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Why it just makes ‘cents’ to know your financial ABCs early in life – let our expert explain.

Managing money, understanding interest and how to avoid debt – all these elements make up some of the very basics of financial literacy.  However, despite a humming economy and record low unemployment, more and more Americans are falling deeper into debt. Just recently, CBS News reported that roughly 4 in 10 Americans can’t cover an unexpected bill of 400 dollars. Something desperately needs to be done about not just how we are handling our money – but when we are taught the how banking, money and personal finances work. It’s a topic of concern and one that is gaining traction. Showbiz moguls Will Smith and Nas invested in a financial literacy app for teens (see attached article). The issue is finally on the radar of leaders in Washington and throughout the country as well, with 19 states now requiring financial education to graduate, according to the Council for Economic Education, up from 13 in 2011. Can these efforts make a real impact and reverse the tide of financial illiteracy? How did America get to this point? Is this about our spending habits and access to credit or a lack of education? And if we don’t correct the curse – what could it mean for our economy? There are a lot of questions and that’s where our experts can help! Professor Jonathan Clarke is an award-winning teacher and researcher in the fields of investment banking, finance and analysis. Clarke created a personal finance course that is offered to all Georgia Tech students that provides the importance of budgeting, basics of credit, as well as more advanced financial topics such as investing and trading. He’s an expert in the field and is available to speak with media about economics and the importance of financial literacy – simply click on his icon to arrange an interview. He has also developed a one-week summer course for high school students – Wall Street on West Peachtree and annually assists the Boy Scouts with obtaining their finance badge.

College readiness: Why it’s time to turn the page on one-off developmental courses

With summer officially here, millions of recent high school graduates and adult learners alike are preparing for college this fall. Unfortunately, a large percentage of them need developmental courses in order to advance, and many of those students will drop out within their first year—victims of a college preparedness approach that is generally not working. While it is true that education provides one of the surest pathways to a better life, millions of individuals do not have the academic background, confidence, mindset, and study habits to succeed in postsecondary programs and achieve their career dreams. Underprepared students face serious hurdles when attempting to enroll in college, and often struggle with one or more of the following: Poor self-image, lack of confidence (and overconfidence), and undeveloped study skills Weak math skills and math phobia Poor writing/language skills Lack of preparation for rigorous reading of texts, analytical thinking, and problem-solving Despite the poor track record, an estimated $7 billion is spent annually on traditional remedial education by students and institutions. According to research, 68 percent of community college students and 40 percent of public four-year college students take at least one developmental course, and among them less than 10 percent of two-year students graduate within three years, and only 35 percent of four-year students graduate within six years. Solutions exist, according Pat Partridge, president of WGU Academy—an independent nonprofit entity established by Western Governors University (WGU) to help solve the growing college-readiness gap. He suggests that for college readiness to be effective, programs must incorporate noncognitive personal competencies. “The Academy’s approach is based on the premise that to make college-readiness effective we must address the whole person rather than just getting them through one-off math or English courses to satisfy admissions requirements. Our two-pronged approach to preparing students—focused on academic coursework and noncognitive personal skills—is challenging traditional thinking paradigms that are not working well. The program is designed to be transformative for students who need confidence and persistence, social and emotional learning skills, and customized support to position them for long-term academic and career success.” Studies show that students and families pay an extra $3,000 on skills and content they should have learned in high school—a hefty price for courses that typically offer no transferable credits. Partridge suggests that programs like Academy—which uses an online, competency-based learning model similar to WGU’s—can change that by offering a scalable, replicable solution. WGU Academy students pay $150 per month, and most enrollees should finish the program in three to four months, or even less—making it a low-cost, low-risk solution. And the courses are ACE (American Council on Education) recommended, which hundreds of colleges and universities recognize. “The challenge is far larger than WGU alone can tackle, which is why Academy is designed to help serve hundreds of thousands of individuals who are not likely to attend WGU” Partridge noted. “We look forward to working with other entities that share the same mission to help individuals succeed in college and their careers—both recent high school grads and adults—by boosting completion rates.” WGU Academy’s first partnership is with tnAchieves in support of Tennessee’s flagship scholarship program that allows any resident without a postsecondary certification to attend community college tuition-free. WGU Academy, which launched May 1, 2019, already has more than 600 enrolled students. To speak with Partridge, contact WGU Academy’s PR Business Partner, Matt Griffin, at matt.griffin@wgu.edu or (615) 472-6056.

Banning single use plastics – grasping at political straws or a realistic first step toward a healthier planet?

