Curated by the Knowledge Team of ICS Career GPS
Education
Money mistakes you may be teaching your children
Excerpts from article by Caroline Bologna, published in The Huffington Post.
Managing money can be very complicated and difficult for adults. But what parents may not realise is that the decisions they make can have a big impact on their children’s relationship with finances.
“Children observe and soak up everything, including how you use and talk about money,” said money and budgeting expert Andrea Woroch. “In fact, family attitudes toward spending and saving and mom and dad’s financial habits directly shape how children will value their own money in the future.”
While children can absorb many beneficial financial lessons from their parents, they also tend to take in the less helpful ones. Let’s take a look at some of these:
1. Money is a taboo topic
“There’s a taboo out there that talking about money is bad, especially if you’re in debt, and that it’s shameful,” said Woroch. “When you don’t talk about money in your own household because you don’t want your kids to worry or because you don’t think it’s important that they are involved, you restrict their opportunity for learning valuable money lessons.”
Tim Sheehan, co-founder and CEO of a family-focused financial literacy app says parents can start by helping their kids learn the ropes of decision-making. “Start small by explaining why you choose to spend money on groceries instead of takeout.”
2. Money is always around
Experts emphasise the importance of helping kids understand that people earn money from work and that it doesn’t simply “grow on trees.”
“It can start with something as simple as a chore,” Sheehan said. “This helps kids make the connection that, ‘If I do this work, then I’ll earn money.’ Then, kids can set a saving goal and work towards it. It teaches them about making real-world trade-off decisions.”
3. Financial literacy is a ‘grown-up thing’
In addition to not talking about money, many parents don’t let their children gain experience managing money. But there are countless age-appropriate ways for kids to learn financial literacy and practise these skills.
“Start a small business,” suggested financial expert Kim Kiyosaki. “It’s key to learn the language of money. Kids can learn things such as income and expenses, profit and loss, cash flow, inventory, marketing, and the value of their time. This is hands-on, and it’s fun. And the learning is tremendous.” She recommended businesses like mowing neighbors’ lawns, selling a product online, opening a lemonade stand, etc.
4. Money talk evokes negative emotions
“Children are wired to be attuned to the emotions of their caregivers, so they start to notice associations,” explains another expert. “They might notice if conversations about money seem to be tense or if their parents get upset and start talking about money when they ask for something.”
While money is understandably a source of anxiety for many people, it’s important to be aware of how it affects you emotionally and make purchases with that knowledge in mind. For parents, acknowledging and managing your emotions around finances can help you pass on healthier attitudes to your children.
5. Impulse buying is the norm
Woroch believes a big mistake parents make is giving in to their children’s desires for shiny new objects while running errands such as buying groceries together. “If you’re constantly buying your child a toy, you’re passing on the habit of impulse shopping,” she said. “Instead, think of this as a teaching moment. When my daughter asks for something new, I talk to her about why we went to the store in the first place and that toys were not on our shopping list.”
Another big part of financial literacy is teaching children the difference between needs and wants ― things like shelter and healthy food versus new toys and candy. In addition to talking about the difference, parents can model it.
7. Looking for cheaper alternatives isn’t worth it
Whether something is a want or a need, odds are there are ways to get it for a lower price. At the very least, it’s worth checking. This is a lesson Woroch believes many parents are missing the opportunity to teach.
“Guide your children to make savvier shopping decisions, such as shopping at a local consignment store for a coveted pair of jeans to make them more affordable,” she advised, adding that kids and teens can also learn to look for coupons or discount codes online.
8. Your financial situation is fixed
“Families who are on a tight budget may talk about what they can’t afford often instead of trying to figure out how they can afford it,” Woroch said. “This limiting view gets passed down to children who may feel like they too are stuck in the income they earn and never break the rut. There are so many opportunities to earn more money, like taking on a side hustle.”
9. Credit cards are bad
Woroch said a money mistake many parents make is “telling their high school or soon-to-be college students that credit cards are evil.” Instead, she recommended parents teach their children how to use credit cards wisely to build credit. “In fact, you can get your child a card with a small balance and have them help you manage the account every month so they understand why paying the bill in full and on time is important,” she explained.
