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Course Catalog Go Back to Main Catalog Page Advanced Planning 101 Advanced Planning 201 Advanced Planning 301 Business Exit Planning Fundamentals Business Ext Planning Obstacles & Mistakes Business Planning LIFE Foundation's Real Life Stories: Advanced Planning Series I LIFE Foundation's Real Life Stories: Advanced Planning Series II Life Happens: Real Life Stories - Business Planning Newest Advanced Planning Videos Special Needs Planning The Business Exit Planning Process Advanced Planning Disability Insurance 101 Disability Insurance 201 Disability Insurance 301 LIFE Foundation's Real Life Stories: Disability Insurance Series I LIFE Foundation's Real Life Stories: Disability Insurance Series II Life Happens: Real Life Videos - Disability Insurance Newest Disability Insurance Videos Special Needs Planning Disability Insurance Insurance Basics Investment Basics Financial Concepts Building Conviction for Life Insurance Business Planning Basics Factfinding for Life Insurance LIFE Foundation's Real Life Stories: Life Insurance Series I LIFE Foundation's Real Life Stories: Life Insurance Series II Life Happens: Real Life Stories - Life Insurance Life Insurance 101 Life Insurance 201 Life Insurance 301 Life Insurance 401 Life Insurance 501 (Advanced Planning 101) Life Insurance PRO Newest Life Insurance Videos Permanent Life Insurance Sales Concepts Special Needs Planning Life Insurance Developing a Long-Term Care Plan LIFE Foundation Real Life Stories: Long Term Care Insurance Life Happens: Real Life Stories - Long-Term Care Insurance Long Term Care and Planning for Retirement Long Term Care Insurance 101 Long Term Care Insurance 201 Long Term Care Insurance 301 Long Term Care Insurance 401 Long Term Care: Consultative Engagement Long Term Care: Solving a Problem vs. Selling a Product Newest Long Term Care Videos Special Needs Planning Long Term Care Insurance Multiline Basic Multiline Intermediate Multiline Log in now to view this course Perspectives: Product Knowledge Annuities 101 Annuities 201 Newest Retirement Planning Videos Prospecting for Retirement Retirement Planning 101 Retirement Planning 201 Retirement Planning 301 Retirement Planning 401 Retirement Planning 501 Social Security 101 Special Needs Planning Retirement Planning Learning Paths (beta) Sales Skills Marketing Product Knowledge Practice Management Motivation Classroom Training Coaching Resources Menu Close Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Principal of Korsgaden International Troy Korsgaden Principal of Korsgaden International Troy Korsgaden is a highly sought-after insurance and financial services consultant. He is the principal of Korsgaden International, which specializes in global marketing, distribution, agency building and technology strategies for many of the world’s largest insurance carriers and financial services companies. As a consultant, speaker, and author of six books, Korsgaden’s mission is to help the insurance industry and its representatives wake up to the radical transformation taking place in the insurance industry. He helps those in the industry learn how to better communicate with consumers, so that consumers develop a higher appreciation for the value of insurance products. In his career, which spans over three decades, Korsgaden has instructed and spoken with hundreds of thousands of executives, agents, brokers, and staff members. A widely respected expert on the seamless distribution ecosystem. Korsgaden trains corporate insurance and financial services leaders on customer service, change management, technology, and transformational work, among many other key topics. Previous Speaker Go back to Speaker Network Next Speaker

HPN University has been reimagined to meet the demands of today’s evolving financial world—equipping advisors with modern tools, real-world strategies, and on-demand development. Inspire. Educate. Empower. This Life Insurance Awareness Month. Give your advisors on-demand access to industry experts and top producers -- curated resources that build confidence and drive meaningful conversations with clients. Inspire. Educate. Empower. This Life Insurance Awareness Month. Give your advisors on-demand access to industry experts and top producers -- curated resources that build confidence and drive meaningful conversations with clients. Check out samples of some of our life insurance resources designed to educate and inspire your advisors: Positioning the Greed Sale to Younger Clients with Analogies – Eszylfie Taylor Field-Tested: Three Reasons to Own Life Insurance in Today’s Environment – Tom Hegna & Joey Davenport A Life Insurance Story – Shauna Weatherspoon Book a Demo Built by Experts Created by top producers and thought leaders who know what it takes to succeed in today’s competitive landscape. Proven to Drive Results Field-tested resources backed by data and performance metrics—real strategies, real outcomes. Saves You Time Turn hours of manual coaching into minutes with scalable, ready-to-use training content. Targeted Learning Paths Content crafted for every level: New Advisors, Experienced Reps, and Team Managers—with clear paths and outcomes. Trusted by Thousands Over 70,000 users in 30+ countries rely on HPNU—the #1 digital learning platform in financial services. Revolutionizing Advisor Growth from the Inside Out Accelerate Growth with the New HPN University HPN-U has been reimagined to meet the demands of today’s rapidly evolving financial services world—equipping advisors and field leaders with modern tools, real-world strategies, and on-demand development. Stay Ahead of the Curve. The One Big Beautiful Bill is reshaping tax law in the United States and beyond, creating new opportunities and challenges for financial professionals and their clients. Our brand-new eLearning course series, produced by industry experts, delivers clear, engaging, and compliant content that keeps your team - and your clients - well informed. Contact Us Agency Leaders and Managing Partners Empower consistent, high-impact coaching at every level. Boost underperforming segments with proven development strategies. Shift from micromanaging to strategic growth. Financial Advisors and Agents Access on-demand training to boost confidence and close more deals. Strengthen skills with immediate, real-world strategies. Stay motivated and on track with a clear path to growth. Growing Firms (25–75+ Advisors) Launch a scalable training system, fast. Reclaim your time; multiply team productivity. Build leadership bench strength without burnout. Who It's Designed For Whether you're leading a team of 25 or scaling beyond 75 advisors, HPN-U delivers the structure, strategy, and scalability modern firms need to recruit, train, and retain top performers—faster and smarter than ever before. Connect for Enterprise Pricing at info@hoopis.com Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Why Firms Choose HPN-U Plug-and-Play Training: Zero Guesswork. Proven Strategies from Top Performers. Tailored Learning for Every Advisor's Journey. Field-Ready Sales Coaching: Real-World, Not Theory. Seamless Hybrid Delivery: In-Person or Virtual. Saves Time. Reduces Attrition. Drives Performance. Why It Matters Now The market demands more than just skill—it demands strategic excellence. Just 14% of advisors are still in business after four years HPN-U’s structured, high-activity programs drive early wins Empower your leadership team to scale impact without sacrificing their sanity Real Advisors. Real Impact. What Your Peers Are Saying: "HPNU helped us cut onboarding time in half while increasing first-year production. It’s like giving every new rep a personal mentor—on-demand.” – Managing Director, NY "HPN has really impacted my growth with the motivational content and real advisor stories." – Joshua J. "When I hit a slump, the videos on overcoming obstacles keep me going." – Sharon H. Ready to Transform Advisor Development? Start your 14-day free trial today—and see what’s possible for your team.

Next Item Previous Item Go back to White Papers List Federal income tax returns are one of the most easily accessible and revealing road maps for determining your clients’ financial needs. Reviewing tax returns can provide you with a whole new level of insight about their individual financial situations. Even more importantly, it can add increased value to your client relationships. Reviewing tax returns gives you the chance to identify more opportunities to provide value to your clients. It also can reveal details they may have failed or forgotten to share with you when you completed the fact-finding process. Please keep in mind that you cannot give tax advice, though. That is their accountant’s or tax lawyer’s responsibility. Most of your clients and prospects will fall into two categories: Those who have higher-than-anticipated tax liabilities Those who traditionally receive tax refunds Whichever the case, all clients want to find strategies or products that can reduce their tax burden, both now and in the future. As part of your review, be sure to find out who did the return. Did the client complete it, or did an accountant? Do you know this accountant? Does he or she deal with other clients of yours? Could the accountant become a center of influence for your practice? What to Look for on a Client’s 1040 Tax Return By reviewing a return, and asking questions about specific areas, you can determine people’s level of knowledge and sophistication around their financial situations. Once you know where to look, with just a glance of a current return, you will be able to assess a client’s earned income, various sources of income, business activity, tax liability and marginal tax rate. Think of a client’s 1040 tax form as a gold mine of information. Here are some valuable details a tax-return review can reveal. Age-related events. Is the client close to one of the magic ages, such as 62, 65 or 70½, that can trigger retirement, Social Security, Medicare or required minimum distribution (RMD) events? If so, then be sure to discuss with the client his or her plans to retire, as well as retirement income sources. Enrollment timing for these programs is critical. Is the client eligible for Social Security? If so, you may wish to explore strategies to maximize benefits and reduce the income-tax impact of receiving those benefits. We must remain especially vigilant when working with widowed or divorced clients because they may be