Efficiency and Effectiveness

Efficiency and Effectiveness

The Yin and the Yang of Productivity

When defining productivity, two words come to mind: efficiency and effectiveness. They seem synonymous or perhaps sequential -- that the former might lead to the latter -- when in reality, they’re two sides of the same coin. Efficiency relates to the speed with which a task is accomplished and effectiveness describes the success of that end product. In order to be truly productive, you need a balance.

More …
0
Kids, Chores and an Allowance

Kids, Chores and an Allowance

Figuring Out the Smart Way to Teach Money Management Basics

There seems to be an ongoing debate over whether or not a child should be paid to do chores. Most people feel a child should be expected to help out around the house because they are part of the family, not because they get paid to do it. You don’t want to create little mercenaries who balk at helping unless they are paid to do it. But an allowance that is just handed out becomes just that – a handout – and doesn’t help a child learn the connection between work and pay. 

More …
2
The “I Need It” Trap 

The “I Need It” Trap 

Helping Kids Distinguish Wants from Needs to Form Sensible Buying Habits

I admit it. I’ve done it. And I’ll bet you’ve done it, too. We’ve probably all at one time or another said, “I need” when what we really meant was, “I want.”

There is nothing inherently wrong with wanting something. It only becomes a problem when someone is unable to discern between wants and needs, and financially overreaches to pay for wants he or she believes are needs.

More …
0
The Two-Marshmallow Advantage

The Two-Marshmallow Advantage

Teaching Kids the Value of Delayed Gratification

For the past fifty years, people have been talking about the “marshmallow test.” Investment companies use it to encourage retirement planning. There’s a Ted.com video about it. And even Sesame Street’s Cookie Monster was put to the test – with cookies, of course. It all started back in the early 1960s when Stanford psychologist Dr. Walter Mischel devised an experiment to test self-control in preschoolers. The test was simple. The child was brought into a room in which a treat – a marshmallow – sat on a table. The child was then given the choice of eating the treat whenever he or she wanted or, if the child could hold out until the researcher came back into the room, the child would get two treats (marshmallows). More …
0
Raising Money-Savvy Kids

Raising Money-Savvy Kids

Teaching Children About Financial Responsibility Starts at Home

The issue of teaching children financial responsibility has become so important that a few states are now requiring students at public schools to take a personal finance class before they graduate.  

These classes are designed as an adjunct to – not a replacement for – sensible money management habits learned at home. And while the curriculum typically covers a number of important financial topics, such as budgeting, credit cards, loans, etc., it doesn’t cover personal family values and lifestyles. More …

0