Tag Archives: learning

If it’s capitalism, why not teach financial literacy?

Even though I am the president of this pr firm, I will admit that, before opening this business, I had little practical knowledge about the business side of running a business.

And, although I know how to balance a checkbook and have enough money in accounts to keep things “in the black,” no elementary or high school course ever taught me “financial literacy.”

Oh sure, there were courses on things like making a budget or shopping for the best food bargains, but no one actually explained the nuts and bolts of capitalism and how it works.

And I know I am hardly alone.

As a result, the ins and outs of capitalism are left to the “experts” whose job, in part, is to “tell” us what to do. No one ever explained, for example, that this “credit rating” thing could actually ruin a business or someone’s chances of getting a loan, or a mortgage, or an apartment. People marry and have families, and no one explains that the way you deal with your finances can seriously affect your ability to have the home and the life you want.

We have to deal with capitalism every day, but, for most people, it’s a high concept that’s really fuzzy and seems unrelated to what we do.

Of course, there are some courses in college that can be taken, and sometimes, local government provides courses too.

I’m bringing this up now because we worked with the BrooklynSpeaks community groups a few years ago on the new deal that will bring the promised Atlantic Yards affordable housing online ten years earlier. People will be able to apply for the housing through a lottery system. (More on that here.)

What many people don’t know is that simply showing that you need the housing and can prove it – through providing tax returns, etc. – is not enough. You have to be able to show that your household is financially capable of paying the rent in a timely manner every month. And that requires that your household’s finances are in tip top shape. Of course, ironically, a large percentage of the people who really need this kind of housing won’t qualify because they are unaware of this requirement and, since they are often scrambling just to make ends meet, they simply haven’t focused on their own financial fitness as calculated by the “outside” world.

Some non-profits, like Brown Community Development Corporation, are trying to address this problem by holding sessions about the lottery, and these sessions include advice on getting finances in shape.

But it shouldn’t have to come to this. Why don’t we include financial literacy from elementary school through high school? Perhaps it’s because if people really understood capitalism, those in power would have to face an educated voter base who’d be less likely to stand for some of the financial shenanigans we’ve seen.

It still comes down to this: If we have to live in this world of capitalism, we need to understand it. That goes for everyone.

Then and Now: Home Ec

So, we’re trying something new on the LCG blog: an occasional piece which takes a subject and looks at it through my eyes (old person) and through the eyes of an LCG associate (young person). When we started looking at some of these subjects, it occurred to us that some of the concepts had changed radically – often, but not always, for the better – over the course of the last 40 years or so. We thought it might be interesting and fun to see what this clash of decades might produce.

 

Then (Linda Cronin-Gross)

 

Today, we’re tackling a subject that always used to make me shudder – Home Economics.

If you were a girl who went to school in the US during the 60’s and early to mid-70’s, you’ll know that those two words often struck fear and loathing in your heart. It meant sewing, and maybe cooking, as part of your high school curriculum.

Of course, Home Ec – short for Home Economics – was pretty much only the domain of girls. If you were a boy, you’d probably get some kind of woodworking or “shop” class. Because, you know, girls can’t understand things like saws and hammers. And manly men don’t need to know how to cook or sew; that’s what a wife is for, no?

I pretty much hated Home Ec, which was required in my all-girls high school. I remember making a Pepto Bismol-pink corduroy shift dress with matching beret. Unfortunately, I can still picture those items – ghastly.

Believe me, I would have much preferred making a birdhouse, but that kind of class simply wasn’t offered. At that time, it wasn’t unusual for this programmatic gender divide to exist.

Of course, it’s a good thing to know how to cook and sew, but no one was preparing us to be Vera Wangs or Julia Childs (or would that be Julia’s children?). Home Ec’s real objective was to prepare us girls for marriage.

I am happy to report that I never made another shift (the design world really should thank me), but did learn how to cook from my mother, whose father was a chef by profession.

But the idea of learning how to run a home, to be able to cook, sew and generally take care of daily chores is good one. Managing a home was quite a job back in the day when there were few modern appliances. When Home Ec was introduced, it was seen as a kind of science; in addition, many women were able to access college specifically because of the Home Ec track.

But as things evolved, both politically and scientifically, Home Ec sort of devolved into a training program for potential brides.

