Do early math and reading skills add up to bigger paychecks later?

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By Miami Herald, adapted by Newsela staff 10.22.13bcms1020

Internet developer Rudo Boothe and his daughter are very into shapes and word association games these days.

Together, they count down along with the microwave timer. When they go to the grocery store, they add up the cans of tomato sauce in the supermarket cart. Boothe's daughter may be just 19 months old. But he believes it's not too early to introduce educational ideas to her at every turn.

My attempt is to make numbers very important, said Boothe. The Florida man says his professional success anyones professional success, actually is due to learning to read and perform basic math at age 4.

Greatness is the objective," he said. He wants his daughter to be amazing "at age 7.

Do The Math, Early

Boothe may seem like the kind of super competitive parent who wants his child to learn to read before her classmates. Instead, he is investing in his childs future ability to make money at least if you believe researchers at the University of Edinburgh in Scotland.

They say that increased reading and math ability at age 7 means bigger paychecks later in life. And those educational skills better predict future income than even factors like intelligence, education, and family wealth.

American educators agree that early childhood education is critical for a lifetime of success. But they say that other factors shouldn't be discounted.

Good things happen to children who are able to read better at age 7, said Timothy Bates, a University of Edinburgh psychology professor. By adulthood they "are earning significantly more.

How much more? An increase of a single reading level at age 7, for example, meant an extra $8,000 more per year at age 45. Bates studied 17,000 people in the United Kingdom for four decades. Youngsters who were better at reading and math had higher incomes, better housing and better jobs in adulthood.

This held true even compared to people who were more intelligent or had richer parents, but read or performed math at lower levels.

Reading Too Much Into It?

Bates also said that here in the United States, wed see the same effect, only stronger. The United States is a merit-based system, where effort and hard work are rewarded.

The findings mean that basic educational skills will be important throughout a person's life. This is independent of how smart you are, how long you stay in school or how much money your parents have, Bates said.

Hold it right there, say a chorus of U.S. educators. They agree that early learning is critical to career success. They also say that early learning produces kindergarten-ready kids who become career-ready adults when they get older. But the U.S. educators also point out that the amount of money a child's family has most certainly affects the outcome.

For starters, only 40 percent to 55 percent of American children attend high quality pre-kindergarten programs, said Libby Doggett who works on policy and early learning for the U.S. Department of Education.

Kids learn the basics of reading and math at those programs, of course. But they are also introduced to executive function skills -- such as motivation, persistence, and self-control -- that help people achieve goals. Executive function is also tied to future success.

Its not about ability, Doggett said. We create ability. And we create it early on.

Money Is A Big Factor, Many Say

The kids most likely to skip quality pre-K programs are you guessed it poor children, said Greg J. Duncan of the University of California-Irvine. This fact partly explains a gap in educational abilities. Between the national's richest 20 percent and the poorest 20 percent of kindergarten-age kids, there's a gap of about about 20 IQ points. The difference is 120 SAT points in reading and math skills.

Even worse, American schools fail to erase this gap between rich and poor, he said. Schools in low-income areas tend to have students with behavioral problems that slow down entire classes and families that move around more, he said.

Most of the gap comes from what goes on in the home, Duncan said. That doesn't mean intelligence plays no role, he said. "But much of the gaps are caused by differences in parenting practices.

Reading and math lessons are easily disguised as exciting activities, said Silvia P. Tarafa, principal of the Key Biscayne K-8 Center in Florida. Tarafa said parents can play a role in introducing educational activities into the daily routine. For example:

When parents read with their children, they should choose nonfiction books their children are interested in, such as sharks, cooking, outer space or dinosaurs. Likewise, bake cakes often, using the measuring cup and sticks of butter as tools to teach fractions. At the store, compare prices, and pay in cash in order to count your change. Show that four quarters make a dollar. And when they paint pictures, frame the masterpieces, which requires measuring the length, width and perimeter.

When a child hears an idea at an early age, Tarafa said, that child will make a connection" when a teacher introduces the same idea.

10-year-old entrepreneur launches own company from lemonade stand

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By Dallas Morning News, adapted by Newsela staff 05.22.15bcms1130

DALLAS For a young businesswoman still learning about finance, Mikaila Ulmer has made a pretty sweet deal for herself and her company.