eligible for benefits based on someone else’s age or retirement status. Change in filing status. Has there been a change in the client’s tax filing status, caused by a recent divorce or marriage? Either will have tax and cashflow implications. Also, the client’s estate or life insurance coverage may have to be adjusted. Dependent-related issues. Looking at the client’s list of dependents can help you address any potential child education opportunities, such as a tax-advantaged 529 plan, and any concerns about elderly parents. A life insurance review may be needed to provide the family with sufficient income in the event of a death in the family. Employment status. The 1040 will also tell you whether the client is employed or self-employed. This most likely will lead to a discussion on retirement planning and reveal the client’s savings and contribution levels. You also may consider a review of the business entity and discuss the benefits, liabilities and risks of having a partnership, sole proprietorship or LLC. Does the client have a funded buy/sell in place? As you review any return, use lines 7–22 on Form 1040 to get a handle on the taxpayer’s total income and all the income sources for the current year. This will enable you to project a client’s future income. What to Look for on Federal Tax Schedules A–E Don’t limit your review to just the 1040. You can gain a lot of additional insights into clients’ investments if you take the time to review Schedules A–E, too. Itemized deductions. On Schedule A, you will find a list of itemized medical expenses, which can allow you to move easily to a discussion about the client’s or family member’s general health, as well as his or her current insurance coverage and any long-termcare policies. 2. Intere st and dividend income. On Schedule B, you can quickly identify the client’s investments, which will easily move the conversation into how the client perceives his or her risk tolerance. This will give you insight into his or her views on diversification, as well as investment strategies and goals. Profit or loss from business. Sometimes, clients miss things that are obvious to you. For example, if your client is self-employed and filing Schedule C, look at the income and deductions. Did he or she maximize eligible retirement plan contributions? Capital gains or losses. On Schedule D, you will be able to see if the client carried over any capital losses that could have been used to offset gains. Rental and royalty income. And finally, on Schedule E, you will find information about the client’s investment income — was it made up of passive income or losses? From this information, you can discuss the different types of investments the client has, and their purposes, to gain insights into the client’s investment strategies. You also can find out if the client receives additional income from rental properties and royalties on published books, music and other creative works. Yes, there are many excellent opportunities that will come up when you take the time to review your clients’ tax returns. Some will be quick and easy, such as recommending that they increase their 401(k) contributions. In other situations, it will take a little more thought and planning to develop an appropriate strategy. Examples include tax-advantaged investing, tax-deferral programs, charitable strategies, insurance sales and estate tax returns. By getting into the habit of reviewing your clients’ tax returns each year, you will quickly be able to identify significant changes that have occurred and help them make appropriate adjustments to their finances to fit their current situations. This review does not have to take a lot of a client’s time. Simply go over the return before your meeting so that you can focus your client discussion on only the important issues. This review might enable you to deepen your client relationships more than any strategy you’ve used. Video Training for Advisors and Sales Leaders Our brief training videos comprise an online library of resources that can supplement training for new reps, mid-career reps, veterans and staff members. An effective resource for training financial advisors is Hoopis Performance Network, which features online, ondemand, total video-based training built on four Disciplines of Success with access to more than 400 sessions. The coursework can be either self-study or facilitator-led, and it complements any firm, agency or company training programs and marketing selling systems. Your advisors can access the video training anytime, anywhere, on their computers, smartphones or tablets. It’s a cost-effective, time-efficient way to increase productivity, thus retention. An effective resource for training new or experienced sales leaders is HPN, an innovative virtual platform designed for financial leaders who are building a region, an agency or firm, a sales unit or a sales team. You can get access to hundreds of high-impact sessions for all levels of experience, divided into five distinct elements of success. These sessions are short and easily digestible, averaging less than 10 minutes. Your managers can access the video training anytime, anywhere, on their computers, smartphones or tablets. Why Review a Client’s Tax Return?