 

Now (Sonya Landau)

 

Unlike my counterpart, I never took the dreaded course, but it always seemed to me that the idea had potential. I was lucky enough to grow up with parents that taught me both how to cook and how to build stuff, and was the odd child who balanced tomboy tendencies with a desire to learn sewing and knitting (I treasured my dolls and toy cars equally). Again, I was privileged with the means and the personal drive to pursue learning about my chosen topics.

The part that always interested me about the class was the “Economics” in the title. Looking around at my generation, which graduated college just at the height of the Recession, I know I’m not the only one who would have benefited from financial literacy. As young adults, we are met with a barrage of predatory schemes from banks, credit card companies and others that are well aware we know next to nothing about money.

Our educational system does not place any emphasis on preparing us for adult life when we are released into the real world. That is equally true for those who continue to higher Ed and those who enter the workforce directly. Any tips on money management often come either from personal trial and error or as cautions from family and friends. Not only that, but few of us have even the smallest amount of knowledge about taxes. If we can’t make informed decisions about how to spend and save our budgets, we can’t expect for the decisions we make to be good ones. How can we make choices when we don’t know our options?

It’s no surprise that our country is renowned for its percentages of debt – credit card debt, student loan debt, payday loan debt, the list continues. Granted, most of that blame lies on the enormous corporations that regulate loans and influence tax codes, but a lot of this could be avoided if consumers (and students) had a better understanding of the ins and outs of the system.

Nor is it impossible to get this information across in an engaging and empowering way. Our new favorite show, John Oliver’s “Last Week Tonight,” has tackled issues like income inequality, wealth inequality, payday loans, student debt, and the IRS. He has garnered international attention and support for his well-researched, educational and entertaining programs.

Obviously, I don’t envy Linda her Pepto Bismol dress, and I don’t advocate a return of the ubiquitous class in the form of housewife training, but I do think that we could all benefit from a thorough education on actual home economic skills. Oh, and learning how to make something more than ramen and toast couldn’t hurt either.

Have an Intern You’re Not Paying? It’s Wage Theft.

When our economy began to tank sometime around 2007, and jobs became more and more scarce, there appeared an incredible spate of “internships.” I use those quotation marks because these “internships” – for all kinds of jobs, in both the corporate and non-profit sectors – were unpaid. I know many people, especially young people in their 20s, who took these internships because there were so few other, paying jobs. Even though our economy is doing better, this practice of non-paying internships continues.

Unless the internship is truly that – a position that is more about education, and that doesn’t take the place of “real” work or a “real” worker – not paying interns is wage theft, pure and simple. It shocks me that companies and organizations – especially ones who deem themselves “progressive” – could engage in such a sickening practice.

As a small business owner myself, I completely understand all of the stresses that come along with a bad economy, and keeping good staff and being able to pay them properly is a big concern. But even when we were in an economic crunch, we never, ever, had unpaid interns. I believe if you can’t afford to pay someone at least minimum wage – which in NY is now $8.75/hr – don’t hire interns. Simple.

Now, don’t get me wrong. There’s a place for unpaid internships, which provide a true learning experience for the intern.

But that’s not what’s going on here.

What seems to be happening is that we are turning the workplace into some kind of neo-feudalistic society (That’s a phrase coined in our office by Senior Account Executive Sonya Landau.). Or, if you prefer, a form of indentured servitude; not quite slavery, but sure feels close.

It’s gotten so bad, that there have been lawsuits filed by interns and a website, Intern Justice, that’s maintained to keep track of them all.

One notable case was brought by two Fox Searchlight interns, Eric Glatt and Alexander Footman, who worked on the movie “Black Swan.” According to the website ProPubica, the judge in that case, William H. Pauley III ruled in favor of the interns on June 11, 2013, arguing that, “the interns had essentially completed the work of paid employees – organizing filing cabinets, making photocopies, taking lunch orders, answering phones – and derived little educational benefit from the program, one of the criteria for unpaid internships under federal law. Pauley also ruled that the plaintiffs were employees and thus protected by minimum wage laws.” The case was so significant that it was also noted by the WageTheft website, which does, indeed, consider non-payment of interns, in most cases, to be wage theft.

ProPublica has also provided a run-down of the legalities involved in hiring interns in a piece titled, “When Is It OK to Not Pay an Intern?”

Bottom line: most of what passes for unpaid internships these days are, in fact, illegal wage thefts. If you are doing this, then you are a thief. Stop it.