There’s no question about it – our planet has a problem with plastic. Though simple, cheap, convenient and often necessary, the reality is single use and non-reusable plastics like straws, plastic bags, wrapping and most containers are causing problems. There’s no hiding or ignoring the evidence – plastic is everywhere from landfills, to our rivers and streams and even occupying its own land mass in the ocean.   Recently Canada proposed a ban on single use plastics to come in to effect in 2021. The country joined the likes of France, Germany, Italy, the U.K. and the European Union who are all implementing similar policies. The United States, however – has not. Here are some facts from the Center for Biological Diversity. Americans use 100 billion plastic bags a year, which require 12 million barrels of oil to manufacture. The average American family takes home almost 1,500 plastic shopping bags a year. According to Waste Management, only 1 percent of plastic bags are returned for recycling. That means that the average family only recycles 15 bags a year; the rest ends up in landfills as litter. Up to 80 percent of ocean plastic pollution enters the ocean from land. 100,000 marine animals are killed by plastic bags annually. One in three leatherback sea turtles have been found with plastic in their stomachs. Plastic bags are used for an average of 12 minutes. It takes 500 (or more) years for a plastic bag to degrade in a landfill. Unfortunately, the bags don't break down completely but instead photo-degrade, becoming microplastics that absorb toxins and continue to pollute the environment There is no doubt plastic is a serious problem in America – but will the country join in? What will it take from an industry point of view? Will costs outweigh the benefit? Is this a matter of regulation and do Americans have the appetite to make this a political issue? There are a lot of questions and that’s where our experts can help. Dr. Beril Toktay is Professor of Operations Management, Brady Family Chairholder and ADVANCE Professor at Georgia Tech’s Scheller College of Business. She’s the founding Faculty Director of the Ray C. Anderson Center for Sustainable Business. She’s an expert in the areas of sustainable operations and supply chain management, with a special focus on the circular economy.  Beril is available to speak about this issue with media – simply click on her icon to arrange an interview.

All the excitement and only a fraction of the money. Is FIFA off-side when it comes to pay parity between the sexes?

The world is watching and teams from all corners of the globe have descended on France for the 2019 Women’s World Cup. FIFA is making money hand over fist – but when it comes to funding and prizes between men and women – FIFA is coming up seriously short. In fact, men receive almost 10 times more money in prizes than women. Here’s a snapshot of the overall purse: $US400 million - what FIFA paid in prize money for the 2018 men's World Cup. $US30 million - what it's proposing to give teams at the 2019 Women's World Cup. It’s a stark difference – but why? Is this a matter of what the market can bare? Why do the women make only a fraction of their male counterparts? Is FIFA obligated to help develop women’s soccer? Or, does this system need to change and how does that happen? That’s where our experts can help. Professor Andrew Wonders joined the faculty of the School of Business Administration in 2013 following a 13-year career in the sport industry. His past experience includes working for Olympic organizing committees in Sydney and Salt Lake City and for the host broadcaster for the 2002 World Cup. Andrew is available to speak to this issue with media, simply click on his icon to arrange an interview today.

Do small businesses need to worry about the Canada Training Benefit?

The recent federal budget was supposed to be good news. The Canada Training Benefit would give workers money to help pay for training, provide income support during training, and offer job protection so that workers can take the time they need to keep their skills relevant and in-demand. Seems simple, but when you look deeper at the details – there may be some serious risks to small businesses in Canada. "Canada's skilled labour shortage is getting worse, and small firms are the hardest hit," CFIB president Dan Kelly. "Providing a training benefit to workers is a positive step, but the needs of employers need to be factored into the equation." Employers would be required to provide leave and job-protection to employees regardless of the type of training an employee wishes to pursue, such as Latin classes or interpretive dance.   The program, well-intentioned, will have an impact on small businesses in Ontario and across Canada with a lot of scenarios and aspects to consider! We have an expert who can help. Corey Houle, Principal at Freelandt Caldwell Reilly LLP, is an expert in the areas of small business strategy. Contact Corey to arrange an appointment regarding this topic by clicking the contact button below. Sources:

New book reveals how to successfully navigate the uncertainties that sink most startups