Founder, Thrivos Consulting, LLC Penny Phillips Founder, Thrivos Consulting, LLC After a decade of working with financial advisors and institutions on practice management, Penny launched Thrivos Consulting with a vision of building a firm that would transcend the traditional norms of industry consulting. Founded on the belief that in order to thrive one must successfully navigate change, Thrivos offers services designed to support professionals and institutions as they learn to turn industry challenges into opportunities. With a keen ability to connect with professionals across varying demographics, Penny has had success working with clients ranging from top independent advisors seeking support around building a multi-gen team to multi-billion-dollar enterprises looking to explore scale and growth opportunities. Penny has worked with countless advisory teams and broker dealers on issues ranging from the integration of next generation talent to succession planning to communication and behavior management. She previously ran a national business-building workshop series for financial advisors. She has authored multiple practice management programs, and has been featured as a keynote speaker at conferences and events for the following firms LPL, Investors Group, Guardian Life, Morgan Stanley, MassMutual, Northwestern Mutual, Prudential, New York Life, Signature Financial Solutions, Flexible Plan Investments, RBC, and Platinum Advisor Strategies. Previous Speaker Go back to Speaker Network Next Speaker

Next Item Previous Item Go back to White Papers List In working with companies of all sizes, we see a lot of wasted effort related to training. One mistake companies make is failing to focus on accountability and implementation after sending salespeople through training. We Forget Most Training Almost Immediately In 1885, German psychologist Herman Ebbinghaus proposed what he called the “forgetting curve.” He created a mathematical representation of the exponential rate at which we lose a memory “if no attempt is made to retain it.” In general, about 70 percent of a memory is lost within the first 24 hours. If we do nothing to focus on retaining that valuable training, then the time, money and effort we’ve spent on training is wasted. Not only do we forget what we learned in training sessions; we lose the momentum from those sessions after a while, too. Successful sales trainers know that if people do not integrate the skills they learn into their daily routine within three days, the initial enthusiasm of a sales training event wears off quickly, and no real change occurs. The Solution: Implementation and Accountability So how can you make sure salespeople retain more of what they learn? By having them implement what they learned right away. This requires having your sales leaders build in accountability with salespeople who go through training to ensure that they implement what they learned within 72 hours. Tips for Enhancing Knowledge Retention Here are some effective ways to enhance retention of that new knowledge: Before the sales training, provide your sales leader with instruction or training on how to hold salespeople accountable for implementing what they learn during the training within 72 hours. Have each salesperson identify changes he or she will make as a result of the training, by specific dates, in writing. Have the salespeople who completed the training meet in a follow-up session with their sales leader to discuss which strategies they plan to adopt, and by when. Assign someone the task of taking notes on these decisions and sending them to the salespeople and sales leader. Have the sales leader follow up on those dates to see if the changes were implemented on time. If you have coaches or mentors in your organization, get them involved in this implementation process. Measure the effectiveness of the new strategies after a specific amount of time. Train Sales Leaders on How to Hold Salespeople Accountable Because implementation and accountability are so important for knowledge retention, it is just as important to train the sales leaders as it is to train the sales force. When you commit to training your first- and second-line managers, they become part of the solution. Teach your sales leaders (1) how to make sure the salespeople implement the new material as soon as they return to the office and (2) how to hold them accountable for doing so. It is important for sales leaders to understand how to implement effective classroom resources, whether local or virtual, as well as the valuable techniques salespeople learn in joint sales calls. A home office or agency trainer may be responsible for dozens or hundreds of people to train. Many smaller firms do not have a full-time trainer on staff. By investing in sales leaders, both companies and firms can improve their results because the firm’s management team can do its job to make sure the sales force uses the information. Measure the Training’s Effectiveness Some training programs are more effective than others. If a training session proves to be of little use, you need to know that so you don’t invest in it again. Here are some ways to measure how effective the training is: After six months or one year, ask the salespeople who went through the training to rate it. Create a form for this purpose, and evaluate the collective opinions. Include both quantitative rankings (such as a ranking of 1 to 7 on various aspects of the training), as well as qualitative feedback, to include details about why the training was or was not effective. Ask your sales leaders to assess the training session’s overall effectiveness separately. Have them quantify, if possible, the impact the training had on sales so you can compare that number with the cost of the training. In Summary To ensure that you’re getting an optimum return on your training investment, make sure salespeople start implementing what they learned within 72 hours. And train your sales leaders on how to hold the salespeople accountable for doing so. Finally, assess the training after enough time has passed to determine its effectiveness. Use that feedback to determine how to spend future training dollars. Consider Hoopis Performance Network for Advisor Training Check out Hoopis Performance Network, which features online, ondemand, video-based training built on four Disciplines of Success with access to more than 400 sessions. HPN provides educational and training resources to launch, retool and reenergize all levels of financial professionals and staff. The curriculum is designed to help establish the cornerstones of a producer’s practice to ensure consistent growth and retention through higher levels of productivity. A Simple Way to Get More Out of Your Training Investment

