Yes2 - Financial Education for Australia's Youth :) Feedback please!

[The Y-man]

Generally in the past pesentations I have done to high school and uni students, we have worked around the basic cash flow (P&L) and balance sheet concept that Kiyosaki presents so well in RDPD, on the premise of "Who wants to be a (multi)millionaire in 10 years?"

Some kids do, some kids don't - and that's fine (although again, I pick biased audiences such as business studies classes ).

What I did find very interesting was the very challenging questions asked of me by the students, which really forced me to look inward as to why I wanted wealth etc.

I found uni students tend to live closer to the red line (many trying to work part time, shack up with friends, and study) and could relate to budgeting skills.

To both high school students and uni students, I mesh in material about their vision for the future with regards to their careers, and where the choices tey make today, may be leading them to.

Cheers,

The Y-man

 

[Peter Parker]

JamesGG & Shonnie,

A few questions that entered my mind:

* How does your approach differ from Scott Pape / Barefoot Investor (whose targeting exactly the same market but has a top-selling book and newspaper column)? Same market, same city - where's the point of difference?

* What is it exactly? Just a website? The start of a financial advice/mentoring business? What should they expect if they phone you - aren't you leaving yourselves open to timewasters if you don't state some 'business rules' or tell people what to expect? 'About Us' doesn't give any clues, and readers will wanna know.

* How will this make you money, or are your aims purely altruistic? If the former, be open with your readers as to how you rake in the dough. If the latter, be prepared for people doubting your motives and asking whether it's a 'front' for something (whether it's a religion, share trading or property cult)!

* Maybe I'm missing something, but 'Contact us' contains no surnames, no non-mobile phone numbers or even an ABN (even though it's a PTY LTD and should have one). Again more questions than answers!

* Is there a risk of a disconnect between the ‘try hard/dumbed down’ youth lingo and some articles (even though on their own they're very good)? Clicking on a cool front-end to get a text-intensive site underneath doesn't 'flow' and people may lose interest. The site's gotta be consistent all the way thru.

* Much of success requires a few basic things repeatedly applied (eg saving 20 – 50% of income) and this can sometimes be lost in the complexity. I agree with some others in that some of the articles are more for the mid-level and you need to meet people where they're at. And if they don't want to be 'converted', no one can force them, and it just means more tenants for us

Peter

 

[Old Mate]

This is a good idea and i hope it does well. However I finished school last year and I feel that it is unlikely many students will actually listen carefully to your presentations. I know when i was in school most people used the opportunity to sleep or muck around. I think they will hear the topic is personal finance and just tune out. I hope I'm wrong though

 

[exstatic]

Hey Shonnie, it is looking great! Is this intended to be a profit generating business for you guys? Are you offerring it free to the schools?

 

[Shonnie]

Hey guys, thanks for all the responses - we are getting some really useful information..

Few things to answer specifically directed at Spiderman's questions..

How does your approach differ from Scott Pape / Barefoot Investor
Yes2 is designed to be much more "hands on" and to hopefully reach more kids. We are aiming the business directly at year 10 students and are planning on going straight into the schools.

What is it exactly?
The website that we've linked to you guys is only the "students" website. There will be a seperate site for teachers (http://www.yes2teachers.com.au) which will explain more about what Yes2 offers.

The yes2.com.au site is for student resources so they can read up more about what we teach them in our presentations.. there is an online community so the really keen ones can interact with eachother and our very intelligent moderators.

How will this make money?
We will be offering the presentations at a cost to the student - our mentor (who has been in the extracurriculum education entertainment industry for about 20 years) has advised us on a good starting price per student that schools are comfortable with paying. We plan to charge $X per student, with say a minimum charge of $500 for coming out to the school.

We are working on the business model and how we are planning to package everything up. We have to get our act together though because we are coming very close to the "booking phase" of term 3.


The article content
Thanks to the feedback we've recieved from the forum, we've realised that a lot of the content needs to be rewritten - we are starting from the real basics and then moving slowly upward.

At the same time we don't want to give TOO much away - we need to make sure there is still value in our presentations because thats where the money is to be made.