INDIANAPOLIS – Research shows that the majority of startups fail. Even more never get off the ground. So how do you avoid the pitfalls that come with navigating the uncertainties of a startup?   A new book entitled The Titanic Effect: Successfully Navigating the Uncertainties that Sink Most Startups, guides early-stage startups and their supporters through the challenges they will encounter as they begin building their venture. Startups are inherently uncertain. Decisions have to be made with incomplete information. These decisions result in unanticipated consequences –- problems that lurk beneath the surface.   The book draws on lessons learned from the Titanic, which sunk in 1912 not only because it hit an iceberg, but because of a number of decisions that interacted to create one of the largest maritime disasters. A series of trade-offs and choices in the design, building and operating of the Titanic magnified the catastrophic consequences.   Co-authors M. Kim Saxton, clinical professor of marketing at the IU Kelley School of Business, Todd Saxton, associate professor of entrepreneurship and strategy at the IU Kelley School of Business, along with serial entrepreneur Michael Cloran, who has founded multiple startups, leverage decades of startup experience to reveal the often-overlooked human, marketing and technical “hidden debts” that sink startups, while drawing parallels to little known parts of the original Titanic story. “The idea for this book came from a conversation about ‘technical debt,’ often used in a software development context, in which shortcuts taken early in a startup’s life limit potential later,” said Todd Saxton. “But this challenge isn’t unique to product development; it applies to other domains as well. That led us to broaden the idea to a more holistic one—That we call in our book ‘hidden debt,’ or debts that are beneath the surface but can limit growth or sink even the most promising startup.” “Most books about entrepreneurship and startups are ‘how-to’s,’ detailing all the things you have to do to succeed when creating your own venture. Our book tells you what not to do, and it shows you how to identify the potential issues that could keep you from being successful,” said Michael Cloran.   The Titanic Effect explains that taking on these hidden debts is inevitable, but startups must be careful to recognize that debt and take steps to mitigate the risks. “Over our more than 20 years of working with student, alumni and venture community startups—and helping launch and investing in them as well--we have seen the same patterns of mistakes repeated over and over again,” explained Kim Saxton. “We made a list of the most common startup mistakes, and that’s the main focus of this book. Our goal is to bring these so-called ‘icebergs’—or ‘debt-bergs,’ as we call them—out of hiding. Debt is not necessarily bad as long as you recognize, measure and manage it.”   “Entrepreneurs make a lot of decisions under uncertainty, and often, they don’t fully understand the consequences of those decisions,” Saxton added. “Each decision has the potential to either enable – or hamper – future potential. At best, the wrong decision could limit how the startup can grow. At worst, it could cause ventures to sink.” The Titanic Effect is available as an e-book and will be available June 2019 in print. For more information, head to the book’s website here.

Covering World No Tobacco Day – Let our experts help!

May 31 is the WHO’s World No Tobacco Day. And despite all the awareness campaigns, education and advice – people are still lighting up. In fact, according to the CDC: More than 16 million Americans are living with a disease caused by smoking. Cigarette smoking is responsible for more than 480,000 deaths per year in the United States, including more than 41,000 deaths resulting from second-hand smoke exposure. This is about one in five deaths annually, or 1,300 deaths every day. On average, smokers die 10 years earlier than non-smokers. If smoking continues at the current rate among U.S. youth, 5.6 million of today’s Americans younger than 18 years of age are expected to die prematurely from a smoking-related illness. This represents about one in every 13 Americans aged 17 years or younger who are alive today. With marketing toward youth increasing and e-cigarettes and vaping now a part of the mainstream – is the fight against big tobacco becoming even harder? There’s a lot there to cover and that’s where our experts can help. Dr. Martha Tingen is a behavioral nurse scientist targeting prevention of tobacco use in children. She is available to speak with media any time – simply click on her icon to arrange an interview.

What will the “new” NAFTA mean for business in Canada?

The "new" NAFTA - officially renamed as the Canada-United States-Mexico Agreement (CUSMA) in Canada, but is referred to as the United States-Mexico-Canada Agreement (USMCA) in the media - could be a benefit for businesses. While tariffs are being lifted and reduced trade talks thaw – it appears that the USMCA is a win/win/win for businesses on every side of the border. The new trade accord has free-trade when it comes to manufacturing, importing, exporting and resourcing. The USMCA sounds great, but will those rays reach areas like Northeastern Ontario? Will our resource and mining industries benefit? Also, what about our emerging technology sector? There is a lot to be figured out as this new trade deal goes through the approval process in Canada and America. Luckily, we have experts who can help! Marc Boivin, Manager at Freelandt Caldwell Reilly LLP, is an expert in the areas of organizational finance, assets acquisition, business valuation and transactions. Contact Marc to arrange an appointment regarding this topic by clicking the contact button below. Sources:

Hurricane Season Starts June 01 – Are We Ready?

It’s that time of year again … where the warm winds of summer bring us tropical storms and hurricanes. Forecasters looking at the 2019 Atlantic Hurricane Season are predicting a slower year. It looks like El Niño is currying favor and its cooling temperatures mean less frequency of storms. So far, experts expect 12 to 14 tropical cyclones this season. Of those, five to seven could become hurricanes and two to four are predicted to become major hurricanes. But as we’ve learned from the past, it takes only one storm to devastate an area. In a previous post, Michael Prietula was featured and lent his expertise to show how communities and governments need to be prepared. Michael J. Prietula (PhD, MPH) is Professor in the Goizueta Business School and a senior faculty member in Emory's Center for Neuropolicy. He is an expert in the areas of organizations is crisis and is an expert in preparedness. He is available to speak with media, simply click on his icon to arrange an interview.

