Is College a Scam?

The media has been slowly drawing attention to the problems with our system of colleges and universities, and the question of whether students are being educated or scammed. Here's a video from the National Inflation Association that does a good job of spelling out just what's going on in both higher education and our government. You might not agree with all of it but it will give you a lot of food for thought.

Teens' Unemployment Rate Now 25%

Working teens get an education that they could never receive at school or home. They learn a variety of skills in addition to working for someone besides their parents. The pay is just a bonus. All teens should work.

But it's getting harder for them to find jobs. A recent study found that 1/4 of today's teens ages 16-19 can't find work. This is a shame, as they're missing out on learning so many things that they'll need to know as adults.

If your teen can't find a job, encourage him or her to create a job by finding unmet needs in your neighborhood. Many a teen has made good money by washing cars, walking dogs or watering gardens.

Takers or Makers?

In Thriving in the 21st Century, I ask the question, "Do you want your children to be producers or consumers?" This is a serious question. Given the changes in our economy, I think children trained to be producers will have the best chance of being able to support themselves as adults in the rapidly changing economy of the 21st century.

A recent article in The Wall Street Journal makes the same point, but gets very specific about why this concept is so important, and how our economy has been negatively affected by the shift from production to consumption. Instead of referring to producers and consumers, the author refers to "takers" and "makers," but the basic concept is the same: an economy that primarily consists of consumers is doomed.

Entrepreneurial Kids Finding Success

The high unemployment rate of the past few years has been particularly hard on teens, who are at the age where they're eager to get started on their working lives.

These teens decided to be proactive by starting their own businesses, and the results they've gotten will encourage your teens. Send them the article link; it may be just the inspiration needed to get going on a dream.

The Antidote to Unemployment

Unemployment rates continue to rise in all the largest American cities; the worst areas seem to be those hit hardest by the bursting of the housing bubble.

One of the best ways to counteract the loss of income due to losing your job is having a side business. Even a small regular income can make life much easier.

Do you have a side business? If not, why not start one and get your kids involved in it? It's a great way to prepare them for survival in a rapidly changing economy.

Real Wages Are Down

So we're off to a shaky start in 2011, with real wages down .5% last month. Actual wages remained the same, but thanks to inflation, higher consumer costs resulted in a decrease in real wages.

Two reminders here: wages are not increasing as they once were, and inflation is making it harder for people to stretch their dollars. This is why it's so important that we raise kids with money smarts. It's a life skill that's becoming more necessary all the time.

It's All About Jobs

The housing market has still not recovered. In fact, new home sales are at a 47-year low. Increasingly, the jobs situation is being blamed for the slow housing market. There are too many unemployed people; not only can they not buy houses, but their large numbers makes those who are employed afraid to buy houses, because they worry that they could be the next to lose their jobs.

This long stretch of unemployment is caused by more than just the poor economy. Many of the jobs have been lost to automation or off-shoring and aren't coming back. We can't tell our children to aim for a single career. They'll have to be versatile and self-reliant in order to support themselves.

The Jobs Situation Continues to Change

One morning this week, I heard a radio news report announcing that the government announced there was an increase in new jobs last month. Just as I was thinking, "They'll adjust those numbers downward in a few weeks like they always do," I happened to see this online: "Announced U.S. Job Cuts Rose 20% From Year Ago, Challenger Says."

Our job situation in the U.S. is so tenuous these days, with jobs being created and disappearing at a faster pace than ever. It's not like the old days, where a person held a job for 40 years with one company and retired with a gold watch and a nice pension. Our kids will work in a much different world than their parents or grandparents did. And we need to prepare them for that reality.

Book Update

Thriving in the 21st Century: Preparing Our Children For The New Economic Reality is at the printer; we're awaiting the delivery of proof copies this week. The book will be out in April!

Newbies to this site may not know that I began investigating the changes in the economy several years ago, when my husband's manufacturing-related business began slowing down due to increasing competition in his industry from China. Once I realized how much the economy was changing, I began to study how to prepare our children for a very different world of work than the one my generation had known; my study led me to write this book.