Mikaila, 10, is chief executive of BeeSweet Lemonade, which she launched at age 4 1/2. She began the company after participating in a childrens business competition and in Lemonade Day, a national program that teaches children financial literacy by empowering them to open their own business.

BeeSweet has been so successful that Whole Foods, the upscale grocery store, is now carrying the drink. In March, Mikaila accepted a $60,000 investment offer from Daymond John on the television show "Shark Tank" in exchange for 25 percent of the company. The TV show matches aspiring company owners with successful businessmen and businesswomen who are looking to invest.

Not bad for any young business, much less one that started with a lemonade stand.

The 1 Million Lemonade-Stand Goal

Lemonade Day was created in 2007 by Michael Holthouse, co-founder of the Houston nonprofit organization Prepared 4 Life. The day is inspired by lessons he taught his young daughter when she set up her first lemonade stand.

Nationwide, more than 225,000 kids from pre-kindergarten through high school in 35 U.S. cities participated in last years Lemonade Day. Nearly 50 cities will take part this year. Organizers are aiming for an eventual goal of 1 million lemonade stands in 100 cities across America.

The second annual Lemonade Day Greater Dallas was held earlier this month.

Lemonade stands were expected "all across the city, Peggy Bessellieu said of event. She is the executive director of Lemonade Day Greater Dallas. Lemonade Day teaches youth about financial literacy and the value of a dollar and offers skills they need to become successful in all areas of their lives.

Careful Finances

For example, the kids have to learn how to figure their costs and budget for producing lemonade.

What Ive seen a lot of times when we sit down with these kids, they want to do organic lemons and they want to have fresh raspberries in there, Bessellieu said. Organic lemons cost more to buy because farmers grow fewer of them. When we put the numbers to it, they realize they would have to charge about $7 a glass to make a profit.

For Mikaila, the birth of BeeSweet came when she was 4.

Two events occurred at about the same time.

First, she got stung by two bees in one week. I hated the bees," Mikaila said. "I would freak out, but my parents they made me do some research on the bees and from that research, I found out how incredibly important bees were to our world.

Then, her great-grandmother sent Mikailas family a 1940s cookbook, which included a special recipe for flaxseed lemonade.

I decided to create a product that helped save the bees and use Great Granny Helens recipe as well, Mikaila said.

An Old Recipe Is New Again

Mikaila took some license by adjusting the formula to make it her own, said her father, Theo, whose official title at his daughters company is Chief Worker Bee. He added, She used the original recipe as the basis for the lemonade.

BeeSweets flavors include mint, iced tea and Prickly Pear. A ginger flavor was the idea of her 7-year-old brother Jacob, the top salesman at his sisters company.

Mikailas mother, DAndra, serves as Chief Marketing Bee.

Good Business Sense

Mikaila is the first to admit that shes still learning about finances.

When I first started BeeSweet, I had a little trace of finance, but I didnt know exactly what it was, she said. I had mentors along the way who helped me and I kept on learning, and Im still learning right now.

Her most influential adviser has been her dad, who has a finance and business background. Mikaila has had a bank account since she was in kindergarten.

Even when she was in kindergarten her parents tried to teach her good business sense, good judgment and social responsibility, Theo Ulmer said.

The three things I do with my money, even before I started with BeeSweet, was I give, save and I spend, Mikaila said. So I give to organizations that help the honeybees or to church. I also save for things that I may need in the future like college or fun things that may cost more money and I have to save up to get it, or I get to spend on fun things for me, my friends or my brother like arts and crafts and toys.

Back To The Bees

Her company also donates a portion of its profits to organizations fighting to protect bees.

One of the first lessons Mikaila learned from her parents was that to make lemonade, youre going to have to spend some money.

The first lesson is "you have to first have some money to start out, and if youre going to spend $20, you have to earn at least $21, Theo Ulmer said.

The $1 is called a profit, Mikaila chimed in.

Show him the money, and this football player will invest it

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By Sun-Sentinel, adapted by Newsela staff 10.29.14bcms1160

MIAMI Miami Dolphins wide receiver Brian Hartline has always been a numbers guy, on and off the football field.