Belief in the ‘Prosperity Gospel’ Does Not Turn People into Successful Entrepreneurs

But the belief that God financially rewards the faithful can fuel values linked to entrepreneurial thinking, Baylor University study finds Belief in the “Prosperity Gospel” — that God financially blesses faithful followers — does not turn individuals into successful entrepreneurs. But prosperity beliefs can fuel values linked to entrepreneurial thinking, such as power and achievement, according to a Baylor University study. However, researchers found no direct relationship between prosperity beliefs and willingness to take risks, and little connection to recognizing opportunities. Risk-taking and identifying opportunities are typical traits of entrepreneurs, according to the national study. “As revealed in our findings, a belief that God will provide financial benefit to the faithful is not enough to push someone to launch a business,” said lead author Kevin D. Dougherty, Ph.D., associate professor of sociology in Baylor’s College of Arts & Sciences. “The relationship between prosperity beliefs and starting a business is indirect and inconsistent.” The study — Prosperity Beliefs and Value Orientations: Fueling or Suppressing Entrepreneurial Activity” — is published in the Journal for the Scientific Study of Religion. For the study, researchers analyzed data from a nationally representative survey of 1,066 working adults. Their goal was to connect prosperity beliefs, human values, entrepreneurial attitudes and entrepreneurial action. They found that values — both by themselves and in conjunction with religious beliefs — are important predictors of how and whether individuals might launch a business. Participants responded to a three-item scale to measure beliefs that faith and faithful behavior lead to success at work and in business. The items included: “God promises that those who live out their faith will receive financial success;” “Believers who succeed in business are evidence of God’s promised blessing;” and “I believe faithful believers in God receive real financial benefits in this life.” Participants also responded to questions relating to The Theory of Basic Human Values, which recognizes such universal values as openness to change, achievement, security, power and benevolence. In general, “entrepreneurs tend to think differently than non-entrepreneurs, prizing achievement and self-direction while downplaying tradition and conformity,” said co-author Mitchell J. Neubert, Ph.D., professor of management in Baylor’s Hankamer School of Business. Value orientations of self-enhancement and openness to change are associated with recognizing opportunities and taking risks — entrepreneurial behaviors that correlate with creating new businesses. While prosperity beliefs by themselves show little direct impact on entrepreneurship, they do influence the impact of values and attitudes related to creating a business. Prosperity beliefs can strengthen the relationship between self-enhancement values and opportunity recognition, but they seem to reduce the relationship between openness to change and willingness to take risks. Another significant finding pertains to gender. Men and women who accept prosperity beliefs are no different in their willingness to take risks or start businesses, said co-author Jerry Z. Park, Ph.D., associate professor of sociology in Baylor’s College of Arts & Sciences. In general, risk-taking and business startups are more common among men. The study also shows that education and experience are key predictors of entrepreneurship, but those resources may be difficult to acquire for some prosperity believers because of social and economic circumstances. While individuals in that group have hope, it seems contingent on divine action rather than human action, Neubert said. “Can prosperity preachers Joel Osteen and T.D. Jakes save the U.S. economy? Probably not. But nor are they damning it,” Dougherty said. “The type of positive, self-help gospel they preach can enhance specific value orientations that are related to entrepreneurial thinking and entrepreneurial behavior.” *The research was supported by a National Science Foundation grant. ABOUT BAYLOR UNIVERSITY Baylor University is a private Christian University and a nationally ranked research institution. The University provides a vibrant campus community for more than 17,000 students by blending interdisciplinary research with an international reputation for educational excellence and a faculty commitment to teaching and scholarship. Chartered in 1845 by the Republic of Texas through the efforts of Baptist pioneers, Baylor is the oldest continually operating University in Texas. Located in Waco, Baylor welcomes students from all 50 states and more than 90 countries to study a broad range of degrees among its 12 nationally recognized academic divisions. ABOUT THE COLLEGE OF ARTS & SCIENCES AT BAYLOR UNIVERSITY The College of Arts & Sciences is Baylor University’s oldest and largest academic division, consisting of 25 academic departments and seven academic centers and institutes. The more than 5,000 courses taught in the College span topics from art and theatre to religion, philosophy, sociology and the natural sciences. Faculty conduct research around the world, and research on the undergraduate and graduate level is prevalent throughout all disciplines. Visit www.baylor.edu/artsandsciences.