← People I (Mostly) Admire
People I (Mostly) Admire
22. Sal Khan: “If It Works for 15 Cousins, It Could Work for a Billion People.”
00:43:54
Khan Academy grew out of Sal Khan’s online math tutorials for his extended family. It’s now a platform used by more than 115 million people in 190 countries. So what does Khan want to do next? How about reinventing in-school learning, too? Find out why Steve nearly moved to Silicon Valley to be part of Khan's latest venture. This episode originally aired on April 2nd, 2021.
Loading summary
Transcript97 lines
- [00:00]
Edward Jones Financial Advisor
What does it mean to live a rich life? It means brave first leaps, tearful goodbyes, and everything in between. With over 100 years experience navigating the ups and downs of the market and of life, your Edward Jones financial advisor will be there to help you move ahead with confidence. Because with all you've done to find your rich, we'll do all we can to help you keep enjoying it. Edward Jones Member, SIPC it's smart to
- [00:31]
Discover Card Representative
always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover you can get this. Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show see terms@discover.com credit card.
- [01:01]
Stephen Dubner
When Sal Khan started posting a few free instructional videos on YouTube 15 years ago, I don't think anyone could have imagined what Khan Academy would become. More than 115 million registered users spread across 190 countries in 46 different languages. And it's gone way beyond videos.
- [01:18]
Podcast Announcer
Now.
- [01:18]
Stephen Dubner
There are over 70,000 practice problems, quizzes and articles, even state of the art SAT prep, all of it available completely free to students and parents.
- [01:31]
Steve Levitt
Welcome to people I mostly admire with Steve Levitt.
- [01:36]
Stephen Dubner
I spend much of my time these days working through my center at the University of Chicago to try to change the world for the better. And I can't tell you how much we've struggled and how little impact we've had relative to what I would have hoped for. Salcon makes it look easy, but in reality it is incredibly hard. So today I have two goals. First, I want to get inside the head of Salcon to understand what the special sauce is that has made him so incredibly successful in this area so
- [02:03]
Steve Levitt
I can do better myself.
- [02:04]
Stephen Dubner
Second, although he doesn't advertise it, I have the suspicion that Salcon's ambitions go
- [02:10]
Steve Levitt
far beyond Khan Academy.
- [02:11]
Stephen Dubner
I think he has an even bolder plan in mind, a complete rethinking of how education works. I also have radical ideas for the future of education and my pipe dream is that our visions might align and there could be an opportunity for us to work together. So let's see.
- [02:38]
Steve Levitt
Cellcon, what a treat it is to get to talk to you today.
- [02:42]
Sal Khan
Likewise. I've always been a big fan, Steve.
- [02:44]
Steve Levitt
I'm a huge admirer. But I have to say I think you set a very dangerous example for other people. You had a good job you liked at a hedge fund that paid You a ton of money and then you had some crazy vision that you would post short lectures on the Internet and you'd give them away for free, hoping to provide kids another way to learn. That sounds like a well intentioned plan. It also sounds like the kind of scheme that would fail 999 times out of a thousand. Wasn't it crazy to think that Khan Academy could actually work?
- [03:19]
Sal Khan
Yeah, on a lot of levels. Well, before I was in the hedge fund world, I kept being drawn to either tutoring directly, like me being people's tutors, or how can we leverage technology to help people learn, ideally at their own time and pace. And so that was always in the back of my mind, even while I was working at the hedge fund. I would tell my friends, I like this job, it's interesting, but I'm only going to do it until I can be independently wealthy and then I'll start a school on my own terms. And then when my one cousin in particular, Nadia, in 2004 needed help, I wanted to help her because she was being put into a slower math track in seventh grade, which has all sorts of implications for her own self esteem and just her life. So it started in a very organic family project type of way. And that same Nadia, who was being put into a remedial math class, was then accelerated into an advanced math class after I lobbied on her behalf as a bit of a tiger cousin. Before I knew it, word had spread in my family that free tutoring was going on. So There was about 10, 15 cousins, family friends I started working with. With the background in software I was always fascinated by. Let me see if I can make some tools to streamline what we're doing. I called it Khan Academy just as a joke. It was me with my cousins. Although in the back of my mind I said the cool thing about software, if it works for 15 cousins, it could work for a billion people eventually. So I had some delusional aspirations at the time. And by 2006, a friend suggested that I make videos to supplement my lessons, which I was having trouble doing. And I initially thought it was a bad idea. I said, YouTube's frivolous. It's for dogs on skateboards, cats playing piano. It's not for serious learning.
- [04:56]
Steve Levitt
Wait, why did you think the videos would be a bad idea? Because you thought that the back and forth was really important or just because you thought YouTube was frivolous?
