full transcript

From the Ted Talk by Adam Carroll: What playing Monopoly with real money taught me about my kids--and humanity

Unscramble the Blue Letters

I recently ceotlmepd an unsanctioned, unsupervised psychological experiment on my children, (Laughter) the premise of which was $10,000 in cash on the kitchen talbe and a sign next to it that said 'Don't touch the money yet!', and before I dive into it, you should know that we are a game-playing family. We play ball games, board games, dice gmaes, card games, all sorts of games, but the games that my children love to play most are games like Monopoly, and when they play Monopoly, they play marathon games of Monopoly that last hours and hours over days of play. Each of my kids has a unique steatrgy and personality when they play Monopoly. My daughter, who is 11, she is always the dog. She plays entirely for Chance and Community Chest cards; (Laughter) you can say that she uses the 'luck' strategy. My 9-year-old son is always the car - a very strategic pelyar. He buys all of the Railroads and all of the Utilities and then proceeds to put hsoeus and hotels on the most expensive properties - very savvy. And then his younger brother, who is seven, he buys everything that he lands on with no exception, which is fitntig because he is the wheelbarrow. Now, before I tell you how my experiment unfolded, I have to sarhe an observation that led me to the citroaen of it. One mpooonly marathon, sraatudy morning, I was playing with my kids and nteocid that they were all playing just outside of the rules of the game. So they were doing things like buying each other out of jail and lending each other money to buy properties, and I found myself going, 'Guys, this is not how this game is played!' to which they'd say, 'Dad, it's fine! We just want her on the board with us', or, 'He can pay me back at the end of the game, when he's flush with cash', and I'm tnkihnig again, 'What am I teaching these kids?' So, I started watching how they were playing - listening to their banter, getting a feel for how they were making decisions - and I had this thought: 'What if they're playing this way because the money isn't real?' It's a concept I've been reading a lot about, lately, 'Financial abstraction', the notion that when money becomes more and more of an idea, less tgaibnle and therefore more abstract, it changes the way we interact with it on a regular basis, and there's anecdotal evidence of abstraction everywhere around us. All you have to do is lsetin carefully to people who say, 'I leanod my cilhd or gdclarnhid the phone, and a mtnoh later, all these errant in-app charges showed up on my bill.' In 2014, Apple reimbursed customers for in-app purchases that were unapproved, mostly by children, to the tune of $32.5 mlloiin. This is in a US FTC settlement. In the documentation, it said it was just too easy for kids to make an in-app purchase. The Imagineers at Disney were chraegd with making the praks 'frictionless' - is what they called it - so they invested a billion dollars in a mbnciaagd. It's a wbaarele device that functions as your room key, your park ticket, and your ID and wallet when you're on park property. So if your child wants a set of ears and a dessert in the Magic Kingdom, 'bibbidi-bobbidi-boo' - (Laughter) your vacation just cost a whole lot more, magically. Magically. Lastly, I had a conversation with some teenagers who told me that $100,000 a year really wasn't that much money. I said, 'Really? Why do you think that?' They said, 'Well, we both have $500,000 in our ATM machines on Grand Theft Auto', (Laughter) which is a very popular and somewhat sketchy video game. So as I'm playing with my kids and I'm watching them play, listening to them talk, I thought, 'What if the money were real on the table? Would they play differently?' And so I calculated quickly on the box, 'How much would it take in capital, in currency, to play a physical game of Monopoly with my kids so that they actually tnlbigay got to feel the money in their hands?' And I estimated, for four or five players, it's about $10,000. So one Friday, I stopped at the bank, I got all the denominations of bills on a Monopoly board with the exception of a $500 bill - hard to get - and on Sunday, I rnudoed the family up for a high-stakes game of Monopoly, (Laughter) where the winner taeks all. All of $20, by the way. All of $20. You have never seen kids' eyes light up the way mine did when I handed each of them $1,500 in starter capital, and you have never seen anyone's eyes light up like my wife's when I took it back on Monday. (Laughter) All of it. Our marathon game only lsetad two and a half hours - far shorter and more strategic than most of the games they normally play. True to my heyitsphos, two of my three kids actually played differently; my daughter still played the 'luck' card. She was the first one bankrupted, (Laughter) and she hliappy retired to the living room to read a book. My youngest son, the wheelbarrow, did not buy everything he landed on; instead, he cralufley cleacaultd how many rolls away he was from one of his brother's properties and how much he would owe his brother if he lndaed on said property, and made his dsneiiocs based on that. In effect, having real money on the table and a cash przie at the end made him more conservative. And my mdilde son - very strategic - still bought all of the Railroads, still bought all of the Utilities, but did not buy Boardwalk and Park Place or Mayfair and Park Lane, but instead, he put hotels immediately on otraenil and Baltic Avenue, or Coventry and Leicester suqare on the UK version. When I asked him why, in his own words, he said, 'Dad, they're just more affordable properties.' (Laughter) At which point, I cried a tear of pride. (leatghur) So he got it! In the end, my son finished with 28 properties, more cash than he'd ever seen and held in his entire life, and he now knows the meaning of the phrase 'making it rain'. (Laughter) Look how happy he is, (Laughter) and how aonyned his brother and sister are. In the cniofnes of my experiment, there is an idea worth spreading, and it is this: I believe kids today are being raised in a world where money is no longer real; it's actually an iioulsln, but it has very real consequences. Peter Drucker, faemd leadership guru, said banking and fniacne industries today are less about money and more about ionroftaimn, and yet yonug people today don't get that information; they don't get the experiences