This weekend I got to do something I waited an entire year to do…go to Decatur, IL. Your first response may be to wonder why the heck I was looking forward to that for an entire year. The reason is because the Society for Arts Entrepreneurship Education conference was being held at Millikin University.
At last year’s conference, I had learned about Millikin’s student run arts businesses and was eager to see it in person. I will just say the experience did not disappoint. Though I am still slogging through my notes from various sessions at different student run ventures so my readers will need to be patient for at least another day before learning more about that portion of the experience.
What I wanted to discuss today is a session I attended on one of the bugbears central to arts entrepreneurship — financial literacy. When people talk about artists needing to be more business minded, that is probably one of the top three issues they envision needing attention.
Of the seven people on the panel, two were accountants that work closely with artists, Jessica Jones and Elaine Grogan Luttrull. It was something that Jessica said that really gelled the whole subject for me. She mentioned that there is an emotional and cultural barrier everyone experiences when it comes to money and finances. It isn’t just people in the arts and it isn’t about numbers being inherently intimidating. She said that she has helped engineers and scientists who work with numbers all day and they have the same issues as everyone else when it comes to finances.
I don’t remember if it was Elaine or Jessica who mentioned it, but they were somewhat opposed to the concept that people should learn “basic skills” because the term means different things to different people. A CPA can look at materials and identify revenues sources in seconds whereas other people need to make an effort and consider the skills far from basic. Jessica commented that you can’t just carve out a top 10 or 20 list of things people need to know, rather people need to become comfortable with the language, concepts and terminology so they know what to ask and how to understand a conversation about their financial situation.
Ken Weiss from University of North Carolina reinforced this idea saying that it isn’t just important for people to know terminology, but the relevance. His school does a session on intellectual property, copyright, trademarks, etc. with a guest speaker who gets the students engaged by helping them understand how these issues help their career.
This idea emerged multiple times in different sessions at the conference. People discussed how their students had the “a-ha!” moment when they came to the realization that they needed to know something for themselves and not just because the professor said they need to know it.
One of the two CPAs spoke about how helpful it was for people to learn what resources were available in terms of things like software to handle accounting, sales records, etc., and then create operational plans and procedures based on whatever resources were most suited to their needs.
That way you aren’t constantly faced with the prospect of processing your numbers and you can spend the majority of your time doing the work you love. Sometimes the biggest impediment is being unaware that these resources exist and being intimidated by the thought of keeping track of it all. Ultimately it comes back to haunt you when it comes time to report your income for taxes.
Others on the panel commented that some arts disciplines were worse than others in recognizing the need to teach students skills to help manage their careers. However with the general concern about university students taking on so much debt, many schools are moving toward making financial literacy a skill that all students must possess.