- [05:05]
Sal Khan
It was both. I think technologists often fall into this trap and I, with a tech background, was falling into it. I was like, look, I'm writing all this cool software that can adapt to students and giving them as many exercises as they need and giving them feedback. And I get all this data and analytics videos feel so low tech. If this was a good idea, people would have done this with VCRs in the 80s. And then there's another notion which is at the time YouTube did feel the way TikTok feels now. It's just for these silly little things. But then, you know, I gave it a shot. And when I asked for feedback from my family, they famously told me they like me better on YouTube than in person. So my self esteem likes to believe that they still appreciated having me on the phone accessible, but they also really appreciated having an on demand, infinitely patient version of their cousin available at three in the morning that they didn't have to feel embarrassed about if they need to cover something from four grade levels before. And for my cousins, many of them, it was transformational. They went from being students struggling to the top students in their school or even in some cases in the city. The YouTube videos in particular became very discoverable and accessible by people who aren't my cousins. I started getting letters from people all over the world saying how it was helping them, how it was helping their children. I'd frankly had trouble focusing on my day job. And that's when I took the plunge. I set it up as a not for profit with a mission of free world class education for anyone anywhere. And a lot of my friends are VCs, I live in Silicon Valley at this point and they were saying, hey, we'll write a check, you can quit your job and we can do a social good for profit. And that sounded good, but it always led to these conversations of well, this is how we can monetize the users. And when I read these letters from people around the world, I was like, I don't know if I want to monetize them and I don't know if I want to add any frictions to someone who wants to learn. So that's why I took a little bit of the bet and set it up as a nonprofit.
- [06:52]
Steve Levitt
Let's say you had gone that VC direction, what do you think would have happened?
- [06:57]
Sal Khan
I think it would have been a reasonably successful for profit, maybe super successful, I don't know. But I don't think we would have captured people's imaginations in the same way. I don't think a for profit could, with a straight face, have a mission like free world class education for anyone anywhere, which is a big mission. But when people started to realize that we actually have a shot of doing, it became a very aspirational mission. Some of our early funders have been people who come from essentially my two backgrounds. Far more successful people than I ever were. People out of tech or people out of finance. They just liked the notions of what this was. This is about scale. This is about personalization. This is about using the Internet to solve a. A core problem that they care about.
- [07:40]
Steve Levitt
From the beginning, you made what seems like a really odd choice, which was you never put your own face in the videos. It was always just like a blackboard, which I'm sure any kind of media advisor would have told you that's a terrible idea. But I think it's worked out for the best, don't you think?
- [07:58]
Sal Khan
Honestly, when I did it initially, it wasn't out of any super deep strategic vision thing. We Forget back in 2006, cell phones didn't have particularly good cameras at the time. And with my family, we were just figuring out ways to see each other's writing. I was using Yahoo Doodle while they heard my voice over the phone. And it felt very intimate. It felt like we were sitting next to each other at the kitchen table looking at the piece of paper. In hindsight, I realized that it was probably a good move. There's actually a lot of research that the human brain immediately fixates on human faces. If the human face is competing with math, the human face is going to win. And so when you focus on the math or the science or other subjects and you're able to use the visuals well, but you're hearing the voice, then it's easier to focus. There's other random things that happened that ended up being really good from a neuroscience point of view. YouTube in 2006 had a 10 minute limit. And so we started making videos that are seven, eight, nine minutes long. And there's research that's about how long people can pay attention before they need a break.
- [09:12]
Steve Levitt
Now, one thing I find interesting about your approach is that it was an educational intervention that circumvented schools completely. I've tried to do all sorts of educational things, almost always in partnership with schools, and I've failed every time. I see your circumvention as being absolutely critical to your successes. Do you agree?
- [09:32]
Sal Khan
To some degree, I think in those early days, I don't think any major system or state board of education would have taken me particularly seriously. In all Fairness, back in 2007, there was a teacher who got excited about these tools. I was Making for my cousins. So that actually did help me have some self confidence in this project. But to your point, most of the people in those early days were not in classroom settings. And them seeing the value of it and then the momentum that you got around that, and then frankly, many students started telling their teachers about it. And then in many cases, many teachers were using it for themselves. They had to deliver a lesson that they might not be familiar with. So it allowed the discoverability to be very grassroots and very organic. And in a lot of ways it validated us. So then when we did start to reach out to districts in a more formal way that they were like, oh yeah, we've heard about this, we use it ourselves. And you know, as early as 2011, we did start having some formal partnerships with districts. And Today it's about 50% of Khan Academy usage is just what we would call, you know, independent learners. And about 50% is what we would call teacher directed, which is teachers telling students to use Khan Academy.
- [10:36]
Steve Levitt
And you could have taken a different path, which is, oh, I'm going to go and I'm going to sit down with the San Francisco school district and I'm going to work with the administrators and try to come up with ways to, to make a change. And I think there's a real elegance and beauty in how you circumvented the system.
- [10:51]
Sal Khan
Sometimes inertia and tradition and bureaucracy can slow things down. And just trying to convince people oftentimes will take all of the energy or you get to a consensus and then some of the innovation goes away. A similar thing happened when Covid hit Khan Academy. Usage went through the roof. But there's always been a dream of like, we have to provide people synchronous learning at scale with live human beings. And I've always dreamt about, couldn't we use a volunteer model or peer to peer model? And even within Khan Academy, it was hard. Initially we started another not for profit called Schoolhouse World to do peer to peer tutoring. And so I'm always a big believer in, okay, start a small and scrappy project that can experiment and move nimble and move fast and can move without permission, so to speak. And then as it gets scale and it gets traction, you can start to integrate it more deeply with the more established players, especially if you're talking about the school system, to be able to have that proof of concept already working. And then once it's working, it's much easier to get traction.
- [11:54]
Steve Levitt
I saw you give a TED Talk and you used an analogy of Education to home building that I found so powerful. Could you tell that story?