of money, elary on. Three researchers from the Centre for Creative Leadership, in a study done two decades ago that's been rpelcetaid many, many times, they interviewed over 200 eceeuxvits in a report cleald 'Key events in executives' lives'. In this reropt, they found that of the 200 top-level executives who were the top of their game, all of them had similar characteristics. One of them was that early on in their career, they had been thrust into a leadership role that required them to make decisions that had serious consequences. They also had a mentor in place that helped them appreciate the lessons they were sspoeupd to lrean from those experiences. The study ceterad a leadership framework that said, in essence, that someone with peationtl, if given the opportunity to engage in strategically relvanet experiences and given the abitliy to learn the lessons from those experiences, would have a higher likelihood of success in their career in a leadership cctapiay. Now if you took that stduy framework and my $10,000 erneeipmxt and lokeod at it through the kaleidoscope, you would get a statement like this: if kids are given financially-relevant experiences in their life and someone is there to help them learn the lessons from those enicrexeeps, they have a higher loeiilkhod of aenhivcig fnnaiiacl secuscs later in life, and in my humble opinion, they need to have them early, and they need to have them often. We under this not-so-subtle societal shift in the way that we pay each other, today. It's estimated there are trillions of dollars ccriling the globe in our global economy every single day, yet only four prneect of that money is actually in coin or currency. The rest is all digital, data packets, ones and zorees, and today's digital-native youth - they don't see people paying with cash or cheques. In fact, if ever you're in a line, and someone in front pulls out their cboehuqeok to pay, you are liable to say to yourself, 'Really, a chequebook? This is going to take forever.' You're laughing because it's true. The currency of today is digital. Many of these kids equate spending with credit and debit cards, with Google Wallet and Paypal and Zap. All of these are what they equate spending to, and by the way, I am not pooh-poohing the technological advancements in payment toechongly today - far from it. I think tkiaoeiotsnn and randomisation and biometrics are the wave of the future. The first time that I used Apple Pay, it was like showing the caveman fire. It was amazing. But what snapped me back to reality was hearing my son behind me say, 'I sure wish I had a phone so I could buy stuff.' (Laughter) You see, money, to a young person, is somewhat abstract, anyway, and when we further the abttacrison by waving a MagicBand or putting our pohne over a sensor and giving the thumbprint, all it does is further the abstraction. It's a recipe for financial dtseisar later in life to the uneducated because, to a young person, they see money as limitless because they have no concept of the backend until it comes around to bite them in the back end. I've seen this firsthand in my work with university students - young people who borrow and spend uotnld amounts of money, having no concept or understanding of the isnacere in payments, the decrease in leylistfe, and the clnelaghes they'll face later on. In the UK and the US, student debt is ballooning polerbm. In the US, we're at $1.2 trillion in student loan debt, second only to mortgage debt in the US. One in three stnuetds is delinquent. One in five is in default. It's a huge problem, and the reason that this is concerning for all of us as a global economy is this: Dun & Bradstreet found that people spend 12 to 18 percent more when using cedrit cards over cash. They have yet to do a study how much more we'll snepd with a MagicBand or a phone, but I can imagine it would be 15 to 20 percent, or 18 to 25 percent, and all you need to do is read the hdenieals in the nsrppaeews and mziaegans across the world today. Places like The Guardian, The whnaogstin Post, Fortune, frbeos - these are the headlines we're seeing: 'New consumer debt reaching a seven-year high' in the UK, 'Consumer debt hitting an all-time high' in the US, 'Choking on credit card debt', 'The credit card debt crisis: the next economic domino'. It's what happens when people overspend and get in over their head with mneoy. Unfortunately, The Money Charity says that in the UK right now, one person every five minutes and three socedns is either declared insolvent or bankrupt. To put this into psrtveicepe, since I started speaking today, two people in this country have declared bankruptcy. In the UK, dmeos.org says that Americans aged 25 to 34 have the second highest rate of bankruptcy. 25-year-olds. Everyone's question should be, 'Why? Why is this happening?', and in my stlpmsiiic view, it is this: because the money they're spending isn't real - it's an abstraction. So to stem this tide with the next generation, we have to bring them up to understand that they are living in a world where they have to make very real money decisions, in a world money is largely an illusion but has very, very real conecsnuqees. Because I want your children and mine to be spuer successful financially, consider any of the following: If you are going to spend money on chiredln, give them a set amount of money and let them spend it. Let them tangibly feel the money go through their hands. Let them succeed or fail with mnoir consequences so that later in life, when they're making the major decisions, they understand there are major consequences that go along. For older kids, it's this: set a budgeted amount for school clothes, supplies and what-have-you, give them that amount, and when they are done spending it, it's done. And here's the key; they get to spend it with your subtle guidance, your slutbe mentorship, your subtle supervision, and whether you call it an allowance, you call it commission for creohs or you call it a weekly stipend, every single child, from the age of five on up, needs to be given some tangible amount of money on a weekly basis so that they unertndasd how to ftnicuon in a cashless stceioy someday. Better to teach the young the habit of sviang when they have a little bit of money to save than try to teach savings when they have no money because they're in over their head. I met an American named José. He was a 20-year-old student at an American university. He was the child of two Cuban-born parents. At