of kids after school. But Candace
already has an appointment to meet with her Math tutor after
school.
What is Candace’s opportunity cost if she goes to
the mall with the group?
What is Candace’s opportunity cost if she goes to
her Math session after school?
Situation #3
Samantha received $300 from her grandparents for her Junior
High School graduation. Samantha’s mom suggested that she
put the money into her savings account but Samantha plans to
buy a hot new Marc Jacob’s handbag.
What is Samantha’s opportunity cost if she puts
her graduation money into her savings account?
What is Samantha’s opportunity cost if she buys a
new handbag with her graduation money?
Situation #4
Mr. and Mrs. Smith are making plans for the upcoming summer
break and they are thinking of taking a trip to Disney World
Florida with their two children. The trip would cost them
$8,000. This summer would also be a great time to remodel
the kitchen, which would cost about the same amount as the
trip to Florida.
What is the opportunity cost if the Smiths take a
family vacation to Disney World Florida?
What is the opportunity cost if the Smiths
remodeled their kitchen?
Situation #2
Michael is excited to see the new Super Hero movie and he
plans on seeing it the day it comes out. As it turns out, Super
Hero comes out on Thursday night but Michael has an English
test on S.E. Hinton’s The Outsiders on Friday and he hasn’t
finished reading the book.
What is Michael’s opportunity cost if he goes to
see Super Hero on Thursday night?
What is Michael’s opportunity cost if he studies
for his English test?
Situation #1Candace is the new student on campus and she just got invited
to go to the mall with a group of kids after school. But Candace
already has an appointment to meet with her Math tutor after
school.
What is Candace’s opportunity cost if she goes to the mall with the group?
What is Candace’s opportunity cost if she goes to her Math session after school?
Situation #3Samantha received $300 from her grandparents for her Junior
High School graduation. Samantha’s mom suggested that she
put the money into her savings account but Samantha plans to
buy a hot new Marc Jacob’s handbag.
What is Samantha’s opportunity cost if she puts her graduation money into her savings account?
What is Samantha’s opportunity cost if she buys a new handbag with her graduation money?
Situation #4Mr. and Mrs. Smith are making plans for the upcoming summer
break and they are thinking of taking a trip to Disney World
Florida with their two children. The trip would cost them
$8,000. This summer would also be a great time to remodel
the kitchen, which would cost about the same amount as the
trip to Florida.
What is the opportunity cost if the Smiths take a family vacation to Disney World Florida?
What is the opportunity cost if the Smiths remodeled their kitchen?
Situation #2Michael is excited to see the new Super Hero movie and he
plans on seeing it the day it comes out. As it turns out, Super
Hero comes out on Thursday night but Michael has an English
test on S.E. Hinton’s The Outsiders on Friday and he hasn’t
finished reading the book.
What is Michael’s opportunity cost if he goes to see Super Hero on Thursday night?
What is Michael’s opportunity cost if he studies for his English test?
Situation #1Candace is the new student on campus and she just got invited
to go to the mall with a group of kids after school. But Candace
already has an appointment to meet with her Math tutor after
school.
What is Candace’s opportunity cost if she goes to
the mall with the group?What is Candace’s opportunity cost if she goes to
her Math session after school?
Situation #3Samantha received $300 from her grandparents for her Junior
High School graduation. Samantha’s mom suggested that she
put the money into her savings account but Samantha plans to
buy a hot new Marc Jacob’s handbag.What is Samantha’s opportunity cost if she puts
her graduation money into her savings account?What is Samantha’s opportunity cost if she buys a
new handbag with her graduation money?
Situation #4Mr. and Mrs. Smith are making plans for the upcoming summer
break and they are thinking of taking a trip to Disney World
Florida with their two children. The trip would cost them
$8,000. This summer would also be a great time to remodel
the kitchen, which would cost about the same amount as the
trip to Florida.
What is the opportunity cost if the Smiths take a
family vacation to Disney World Florida?What is the opportunity cost if the Smiths
remodeled their kitchen?
Situation #2Michael is excited to see the new Super Hero movie and he
plans on seeing it the day it comes out. As it turns out, Super
Hero comes out on Thursday night but Michael has an English
test on S.E. Hinton’s The Outsiders on Friday and he hasn’t
finished reading the book. What is Michael’s opportunity cost if he goes to
see Super Hero on Thursday night?What is Michael’s opportunity cost if he studies
for his English test?
Opportunity Cost When you choose one thing you give up the opportunity for something else.
For breakfast I had
So I gave up the OPPORTUNITY COST
of having
Supplemental ItemsCards, posters, digital pre-
sentations, worksheets, and
games engage participants
and give them opportunities
to interact with the content.
Situation #1
Candace is the new student on campus and she just got invited
to go to the mall with a group of kids after school. But Candace
already has an appointment to meet with her Math tutor after
school.
What is Candace’s opportunity cost if she goes to
the mall with the group?
What is Candace’s opportunity cost if she goes to
her Math session after school?
Situation #3
Samantha received $300 from her grandparents for her Junior
High School graduation. Samantha’s mom suggested that she
put the money into her savings account but Samantha plans to
buy a hot new Marc Jacob’s handbag.
What is Samantha’s opportunity cost if she puts
her graduation money into her savings account?
What is Samantha’s opportunity cost if she buys a
new handbag with her graduation money?