The presentation content
Our mentor has also made us very aware of the concentration span of many of the kids that we'll be presenting too. We are planning to keep the presentations fairly short, and also VERY interactive to keep them engaged.

I'm sure we'll be pretty mediocre to start off with - but with a bit of practice we'll be able to keep them fully engaged!


The Future
I feel that personally there is a massive gap in the market where this stuff is concerned. Yes2 will have to grow and evolve to match the market, but I think the whole point is that we are getting our foot in the door.

Looking at a recent attempt by Commonwealth bank to educate kids about finances, the response has been amazing. All the seminars are booked out for the entire year and it doesn't seem to turn parents off that it's coming from a money hungry bank.

So thanks for the feedback guys - I'll let you know once the teachers site is live and you can critque that as much as you see fit.

Thanks again!

 

[stumunro]

how much are you gonna pay ss for consulation to your business? i think your $500 fee to students will take you no where, i realise now why you don't want help doing the presentations

 

[yo yo ma]

Looking at a recent attempt by Commonwealth bank to educate kids about finances, the response has been amazing. All the seminars are booked out for the entire year and it doesn't seem to turn parents off that it's coming from a money hungry bank.

The CBA "StartSmart Forums" are free, which is a significant point of difference to the yes2 model... You can book the SmartStart Forums for your school on the site below. They cover four topics:

• SmartEarning
• SmartSaving
• SmartSpending
• SmartInvesting

http://www.startsmart.com.au/schools_program/rego_schools_state.php?S=Q

CBA also have a similar website to yours
http://www.dollarsandsense.com.au/

In the "financial basics" section of the site, there is nothing mentioned about budgeting??? I also agree with lil sk8er that the "tipping point" information is way too advanced and should be removed.

I think you may get yourselves into a bit of trouble with Optus and should clear it with them now, rather than have to change the name and re-market later.

Sorry to be negative but just some points to consider...

 

[chrispy]

Shonnie and James:

For your information:
The ANZ Bank together with the CPA have been running Money Minded Seminars free of charge to any group that request them, for the past couple of years, this is all part of the previous Federal Govt financial literacy program. James is aware of my invovlement.

I know this is also being run is some secondary schools. The material was written by secondary teachers and is excellent. It starts off with basic workshops, eg Wants vs Needs and how to do budgets but then covers areas such What to do when you get into financial difficulties, how to find a free financial counsellor, whether to go into bankruptcy etc.

CPAs were conscripted to run the classes within the general community. We were not allowed to charge anything not even travel costs, nor undertake any advertising, nor were we to let on that the ANZ were providing us with the material, free folders and free calculators. We did it as a free community education program.

Good luck with your project Shonnie and James

Regards
Chris

 

[GoAnna!]

The CBA "StartSmart Forums" are free, which is a significant point of difference to the yes2 model... You can book the SmartStart Forums for your school on the site below. They cover four topics:

• SmartEarning
• SmartSaving
• SmartSpending
• SmartInvesting

http://www.startsmart.com.au/schools_program/rego_schools_state.php?S=Q

CBA also have a similar website to yours
http://www.dollarsandsense.com.au/

In the "financial basics" section of the site, there is nothing mentioned about budgeting??? I also agree with lil sk8er that the "tipping point" information is way too advanced and should be removed.

I think you may get yourselves into a bit of trouble with Optus and should clear it with them now, rather than have to change the name and re-market later.

Sorry to be negative but just some points to consider...

I wasn't aware of the existance of this site. On a brief look it looks good and kid and parent friendly. I think on Somersoft we can sometimes forget what the basic topics are !

 

[MichaelW]

In the "financial basics" section of the site, there is nothing mentioned about budgeting??? I also agree with lil sk8er that the "tipping point" information is way too advanced and should be removed.

Ditto!

That tipping point stuff was a bit heavy for this forum even and is definately overkill for Yes2. It should start with the basics. Some of these as I see it include:

1. Pay yourself first
2. Live within your means
3. Budgeting
4. The power of compounding growth

That's about it. Start with mindset, i.e. pay yourself first and live within your means, then move on to investing basics, i.e. Budgeting and compounding.

