I've coached soccer/football and from expereince the kids would become better soccer players by sticking to a soccer ball. Learning "touch", ie how to control the ball and make it do what you want it to, is so important that switching to a footbag can be detrimental - especially with kids and especially if you use a soft footbag.
If its just for fun though and your not actually interested in making them better footballers then I'd go with the foot-eye co-ordination thing - perhaps point out that the likes of Pele and Maradona would juggle oranges and tennis balls to hone their skills.
i heard they play a lot of beach volley ball with a soccer ball in brazil. i play soccer tennis sometimes, those help ALOT. I'd say leave footbag out of academia for now, and just let them know what it is and show them some serious shred, oh and another buzz term along with foot-eye coord is BALANCE
Four square would be an awesome game to teach kids. It's ridiculously fun if they actually get into the real art of foursquare, and it's totally a way of getting them to kick it!!
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Footbag have made my first touch in soccer better. The first touch is very important as an attacker or offensive midfielder. Because you want to do your first touch so you get the most control and loose as little speed as possibel.
And I think smears reminds more about the "weird fakies" wich in danish are called Husmandsfinten = Housemantrick. I dont think that is the international name. And I dont think you should try to learn them Smears.
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