CEO, NYT Best Selling Author, Speaker Brian Moran CEO, NYT Best Selling Author, Speaker Brian Moran has over thirty years of expertise as a CEO, corporate executive, entrepreneur, consultant and coach. His background as a corporate executive combined with his experience as an entrepreneur positions him with a unique skill set to help individuals and organizations grow and prosper. Brian’s corporate experience includes management and executive positions with UPS, PepsiCo, and Northern Automotive. As an entrepreneur he has personally launched and led successful businesses and been instrumental in the success of many others. In addition, he has consulted for dozens of world-class companies including Coldwell Banker, Mass Mutual, Medtronic, New York Life, and Tiffany & Co. Brian is a recognized expert in the field of leadership and execution. His realization that most people don’t lack ideas but struggle with effective implementation led him to the development of The 12 Week Year. In addition to his books, Brian has been published in many of the leading business journals and magazines. He is a sought-after speaker, educating and inspiring thousands each year. He is a visionary with a passion for helping others go beyond what they think they are capable of and achieve more than they ever thought possible. His greatest strength might be his ability to take success principles and strategies and help others apply them in a way that is powerful and effective, and gets results. Previous Speaker Go back to Speaker Network Next Speaker

President of AdvisorCRAFT Jim Ruta President of AdvisorCRAFT Jim Ruta is president of AdvisorCRAFT and a life insurance industry analyst, advisor coach, speaker and media commentator. He appears regularly in international media and highlights some of the world’s top advisor programs including the Main Platform of the Million Dollar Round Table. Jim started as a life insurance agent at age 22 and led one of Canada’s largest insurance agencies by age 40. He is the author of several best-selling advisor business development books, writes for many top industry publications and hosts “Ruta’s Rules” every week on IE:TV. Jim is co-founder and Emcee of the “Canada Sales Congress” – the largest event of its kind in Canada. Jim is a shareholder and consultant with Austin, Texas-based InforcePRO™.com, a unique, online life policy service, sales and marketing system that helps professional life agents attract sell more life business through service. Previous Speaker Go back to Speaker Network Next Speaker

Next Item Previous Item Go back to White Papers List The past two years have shone a spotlight on digital learning. While some companies already had robust digital learning platforms in place at the onset of the COVID-19 pandemic, others struggled to engage a newly remote workforce in a fully virtual environment. In both cases, the digital learning experience — and its effectiveness — came under greater scrutiny than ever before. The debate over in-person versus online learning is not new. And now — as we begin to move out of the pandemic — some training organizations are breathing a collective sigh of relief about finally getting “back to normal.” But let’s be honest: Normal is a thing of the past, and consigning digital learning to second-class status is a mistake for several reasons. Many businesses will continue to support remote work, if not on a full-time basis, then in a hybrid work environment. And remote workers are often geographically dispersed, making digital learning options even more necessary. Gen Z, the incoming workforce, has grown up with digital learning. These self-directed digital natives look to TikTok, Instagram, and YouTube to learn new skills. And they expect the organizations they join to provide similar (or better) experiences. Finally, and perhaps most important, digital learning is cost-effective, efficient, and — when done well — as engaging as in-person, instructor-led training. The question every organization should be asking is not whether to continue providing digital learning options; the question is, does your digital learning platform achieve the results you expect? Creating an engaging digital learning experience requires a learner-focused design based on fundamental learning principles. As you evaluate digital learning platforms for your organization, consider these five essential elements required for an effective digital learning experience. Purposeful A fundamental principle of learning is that adults are motivated by learning that helps them achieve a goal or solve a problem. Whether they want to move into a management position, increase retention, or penetrate new markets, financial services professionals will be more motivated, will retain more, and are more likely to apply learning that serves a specific purpose. Through videos, case studies, assessments, and other media, an effective digital learning experience regularly reinforces the why behind the learning, not just the how. And since effective digital learning programs typically consist of brief, tightly focused microlearning modules, learners can select modules that have the most relevance for achieving their goals. Personalized Microlearning modules satisfy another fundamental principle — adult learners want the flexibility to control what, when, how, and where they learn. In today’s business environment, that often means mobile learning, something for which microlearning modules are especially well suited. And because microlearning is modularized, with discrete learning objectives, learners can personalize the experience based on their specific interests. A strong digital platform will also recommend custom learning paths, usually identified through online assessments, to ensure that the program addresses all skill gaps. Two new financial services managers, for example, may require different learning paths, based on their strengths and weaknesses, with the online assessment ensuring that all essential leadership areas are evaluated properly for both new leaders. Actionable A training module is only as good as the action it produces. Effective training includes actionable takeaways that learners can apply soon after completing the learning experience. A coaching module for new managers, for example, should provide a coaching model, script, or other guidelines so that managers can apply their new coaching skills immediately. It should also suggest activities for practicing the new skills after completing training, to transfer and reinforce learning. The Forgetting Curve Digital microlearning modules work well with spaced learning formats (learning that occurs over time). The cadence of this type of