Hartline studies profit margins, financial reports and investment risks with as much attention as he gives his passing routes.

The sixth-year pro from Ohio State is a careful investor and a rising businessman. He and a grade school buddy bought two convenience stores in his native Ohio, and Hartline has been known to pitch in there in the offseason waiting on customers and unpacking inventory.

I only invest if I really understand, Hartline said.

Money Management

In an era when many pro athletes blow their multimillion-dollar salaries, Hartline is a model for the National Football Leagues efforts to teach players to be financially responsible. The NFL and teams such as the Dolphins have developed programs to teach players about money management, from budgeting to running a business.

The league got aggressive about the topic after Sports Illustrated reported in 2009 that more than three-fourths of NFL players were bankrupt or in financial distress within two years of retiring.

Patrick Kerney, a retired Atlanta Falcons and Seattle Seahawks defensive end, is the NFLs vice president for player benefits. He thinks the Sports Illustrated numbers are exaggerated, but he sees the importance of training players to manage their money better.

The NFL will sponsor its first personal finance program for players and wives in March at either the University of Miami or UCLA, Kerney said. Participants will develop numerical tables, or spreadsheets, to calculate whether they can sustain their current lifestyles in the years ahead. For some players, the well is running dry before the guys thought it would, Kerney said.

Hartline is not one of them.

"I'm A Numbers Guy"

The Dolphins receiver says he has long tracked his expenses and spent less than he made long before he snagged his latest five-year contract. Hartline could make as much as $30.77 million under the deal. He gets a guaranteed $12.5 million even he gets released from the team.

He said, for example, that he didnt buy his million-dollar townhouse in Fort Lauderdale last year until he had sold his condo, enjoying, he said, a 30 percent profit.

Hartline does admit to splurging on a Ferrari. I like my toys, he said. But hes also been learning about investments so his money will last for years after he has left the football field.

Im a numbers guy, Hartline said. I try to read, to ask questions, to learn as much as possible.

As a child in Canton, Ohio, Hartline got a weeks worth of lunch money from his parents, and he learned to make it last. He got the businessmans bug from his dad, who owned a business.

Hartline has been a leader in taking the Dolphins money management classes, said Kaleb Thornhill, who teaches the classes.

Hes been a guy thirsty for knowledge, Thornhill said. He has done a tremendous job. He takes control of his finances.

Hartline has even passed on budgeting tips to Dolphins rookies during their required money management classes.

Saving And Investing

Thornhill recommends to first-year players that they save at least half of their salaries. A minimum NFL salary is $420,000, so that translates into saving more than $200,000. If they were to put that in an investment that earns an average of 6 percent a year, they would have more than $1.1 million in 30 years when they were in their early 50s.

But whats also important, both Thornhill and Hartline say, is that players know what they are investing in and dont have anyone signing for them. Several former or current NFL players in South Florida have ended up in court complaining of missing money or bad investments.

Hartline said he handles all of his own business decisions and that he spreads his investments out, including using mutual stock funds, investments that gather money from many investors to buy stocks. Experts recommend these types of investments.

Hartline's investments include what he hopes will be 10 or so convenience stores. So far, he and buddy Ramy Malka own two Smart Stop Drive-Thru convenience stores just outside Columbus, home of Hardlines alma mater, Ohio State.

"He's Really Business Savvy"

The stores are in large enclosed buildings where customers drive through and order snacks and drinks without leaving their cars.

Its really convenient, Malka said. It comes in real handy when its below zero.

Early on, Hartline said, we did it ourselves from waiting on customers to shelving merchandise to unloading trucks. We didnt have a payroll, he said. But that turned out to be a blessing. I learned the business by experience, he said.

Now they have four employees.

Hartline has been coming up with new products to stock and ways to improve service.

Hes really business savvy, Malka said. Hes not afraid to try new things.

In Cooper City, Florida, Hartline is a hero and role model to Aidan Pratt, 14, for consistently saving. Last football season, Aidan won $1,000 from BankUnited for his winning essay on the importance of saving for a rainy day. He got to meet Hartline, who promotes saving as part of kids learning about managing money.

Aidan said he followed his heros example. Its the only money I have ever won and I put it in a savings account, he said.