Here's the back cover copy for Thriving in the 21st Century:

Today’s children will reach adulthood in an economic environment unlike anything the world has ever seen. The 21st century global economy is powered by an increasing rate of technological change as well as growing foreign competition; both are contributing to the high U.S. unemployment rate and stagnating American wages. How can we as parents prepare our children for success in this growing maelstrom that many are now calling “the new normal”?

In Thriving in the 21st Century, Barbara Frank demonstrates that we must move beyond the common wisdom of the 20th century that emphasized a college diploma and lifelong employment with a large company as the only way to success. Instead, we need to set our children on a new path, one that will help them not just survive, but thrive in the 21st century.

In this book, you’ll learn:

• The Seven Strengths your child will need to prosper in the 21st century, why they’re needed and how you can develop them in your children
• The most efficient (and increasingly popular) way to give your child those Seven Strengths
• Why public education has failed to prepare our children for the 21st century
• How we can help our children become the lifelong learners needed in a rapidly changing global economy
• The surprising truth about today’s colleges and universities
• How economic change is affecting a variety of career areas, and which of them are projected to grow dramatically in the coming years.

This book is packed with ideas and resources for raising our children to become adults who respond proactively when faced with economic challenges, and who can prosper during times of great change. We can help our children reach young adulthood ready and able to tackle the future with all its challenges. And that, of course, is the key: we must prepare our children for the future…not the past.

I'll share more information as it becomes available. Keep an eye on this site!

Is Your Head in the Sand?

Sometimes it's easier to ignore something than to face the reality of it.

For example, there are all sorts of changes going on in our economy (and in the world) right now that are going to dramatically change the world of work. Yet many people are in denial, and would prefer to think about which movie will win an Academy Award, or which celebrity is pregnant, than what's going on in the world and how they can prepare their children for it.

But look at a string of charts like this one and you can't deny that change is in the air. While the comments surrounding these charts may be a bit alarmist, the fact is that we're in very unstable economic weather right now.

Add to that the fact that the rate of technological change is increasing, and it becomes clear that our children will not work in the same kind of world we've known. We have to prepare them for an uncertain future.

A House for the Price of a Car----Say What?

A recent article entitled "4 Bedrooms for the Price of 4 Wheels" is getting a lot of attention this week because it illustrates how low house prices have gotten in some areas of the country compared to the price of cars, which doesn't vary much geographically.

This story also illustrates the huge differences in how people in various parts of the country view this economy. If you live in an area where $40,000 is the going rate for a house, you've known about the economic difficulties we're having for quite some time. But if you live in an area where the average home price still tops $300,000, you may think of the recession as something that happened a few years ago and is long gone.

Nevertheless, the economic problems we have on a national level continue to cast a pall on our economic future. This is why it's so important to prepare your children for the new economy. Just because things are good where you live now doesn't mean they won't change, or that your children will stay in your area.

More Part-Time Jobs Being Created in the U.S.

Last week I posted about the low rate of full-time jobs being created in Britain; 97% of new jobs there are part-time.

Now a new study has found that 75% of the new jobs in the U.S. are part-time jobs. To make matters worse, only 5% of newly created jobs are considered high-wage ($17-$31 per hour) jobs. What does this mean for our kids? It means we had better prepare them for a world much different than the one we grew up in. My new book, Thriving in the 21st Century, explains just how to do that. Watch for it this spring!

Questioning the Need for a Degree

Questioning the need for everyone to earn a college degree in the new economy has hit the mainstream, with Harvard University's Graduate School of Education issuing a report stating that the push for "college for all" may actually hurt young people.

This contrasts strongly with President Barack Obama's 2009 State of the Union address, where he said:

...this country needs and values the talents of every American.  That is why we will provide the support necessary for you to complete college and meet a new goal:  by 2020, America will once again have the highest proportion of college graduates in the world.

So who's right? Parents need to do their research and also determine if their children are college material. Given the high (and rising) cost of college, the decision is more crucial than ever.

Less Work for More People?

Across the pond, 97% of recently created jobs were part-time jobs. Here in the U.S. we're seeing a decrease in working hours, too, although not that extreme. Not yet, anyway.

Some believe this is just the beginning. Years ago, Jeremy Rifkin's The End of Work predicted this would happen. No one knows for sure what the future holds, but playing it safe seems prudent. If we teach our kids to handle money wisely and carefully, they'll be able to handle life on a small salary better than those who aren't taught to stretch a buck.