All else is secondary and probably would deflect the kids of today away from what they really should be focussing on.

Cheers,
Michael.

 

[JamesGG]

Hiya,

Thanks everyone for the feedback so far. Much appreciated.

Yes, we're well aware that some of the info is aimed too high. Those who've said as much, rather than simply blowing smoke up the proverbial, are spot on and is much the feedback that I was expecting; great concept, poor execution.

Shonnie and I have been working hard on coming up with what we need to refine the product. This thread and a couple of private emails were simply a call for feedback - I know full well that the market would massacre us if this was all that we had. Hell, half of our links don't even work yet!

So, over the next week a lot of what is there will disappear (and perhaps be posted on the forums, instead) and some more basic information in it's place. There will also be another whole new website - www.yes2teachers.com.au - which will be our 'corporate' site, if you will.

The vision for this project goes well beyond a handful of presentations in schools. But, that's another story for another day... a hell of a lot of thought, planning, and work to go into that yet.

Lastly, I know that the CBA and a couple of other programs exist to teach people about financial literacy, students included. But, despite that, there is still a gaping hole in the market - how often does someone say that young people don't know enough about money and schools need to do more about it...?

So, we'll provide something that we think fits that hole. If it doesn't fit, then we refine, rework, and relaunch. Again. And again, if need be, until we have something that works. Both of us are deeply passionate about this project and will do whatever it takes to make it viable.

Thanks again, guys. All feedback has been noted and will be taken into consideration as we work closer towards making this a reality. Soon.

Cheers

James.

 

[Aaron Sice]

Ditto!

That tipping point stuff was a bit heavy for this forum even and is definately overkill for Yes2. It should start with the basics. Some of these as I see it include:

1. Pay yourself first

or if you have contractors and overheads while running a small business, they get paid first.

2. Live within your means

the key to happiness and a "go nowhere coz it's too risky" attitude follows. what does this mean anyway? does that mean that someone on a $150k pa income should only look at a $300k house in the middle of nowhere for his family of five? or shoudl stretch a little to afford a better positioned area to realise more CG in the long term with the 80% confidence that wages will increase over time and nullify any over-extension with the finances?

3. Budgeting

impossible in most self employed situations. store all your money like a squirrel in an offset account and live essentially.

4. The power of compounding growth

amen to that.

That's about it. Start with mindset, i.e. pay yourself first and live within your means, then move on to investing basics, i.e. Budgeting and compounding.

All else is secondary and probably would deflect the kids of today away from what they really should be focussing on.

Cheers,
Michael.

..........

 

[GoAnna!]

I wonder what percentage of high school students would be ready to absorb the information? Not a criticism just wondering. Maybe there is no fault in the other programmes but the student is just not ready...

Also I know some schools (ummm is it US based?) who had kids play out real life scenarios and were given a "husband" or "wife" and maybe a baby too and had to make make decisions(joint) based on real life scenarios. I think when you actually have to live the experience its so much more powerful than just receiving information. Ditto paper share trading rather than just reading share trading theories.

 

[Belu]

I think the development of an online game similar to the ASX game would be great, but one that would cover all asset classes and even study.

Eg: start off as if you have just finished high school, you can go to uni, tafe, workforce.

you have to save, can open up career opportunities by increasing your skills or experience, this will then earn you more money.

Each day can be treated as a week. you can work part time during uni etc to save, have to budget costs, can buy a car but then you have to worry about insurance and rego, so will have to budget for those.

Can purchase assets and take out loans. This can all be done in a text based environment. This way every 7.5 weeks is like a year. you can have games that start at the same time so everyone is on an even footing. And a year in real time is like 7 years, so from 18-25. This will not only show them the committment required from taking up uni studies (3-4 years) in both time and financial amounts, but also that if they join the workforce straight away instead of uni, they may also have a ceiling on their income abilities without further study.

hmm... actually that is a good idea for a game...haha

 

[MichaelW]

BlueCard,

I hear you, but disagree on a few points as follows:

1. Pay yourself first

or if you have contractors and overheads while running a small business, they get paid first.