- [12:03]
Sal Khan
Yeah. In a traditional academic system, students get exposed to some concept through a lecture, usually. Then they do some homework. That lecture, homework goes on for about two, three weeks, and they take a test. And on that test, you get a 90%, I get an 80%. Even though we identify gaps, the class moves on to the next subject, probably the subject that's going to build on those gaps. At some point, those gaps become debilitating. And we're all used to this because that's the system we grew up in. But when you apply that same thinking to other domains, it seems somewhat absurd. For example, home building. So if I did the same process with home building, I would tell the contractor, hey, we have two weeks to build the foundation. Do what you can. The contractor shows up, maybe it rains, maybe some of the supplies don't show up. They do what they can. And after two weeks, you bring the inspector in, and the inspector says, that part's not quite up to code. The concrete's still wet over there. I'll give it an 80%. And you say, great, that's a C. Let's build the first floor. Contractor, you have three weeks. Do what you can. Once again, they do what they can. Inspector shows up in two or three weeks, says, all right, I'll give it a 70%. Great, C minus, D plus, whatever. Let's build the second floor. And then all of a sudden, you're building the third floor and the whole structure collapses. And if you have the reaction that many people have in education, you'd say, well, maybe it's because we had a bad contractor, or maybe we need more inspection. But what's clear in this thought experiment, it's neither of those. You could have the best contractor on the planet, and you could have perfect inspection. But when you inspect and then you ignore the deficiencies and then you build on top of it, you're doomed to have the structure collapse. And that's exactly what's happening in education.
- [13:39]
Stephen Dubner
And what you're describing is referred to as mastery learning in the classroom.
- [13:43]
Sal Khan
This is the reason why so many students struggle, especially in topics like math, is they accumulate these gaps. Because you're sitting in sixth grade, the class is talking about basic exponents. Even that a student who got the 95%, that 5%, could have been a careless error, or it could have been a really important gap in their intuition or in their understanding. And those gaps keep accumulating over time. And that's why you see so many Kids, especially in classes like algebra or calculus, they start hitting walls.
- [14:11]
Stephen Dubner
How long do people spend watching Khan Academy videos?
- [14:14]
Sal Khan
On an average month, we see about half a billion learning minutes per day on Khan Academy. So we see about 12 billion learning minutes per year.
- [14:22]
Steve Levitt
And how big is the budget for it? And how many people do you have employed globally?
- [14:28]
Sal Khan
We have over 200 folks. About 170 of them are based in the US and the annual budget is about 60 million a year. Every time I say that, it gives me a little bit of a cortisol spike because I have to fundraise a lot of that. But as part of my fundraising, I always remind folks that's the budget of a large high school in the United States. And our reach is literally trying to educate the world. I never want to make Khan Academy bigger than what it is, but I think now, especially in the US People view it as a pretty essential part of the education system.
- [14:58]
Steve Levitt
So I just tried to do the math in my head and maybe I blew it. But going from 12 billion minutes of individual learning per year, and I tried to divide it by your budget, and I think I came up with the cost is about 33 cents per student per hour. And if that's true, then it just gives you an idea of how incredibly cheap it is relative to traditional education
- [15:20]
Sal Khan
models that number that 33 cents per hour. And I'm pretty sure you got the math right. That's an hour of actual learning. That's not like an hour of sitting in a class, looking at the clock, passing a note. That is an hour of I am engaged on an exercise, answering questions, getting feedback. I never want to say that this is a complete substitute. It's an. And there's a lot of people around the world where this raises the floor dramatically for them because they don't have access to courses or a proper school, or there's not someone around them who can teach the subjects. And then there's a lot of people, and this is the majority in the US where they might go to a decent school, but they just need help.
- [15:55]
Steve Levitt
I want to challenge you on something. So you just said Khan Academy, for most students is an and. Right. And as a parent of children who use Khan Academy, that's what I thought of it as. But as I've thought harder about it and read more about you, I think you're much more subversive and much more revolutionary than that. Isn't it true that your actual goal is to completely overturn education, to transform it, so it really will be unrecognizable you hate the current system, don't you?
- [16:26]
Sal Khan
I don't hate the current system. I think the current education system, it's become very fashionable to beat up on it, especially from reformers like myself. But for the most part it is actually quite powerful, especially when you compare to what existed before the current system, before mass public education. And there's definitely moments in my schooling where I'm like, wow, this is a bit boring, or I wish it was done this way. But there was a lot of other moments in my education where I felt that, hey, this is great, and especially in hindsight, I was like, wow, that was an incredible teacher I had that was really able to engage. So lot of what I think about is how do we optimize those good parts? And to me, that's where technology can be an interesting angle. If teachers can have more of their students being able to fill in their gaps at their own time and pace, and they don't have to slow down and focus on remediation as much, more students will be able to be at their learning edge when they show up to classroom.
- [17:20]
Steve Levitt
I still think you're not being 100% truthful because it strikes me that the classroom model we use makes zero sense. It was derived in a time when technology wasn't available. And in a world of technology, it seems like the right thing to do is to revolutionize the classroom. And doesn't that require a total rethinking of the technology, of the classroom, of the production function we use for learning?