What Do Your Kids Love to Do?

What do your kids love to do? What are their interests, their passions? It's likely that doing the things they're good at could be the key to their future employment.

Sir Ken Robinson is a creativity expert who has studied successful, creative people. In his book The Element, he addresses the issue of helping kids find their talents and passions:

The only way to prepare for the future is to make the most out of ourselves on the assumption that doing so will make us as flexible and productive as possible…..

Many people set aside their passions to pursue things they don’t care about for the sake of financial security. The fact is, though, that the job you took because it “pays the bills” could easily move offshore in the coming decade. If you have never learned to think creatively and to explore your true capacity, what will you do then?

More specifically, what will our children do if we continue to prepare them for life using the old models of education? It’s very possible that our children will have multiple careers over the course of their working lives, not simply multiple jobs. Many of them will certainly have jobs we haven’t conceived yet. Isn’t it therefore our obligation to encourage them to explore as many avenues as possible with an eye toward discovering their true talents and their true passions?

How do we, as parents, encourage our children to develop their talents and passions? By helping them when they ask for it, and then getting out of their way. Given the opportunity, young people can find their passions on their own.
 

More College Grads are Looking for Work

According to the Bureau of Labor Statistics, the unemployment rate among college graduates is the highest it's been since 1970.

Traditionally, blue collar workers suffered most from layoffs and cutbacks during recessions. But this recession is different, and unemployed college grads are being blamed for driving the unemployment rate up higher than normal.

Some say our current situation is the new normal. Let's hope not. But unless you have pots of money or a highly motivated smart kid, you may want to rethink going along with the popular trend of "All kids must go to college."

Will Your Kids Earn Less Than You Do?

As we American workers compete in a global economy, it's only logical that wages will go down. After all, if your job pays $25 an hour and your competition in China is paid 32 cents an hour, you're eventually going to meet somewhere in the middle, which for you means your hourly wage will go down. It's happening already. Many people have seen their pay decrease, sometimes dramatically, over the past few years.

This means there's a good chance that your kids will someday make less than you do now. I could be wrong. But if you teach them how to handle money wisely and how to stretch a buck, they'll be prepared to handle low wages; if I'm wrong and they end up making high wages, they'll be able to save up a nice nest egg to take care of you in your old age.  :)

Multi-Generational Living is Back

We're seeing more and more articles like this one describing how multiple generations of families are moving in together because they can no longer afford to live separately. It reminds me of the stories I heard from my grandparents about the Great Depression.

Even today, some multi-generation households are forming because of the current economic situation we're experiencing in the U.S. But this trend also reflects a cultural change that's the result of too many people spending money they didn't have by overloading their credit cards and borrowing against their homes to pay for goodies they really couldn't afford. Now the chickens have come home to roost.....Mom and Dad's home.

If you don't want to find yourself someday living with "boomerang" adult children, make sure your kids grow up knowing how to support themselves, how to handle money wisely, and how to earn a living and live within its limits.

They won't learn this through osmosis; it's up to you to teach them.

Looking for Someone (Something) to Blame?

One of the biggest reasons that finding a job has become harder is that we now automate many jobs that were once held by human beings. Check out this article about how robots ensure that catalog companies ship your holiday orders in time. Back in the day, humans picked those orders, and maybe even earned overtime during the busy holiday season. But not anymore.

NOTE: I'll be taking the next 10 days off to spend time with my family over the holidays. Merry Christmas and Happy New Year! See you in 2011.

Making Sure Our Kids Will Have Options...and Hope

Just watched the heartbreaking PBS special "Close to Home" (watch free here), which describes what people are going through in this recession.

Especially striking is the fact that most of the people looking for work are looking to work for someone else, yet sending out hundred of resumes with no luck. The only person with some semblance of security (albeit reduced, thanks to the poor financial shape of her customers) is the person who is self-employed.

It's sad to see people without hope. When you rely on others (employers, the government), you have that sinking sense of having no control over your situation. Those who aren't afraid to try self-employment (admittedly a scary proposition after 20 or 30 years of working for others) are the ones who still have options, and hope. We need to plant the idea of self-employment in our kids' heads so they'll always understand that they have that option!