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Money Sanity Solutions: A Blueprint for

Multigenerational Engagement

September 10, 2013 Nathan Dungan

ShareSaveSpend.com

“We want to be more proactive in talking &

teaching about money, but we don’t know where to start or what to say.”

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Goals for Today •  Provide new insights and ideas

•  Make the case: why it’s essential to invest time and energy talking about money

•  Inspire and motivate: where to start and what to say – small steps

QUESTIONS TO CONTEMPLATE

•  Where do families go to learn healthy money habits?

•  What are you doing to engage, educate & equip family members for present/future financial opportunities & responsibilities?

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72 Hour Challenge    

What 1 or 2 actions will you take as a result of

today’s session?              

MONEY TALK What did you learn in school

about sharing, saving, and spending your money?

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How much time & energy are you investing in issues of

interaction?

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SHARE SAVE SPEND MISSION

Help individuals and families develop healthy money habits

that link to their values

Macro Stats to Consider

•  Total US student loan debt now exceeds $1 trillion (Federal Reserve)

•  Teens in North America spend $100 billion/year (MTV)

•  84% of undergrads admit the need for more financial education (Sallie Mae)

•  39% of millennials expect to work indefinitely and won’t have enough money to retire (Financial Times)

•  Youth & adults experience 5,000 advertising impressions per day (Yankelovich)

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A “Magical” Experience

DISNEY: A BRACELET MEANT TO BUILD LOYALTY

•  MyMagic+ allows Disney to track visitor behavior and purchases

•  Visitors wear rubber bracelets encoded with credit card information

•  Personalized interaction with Disney employees. Cinderella will know your name.

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FROM CASH TO PLASTIC TO CELL

TOP STRESSORS OF US ADULTS Money Work

The Economy Family Responsibilities

Relationships Personal Health Concerns

Housing Costs Job Stability

Health Problems Affecting Family Personal Safety

American Psychological Assoc – Stress in America

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THE PREFRONTAL CORTEX

•  CEO of the brain

•  Responsible for cognitive analysis and abstract thought

•  Takes in information from all of the senses; orchestrates thoughts & actions to achieve goals

•  Brain development is not complete until age 25; prefrontal cortex develops last

THE PREFRONTAL CORTEX

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•  Focusing attention •  Organizing thoughts and problem solving •  Foreseeing and weighing possible consequences of behavior •  Impulse control and delaying gratification •  Inhibiting inappropriate behavior and initiating appropriate behavior •  Simultaneously considering multiple streams of data when faced with complex issues/situations

THE PREFRONTAL CORTEX AND MONEY HABITS

Urban Institute: Lost Generations? Wealth Building Among Young Americans

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ONE FAMILY’S MONEY JOURNEY

Conundrum: how to effectively engage, educate & equip family members for

current & future financial opportunities & responsibilities

( a.k.a.: double finger cross)

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ONE FAMILY’S MONEY JOURNEY GETTING STARTED

•  Articulate ideal scenario outcomes

•  Take a “pulse read” on past/current efforts

•  Take control of your money narrative    

YOUR MONEY NARRATIVE

Shaped by: Past/Future Events

People Stories Values

Vocabulary Actions

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MONEY TALK WHO SHAPED YOUR MONEY

NARRATIVE?

ONE FAMILY’S MONEY JOURNEY GETTING STARTED

•  Articulate ideal scenario outcomes

•  Take a “pulse read” on past/current efforts

•  Take control of your money narrative

•  Curate meaningful learning experiences – via actionable experiments    

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ACTIONABLE EXPERIMENTS

•  Values-based allowances (Share Save Spend) •  Family mission statements •  Annual gifting •  Personal finance training: one-to-one coaching •  Family meetings (combine interaction & transaction) •  Share checks •  Share trips •  Build entrepreneurial accumen

COMMUNICATING ABOUT $

Silence Sane Middle Loud Voices

�-----------------------------------------------------� !!!

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When you consider your family of origin, where

were/are they on the “talk about money” continuum?

MONEY TALK

Healthy Money Habits Begin with a Conversation

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RESOURCES FOR THE JOURNEY

E3 METHODOLOGY Engage Educate Equip

Current & Future Generations

 

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GOAL: HELP YOU BE PROACTIVE

Springboard for Dialogue

Develop a Common Money Vocabulary

Demystify Various Money Topics

Infuse Your Values into the Conversation

Build Healthy Money Habits via Action

   

IT WORKS!

Financial Sanity Research Results* Three significant findings from 18 month study:

1.  Youth spending less;

2.  Parents reported an increase in communication;

3.  Youth, who identified as spenders, realized a significant decrease in materialism and significant increase in self-esteem.

* As published in Motivation and Emotion (August 2013)

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I hear and I forget. I see and I remember. I do and I understand.

Chinese Proverb