- [17:49]
Sal Khan
Oh, yeah, absolutely. I believe so strongly in what you were just referring to that I started a lab school in 2014 to do exactly this, to reimagine every aspect of the school. Teachers don't lecture at con lab School. They sit alongside students, have Socratic dialogue with them, run simulations, teach the students to then teach themselves or to teach each other and have a lot more experiential learning. Students learn at their own time and pace. School is not the only place where learning happens. It's the base. But then they're going out into the world and doing interesting things. The reason why I started Khan Lab School, to your point, is I wanted to show what is possible when tools like Khan Academy, when tools like Schoolhouse World exist and are accessible. It gives you the opportunity of reimagining the school, but it reimagines it in a way that every teacher who's either worked at Khan Lab School or who has visited Khan Lab School says, this is my dream school to teach at and the students like it. As well. So that's my aspiration is that the whole world looks like Khan lab school in 10 or 20 years.
- [18:52]
Steve Levitt
You're listening to People I Mostly Admire with Steve Levitt and his conversation with Sal Khan. After this short break, they'll return to talk more about the Khan Lab School.
- [19:14]
Podcast Announcer
People I Mostly Admire is sponsored by Mint Mobile. If you're tired of spending hundreds on crazy high wireless bills, bogus fees and free perks that cost you more in the long run then a premium wireless plan from mint mobile for 15 bucks a month might be right for you. All plans come with high speed data and unlimited talk and text delivered on the nation's largest 5G network. Ditch overpriced wireless and get three months of premium wireless service from Mint Mobile for 15 bucks a month. If you like your money, Mint Mobile is for you. Shop plans@mintmobile.com admirer that's mintmobile.com and Meier upfront payment of $45 for a 3 month 5 gigabyte plan required equivalent to $15 per month new customer offer for first 3 months only and full price plan options available, taxes and fees extra. See Mint Mobile for details.
- [20:09]
Discover Card Representative
It's smart to always have a few financial goals and a really smart one. You can set earning cash back on what you buy every day. And with Discover you can get this Discover automatically matches all the cash back you've earned at the end of your first year. Seriously, all of it. And we trust you to make smart decisions. After all, you listen to this show. See terms@discover.com creditcard
- [20:37]
Allstate Customer
I checked Allstate first and saved hundreds on my car insurance. Really smart. Unfortunately I didn't check if I left the pizza box on top of my car before driving home. Not smart. Oh, and a semi just turned my deep dish into a thin crust.
- [20:53]
Allstate Representative
Yeah, checking first is smart. So check Allstate first for a quote that could save you hundreds. Potential savings vary subject to terms, conditions and availability. Allstate North American Insurance Company and Affiliates Northbrook, Illinois.
- [21:11]
Stephen Dubner
Hey, so two things caught my attention in the discussion so far. First, it is incredible how cost effective Khan Academy is as a teaching device. In the USA, the government spends about $15,000 per student per year on K12 public education. Kids spend about 180 days in school and the school day is roughly 6.5 hours long. So doing the math, that equates to $13 per student per hour at Khan Academy. In contrast, it costs about 30 cents per hour.
- [21:41]
Steve Levitt
That's 40 times cheaper.
- [21:43]
Stephen Dubner
The opportunities if we could rethink our Teaching model are just enormous. The second thing I found really fascinating about our interview is how reluctant Sal Khan was to say that he had a radical vision for overhauling education. Did you notice how I just kept on asking him the same question over and over in different ways before he finally opened up to it? I'm so curious to learn more about the Khan Lab school idea you referred to. Could it be the basis for rethinking our educational system? And I also want to dive into the specifics of why he's had so much success and what people like you and me can steal from him in that regard. Or maybe borrow is a better word than steal.
- [22:25]
Steve Levitt
Can you tell me more about Con Lepsco? How's the evidence coming in of how successful it is?
- [22:31]
Sal Khan
We started the school in 2014. By that point, Khan Academy had become reasonably well known. I had written a book called the One World Schoolhouse, where the first third of the book was a bit of the history of education. How did we get to where we are? The middle third of the book was my personal narrative. How did I fall into all of this that we've just talked about? And then the last third of the book was, let's imagine a world where we can think from first principles, and that's mastery learning, personalization, the future of credentials. What are the subjects that we really do need to learn versus the ones that we don't necessarily have to learn as much anymore. What's the future of higher education? And then I'll admit selfishly, my oldest was four and a half years old. I was going to go into kindergarten, and I had already been making the rounds and giving TED talks about mastery learning and personalization. And I said it would be hypocritical for me not having my own child immersed in this type of a school. And so I started talking to, frankly, other employees at Khan Academy who felt the same. And I put a slide deck together and I kind of convinced families of 30 kids ages 5 through 10 years old to go into this experiment. We were able to get a space from Google in an office building that we were in to start the school, reclaim a little bit of the parking lot for a playground. And we got started. This isn't a school where we had an IQ test to join. And we had kids who started off the school who are in the bottom quartile on standardized test scores. All of those kids, we haven't published this as a study, so this is pseudo anecdotal, but it's based on real data. All of those kids in the bottom quartile are now operating in the top decile because I would argue they had a chance to learn at their own time and pace, fill in those gaps. When you get an 80% in a traditional system, you're told you're a C student. When our students get an 80%, they're like you're at an 80%, keep working on it to get to 100%. So it completely changes even how they perceive themselves. The expectations are fundamentally different. We are also seeing really powerful things with the mixed age environment. There's actually some research about this, that when older students are with younger students, all sorts of good things happen, which is frankly in line with human nature. For most of the 300,000 years of human evolution, we lived in these multi aged clans or tribes. But especially I think the positivity happens for the middle school or the high school students because they now feel responsibility. And I think it takes a lot of that negative energy that often goes into bullying or all that middle school angst. And it takes it into a positive place. We actually have our first graduating class this year and we're seeing that they have been able to navigate what is otherwise, especially in Silicon Valley, a very stressful college application process. And they're getting very good college placement. It's really what the colleges have been asking for kids who have authentic interests, who actually have mastery of content, which is exactly what the school is focused on.