Situation #4
Mr. and Mrs. Smith are making plans for the upcoming summer
break and they are thinking of taking a trip to Disney World
Florida with their two children. The trip would cost them
$8,000. This summer would also be a great time to remodel
the kitchen, which would cost about the same amount as the
trip to Florida.
What is the opportunity cost if the Smiths take a
family vacation to Disney World Florida?
What is the opportunity cost if the Smiths
remodeled their kitchen?
Situation #2
Michael is excited to see the new Super Hero movie and he
plans on seeing it the day it comes out. As it turns out, Super
Hero comes out on Thursday night but Michael has an English
test on S.E. Hinton’s The Outsiders on Friday and he hasn’t
finished reading the book.
What is Michael’s opportunity cost if he goes to
see Super Hero on Thursday night?
What is Michael’s opportunity cost if he studies
for his English test?
19
1. Initial MeetingWorking with family leaders, we assess family needs,
capabilities, and concerns. We also offer an introduc-
tory activity to help the whole family understand and
appreciate the learning process ahead.
2. Personalized PlanWe develop a comprehensive financial education
strategy for each family member. We determine
what content to deliver, how often sessions
should be held, and whether a licensed agree-
ment or programs led by an IMI trainer is the
best fit for your family.
Working with IMI
Innovative Workshops
Collaborative Conferences
Engaging Live Events
Family meetings
Human Capital
20
3. DeliveryOver the next one to three years, you or your IMI
trainers will deliver regular training relevant to the
family’s core needs. The curriculum is designed for
trainers to offer continuous feedback, evaluation,
and consultation to parents and next-gen members.
Additional materials and client services give parents
and mentors tools to use between training sessions.
4. Taking it HomeOur aim is to help families develop valued,
proud, empowered family members. Lifelong
learners can either join IMI for additional training
or connect with one of our next-step experts to
further their education.
Walk the Talk
Leverage Passion
Sustain Legacy
Set Expectations
Realize Goals
Build a Network
Audit the Auditor
Live Values
Find Purpose
21
LEARN LIFE SKILLSTHAT MATTER• Speaking and Presenting in Public• Networking with Mentors• Finding an Audience• Working in a Team• Managing Money• Making Ideas Real
Our residential program introduces teens to key concepts of financial fluency and inspires them to unleash their entrepreneurial spirit.
Camp Start-Up® PRESENTED BY
GREAT FAMILIES ORIENTATIONWe explain the Great Families curriculum, activities, and unique instructional approach for teaching financial fluency and building great families. This two-day seminar is for family office executives, educational specialists, and family leaders.
OTHER WAYS CSU UPGRADES YOUR BRAIN• Field Trips • Improv Classes• Daily Games• Speakers and Panels
TWO-DAYSEMINAR
FINANCIAL CREATIVESSANTA BARBARA, CALIFORNIAA four-part financial education workshop for creatively minded people
• Participants develop skills necessary to excel in fields of leadership, entrepreneurship, philanthropy, and wealth management
• Learning Labs for Financial Creatives transforms anxiety and disinterest into intentional engagements
• Acquire a level of financial confidence and fluency that facilitates family leadership and growth-and is at least as much fun as a day on the slopes or an afternoon at a spa
For dates, pricing, registration, and more IMI live events go to
www. independent means.comor call 805.965.0475.
Many of today’s twentysomethings now face a paralyzing
task: deciding what they want to do and how to get there.
Compounding their challenge: unemployment is at its
highest rate in over twenty years. Cruising job posting
boards just isn’t enough to get a job let alone a great one.
Independent Means’ Launch Prep is an inspiring and
practical workshop that helps young people develop
intentional plans for careers, education, and exploration.
In intimate sessions we arm them with tools to make the
best of their assets and talents.
Launch Prep
23
1209 ½ De La Vina St, Santa Barbara, CA 93101 T 805.965.0475 F 805.965.3148
www.independentmeans.com
Joline Godfrey is the CEO of Independent Means, an innovator in financial education for
children and families. Her work gives families new tools for developing their human capital
and raising children growing up in the midst of abundance. Joline is the author of Raising
Financially Fit Kids (a new edition will be published in June of 2013, Random House), Our Wild-
est Dreams: Women Making Money, Having Fun, Doing Good; No More Frogs To Kiss: 99 Ways to Give
Economic Power to Girls; and Twenty $ecrets to Money and Independence: The DollarDiva’s Guide to Life.
Godfrey grew up in a family business in Maine. She began her career with a focus on fam-
ily therapy and spent a decade as the in- house clinician and executive at the Polaroid Cor-
poration before that company succumbed to the disruptions of digital photography. After
selling a spin-off from Polaroid, Godfrey’s focus turned to financial education, and for
more than two decades she has been exploring ways to help families develop their financial
fluency as a strategy for leveraging human and financial capital, generation to generation.
Godfrey is a graduate of the University of Maine and earned her MSW degree from Boston Uni-
versity. She was awarded an Honorary Degree in Business from Bentley College in 1995. She
was a Kellogg Leadership Fellow and the recipient of the Leavey Award for Excellence, as well as
the Beta Gamma Sigma Entrepreneurship Award. She has been recognized in features for The
Today Show, Oprah, Fortune, Business Week, The New York Times, and others. You can follow her
blog at: http://www.independentmeans.com/imi/category/joline/