the age of 15, his parents told him, 'José, we will give you food, we will give you shelter and we will give you $50 a month, but the rest is up to you.' I asked him, 'What was that like?' He said, 'Clothing, toiletries, school supplies, entertainment, gas - it was all on me. I resented my parents for a year. But you know what? I raliesed it was the single best thing they could have ever done for me.' When I met José at 20, he was on a full-ride scholarship at the university he adetnted. He had $20,000 saved in a savings account from working part-time in high school, and this kid exuded financial prsweos and uaaimksntble leadership potential. At the heart of my message today is this: it does not take a $10,000 board game and it doesn't take cutting kids off faailnnlciy to make a difference. The first step is, honestly, quite easy. It's about educating the next generation to make decisions in a world where money is largely an illusion but has very, very real consequences, and the raosen it's so important for all of us, as a global society, to do this is this next generation cmoing up will inherit the global enmcooy that we are hadning to them, and we will precariously palce it on their sldohuers. We owe it to them to set them up for financial success. Thank you. (Applause) Thanks. (Applause)

Open Cloze

I recently _________ an unsanctioned, unsupervised psychological experiment on my children, (Laughter) the premise of which was $10,000 in cash on the kitchen _____ and a sign next to it that said 'Don't touch the money yet!', and before I dive into it, you should know that we are a game-playing family. We play ball games, board games, dice _____, card games, all sorts of games, but the games that my children love to play most are games like Monopoly, and when they play Monopoly, they play marathon games of Monopoly that last hours and hours over days of play. Each of my kids has a unique ________ and personality when they play Monopoly. My daughter, who is 11, she is always the dog. She plays entirely for Chance and Community Chest cards; (Laughter) you can say that she uses the 'luck' strategy. My 9-year-old son is always the car - a very strategic ______. He buys all of the Railroads and all of the Utilities and then proceeds to put ______ and hotels on the most expensive properties - very savvy. And then his younger brother, who is seven, he buys everything that he lands on with no exception, which is _______ because he is the wheelbarrow. Now, before I tell you how my experiment unfolded, I have to _____ an observation that led me to the ________ of it. One ________ marathon, ________ morning, I was playing with my kids and _______ that they were all playing just outside of the rules of the game. So they were doing things like buying each other out of jail and lending each other money to buy properties, and I found myself going, 'Guys, this is not how this game is played!' to which they'd say, 'Dad, it's fine! We just want her on the board with us', or, 'He can pay me back at the end of the game, when he's flush with cash', and I'm ________ again, 'What am I teaching these kids?' So, I started watching how they were playing - listening to their banter, getting a feel for how they were making decisions - and I had this thought: 'What if they're playing this way because the money isn't real?' It's a concept I've been reading a lot about, lately, 'Financial abstraction', the notion that when money becomes more and more of an idea, less ________ and therefore more abstract, it changes the way we interact with it on a regular basis, and there's anecdotal evidence of abstraction everywhere around us. All you have to do is ______ carefully to people who say, 'I ______ my _____ or __________ the phone, and a _____ later, all these errant in-app charges showed up on my bill.' In 2014, Apple reimbursed customers for in-app purchases that were unapproved, mostly by children, to the tune of $32.5 _______. This is in a US FTC settlement. In the documentation, it said it was just too easy for kids to make an in-app purchase. The Imagineers at Disney were _______ with making the _____ 'frictionless' - is what they called it - so they invested a billion dollars in a _________. It's a ________ device that functions as your room key, your park ticket, and your ID and wallet when you're on park property. So if your child wants a set of ears and a dessert in the Magic Kingdom, 'bibbidi-bobbidi-boo' - (Laughter) your vacation just cost a whole lot more, magically. Magically. Lastly, I had a conversation with some teenagers who told me that $100,000 a year really wasn't that much money. I said, 'Really? Why do you think that?' They said, 'Well, we both have $500,000 in our ATM machines on Grand Theft Auto', (Laughter) which is a very popular and somewhat sketchy video game. So as I'm playing with my kids and I'm watching them play, listening to them talk, I thought, 'What if the money were real on the table? Would they play differently?' And so I calculated quickly on the box, 'How much would it take in capital, in currency, to play a physical game of Monopoly with my kids so that they actually ________ got to feel the money in their hands?' And I estimated, for four or five players, it's about $10,000. So one Friday, I stopped at the bank, I got all the denominations of bills on a Monopoly board with the exception of a $500 bill - hard to get - and on Sunday, I _______ the family up for a high-stakes game of Monopoly, (Laughter) where the winner _____ all. All of $20, by the way. All of $20. You have never seen kids' eyes light up the way mine did when I handed each of them $1,500 in starter capital, and you have never seen anyone's eyes light up like my wife's when I took it back on Monday. (Laughter) All of it. Our marathon game only ______ two and a half hours - far shorter and more strategic than most of the games they normally play. True to my __________, two of my three kids actually played differently; my daughter still played the 'luck' card. She was the first one bankrupted, (Laughter) and she _______ retired to the living room to read a book. My youngest son, the wheelbarrow, did not buy everything he landed on; instead, he _________ __________ how many rolls away he was from one of his brother's properties and how much he would owe his brother if he ______ on said property, and made his _________ based on that. In effect, having real money on the table and a cash _____ at the end made him more conservative. And