- [25:18]
Steve Levitt
How long is the waiting list and how do I get on it?
- [25:22]
Sal Khan
The rate limiting factor to your point has actually been real estate. Silicon Valley real estate is not a trivial thing. And so we did have the school limited pretty significantly. But now we're moving actually the upper school to co locate with a community college where these kids are going to be able to have this really great journey, but also finish a good chunk, if not most of college before they graduate high school. And then we're moving to another campus. The whole school, K through 12 right now is about 200 students. We think we're going to expand to about 300 students.
- [25:50]
Steve Levitt
What prevents you from doing 5 of these schools or 100 of these schools or 10,000 of these schools?
- [25:58]
Sal Khan
Well, that's part of the idea. We've been trying to stay relatively under the radar for the last seven or eight years. But now that we are showing that it's working, that the kids are healthy and happy, over the next few years you're going to see a spread much faster. One of the things that I keep pushing the team is we got to show that it can be done in a economic model that could fit most places. It's now at the scale that it's about. It's pretty close to the average cost per student for the local public schools. If you factor out the cost of real estate that we have to pay real estate, a lot of them don't.
- [26:30]
Steve Levitt
One of the potential challenges to this model is that there's a real efficiency from a cost perspective of having one teacher teach 30 kids the same thing, Whether or not it's the right thing to teach the kids at the same time. It's obviously not, but it's an efficient way to do it. But what you're saying is in the Kahn lab school, you're actually finding that because of probably cost efficiencies that come from other sources, like the teachers don't really have to lecture anymore. Instead, the kids are largely working independently. I would suspect most of the time. You can actually make this on par in terms of costs with the traditional teaching model.
- [27:07]
Sal Khan
Yeah. And it's not just the kids working independently. In fact, they are oftentimes spending time with teachers, but that time with teachers is much more focused. So it might be a small group for 15 minutes that is focused on exactly what those kids need at that moment, while another group of kids are learning at their own time and pace. And we're also seeing this type of phenomena in mainstream public classrooms. But the school is able to rethink everything. So even how we do scheduling and use of space and all of these other things that enable these ideas that, hey, your age shouldn't be the indicator of what you're getting exposed to, that if you're ready to move ahead or if you need to back up. Either way, there's no shame or no stigma. You should just be able to do that. When I meet educators, they all agree class time should not be passive lecture, and it should be interactive. You have to differentiate. For students, this is always what's been the gold standard. But it's just been hard to implement in the traditional Prussian education model that we developed from 200 years ago.
- [28:14]
Steve Levitt
So you've hit on this model that really works, and you've proved it to yourself. At least with the lab school. Do you not have impatience for making broader transformation? I would think you would bristle at the fact that you see these answers. And it'll be how long? Decades at best before these are available in a widespread way. Does that frustrate you?
- [28:37]
Sal Khan
Oh, yeah. Don't be fooled by my relaxing tone of voice, which maybe I fine tuned over thousands of videos on Khan Academy. But no, I've had to develop a practice of meditation so I can sleep. I've been known to be so obsessed and agitated and impatient about things and want to make them happen fast because yeah, the real wholesale change, that is a long game that's going to be decades in the whole scheme of education. If we can get a major change in 10 or 20 or 30 years, that is worth it. Khan Academy. We did surveys at four year colleges and this was a few years ago when Khan Academy was at a lower scale. And the question that we randomly sample students, has Khan Academy had a meaningful impact on your education? And we thought it'd be lucky if 10% of college students said yes. It turned out that 60% of college students at the schools that we surveyed said Khan Academy had a meaningful impact on my education. So that tells me that we're already making a dent. We just have to make more and more of a dent between adding more subjects, making the interface more engaging. And then there's another piece that I've been impatient about around credentialing. We're realizing, wait, if someone is able to get mastery on Khan Academy, if they can record themselves, both their face and their screen while they take the unit test, while they explain their reasoning out loud and it's peer reviewed, that then certifies them to go on a journey to become a tutor. But it also shows that they know the material. And University of Chicago has been using Schoolhouse World certification as a factor in college admissions. We're talking to universities about, look, if someone can tutor pre calculus or someone can tutor biology, why can't we give them college credit for that tutoring? You know, to your point, you've been pushing me to say that I'm being more bold, that my tone lets off. You know, these are big ideas. I want to create a world where for close to free, you can essentially get everything that you need to know to work, to get a job, to go to grad school. Now for some kids that might be all they need, but for other kids, they're going to need an in person community, they're going to need supports. In fact, I would argue for most kids. And so that's where you want to interface well with the existing system.
- [30:42]
Steve Levitt
So the test prep industry, firms like Stanley Kaplan, the Princeton Review, that's a multi billion dollar industry. Now Khan Academy comes along and provides completely free amazing SAT prep materials. Do you think you'll cause that entire industry to unravel?