Nope, disagree on your take on this. Fundamentally this suggests you invest first and spend what's left over. If you have regular income and expenses then this is easier to implement, but it is just as applicable to a project environment. With subbies, you know how much you're up for and no doubt have a profit margin built into your project above that cost and your other total costs. Upon project completion and final payment, use some of that profit to invest and you're following this rule. The timing of the payment isn't important, its what you do with it that breaks or follows this rule. In a project environment those "payments" are sporadic.

2. Live within your means

the key to happiness and a "go nowhere coz it's too risky" attitude follows. what does this mean anyway? does that mean that someone on a $150k pa income should only look at a $300k house in the middle of nowhere for his family of five? or shoudl stretch a little to afford a better positioned area to realise more CG in the long term with the 80% confidence that wages will increase over time and nullify any over-extension with the finances?

Again, nope. Living within your means basically suggests that you should be wary of using debt to supplement lifestyle options like plasma TVs and other doodads. If you're using debt to grow your financial prosperity and this is budgeted, then that is not breaking any of the living within your means rules. When you use debt to pull forward future income and end up paying interest on this debt then all you do is put your future lifestyle at risk. Eventually that debt comes due. Living within your means today allows you to pay yourself first by investing today so that you can improve your lifestyle options in the future significantly. i.e. delayed gratification. If you spend beyond your means today then there's a high price for that in the future. If you live within your means today then there's a high payoff for that in the future.

3. Budgeting

impossible in most self employed situations. store all your money like a squirrel in an offset account and live essentially.

Fair 'nuff. But I still reckon every person should have an idea of there obligated expenses beyond their business ones. Your business expenses are then built into your cost models around your projects and funded accordingly. I'm not self employed so budgeting is a critical element of my financial management system. I know exactly how much discretionary spend I have each month and how much is allocated to fixed expenses like insurance, fuel, groceries, house and car maintenance etc. Without a budget you run the risk of living beyond your means as you live hand to mouth on cashflow, never allowing for those future big expenses that occur regularly. I allocate a percent of my monthly income to all of those budgeted expenses and limit my discretionary spend each month to what's left. In fact, the bulk of my budgeted spend goes to servicing my investments. i.e. I'm paying myself (or more accurately my future self) first by living within my means, and I know exactly how much my current "means" are by virtue of my budget.

4. The power of compounding growth

amen to that.

Cool, got one at least!

Cheers,
Michael.

 

[islandgirl]

Like Robert Kiyosaki's Cashflow 101 game?

 

[travelbug]

Ditto!

That tipping point stuff was a bit heavy for this forum even and is definately overkill for Yes2. It should start with the basics. Some of these as I see it include:

1. Pay yourself first
2. Live within your means
3. Budgeting
4. The power of compounding growth
.

I've got to agree with that.

Saddly there are many adults that don't know these basic rules. I work with people on a decent wage that complain about the things they can't afford while spending $50 on each kid for Easter presents.
Each to their own I guess. But don't whinge about not having money.

I just read "What I didn't learn at school but wish I had". Jamie McIntyre.

Great reading and an excellent chart on compounding interest showing different scenarios.

 

[redwing]

*BUMP*

How is it all going James?

 

[JamesGG]

*BUMP*

How is it all going James?

It's not, at the moment. Something broke the site, which didn't help, but both Shonnie and I are focused on running other projects at the moment.

That said, resurrecting and finishing the site is fairly high on my list of things to do, so hopefully we'll start promoting it properly soon.

Also, ignore any talk in previous posts about it being a profit-making venture. I'm just looking to help a few kids learn about this stuff.

 

[BayView]

For your information:
The ANZ Bank together with the CPA have been running Money Minded Seminars free of charge to any group that request them, for the past couple of years, this is all part of the previous Federal Govt financial literacy program.

All we need now is for it to be advertised on Channel 10 from 4-8pm every add break, every day for 365 days per year like the KFC/Maccas/Hungry Jacks/Pizza Hut/Subway ads.

I'd LOVE to see that.