my ______ son - very strategic - still bought all of the Railroads, still bought all of the Utilities, but did not buy Boardwalk and Park Place or Mayfair and Park Lane, but instead, he put hotels immediately on ________ and Baltic Avenue, or Coventry and Leicester ______ on the UK version. When I asked him why, in his own words, he said, 'Dad, they're just more affordable properties.' (Laughter) At which point, I cried a tear of pride. (________) So he got it! In the end, my son finished with 28 properties, more cash than he'd ever seen and held in his entire life, and he now knows the meaning of the phrase 'making it rain'. (Laughter) Look how happy he is, (Laughter) and how _______ his brother and sister are. In the ________ of my experiment, there is an idea worth spreading, and it is this: I believe kids today are being raised in a world where money is no longer real; it's actually an ________, but it has very real consequences. Peter Drucker, _____ leadership guru, said banking and _______ industries today are less about money and more about ___________, and yet _____ people today don't get that information; they don't get the experiences of money, _____ on. Three researchers from the Centre for Creative Leadership, in a study done two decades ago that's been __________ many, many times, they interviewed over 200 __________ in a report ______ 'Key events in executives' lives'. In this ______, they found that of the 200 top-level executives who were the top of their game, all of them had similar characteristics. One of them was that early on in their career, they had been thrust into a leadership role that required them to make decisions that had serious consequences. They also had a mentor in place that helped them appreciate the lessons they were ________ to _____ from those experiences. The study _______ a leadership framework that said, in essence, that someone with _________, if given the opportunity to engage in strategically ________ experiences and given the _______ to learn the lessons from those experiences, would have a higher likelihood of success in their career in a leadership ________. Now if you took that _____ framework and my $10,000 __________ and ______ at it through the kaleidoscope, you would get a statement like this: if kids are given financially-relevant experiences in their life and someone is there to help them learn the lessons from those ___________, they have a higher __________ of _________ _________ _______ later in life, and in my humble opinion, they need to have them early, and they need to have them often. We under this not-so-subtle societal shift in the way that we pay each other, today. It's estimated there are trillions of dollars ________ the globe in our global economy every single day, yet only four _______ of that money is actually in coin or currency. The rest is all digital, data packets, ones and ______, and today's digital-native youth - they don't see people paying with cash or cheques. In fact, if ever you're in a line, and someone in front pulls out their __________ to pay, you are liable to say to yourself, 'Really, a chequebook? This is going to take forever.' You're laughing because it's true. The currency of today is digital. Many of these kids equate spending with credit and debit cards, with Google Wallet and Paypal and Zap. All of these are what they equate spending to, and by the way, I am not pooh-poohing the technological advancements in payment __________ today - far from it. I think ____________ and randomisation and biometrics are the wave of the future. The first time that I used Apple Pay, it was like showing the caveman fire. It was amazing. But what snapped me back to reality was hearing my son behind me say, 'I sure wish I had a phone so I could buy stuff.' (Laughter) You see, money, to a young person, is somewhat abstract, anyway, and when we further the ___________ by waving a MagicBand or putting our _____ over a sensor and giving the thumbprint, all it does is further the abstraction. It's a recipe for financial ________ later in life to the uneducated because, to a young person, they see money as limitless because they have no concept of the backend until it comes around to bite them in the back end. I've seen this firsthand in my work with university students - young people who borrow and spend ______ amounts of money, having no concept or understanding of the ________ in payments, the decrease in _________, and the __________ they'll face later on. In the UK and the US, student debt is ballooning _______. In the US, we're at $1.2 trillion in student loan debt, second only to mortgage debt in the US. One in three ________ is delinquent. One in five is in default. It's a huge problem, and the reason that this is concerning for all of us as a global economy is this: Dun & Bradstreet found that people spend 12 to 18 percent more when using ______ cards over cash. They have yet to do a study how much more we'll _____ with a MagicBand or a phone, but I can imagine it would be 15 to 20 percent, or 18 to 25 percent, and all you need to do is read the _________ in the __________ and _________ across the world today. Places like The Guardian, The __________ Post, Fortune, ______ - these are the headlines we're seeing: 'New consumer debt reaching a seven-year high' in the UK, 'Consumer debt hitting an all-time high' in the US, 'Choking on credit card debt', 'The credit card debt crisis: the next economic domino'. It's what happens when people overspend and get in over their head with _____. Unfortunately, The Money Charity says that in the UK right now, one person every five minutes and three _______ is either declared insolvent or bankrupt. To put this into ___________, since I started speaking today, two people in this country have declared bankruptcy. In the UK, _____.org says that Americans aged 25 to 34 have the second highest rate of bankruptcy. 