- [30:59]
Sal Khan
College board the folks who administer the sat, they reached out to us saying, look, the College Board has just ignored the test prep industry because we never wanted to validate them. But at least the perception of inequity and maybe the reality is real, we have to address it. When Nadia was Preparing for the SAT, I went through the College Board 10 SATs book and I did every math question in video form. And College Board said what we loved about those, which apparently they were looking at, is that you never did what the test prep industry did, which is like, okay, this is hard, this is how you guess. I always said, look, you might think this is hard, but this is really just an application of what you Learned in algebra 1, where if you think about it this way, or if you're having trouble with it, why don't you go review this other video or do these other exercises on Khan Academy? And they're like, that's how it should be. It should not be gaming the test. It should be becoming more college ready. And then the test will measure that. And that's when they said, would you want a partner to make the world's best test prep in conjunction with each other that happens to be free? And we said, yes, absolutely.
- [32:03]
Steve Levitt
So obviously the aim was to democratize the sat. But a few times in my own research I've set up plans where I make things available to everyone with the goal of hopefully having high take up on the bottom end and maybe less high take up on the high end. But oftentimes I found it's just not true. It's the opposite. Are you able to see in your data whether you're hitting the middle and the bottom more than the top or how does it pan out?
- [32:29]
Sal Khan
It's a really good point. And this is something that both us and the College Board wanted to really understand. What we have seen over the years is the proportion. If you go by race, it's about the same as the proportion of test takers of the sat. We are slightly overweighted on black students and Latino students, but it's roughly the same proportion. Now on income and on parents education level, we have seen some of the phenomena that you're talking about where we have a higher proportion of children from higher income and kids with more educated parents. With that said though, you don't look at over proportion under proportion. To understand whether it's driving equity or not, you have to say, what does the world look like with this resource and what does the world look like without this resource?
- [33:12]
Steve Levitt
Absolutely.
- [33:13]
Sal Khan
So the world, without this resource, the affluent, they're going to kaplan, they're going to Princeton Review, they're getting the help. The poor kids aren't getting the help. You add Khan Academy. Now the rich kids, some of them are staying with Kaplan and Princeton Review, but some of them are saying, wait, this Khan Academy thing is better, so they're switching to Khan Academy. Not because it's free, they're switching because it's better. That's actually validating of the platform. It would be a problem if the rich kids stayed with Kaplan and Princeton Review and only poor kids were using the new platform. It would continue to that perception that free isn't as good as paid. And now all of a sudden you have a huge swath of kids from historically under resourced groups who are actually able to get test prep. The analogy that I draw is a museum or a library or park. In many cases, museums or libraries or parks might be disproportionately being used by affluent people. But if you take those parks away, the affluent are going to go to their backyards or they're going to form private parks, or if they take the libraries away, they're going to buy the books. They're going to have access while the poor are not going to have access
- [34:19]
Adobe Firefly Announcer
to Adobe Firefly is the all in one creative studio with AI powered image and video editing for today's creative process. Built for creators of every kind, Firefly helps you generate, edit and experiment fast because the asks aren't getting smaller, the budgets aren't getting bigger, and the timelines. Oh yeah, still tight. With all the best creative AI models in one place, Firefly brings your ideas to life. Unlock a better way to make with Adobe Firefly.
- [34:49]
Geico Announcer
Gigo presents a 30 second podcast between your podcast Today's story is shared by one of our listeners. It's called Betrayed by Bill. It was in that moment I caught who was staring back at me in betrayal or more like what, my insurance bill. With trembling hands, I grabbed my phone and switched to geico, saving about $900 in the process and never to be betrayed again. Now that was bloody riveting.
- [35:15]
Podcast Announcer
It feels good when the story ends with savings.
- [35:17]
Steve Levitt
It feels good to Geico.
- [35:19]
Chase Sapphire Reserve Announcer
This is the table, the one with the view. This is how you reserve exclusive tables with Chase Sapphire Reserve. This is your name on the list. This is the chef sending you something he didn't put on the menu. This is 3 times points on dining with Chase Sapphire reserve and a $300 dining credit that covered the citrus pavlova and drinks and the thing you didn't care think you liked until you tasted it. Chase Sapphire Reserve now even more rewarding.
- [35:44]
Podcast Announcer
Learn more@chase.com Sapphire Reserve cards issued by JP Morgan Chase bank and a member FDIC, subject to credit approval.
- [35:54]
Steve Levitt
So I've been spending a lot of my time lately fighting a different educational battle than the one that you're focused on. I strongly believe we are teaching kids the wrong things. And I believe that much more time and effort should be put into teaching students about data analysis, understanding the difference between correlation and causality, how to work with spreadsheets or data visualization, computer programming. What's your view on this?
- [36:21]
Sal Khan
Yeah, I agree. And I would add personal finance or just general finance in there, probably a little accounting, a little bit of law. I will say as someone who I love calculus. I teach calculus. I've made hundreds of videos on calculus, statistics and data science. And all of these things that we just listed are more useful than calculus. For pretty much everyone, there is a system. It was decided essentially in 1890 by the Committee of Ten, which was 10 university presidents in the US that sat down and said what is important? And they're the ones that actually determined that you learned chemistry in 11th grade and biology in 10th grade and physics in 12th grade. And obviously they were doing that before we even knew about DNA or we had the modern Federal Reserve or an interstate highway system. And we really haven't been able to revisit these things because it has just so much inertia to it.