learning, learn-apply-review-reinforce, provides the repetition needed to overcome “the forgetting curve.” Introduced by German psychologist Hermann Ebbinghaus in the late 19th century, the forgetting curve shows that, on average, people forget 70 percent of what they learn within 24 hours of learning it and 90 percent within one week.1 The most effective way to overcome the forgetting curve is to use active recall and review activities and apply new learning early and often. Active recall activities often found in digital learning platforms include quizzes, flashcards, scenarios, and critical thinking questions. Practical Practical learning is related to, but not the same as, actionable learning. Actionable learning ensures learners have takeaways they can apply immediately. Practical learning takes into account different on-the-job situations to ensure learners have resources at a specific moment of need. A comprehensive digital learning platform includes resources to support five moments of need: new, more, apply, solve, and change. The Five Moments of Need The “five moments of need” approach, developed by Conrad Gottfredson and Bob Mosher, focuses on applying learning in the workflow.2 Learning a new skill or concept and then learning more as skills increase are the bread and- butter of traditional training programs. Effective learning platforms will also support learning that happens on the job: when learners apply new skills when they must solve problems because something did not happen as expected, and when they must relearn skills because systems, processes, or situations changed. Because of their modular design, accessibility, and the variety of delivery formats available, digital learning platforms are ideally suited for addressing these needs. Engaging Last, but by no means least, an effective digital learning platform actively engages participants in the learning experience. This element, perhaps more than any other, influences learner retention. And it is the one area where digital learning platforms often fail to perform. Quizzes are the most common engagement activities included in digital learning. Ideally, these knowledge checks also provide meaningful feedback to learners, reinforcing correct answers and reviewing material for incorrect answers. Some platforms award points or badges for activities completed. Some include leaderboards that show learners how their scores compare to others. The most sophisticated use simulation and virtual reality. Fortunately, you do not have to develop the next Minecraft game to engage most learners. Any activity that reviews and reinforces learning points and supports the on-the-job application of key concepts will encourage learner participation. In addition to quizzes, case studies, what-if scenarios, and criticalthinking questions can keep learners engaged. Varying the types of media used (balancing text, video, and infographics, for example) also helps to retain learner interest. Digital learning is here to stay, and it is a valuable tool when designed well. These five elements, when combined in a digital learning experience, can motivate team members to use your training platform, transform new skills into increased productivity, and provide you with the ROI you are looking for in a digital learning platform. Engaging Advisors with the Essentials of Digital Learning

Next Item Previous Item Go back to White Papers List Parents are a crucial part of their children’s financial education. Research has shown that parental modeling and teaching has more positive, impactful, and long-lasting influence on financial attitudes than academic-based programs. How, what, and when you teach your kids about money are personal decisions determined by your values and experience. Start Early It’s never too early to start teaching children about money. Otherwise, until they start earning a living, it’s easy for kids to think that money “grows on trees”! Parents magazine offers tips for ways to teach children about money from ages 2 through ages 16 and older. Beth Kobliner is one of the nation’s leading authorities on personal finance for young people. She is a commentator and journalist and the author of two New York Times bestsellers: Get a Financial Life: Personal Finance in Your Twenties and Thirties and a guide for parents titled Make Your Kid a Money Genius (Even if You’re Not). She says that by age 3, kids can grasp basic money concepts. By age 7, many of their money habits are already set. Her advice is to begin as early as possible to “Start wringing money lessons out of everyday life.” Parents are a crucial part of their children’s financial education. Research has shown that parental modeling and teaching has more positive, impactful, and long-lasting influence on financial attitudes than academic-based programs. How, what, and when you teach your kids about money are personal decisions determined by your values and experience. Start Early It’s never too early to start teaching children about money. Otherwise, until they start earning a living, it’s easy for kids to think that money “grows on trees”! Parents magazine offers tips for ways to teach children about money from ages 2 through ages 16 and older. Beth Kobliner is one of the nation’s leading authorities on personal finance for young people. She is a commentator and journalist and the author of two New York Times bestsellers: Get a Financial Life: Personal Finance in Your Twenties and Thirties and a guide for parents titled Make Your Kid a Money Genius (Even if You’re Not). She says that by age 3, kids can grasp basic money concepts. By age 7, many of their money habits are already set. Her advice is to begin as early as possible to “Start wringing money lessons out of everyday life.” Ignorance About Financial Management Is Stressful A 2018 PwC study revealed that just 24% of millennials demonstrated a basic understanding of financial concepts. And 54% of millennials are worried about paying back their student loans from college. Adults experience profound stress over moneyrelated issues, and part of the reason is that many adults were never taught money-management skills. According to a survey from the American Psychological Association, money is a leading cause of stress in the United States. APA has conducted the annual survey for more than a decade, and money and work have consistently topped the list of stressors. In the August 2017 survey, 62% of respondents said money was their biggest stressor, and 61% said work was their main source of stress. We certainly don’t want our children to experience this kind of stress. Knowledge is power, and when we teach young people how to be good stewards of their money, those lessons will benefit