Debts you can’t pay
Do we teach economy the right way?
I’ve had a huge revelation today and it was truly accidental.
I was driving to my favorite berry farm, listening to a radio program about a summer camp run for 10-12 year-old children to learn the basics of economics. The camp was called “BizTown” and the kids first were supposed to apply for a particular job in town, go through a job interview, and then get hired into a job. Not all kids got the job they wanted but most did. And then they were supposed to start a business from scratch. Of course only after they completed some training in debit and credit and foundations of running a small business.
Where do you get the money for a new business if you have none of your own and only a symbolic collateral, which is actually explained to the kids as a part of a crash course in economics they’re taking? - Oh, the bank of course. You go and apply for a loan, but you have to have a good business plan with solid numbers.
All good and dandy so far: the kids are getting the basic knowledge of how the economy works and practice it in this experiment with online money and computer transactions. A better version of Monopoly.
There are two banks in BizTown: a KeyBank and a credit union. The banks compete not in how many loans they give out but in how many loans they get paid back in full. At the same time, they have to sell the loans and make sure that the business plans they are getting for them are solid. For example, the KeyBank had to reject a loan that had miscalculation in the numbers and then the bank CEO hunted down the business that submitted it, to correct the mistake and resubmit. When the credit union CEO found out that his competitor's CEO had to hunt the business to resubmit, he said, "I would have approved the loan on the first try." A future bank CEO right there.
So the kids then run their book stores, insurance agencies, restaurants and home decor companies with the goal of not only making the profit but also paying off the loan. "They are taught the basic elements of the capitalist economy of debt," the journalist covering the story said and my jaw dropped.
That was my biggest revelation. I've been living in America continuously since 2004 and I only now realized that I'm living in the economy of debt rather than the economy of profit. This is why Americans are so easy with the credit card debt, I suppose, because they've been taught and convinced that to keep the economy moving you need to take out loans and lines of credit that you will be paying off through your hard work.
My philosophy in this is different: I would never take out a loan without putting up at least one-third of the money as a down payment and knowing for sure that I will have enough flowing income to make the monthly payment and a little bit on top of it, so that I cut the time of paying it off and save on the interest. In my entire 20 years here in America I've taken out only three loans: my mortgage that I'm still paying, a year ahead of schedule now; the first car loan that I paid off in 16 months instead of 24 and saved myself a lot of money in interest by paying it off earlier; and the second car loan that I'm also paying off now, on track to do it in one year instead of two. I call that living within my means and I made sure I taught my son to live life the same way.
But what happens if you are unable to pay the loan back? The kids in BizTown started to sacrifice their profits and cut on operational expenses (reducing salaries and perks to employees, basically) so that they could pay back to the bank. Not a wise decision in the first place but understandable. And even with that, several businesses couldn't make it. Like that one insurance company that took out a $75 loan but only sold three $15 policies. Even after they decided to pay $30 of their profit back to the bank, they still were $45 short to pay off the loan.
And then... the adults running the camp saw that the insurance company and some other businesses in BizTown, like that little home decor and postcards shop, were lacking the money to pay off the loans. Miraculously, a little over what they needed dropped into their accounts out of nowhere, and the kids were so happy they didn't even ask what was the source of that savior money.
But the journalists covering the story did. When they asked the camp director where the mystery money came from, he responded, "We have the ability to subsidize so that the kids don't feel like they failed in running the business."
"So, you give the money out to the businesses that are failing and may default on their loans so that the kids don't feel bad about not being able to run them at a profit and pay off the loans," the journalist clarified. "Isn't that SOCIALISM?"
The camp director couldn't push the word "socialism" out of his mouth and went into a long and winding explanation stating they are still kids and learning about failing a business, bankruptcy, and other responsibilities should be left for the adult life.
I genuinely don't know if that's the right approach. Do you?
About the Creator
Lana V Lynx
Avid reader and occasional writer of satire and short fiction. For my own sanity and security, I write under a pen name. My books: Moscow Calling - 2017 and President & Psychiatrist
@lanalynx.bsky.social
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Comments (42)
What an interesting idea for a camp.
Relatable!!
This story was so relatable to read as someone going through it right now. Buying a good used car right now is a fortune, 20% down payments - high interest - all to wonder if I’ll get any return in the next 5 to 10 years. I started working at 14 and manually wrote and recorded my earnings. I started recently getting back into it to hold myself accountable and reach goals. But the older we get there’s always another gamble to be made! In the last year I changed jobs, rent doubled, and car transmission failed but work requires me to have one. Understanding the value of a dollar and the time it takes to save is so important - I wish financial education classes were tiered up and through turning 26! Thanks for the writing.
This BizTown camp sounds really cool. It gives kids hands-on econ experience. Made me think about how important it is to learn financial stuff early. I remember when I was starting out, understanding loans and business plans would've been so helpful. Do you think this kind of camp should be more widespread? And how do you think it compares to traditional classroom learning about economics?
Amazing
Really enjoyed this—especially the insight that America runs on an “economy of debt,” not profit. The BizTown bank competition to get loans repaid, not just issued, was a brilliant teaching tool. And your financial discipline is admirable—paying off loans early is rare and inspiring. Not sure how I feel about the “bailout” at the end, but it raises an important question: should kids learn through failure or be protected from it?
You effectively analyze complex economic concepts like debt, loans, and business sustainability through a personal lens. A question to think about: What are the potential psychological implications of "subsidizing failure" in educational economic simulations?
nice to read Love is like a variety of people. But for me, love does not mean just one person, but many people of many kinds—who sit very close to my heart.
Well written, congratulations 👏🏼
Wow, what an interesting and thought-provoking story! It's really eye-opening how the camp not only teaches kids about economics, but also how they handle the pressure of running a business, managing loans, and understanding the importance of a solid business plan.
Great work... Sharing good information
Great sharing
I think Governments should put Economy lessons at Highschool. A Lot of young people have no idea about how to spend their money etc...I feel like I'm special in my peers. I learned economics on my own.
Oh Congratulations on Top Story, this topic is so hot in the field of marketing in general all over the world right now that I spent all night looking for ways and new solutions on how to teach making profits in the right way and also to the younger ones to succeed, and it's really the wrong way or the old way that does not really work, does not address or even give the right advice on the solution, so in this case other sources should be considered. should be taken into account, because even they update methods, solutions that only come from people who are experts in making a profit, are not able to help you with one main solution for the general , taking a loan, it is more likely that the risk and flow of money is driven not only by how much you invest, but exactly changing the approach of where to really start, depending on your situation and capabilities and this is actually a deeper topic to know yourself in a deeper way .to balance what and where is missing exactly in your inner bank. You have a really great timing with writing about it ! The change must arrive , Congratulations once again !
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Well Said!
https://shopping-feedback.today/education/who-should-move-from-a-long-distance-relationship-an-adventure-of-love-and-sacrifice%3C/span%3E%3C/span%3E%3C/span%3E%3C/a%3E%3C/p%3E%3C/div%3E%3C/div%3E%3C/div%3E%3Cdiv class="css-w4qknv-Replies">
well done
I don't know... are they trying to teach kids that this is just how it works, being in debt and whatnot is just normal? Seems so, doesn't seem like a great goal?
https://shopping-feedback.today/education/top-5-tech-trends-that-will-shape-2025%3C/span%3E%3C/span%3E%3C/span%3E%3C/a%3E%3C/p%3E%3C/div%3E%3C/div%3E%3C/div%3E%3Cdiv class="css-w4qknv-Replies">
I especially appreciate this quote from your piece. ""So, you give the money out to the businesses that are failing and may default on their loans so that the kids don't feel bad about not being able to run them at a profit and pay off the loans," the journalist clarified. "Isn't that SOCIALISM?""
In my entire 20 years here in America I've taken out only three loans: my mortgage that I'm still paying, a year ahead of schedule now; the first car loan that I paid off in 16 months instead of 24 and saved myself a lot of money in interest by paying it off earlier; and the second car loan https://405.osttopstfreeware.com
This is really interesting - I think it’s great that kids are learning about economics, but I wonder if giving them money to cover their mistakes might teach the wrong lesson. It’s important to understand the risks and consequences of debt early on. I appreciate you sharing this...
OMG - really? No, the failure would be a lesson. These days, unlike the old days, adults are afraid to let kids fail. They get a prize even if they don’t win. Life is hard, the world harder and for success they have to learn this without being saved. Congrats on TS!🎉🥳
Congratulations on well well-deserved top story!!🎉🎉🎉