- [37:09]
Steve Levitt
I also think that we should put much more effort in schools helping children to understand their own emotional lives. So mindfulness and conflict resolution, dealing with stress and trauma. And these are things that every adult I know spends an enormous amount of time on. Belatedly. What do you think about bringing that radical change into school curriculum and how might you do it if you agree that would be a good idea?
- [37:36]
Sal Khan
Oh, I'm a huge believer in it. I often shy away from talking publicly about it because it's not measured in the same way that your math scores are, that it doesn't get as much attention. But at our lab school, we don't just have pe, we have outer wellness and we have inner wellness. The students meditate, they're learning to self regulate. There's some hidden cognitive behavioral therapy that we're working with the kids where they learn to become more aware of their own thoughts and aware of their own feelings. We have epidemics right now globally, but especially in the US around stress, anxiety, loneliness. How can we address these? Our lab school, I would say about 30, 40% of the energy is on that because the academic stuff is happening in a lot of ways easier. We're able to put more energy there. I have published on Khan Academy some guided meditations for students and things like that. Personally, I've started meditating religiously for the past two or three years and it's changed my own life. I continue to be impatient and angsty about all of this change happening, but I wake up in the middle of the night a lot less.
- [38:31]
Steve Levitt
When I talk to schools, people in education about data science, the answer is always yes. That makes a ton of sense. How can we do it? And when I talk to them about emotional wellness, usually it's complete silence. I think the schools just feel completely unprepared for taking that step.
- [38:53]
Sal Khan
They're feeling overwhelmed because even on the things that are measured, which is essentially math, reading and writing, we know the data is not good. And so I think a lot of these systems feel so overwhelmed. The reality is, if kids actually learn to write at an eighth grade level, if they learn to read at an eighth grade level and they truly master eighth grade math, they are going to be pretty empowered. Because the sad reality is very few high school students have actually mastered reading, writing, and math at the eighth grade level by the time they graduate from high school, many times by the time they graduate from college, they really haven't done that.
- [39:27]
Steve Levitt
Almost nobody uses 10th or 11th or 12th grade math ever in their everyday life. I agree with you 100% that a great goal would be for everyone to understand 9th grade and math at the end of 12th grade. But the way the incentives are set up now and the way the high stakes testing works, schools are incentivized to piecemeal as best I can. 10th grade, 11th grade, 12th grade learning. And it doesn't leave any time to go back and actually get the mastery of ninth grade.
- [39:54]
Sal Khan
I would argue that they could be incented. Right. It's just, it takes a little bit of a leap of faith. The same is true of the higher education system. My hedge fund days, I remember talking to a CFO of a company and I remember like, well, you know, based on my calculations, it looks like you make about, I think it was like a jeans company. It looks like you make about $20 per unit on your jeans. Like, how did you know that's not public information? You published your quantity, you sold and you published your profit in two different periods. It's called a system of equations. I learned that in eighth grade. You know, this is someone who probably went to fancy business school and they learned all that stuff, they probably got A's in it, but they didn't realize that this is just basic algebra. If you really master 12th grade or first year college biology, chemistry, physics and math, you are like dangerous in the world. In a good way.
- [40:42]
Podcast Announcer
Foreign.
- [40:45]
Steve Levitt
You've had so much success, do you have trouble reigning in your ego at all?
- [40:53]
Sal Khan
That's why I meditate. No. Well, look, for me, I'm a big believer in your ego creates most of your suffering in the world. Most of the suffering in your own mind. I'd like to believe that. I've never taken myself seriously. I've taken some of what I've worked on very seriously. Like when I worked at the hedge fund, I was driven, like, okay, I have to do well. Obviously part of my ego was like, I want to be, quote, successful in this field. But a lot of it was, I want to be able to support my family and do things that are intellectually stimulating. But then when you transition into a mission like Khan Academies, you're like, wow, this is important. If you fail, Sal, maybe millions of people aren't going to be able to learn as much or whatever. And so that creates a certain form of stress. I guess you could say it's somewhat ego driven in that it's associated with your identity. So, Sal, you've tied your identity to this mission. You've got to make this succeed. And one thing that's helped me not be as stressed or anxious, although I still am sometimes, is to say, Sal, you gotta let go of that. Your identity, your Persona, your ego. Like these are just completely human constructed things. And trust me, I have more than my share of failures and times where I've been knocked down and things aren't looking good. And so I also need to remind myself in those times that, look, this isn't about this thing called Sal, this physical body, this Persona that you identify with. This is about just trying to do every day what you think is right and then the chips fall where they do. This goes back to things like Buddhists and Vedic philosophy of don't get attached to the results, that's what's going to cause suffering. But do what you think is right.
- [42:26]
Steve Levitt
Is there anybody in your organization who will tell you you're wrong?
- [42:30]
Sal Khan
Is there anyone who wouldn't?
- [42:33]
Steve Levitt
So that's good. I mean, so you cultivated that. Because that's really hard. You're such a good talker and you've had such great results and you're such a visionary. It's really hard for me to believe that the people who would work for you, would feel the ability to tell you you're wrong.
- [42:48]
Sal Khan
I'd love to hear from them, but what you just said is very nice and very flattering. But I think, if anything, I almost feel like the people who work a lot with me almost go into an engagement with me saying, well, you know, Sal can be convincing. So I'm almost going to put like extra guards up to be extra, you know, play devil's advocate. Obviously you want to cultivate a place where it's not about being right, it's all about the mission.