them for a lifetime— and their children and grandchildren, too. The key is to help children develop positive behaviors and habits from an early age. A 30-year study published in the Journal of American Medical Association Psychiatry in May 2019, makes a strong link between a specific behavior set and future income. The researchers followed the lives of 2,850 6-yearold children. They found participants who went on to make less annual income between the ages of 33 to 35 all had one common trait demonstrated at a young age: inattention. The researchers considered inattention to be a lack of sharing, poor focus, blaming others/ showing aggression, and high levels of anxiousness. If you can work with your children on these inattentive behaviors, you can have an impact on their earnings 3 decades later. The researchers recommend that you do 4 things to help children be more attentive to money when they are children so they can be more successful adults: encourage sharing, encourage them to focus on one thing at a time, teach them to get along with others and to feel empathy, and help your child manage anxiety by giving your child uninterrupted time in the day to express their worries and to brainstorm solutions with you. Here are additional tips for building good money management tips in your children. Teach Them the Basics Don’t wait until your kids are leaving for college to introduce them to the basics of financial life. Give them the latitude to make mistakes and learn from them. Let children see their money grow. This is where the age-old piggybank comes in. When children see their money accumulating, it increases their motivation to save. Also, when kids see you swipe a debit or credit card at a store, they don’t understand the correlation between your working long, hard hours in your job and having money to buy things. It appears like “magic” to them. Show them how it all works. When they reach what you consider an appropriate age, make your children responsible for sticking to a budget. Give them an allowance that’s enough to pay for their clothing and entertainment needs. If they overspend, don’t bail them out! At some point in high school, open a checking account for your children and fund it with their allowance. Teach them the basics about how to make deposits, keep track of their debit-card expenses, and balance the monthly statement. If they get the “opportunity” to learn firsthand about the stupidity of paying overdraft charges, it will be a valuable lesson! Teach financial discipline. Kids need boundaries. They need to learn that you can’t have everything you want when you want it. Setting and sticking to spending limits helps them learn this important lesson. • Show them how to save for big expenses. If your kids want a “big ticket” item, such as a nice car, help them realize that “money doesn’t grow on trees” by requiring that they contribute at least a portion of the purchase price, perhaps through an after-school or summer job. Introduce your children to debit and/or credit cards. Do so when they reach an age you feel is appropriate and in a way that’s consistent with your beliefs concerning the use of credit. It’s generally recommended that kids gain some experience with credit cards before graduating from high school. Consider beginning with a secured credit card (sometimes referred to as a “credit card with training wheels”) by requiring a cash collateral deposit that becomes the credit line for that account. If they use the secured card judiciously, you can consider moving on to an unsecured credit card. Make certain they understand that the use of credit is a privilege, not a right. A company called Greenlight offers a debit card for kids that parents manage from their phones with flexible parental controls. Greenlight’s mission is to help parents raise financially smart kids. The Greenlight debit card comes with a Greenlight app for both parents and kids. Parents can instantly send money to kids, turn the card off from the app if needed, and receive alerts whenever the card is used. They can automate allowance payments and manage chores so kids can learn to earn! These safe and secure experiences give parents the peace of mind they need to allow kids to manage their spending, saving, giving, and earning. Introduce high schoolers to investing, using real money. Start with money market accounts. From there, introduce them to fixed-interest investments, such as savings bonds and CDs. Then move on to the stock market via mutual funds. Check out the stock market games available on the Internet. They can be a fun, educational way to introduce teens to the stock market. Some families even set up investment clubs for their teenagers to teach them investment basics. Teach your kids the importance of having money saved in an “emergency fund.” When expenses arise that were not budgeted for, let them see how having money stashed away saves the day, as opposed to borrowing money for the emergency or paying for it with a high-interest credit card. Even young children can understand the concept of exchanging a sum of money for something they want. Teach them how to allocate money, such as 20 percent for savings, 10 percent for giving, and 70 percent for spending. Show them how to reach a savings goal. Let them see how saving X amount of their allowance each month will add up to the amount needed to buy a toy or new video game in a certain number of months. Be a good role model! While not a guarantee, children who grow up seeing you do the right things financially are more likely to follow your example as they mature. When planning a trip to the store, get your kids involved. Let them help you preparing a shopping list and/or spending budget. Help them understand how a list/budget helps avoid the expense and pitfall of impulse buying. Take your children shopping with you. Teach them about pricing, brand names, sales, comparison shopping, coupons, brand-loyalty programs, and how to evaluate at is the “best deal.” Involve your kids in the family budget. Show them the monthly bills for car payments, utilities, mortgage, insurance, and credit cards. Explain the portion of your budget that is allocated for savings. Teach them firsthand about your family’s cost of living and how you follow the process of making and sticking to a budget. Have an age-appropriate discussion about needs versus wants with your kids. When it comes to purchasing decisions, ask your children why they need the item…or if it’s simply something they want. Encourage them to use websites that will help them learn about money management. Today, kids are all about learning online. Here are some websites that can help your kids get excited about, and engaged in, learning about