In an experiment he called "the cookie monster" study, Dacher Keltner, professor of psychology at University of California, Berkeley, and author of The Power Paradox: How We Gain and Lose Influence, brought groups of three people into a lab and randomly assigned one person a position of leadership. He then gave the group a writing task. After a half-hour of work, Keltner placed a plate of four freshly baked cookies in front of the team—one for each team member with one left over. In all groups, each person took one. Who would take the last remaining cookie? In nearly all cases, it was the person who'd been named the leader of the group who took the last cookie for themselves.
"In addition," Keltner writes in the Harvard Business Review, "the leaders were more likely to eat with their mouths open, lips smacking, and crumbs falling onto their clothes."
Such an experiment illustrates what Keltner calls "the power paradox." While people often gain power through behavior that advances the interests of others, such as empathy and collaboration, once they begin to feel powerful, those are the very qualities that diminish. Leaders then become more likely to engage in rude, selfish, and unethical behavior. In short, the old saying is true: Power does corrupt.
There's a neurological explanation at work. Sukhvinder Obhi, a neuroscientist at McMaster University in Ontario, put the brains of the powerful and the not-so-powerful under a transcranial-magnetic-stimulation machine, a device with an electromagnetic coil that that uses magnetic fields to stimulate nerve cells in the brain. What he found was that power impairs a specific neural process called "mirroring." In neural mirroring, a neuron fires both when we perform an action, like laughing or raising our hand in a meeting, and when we observe the same action performed by another. Researchers say this kind of vicarious experience may be a cornerstone of empathy.
But not only does neural mirroring, an unconscious response, decrease in the powerful, so too does psychological mimicking, the empathic response to laugh when others laugh, for example, that allows us to momentarily have an understanding of another person's experience. Powerful people "stop simulating the experience of others," Keltner told the Atlantic, which leads to what he calls an "empathy deficit."
It's not just power in the workplace, however. Other forms of privilege and entitlement, such as wealth can have a similar effect. In another experiment, for example, Keltner and a colleague found that drivers of the least expensive cars always ceded the right-of-way to pedestrians in a crosswalk. People driving luxury cars such as BMWs and Mercedes yielded only 54% of the time; nearly half the time they ignored the pedestrian and the law.
Power also heightens feelings of egocentricity. In another study, participants were asked to draw a capital E on their forehead with a washable marker. Those with power tended to draw the E on their forehead oriented to their own point of view, but which would appear reversed from the point of someone standing opposite them. Lack of empathy, coupled with egocentrism, aids and abets those in power to see people as means to an end, objects along their personal path to success.
"[Power] creates psychological distance between the powerful person and everything else," Batia Wiesenfeld, a management professor at New York University's Stern School of Business, told Fast Company.
"Here's the thing," wrote David Rock and Mary Slaughter of the NeuroLeadership Institute in Fast Company. "A lot of leaders fall into the trap of being stuck in the big picture, as well as the outcome. This can lead them to make ethically dubious decisions without thinking about the consequences. Similarly, this type of thinking can also present problematic business risks." To say nothing of your team turning on you.
So what's a powerful leader to do? Keltner says it comes down to awareness and actions of empathy, gratitude, and generosity.
The practice: Awareness
Awareness at work, and examination of one's demeanor at the office, is no different than a mindfulness practice at home: sit quietly, breathe deeply, quiet your mind. Practice what Buddhist teacher, Tara Brach, calls RAIN: Recognize, Allow, Interrogate, Non-Attachment.
The proof: Studies show that spending just a few minutes a day on such exercises gives people greater focus and calm; it's why these techniques are taught in training programs at companies like Google, Facebook, Aetna, General Mills, Ford, and Goldman Sachs, Keltner notes.
The practice: Empathy
Practice empathy in the workplace by thinking before a meeting about the individuals who will be present and what's going on in their lives. Is someone in the midst of a move or did they just drop their kid off for the first day of kindergarten that morning? Listen actively with attentive body language and vocal engagement (no looking at your phone during meetings). Ask questions and paraphrase the important points you hear. When employees come to you with difficult situations, take a moment to sympathize with them before launching into problem-solving mode. "That's really tough," and "I'm sorry" mean a lot.