10. Saving is everything
While the importance of saving, rather than constantly spending, is a good lesson for kids, parent shouldn’t drill it in as the only thing to do with one’s funds. “The average interest rate today for a savings account is not great. In my parents’ time they could save their way to retirement. Not today,” said Kiyosaki. “Instead of saving money, why not teach our kids how to grow the money they make by investing their money? Having their money work for them.”
She advised teaching kids about stocks and mutual funds, but also other ways to grow their money like starting a small business. Investing a small amount of money also offers kids the opportunity to learn by trial and error.
Career
Digital Careers Ahead: Why should techies have all the fun with AI?
Excerpts from article by Joe McKendrick, published in The Forbes
It’s not just technical folks who can benefit from building up their artificial intelligence skills. The opportunities abound across the employment spectrum — and this is readily apparent to those deeply immersed in the AI space.
Frankie Russo, founder and CEO of 360°ia, says career growth will be promising for those who can apply a deep, working knowledge of AI with business skills. “Product managers and business analysts who have a vision of what their product or products should do, how it should behave, and how to monetise it will rise to the top, in bringing in-house products from conception to reality.”
Demand in Finance & HR
This will be part of the demand for non-tech professionals who understand the power of AI. “Financial industry firms will likely shift towards more advanced augmented intelligence, with tools that learn from interactions with humans and help humans make decisions,” he says.
“In HR, agencies and in-house HR departments will entrust more and more to digital applicant screening through capabilities assessments, reskilling opportunities, experience reapplication and statistical modeling of educational, emotional, and psychological makeup aligned with job profiles and models of successful applicants.”
Just as every company is now a software company in some way or the other, every employee may now be required to be a software specialist to some degree. “I’m not entirely sure there are many truly non-technical jobs left in our economy,” says Dr. George M. Marakas, professor of information systems and business analytics at Florida International University. “Regardless of focus, job concentrations are making use of technology to either enhance labour through decision support or to replace labor entirely. The disruption of equilibrium in the so-called non-technical job areas like marketing or sales is well underway. The advancement of robotics, AI, and machine learning have permeated every corner of the workforce.”
Non-tech roles also demand digital literacy
AI and digitisation will play a role in the growth of many job categories, with many new opportunities being created. Krishnan Ramanujam, president and head of business and technology services for Tata Consultancy Services, notes that technology will favour those who can employ it to “deliver enhanced customer experience, enable real-time decision making with business insights at scale. “Digital technologies are set to be embedded in every role and job function, demanding a greater degree of digital literacy even in non-tech roles. For example, robotic surgeries and assessments, remote medicine will further evolve and become mainstream in healthcare.”
9 in 10 jobs will need digital skills
Over the coming decade, nine in 10 jobs will require digital skills, but only five percent of jobs will actually be eliminated, Ramanujam observes, citing data from the World Economic Forum. “New roles may emerge that are more adapted to the new division of labour between humans, machines and algorithms,” he points out.
“As a result of technology-led changes and the current pandemic leading to contactless distributed working, we can expect not only role changes but significant changes in culture and operating models. This will lead to employee wellness, behavioural science, culture, feedback, diversity, inclusion, and collaboration to become even more important than before.”
Examples of non-technical business roles can be seen in the ways “programmatic advertising is changing traditional media buying practices followed by marketing,” he illustrates. In HR, “AI-based chat bots have redefined employee engagement and bias in recruitment processes is being countered with the use of AI.” In finance, “AI is driving credit and procurement decisions, intelligent demand and supply forecasting as well as predictability of cash flows.”
Digital transformation leading to entrepreneurial path
Along with job categories being created within organisations, AI and digital transformation will further open up paths to self-initiative. The entrepreneurial path is “uber important,” Russo says. “This is not going to change because the DNA of even the most progressive corporations is not to be disrupters or truly innovative the way entrepreneurs are capable of being. Disruptors are not CIOs of Fortune 500 companies — they are creative entrepreneurs pushing the envelope because they can afford to do just that.”
Ramanujam agrees, noting that “the new economic order will see further acceleration in efforts to augment existing digital ecosystems and build new ones.
Still, not everyone, no matter how digital-savvy, is cut out to be an entrepreneur. “Collaboration and teamwork are the order of the day here,” says Marakas. If you are not ready to have your vision and perspective challenged, then your path will be a difficult one.
(Disclaimer: The opinions expressed in the article mentioned above are those of the author(s). They do not purport to reflect the opinions or views of ICS Career GPS or its staff.)
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