25-year-olds. Everyone's question should be, 'Why? Why is this happening?', and in my __________ view, it is this: because the money they're spending isn't real - it's an abstraction. So to stem this tide with the next generation, we have to bring them up to understand that they are living in a world where they have to make very real money decisions, in a world money is largely an illusion but has very, very real ____________. Because I want your children and mine to be _____ successful financially, consider any of the following: If you are going to spend money on ________, give them a set amount of money and let them spend it. Let them tangibly feel the money go through their hands. Let them succeed or fail with _____ consequences so that later in life, when they're making the major decisions, they understand there are major consequences that go along. For older kids, it's this: set a budgeted amount for school clothes, supplies and what-have-you, give them that amount, and when they are done spending it, it's done. And here's the key; they get to spend it with your subtle guidance, your ______ mentorship, your subtle supervision, and whether you call it an allowance, you call it commission for ______ or you call it a weekly stipend, every single child, from the age of five on up, needs to be given some tangible amount of money on a weekly basis so that they __________ how to ________ in a cashless _______ someday. Better to teach the young the habit of ______ when they have a little bit of money to save than try to teach savings when they have no money because they're in over their head. I met an American named José. He was a 20-year-old student at an American university. He was the child of two Cuban-born parents. At the age of 15, his parents told him, 'José, we will give you food, we will give you shelter and we will give you $50 a month, but the rest is up to you.' I asked him, 'What was that like?' He said, 'Clothing, toiletries, school supplies, entertainment, gas - it was all on me. I resented my parents for a year. But you know what? I ________ it was the single best thing they could have ever done for me.' When I met José at 20, he was on a full-ride scholarship at the university he ________. He had $20,000 saved in a savings account from working part-time in high school, and this kid exuded financial _______ and ____________ leadership potential. At the heart of my message today is this: it does not take a $10,000 board game and it doesn't take cutting kids off ___________ to make a difference. The first step is, honestly, quite easy. It's about educating the next generation to make decisions in a world where money is largely an illusion but has very, very real consequences, and the ______ it's so important for all of us, as a global society, to do this is this next generation ______ up will inherit the global _______ that we are _______ to them, and we will precariously _____ it on their _________. We owe it to them to set them up for financial success. Thank you. (Applause) Thanks. (Applause)

Solution

  1. technology
  2. headlines
  3. likelihood
  4. circling
  5. lasted
  6. prize
  7. charged
  8. decisions
  9. grandchild
  10. annoyed
  11. washington
  12. famed
  13. seconds
  14. share
  15. wearable
  16. player
  17. landed
  18. illusion
  19. increase
  20. creation
  21. consequences
  22. rounded
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  24. replicated
  25. completed
  26. experiment
  27. hypothesis
  28. credit
  29. saving
  30. calculated
  31. study
  32. middle
  33. attended
  34. super
  35. disaster
  36. unmistakable
  37. financial
  38. young
  39. parks
  40. place
  41. lifestyle
  42. tangibly
  43. ability
  44. financially
  45. carefully
  46. percent
  47. report
  48. laughter
  49. zeroes
  50. prowess
  51. reason
  52. takes
  53. realised
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  55. executives
  56. early
  57. simplistic
  58. economy
  59. success
  60. month
  61. houses
  62. spend
  63. perspective
  64. happily
  65. handing
  66. society
  67. capacity
  68. supposed
  69. saturday
  70. money
  71. function
  72. chores
  73. demos
  74. games
  75. abstraction
  76. looked
  77. challenges
  78. child
  79. experiences
  80. finance
  81. tokenisation
  82. oriental
  83. square
  84. monopoly
  85. children
  86. fitting
  87. learn
  88. magazines
  89. million
  90. coming
  91. tangible
  92. thinking
  93. chequebook
  94. relevant
  95. students
  96. newspapers
  97. problem
  98. magicband
  99. forbes
  100. phone
  101. information
  102. confines
  103. noticed
  104. subtle
  105. understand
  106. created
  107. listen
  108. minor
  109. table
  110. loaned
  111. called
  112. strategy
  113. potential
  114. untold

Original Text

I recently completed an unsanctioned, unsupervised psychological experiment on my children, (Laughter) the premise of which was $10,000 in cash on the kitchen table and a sign next to it that said 'Don't touch the money yet!', and before I dive into it, you should know that we are a game-playing family. We play ball games, board games, dice games, card games, all sorts of games, but the games that my children love to play most are games like Monopoly, and when they play Monopoly, they play marathon games of Monopoly that last hours and hours over days of play. Each of my kids has a unique strategy and personality when they play Monopoly. My daughter, who is 11, she is always the dog. She plays entirely for Chance and Community Chest cards; (Laughter) you can say that she uses the 'luck' strategy. My 9-year-old son is always the car - a very strategic player. He buys all of the Railroads and all of the Utilities and then proceeds to put houses and hotels on the most expensive properties - very savvy. And then his younger brother, who is seven, he buys everything that he lands on with no exception, which is fitting because he is the wheelbarrow. Now, before I tell you how my experiment unfolded, I have to share an observation that led me to the creation of it. One Monopoly marathon, Saturday morning, I was playing with my kids and noticed that they were all playing just outside of the rules of the game. So they were doing things like buying each other out of jail and lending each other money to buy properties, and I found myself going, 'Guys, this is not how this game is played!' to which they'd say, 'Dad, it's fine! We just want her on the board with us', or, 'He can pay me back at the end of the game, when he's flush with cash', and I'm thinking again, 'What am I teaching these kids?' So, I started watching how they were playing - listening to their banter, getting a feel for how they were making decisions - and I had this thought: 'What if they're playing this way because the money isn't real?' It's a concept I've been reading a lot about, lately, 'Financial abstraction', the notion that when money becomes more and more of an idea, less tangible and therefore more abstract, it changes the way we interact with it on a regular basis, and