money online. Planet Orange is a fun, interactive website sponsored by ING Direct that teaches kids in grades 1 through 6 the basics of earning, spending, saving, and investing money. Kids start by creating a character astronaut who is assigned a mission that revolves around money. They then design their own spaceship and begin their mission. Practical Money Skills teaches kids about money by letting them play fun games. For example, the Road Trip game teaches kids that, to keep a car running, you have to pay for things like gas and insurance. Affording those things sometimes means sacrificing trips to the mall. The website also features football and soccer financial games, as well as Ed’s Bank, which teaches younger kids the importance of saving money and money values. Even the U.S. government is doing its part to help kids learn how to manage money. H.I.P. Pocket Change gets kids interested in money by focusing on its history. After logging on to the site and then clicking on the “Toons” section, your child will be taken through interactive cartoon presentations of how money is made, what it looks like in other countries, and the history of money. Plus, there are games and a collector’s club for kids who want to collect coins. And finally, a website you could share with your children’s teachers is Next Gen Personal Finance, or NGPF. It’s a nonprofit organization founded in 2014 to connect educators with free resources, professional development, and advocacy tools to equip students with the knowledge and skills to lead financially successful and fulfilling lives. The site offers free access to more than 100 online activities, videos, articles, and other resources. Teach Your Kids About the Power of Interest Children need to learn about “good” interest, such as interest paid by savings accounts, and the “bad” interest that accumulates when credit card bills are not paid in full and on time. Here are some tips for doing just that. Take your child to the bank or credit union and open a savings account. Let him or her calculate how much interest (“free” money!) the account will earn over time. Require that your kids save a certain percentage of their allowance and birthday/ holiday money. Review monthly statements with them, pointing out how interest has increased the value of their account. When children meet their savings goals, consider matching their savings. For example, at the end of each month, you could reward their savings with $1 for each $10 they’ve saved. Show your kids your credit card bills and explain how important it is to pay them on time. Illustrate for them the “bad” interest that will be charged if the balance isn’t paid in full when due. Most of all, teach your children the wise use of credit. Help them understand that credit card debt is the equivalent of financial handcuffs. If You Decide to Give Them an Allowance Some parents feel strongly that an allowance is the best way to teach children financial responsibility. Other parents feel just the opposite. Here are some suggestions for ground rules to set if you decide to give your kids an allowance. Don’t give children an allowance until they have some understanding of money and are old enough to count. An allowance given at a young age should be for the purpose of helping kids learn a spending/saving/sharing balance. Teach them how to split their “earnings” into three piggy banks or glass jars: savings, spending and sharing. Consider giving children an allowance beginning in elementary school. Set guidelines. Make it clear that a certain percentage of the allowance is for savings and another percentage is for giving. One school of thought says a kid’s allowance should not be tied to household responsibilities. Kids should be expected to perform certain household chores because they are family members…not because they’re paid to perform them. You might, however, want to pay children for performing bigger chores or additional chores that you would otherwise pay outsiders to perform, such as raking the yard or washing the car or the windows. Another approach is to develop a list of chores for your kids to complete around the house. Pay them a base allowance, whether they complete the chores, but pay a higher allowance when all chores are completed satisfactorily. Teach them the rewards of hard work! What happens when your kids hit you up for a raise in their allowance? The experts say this is a great opportunity to teach negotiating skills. Engage them in a discussion that includes questions such as when they received the last raise in their allowance, if the raise will cover new expenditures, and how much of the raise will they save. How much allowance should kids receive? Your answer will depend on your values, income and common sense. Don’t be swayed by what your kids’ friends are getting. Many parents give their kids the equivalent in today’s dollars of what they received at the same age. Whatever amount you decide on, consider increasing the allowance as your child’s age increases. Also increase the financial responsibilities that go with the allowance. For example, a gradeschooler’s allowance might cover just incidentals, but a teen’s allowance might be expected to pay for clothing, entertainment, gas, and auto insurance, as well as incidental purchases. Again, your objective is to teach financial responsibility. How often should you pay an allowance? The general recommendation is that younger kids should be paid every week. As they reach their teens, however, you might want to shift to twice a month or monthly. This more closely approximates the real world, where they’ll need to be able to budget between paychecks. Teach Them to Give Back Giving something back is an important value for children to learn at a young age. This is something they need to see you doing and practice doing themselves. Let them experience the joy of giving. Even young kids can learn giving by donating toys or clothes around the holidays. Teach by example. Encourage your children to participate in your tithing, charitable contributions, and/or community volunteer activities. Let your kids choose an organization that supports a cause they feel strongly about. Teach them how to evaluate whether a charitable organization is putting its funds to good use. Don’t assume that the causes you care about are the same ones they care about. Consider matching your children’s monetary charitable contributions. If you teach your children sound money habits when they are young, it will help them be good stewards of their money as adults. It’s our hope that some of the suggestions in this white paper will make your job just a bit easier. Plus, you might just learn some great tips yourself! Teaching Kids About Money