The proof: Keltner advises we look at the U.S. Senate. Research has shown senators who used empathetic facial expressions and tones of voice when speaking to the floor got more bills passed than those who used domineering, threatening gestures and tones in their speeches.
The practice: Gratitude
Practice gratitude by making thank you's a regular part of how you communicate with your team. It can be handwritten notes, emails, and public praise and acknowledgement. Don't be afraid to give a fist bump or high-five to celebrate success.
The proof: NBA players who physically display their appreciation—through head raps, bear hugs, and hip and chest bumps—inspire their teammates to play better and win nearly two more games per season, Keltner's research has shown.
The practice: Generosity
Practice generosity by spending one-on-one time with your subordinates. Buy them lunch. Delegate and share high-profile responsibilities to those who have earned it, offer generous praise, and share the spotlight by giving credit for success not to yourself, but to all members of the team who made a win possible.
The proof: Those who share with others in a group, by contributing new ideas or lending a helping hand on projects not their own, are viewed as more worthy of respect and influence and thus well-suited for leadership, studies show.
Think not just about practicing empathic and generous leadership, but exercising enlightened power.
"Enlightened leadership is... the domain of awareness where we experience values like truth, goodness, beauty, love and compassion, and also intuition, creativity, insight and focused attention," said Deepak Chopra.
Sounds like a great boss.
The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.
My buddies and I always try to make it out to a game, but we never really care which one we end up at. Obviously we have our favorite sports and teams, but it was rarely about what game we went to or who we saw playing. It was about watching the game live.
In the early months of lockdown, all we had was Korean baseball, and trust me, we loved it. The only issue was, none of us had any idea what the commentators were saying. Even then, a few of my friends weren't huge fans of baseball. They were into sports like football and basketball, ones that moved at a quicker pace with less down-time in between plays.
We decided to see if there were any other events going down and came across horse racing. Yes, horse racing. It was perfect--short, fast-paced, and most importantly, an opportunity for betting.
I had never really considered watching a horse race any time other than the Belmont Stakes, but the prospects of the sport seemed exhilarating. Even better, with horse racing we knew we could still recreate the atmosphere of a race track. Salty snacks? Check. Stale beer? Check. A simple and easy way to bet? Check.
One quick Google search later, we came across TVG, powered by FanDuel. It's an online betting platform that takes you right to the heart of the action. We were a little apprehensive about using a mobile app to place our bets, but TVG's ability to bet on live horse races from all over the world was too good to pass up.
Here are 5 reasons why we are obsessed with horse racing thanks to TVG:
1. Betting has never been easier
Use your phone or computer to watch and bet on live horse races in real-time. TVG offers a bunch of features to make betting even simpler--live odds and handicapping tips leverage recent learnings to help you make your best bet. Not to mention, TVG's exclusive race content and wagering guide offers an under-the-hood look into the strategy behind horse race betting.
2. The biggest selection of horse races out there
If you're looking to drop a little dough on a horse race, chances are your best option is your local race track. But watching the same few horses races over and over again isn't the most exciting thing. With TVG you have access to over 150 tracks worldwide with races happening consistently throughout the day.
3. Get a generous sign-up offer when you place your first bet
Once you register your account, you will be eligible for a $200 risk-free bet. All you have to do is place your first bet and you're covered. If you happen to lose, TVG will insure you for up to $200 as a sort of wagering credit. I may have been a little trigger happy when placing my first bet, so having this insurance was a great perk. There are also a bunch of promotional offers available year-round.
4. Making deposits and cashing out at the touch of button
With a ton of payment options such as PayPal, BetCash, debit/credit, wire transfers, and other third-party services, making a deposit is a breeze. But what about the payout? Depending on your deposit method, your withdrawal will be available in a few days. No more waiting in-line to collect your winnings!
5. Watching live races with your friends while betting is exhilarating
Even when we were watching Korean baseball, Zoom calls with my friends were a little dull.
With TVG, we haven't had this sort of fun in months! Every weekend we'll turn on a race and throw our bets in. After a few races, and quite a few drinks, we'll tally up our winnings to see who won the most! Sometimes it's not even about making money, but just having a good time.
TVG is the perfect way to add a little excitement to an otherwise mundane afternoon. It introduced me to the world of horse racing, a sport I never would have considered otherwise.
The races just keep ramping up and thanks to TVG, I can always get in on the fun.