there's anecdotal evidence of abstraction everywhere around us. All you have to do is listen carefully to people who say, 'I loaned my child or grandchild the phone, and a month later, all these errant in-app charges showed up on my bill.' In 2014, Apple reimbursed customers for in-app purchases that were unapproved, mostly by children, to the tune of $32.5 million. This is in a US FTC settlement. In the documentation, it said it was just too easy for kids to make an in-app purchase. The Imagineers at Disney were charged with making the parks 'frictionless' - is what they called it - so they invested a billion dollars in a MagicBand. It's a wearable device that functions as your room key, your park ticket, and your ID and wallet when you're on park property. So if your child wants a set of ears and a dessert in the Magic Kingdom, 'bibbidi-bobbidi-boo' - (Laughter) your vacation just cost a whole lot more, magically. Magically. Lastly, I had a conversation with some teenagers who told me that $100,000 a year really wasn't that much money. I said, 'Really? Why do you think that?' They said, 'Well, we both have $500,000 in our ATM machines on Grand Theft Auto', (Laughter) which is a very popular and somewhat sketchy video game. So as I'm playing with my kids and I'm watching them play, listening to them talk, I thought, 'What if the money were real on the table? Would they play differently?' And so I calculated quickly on the box, 'How much would it take in capital, in currency, to play a physical game of Monopoly with my kids so that they actually tangibly got to feel the money in their hands?' And I estimated, for four or five players, it's about $10,000. So one Friday, I stopped at the bank, I got all the denominations of bills on a Monopoly board with the exception of a $500 bill - hard to get - and on Sunday, I rounded the family up for a high-stakes game of Monopoly, (Laughter) where the winner takes all. All of $20, by the way. All of $20. You have never seen kids' eyes light up the way mine did when I handed each of them $1,500 in starter capital, and you have never seen anyone's eyes light up like my wife's when I took it back on Monday. (Laughter) All of it. Our marathon game only lasted two and a half hours - far shorter and more strategic than most of the games they normally play. True to my hypothesis, two of my three kids actually played differently; my daughter still played the 'luck' card. She was the first one bankrupted, (Laughter) and she happily retired to the living room to read a book. My youngest son, the wheelbarrow, did not buy everything he landed on; instead, he carefully calculated how many rolls away he was from one of his brother's properties and how much he would owe his brother if he landed on said property, and made his decisions based on that. In effect, having real money on the table and a cash prize at the end made him more conservative. And my middle son - very strategic - still bought all of the Railroads, still bought all of the Utilities, but did not buy Boardwalk and Park Place or Mayfair and Park Lane, but instead, he put hotels immediately on Oriental and Baltic Avenue, or Coventry and Leicester Square on the UK version. When I asked him why, in his own words, he said, 'Dad, they're just more affordable properties.' (Laughter) At which point, I cried a tear of pride. (Laughter) So he got it! In the end, my son finished with 28 properties, more cash than he'd ever seen and held in his entire life, and he now knows the meaning of the phrase 'making it rain'. (Laughter) Look how happy he is, (Laughter) and how annoyed his brother and sister are. In the confines of my experiment, there is an idea worth spreading, and it is this: I believe kids today are being raised in a world where money is no longer real; it's actually an illusion, but it has very real consequences. Peter Drucker, famed leadership guru, said banking and finance industries today are less about money and more about information, and yet young people today don't get that information; they don't get the experiences of money, early on. Three researchers from the Centre for Creative Leadership, in a study done two decades ago that's been replicated many, many times, they interviewed over 200 executives in a report called 'Key events in executives' lives'. In this report, they found that of the 200 top-level executives who were the top of their game, all of them had similar characteristics. One of them was that early on in their career, they had been thrust into a leadership role that required them to make decisions that had serious consequences. They also had a mentor in place that helped them appreciate the lessons they were supposed to learn from those experiences. The study created a leadership framework that said, in essence, that someone with potential, if given the opportunity to engage in strategically relevant experiences and given the ability to learn the lessons from those experiences, would have a higher likelihood of success in their career in a leadership capacity. Now if you took that study framework and my $10,000 experiment and looked at it through the kaleidoscope, you would get a statement like this: if kids are given financially-relevant experiences in their life and someone is there to help them learn the lessons from those experiences, they have a higher likelihood of achieving financial success later in life, and in my humble opinion, they need to have them early, and they need to have them often. We under this not-so-subtle societal shift in the way that we pay each other, today. It's estimated there are trillions of dollars circling the globe in our global economy every single day, yet only four percent of that money is actually in coin or currency. The rest is all digital, data packets, ones and zeroes, and today's digital-native youth - they don't see people paying with cash or cheques. In fact, if ever you're in a line, and someone in front pulls out their chequebook to pay, you are liable to say to yourself, 'Really, a chequebook? This is going to take forever.' You're laughing because it's true. The currency of today is digital. Many of these kids equate spending with credit and debit cards, with Google Wallet and Paypal and Zap. All of these are what they equate spending to, and by the way, I am not pooh-poohing the technological advancements in payment technology today - far from it. I think tokenisation and randomisation and biometrics are the wave of the future. The first time that I used Apple Pay, it was like showing the caveman fire. It was amazing. But what snapped me back to reality was hearing my son behind me say, 'I sure wish I had a phone so I could buy stuff.' (Laughter) You see, money, to a young person, is somewhat abstract, anyway, and when we further the abstraction by waving a MagicBand or putting our phone over a sensor and giving the thumbprint, all it does is further the abstraction. It's a recipe for financial disaster later in life to the uneducated because, to a young person, they see money as limitless because they have no concept of the backend until it comes around to bite them in the back end. I've seen this firsthand in my work with university students - young people who borrow and spend untold amounts of money, having no concept or understanding of the increase in payments, the decrease in lifestyle, and the challenges they'll face later on. In the UK and the US, student debt is ballooning problem. In the US, we're at $1.2 trillion in student loan debt, second only to mortgage debt in the US. One in three students is delinquent. One in five is in default. It's a huge problem, and the reason that this is concerning for all of us as a global economy is this: Dun & Bradstreet found that people spend 12 to 18 percent more when using credit cards over cash. They have yet to do a study how much more we'll spend with a MagicBand or a phone, but I can imagine it would be 15 to 20 percent, or 18 to 25 percent, and all you need to do is read the headlines in the newspapers and magazines across the world today. Places like The Guardian, The Washington Post, Fortune, Forbes - these are the headlines we're seeing: 'New consumer debt reaching a seven-year high' in the UK, 'Consumer debt hitting an all-time high' in the US, 'Choking on credit card debt', 'The credit card debt crisis: the next economic domino'. It's what happens when people overspend and get in over their head with money. Unfortunately, The Money Charity says that in the UK right now, one person every five minutes and three seconds is either declared insolvent or bankrupt. To put this into perspective, since I started speaking today, two people in this country have declared bankruptcy. In the UK, Demos.org says that Americans aged 25 to 34 have the second highest rate of bankruptcy. 25-year-olds. Everyone's question should be, 'Why? Why is this happening?', and in my simplistic view, it is this: because the money they're spending isn't real - it's an abstraction. So to stem this tide with the next generation, we have to bring them up to understand that they are living in a world where they have to make very real money decisions, in a world money is largely an illusion but has very, very real consequences. Because I want your children and mine to be super successful financially, consider any of the following: If you are going to spend money on children, give them a set amount of money and let them spend it. Let them tangibly feel the money go through their hands. Let them succeed or fail with minor consequences so that later in life, when they're making the major decisions, they understand there are major consequences that go along. For older kids, it's this: set a budgeted amount for school clothes, supplies and what-have-you, give them that amount, and when they are done spending it, it's done. And here's the key; they get to spend it with your subtle guidance, your subtle mentorship, your subtle supervision, and whether you call it an allowance, you call it commission for chores or you call it a weekly stipend, every single child, from the age of five on up, needs to be given some tangible amount of money on a weekly basis so that they understand how to function in a cashless society someday. Better to teach the young the habit of saving when they have a little bit of money to save than try to teach savings when they have no money because they're in over their head. I met an American named José. He was a 20-year-old student at an American university. He was the child of two Cuban-born parents. At the age of 15, his parents told him, 'José, we will give you food, we will give you shelter and we will give you $50 a month, but the rest is up to you.' I asked him, 'What was that like?' He said, 'Clothing, toiletries, school supplies, entertainment, gas - it was all on me. I resented my parents for a year. But you know what? I realised it was the single best thing they could have ever done for me.' When I met José at 20, he was on a full-ride scholarship at the university he attended. He had $20,000 saved in a savings account from working part-time in high school, and this kid exuded financial prowess and unmistakable leadership potential. At the heart of my message today is this: it does not take a $10,000 board game and it doesn't take cutting kids off financially to make a difference. The first step is, honestly, quite easy. It's about educating the next generation to make decisions in a world where money is largely an illusion but has very, very real consequences, and the reason it's so important for all of us, as a global society, to do this is this next generation coming up will inherit the global economy that we are handing to them, and we will precariously place it on their shoulders. We owe it to them to set them up for financial success. Thank you. (Applause) Thanks. (Applause)

Frequently Occurring Word Combinations

ngrams of length 2

collocation frequency
global economy 3
eyes light 2
real money 2
real consequences 2
young people 2
higher likelihood 2
financial success 2
equate spending 2
credit card 2

Important Words

  1. ability
  2. abstract
  3. abstraction
  4. account
  5. achieving
  6. advancements
  7. affordable
  8. age
  9. aged
  10. allowance
  11. amazing
  12. american
  13. americans
  14. amount
  15. amounts
  16. anecdotal
  17. annoyed
  18. applause
  19. apple
  20. asked
  21. atm
  22. attended
  23. avenue
  24. backend
  25. ball
  26. ballooning
  27. baltic
  28. bank
  29. banking
  30. bankrupt
  31. bankruptcy
  32. bankrupted
  33. banter
  34. based
  35. basis
  36. bill
  37. billion
  38. bills
  39. biometrics
  40. bit
  41. bite
  42. board
  43. boardwalk
  44. book
  45. borrow
  46. bought
  47. box
  48. bradstreet
  49. bring
  50. brother
  51. budgeted
  52. buy
  53. buying
  54. buys
  55. calculated
  56. call
  57. called
  58. capacity
  59. capital
  60. car
  61. card
  62. cards
  63. career
  64. carefully
  65. cash
  66. cashless
  67. caveman
  68. centre
  69. challenges
  70. chance
  71. characteristics
  72. charged
  73. charges
  74. charity
  75. chequebook
  76. cheques
  77. chest
  78. child
  79. children
  80. chores
  81. circling
  82. clothes
  83. coin
  84. coming
  85. commission
  86. community
  87. completed
  88. concept
  89. confines
  90. consequences
  91. conservative
  92. consumer
  93. conversation
  94. cost
  95. country
  96. coventry
  97. created
  98. creation
  99. creative
  100. credit
  101. cried
  102. currency
  103. customers
  104. cutting
  105. data
  106. daughter
  107. day
  108. days
  109. debit
  110. debt
  111. decades
  112. decisions
  113. declared
  114. decrease
  115. default
  116. delinquent
  117. demos
  118. denominations
  119. dessert
  120. device
  121. dice
  122. difference
  123. differently
  124. digital
  125. disaster
  126. disney
  127. dive
  128. documentation
  129. dog
  130. dollars
  131. drucker
  132. dun
  133. early
  134. ears
  135. easy
  136. economic
  137. economy
  138. educating
  139. effect
  140. engage
  141. entertainment
  142. entire
  143. equate
  144. errant
  145. essence
  146. estimated
  147. events
  148. evidence
  149. exception
  150. executives
  151. expensive
  152. experiences
  153. experiment
  154. exuded
  155. eyes
  156. face
  157. fact
  158. fail
  159. famed
  160. family
  161. feel
  162. finance
  163. financial
  164. financially
  165. finished
  166. fire
  167. firsthand
  168. fitting
  169. flush
  170. food
  171. forbes
  172. fortune
  173. framework
  174. friday
  175. front
  176. ftc
  177. function
  178. functions
  179. future
  180. game
  181. games
  182. gas
  183. generation
  184. give
  185. giving
  186. global
  187. globe
  188. google
  189. grand
  190. grandchild
  191. guardian
  192. guidance
  193. guru
  194. habit
  195. handed
  196. handing
  197. hands
  198. happening
  199. happily
  200. happy
  201. hard
  202. head
  203. headlines
  204. hearing
  205. heart
  206. held
  207. helped
  208. high
  209. higher
  210. highest
  211. hitting
  212. honestly
  213. hotels
  214. hours
  215. houses
  216. huge
  217. humble
  218. hypothesis
  219. id
  220. idea
  221. illusion
  222. imagine
  223. imagineers
  224. immediately
  225. important
  226. increase
  227. industries
  228. information
  229. inherit
  230. insolvent
  231. interact
  232. interviewed
  233. invested
  234. jail
  235. josé
  236. kaleidoscope
  237. key
  238. kid
  239. kids
  240. kingdom
  241. kitchen
  242. landed
  243. lands
  244. lane
  245. largely
  246. lasted
  247. lastly
  248. laughing
  249. laughter
  250. leadership
  251. learn
  252. led
  253. leicester
  254. lending
  255. lessons
  256. liable
  257. life
  258. lifestyle
  259. light
  260. likelihood
  261. limitless
  262. line
  263. listen
  264. listening
  265. living
  266. loan
  267. loaned
  268. longer
  269. looked
  270. lot
  271. love
  272. machines
  273. magazines
  274. magic
  275. magically
  276. magicband
  277. major
  278. making
  279. marathon
  280. mayfair
  281. meaning
  282. mentor
  283. mentorship
  284. message
  285. met
  286. middle
  287. million
  288. minor
  289. minutes
  290. monday
  291. money
  292. monopoly
  293. month
  294. morning
  295. mortgage
  296. named
  297. newspapers
  298. noticed
  299. notion
  300. observation
  301. older
  302. opinion
  303. opportunity
  304. org
  305. oriental
  306. overspend
  307. owe
  308. packets
  309. parents
  310. park
  311. parks
  312. pay
  313. paying
  314. payment
  315. payments
  316. paypal
  317. people
  318. percent
  319. person
  320. personality
  321. perspective
  322. peter
  323. phone
  324. phrase
  325. physical
  326. place
  327. places
  328. play
  329. played
  330. player
  331. players
  332. playing
  333. plays
  334. point
  335. popular
  336. post
  337. potential
  338. precariously
  339. premise
  340. pride
  341. prize
  342. problem
  343. proceeds
  344. properties
  345. property
  346. prowess
  347. psychological
  348. pulls
  349. purchase
  350. purchases
  351. put
  352. putting
  353. question
  354. quickly
  355. railroads
  356. raised
  357. randomisation
  358. rate
  359. reaching
  360. read
  361. reading
  362. real
  363. realised
  364. reality
  365. reason
  366. recipe
  367. regular
  368. reimbursed
  369. relevant
  370. replicated
  371. report
  372. required
  373. researchers
  374. resented
  375. rest
  376. retired
  377. role
  378. rolls
  379. room
  380. rounded
  381. rules
  382. saturday
  383. save
  384. saved
  385. saving
  386. savings
  387. savvy
  388. scholarship
  389. school
  390. seconds
  391. sensor
  392. set
  393. settlement
  394. share
  395. shelter
  396. shift
  397. shorter
  398. shoulders
  399. showed
  400. showing
  401. sign
  402. similar
  403. simplistic
  404. single
  405. sister
  406. sketchy
  407. snapped
  408. societal
  409. society
  410. son
  411. sorts
  412. speaking
  413. spend
  414. spending
  415. spreading
  416. square
  417. started
  418. starter
  419. statement
  420. stem
  421. step
  422. stipend
  423. stopped
  424. strategic
  425. strategically
  426. strategy
  427. student
  428. students
  429. study
  430. stuff
  431. subtle
  432. succeed
  433. success
  434. successful
  435. sunday
  436. super
  437. supervision
  438. supplies
  439. supposed
  440. table
  441. takes
  442. talk
  443. tangible
  444. tangibly
  445. teach
  446. teaching
  447. tear
  448. technological
  449. technology
  450. teenagers
  451. theft
  452. thinking
  453. thought
  454. thrust
  455. thumbprint
  456. ticket
  457. tide
  458. time
  459. times
  460. today
  461. toiletries
  462. tokenisation
  463. told
  464. top
  465. touch
  466. trillion
  467. trillions
  468. true
  469. tune
  470. uk
  471. unapproved
  472. understand
  473. understanding
  474. uneducated
  475. unfolded
  476. unique
  477. university
  478. unmistakable
  479. unsanctioned
  480. unsupervised
  481. untold
  482. utilities
  483. vacation
  484. version
  485. video
  486. view
  487. wallet
  488. washington
  489. watching
  490. wave
  491. waving
  492. wearable
  493. weekly
  494. wheelbarrow
  495. winner
  496. words
  497. work
  498. working
  499. world
  500. worth
  501. year
  502. young
  503. younger
  504. youngest
  505. youth
  506. zap
  507. zeroes