- [43:11]
Steve Levitt
So it's easy to say though that you want to have an organization that is mission driven. But are there particular things you've done at the academy? Are there norms around failure or around telling you you're wrong that make it easier for people to do that than a typical organizations?
- [43:31]
Sal Khan
One of the big questions when we started, especially not for profit, is how we're going to attract top talent, especially in a place like Silicon Valley where people could go work at Google and Facebook and get all the stock options and whatever else. I remember reading a study back when I was a hedge fund analyst and it said that beyond a certain level pay and things like bonuses, actually they're not that great of an incentive or they can even be a disincentive at some point. And what really people care about, they definitely need enough pay to feel valued and feel like they can support, support their family at a reasonable standard of living. But beyond that, it's all about having a mission that you feel like a real purpose, feeling that you're working around other people who are alongside and are invested in you and having intellectually stimulating work that really leverages your skills. When we give job offers to, let's say an engineer or a designer, most of them already have job offers or are coming from many of these tech companies that pay a lot of and we get 70 or 80% of them. Not only are we attracting these people, we're getting some of the best people in the world joining us because I think some of the best people in the world are drawn to purpose.
- [44:34]
Steve Levitt
There are a lot of people who are thinking about careers and they're not sure whether to follow a for profit path or a not for profit path. Do you have advice for people about how to make a wise decision in that case?
- [44:48]
Sal Khan
When I meet people who are in college or just graduating from college, I tell them just ask a lot of questions and don't be afraid to ask nosy questions. And then based on that information, find a path that especially early in your career, is going to grow you and challenge you the most. Where you're going to get invested in, you're compensated fairly, you have great managers who are willing to keep giving you more and more, frankly, as much as you're willing to take. But at the same time, make sure that you have space for, for your interests and your passions outside of work, that you don't define yourself, your Persona by just that one job. I give the example. The hedge fund I worked at. It's non stereotypical Dan Wohl, who was my boss. I was ready to work 80 hours a week because I thought that's what you had to do at a hedge fund. But I remember after the first week or two, he's like, sal, why are you still working? It was like 6 or 7pm and I was like, oh, no, Dan, I got to analyze these companies. He's like, go home. I was like, okay, I'll analyze them from home. He's like, no, no, no, go home and don't do this. And I was like, confused. And he's like, look, Sal, our job as investors is to avoid making bad decisions and make a few good decisions every year. If we just work ourselves silly, you're going to end up making bad decisions. And so he's like, you need to have other interests, you need to recharge, and when you come to work, be there 110%. I was like, all right, Dan, I will do that. And that's what allowed me to tutor my cousins and write software for them and all of this. A lot of my peers who went on a similar track to me, they weren't lucky enough to have a Dan Wohl as a manager. By the time they were in the 30s or 40s, they're making a ton of money, but they've completely forgotten what they wanted to do with that. They've completely forgotten their passions or they've gotten the golden handcuffs. One of the good things is I've always lived quite frugally, so I've never been attached to a certain standard of living. A part of it is fear. When I grew up, my family wasn't well off. But that also gives you a certain form of freedom so that you can sometimes pursue these other things.
- [46:37]
Steve Levitt
Yeah, I'm glad you added that, because I was going to say that I give almost the exact same advice that you just gave, but with one addendum, which is, if you do take a job that pays you a lot, don't get addicted to the money, because then you're stuck and those golden handcuffs are brutal.
- [46:58]
Stephen Dubner
I love the ideas underpinning his lab school and I was only half joking when I asked about getting my kids on the waiting list. My wife and I actually talked about moving to Silicon Valley for that reason, but we decided it would be better to get Sail to start another con lab school here in Chicago. So that's what's at the top of my to do list for today.
- [47:24]
Steve Levitt
People I mostly admire is part of the Freakonomics Radio Network and is produced by Freakonomics Radio. Morgan Levy is our producer and Dan Dazzula is the engineer. All of the music you heard on the show was composed by Luis Guerra. We can be reached@pimaeeconomics.com that's P I M A Freakonomics.com thanks for listening.
- [47:56]
Sal Khan
Trust me, I have many low self esteem moments so I will call you anytime. You remind me of how dynamic I am.
- [48:07]
Podcast Announcer
The Freakonomics Radio Network the Hidden side of Everything
- [48:13]
Chase Sapphire Reserve Announcer
this is the table. The one with the view. This is how you reserve exclusive tables with Chase Sapphire Reserve. This is your name on the list. This is the chef sending you something he didn't put on the menu. This is 3 times points on dining with Chase Sapphire reserve and a $300 dining credit that covered the citrus pavlova and drinks and the thing you didn't think you liked until you tasted it. Chase Sapphire Reserve now even more rewarding.
- [48:37]
Podcast Announcer
Learn more@chase.com SapphireReserve cards issued by JP Morgan, Chase bank and a member FDIC
- [48:42]
Sal Khan
subject to credit approval at Nature's Bounty
- [48:44]
Allstate Representative
the belief is simple. You already have a brilliant body. Supplements just help support your journey. For over 50 years, nature's bounty has offered vitamins and supplements to help you eat, sleep, thrive. Repeat. From magnesium glycinate for heart and muscle support to hair growth capsules for fuller, thicker hair and probiotics with 20 billion live cultures for digestion. Nature's Bounty it's in your nature to thrive. Learn more@naturesbounty.com these statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease.