Financial Literacy Month

Money Math Mondays: Earning Income

BTM Money Math Mondays: Earning IncomeWelcome to our third “Money Math Monday.” This week children will learn about ways they can earn income. We all know kids who make a few extra dollars by providing services like walking the neighbor’s dog or mowing the lawn. How about earning money for helping someone name their pet? Bedtime Math has found all kinds of creative services that people will provide for $5 on the website Fiverr. Click here to see Bedtime Math’s examples of people earning income by putting their talents to use in unusual ways: features numerous lessons focused on earning income and exploring career choices for students in grades K-12:

econedlink logo 300x71 Money Math Mondays: Earning Income




Grades K-2
We Can Earn Money (or) Working Hard for a Living
This lesson introduces young children to the work grown-ups do to earn money. Students also explore tasks they might do at home to earn money.

Grades 3-5, 6-8
Do I Look Like I’m Made of Money?
One of the most common replies given by parents when their children ask for money is “Do I look like I’m made of Money?” This lesson is designed to educate students about the need for money as a generally accepted medium of exchange. The students will also learn how money is earned. Finally, the students will research potential career options.

Grades 6-8
Hey, Get a Job!
This lesson has students choose a job or business to engage in during non-school hours. They then devise a strategy of whom to target and how to begin pursuit of their chosen endeavor.

Grades 9-12
Wages and Me
Students explore the reasons for differences in the wages for several occupations. Then students are guided through the Bureau of Labor Statistics website to find information about their potential careers and wage rates nationally and in their own states.

POSTED: April 20, 2015 | BY: Daniel Thompson

Incorporating Economics in the Elementary School Curriculum

ohagan Incorporating Economics in the Elementary School CurriculumBy Kathleen O’Hagan, Special Representative at the UFT, Former 4th Grade Teacher, 2014 Alfred P. Sloan Foundation Teaching Champion Awardee

Today’s public schools are tasked with so much to teach that it isn’t surprising that many essential skills are over-looked with the current focus on reading and math scores and standardized tests. What is often missed in this narrow focus is the impact that these other essential skills can have on reading and math instruction. The curriculum in the elementary school where I taught was of both high rigor and high caliber but it neglected economics to concentrate on reading and math. With this in mind, I recognized the need to bring this subject to our students, the majority of whom were English Language Learners (ELLs) or former ELLs. After the economy was hit hard in 2008, I wanted my students to learn more about saving for their futures and the many long-term benefits, versus the costs, of college but I didn’t know how to bring this instruction into my elementary classroom.

OHagan in the Classroom1 300x167 Incorporating Economics in the Elementary School CurriculumThe Council for Economic Education showed me how to incorporate these ideas into my classroom. It began when I took their course on how to create a mini-economy. With this training, I was able to make our class a place where students learned (as part of their math curriculum) how to keep bank accounts, act as bankers and store clerks, open pencil-loaning businesses, and also experience the real-life issues of rent, tickets, co-payments, unexpected expenses and price inflation. Then in the next year, my next class moved beyond just being consumers in a mini-economy to being producers by utilizing a three-dimensional printer to create the store stock and in the process began to investigate the issues of supply and demand in their mini-economy. Imagine their excitement when they were featured in an article about their mini-economy, not just the first class, but two classes, two years in a row! Talk about underscoring the importance of the economics they were learning!

Not surprisingly, the students’ reaction to this instruction was enthusiastic and they were utterly engaged. What was surprising was the powerful response from the parents who were delighted to have their students learning economic vocabulary such as deposit, withdrawal, expenses, goods, consumer, etc. and the real-life experiences of keeping a financial log and having to learn about delayed gratification if they wanted to save up their money for larger purchases in the future.

In addition to all of this economic instruction, we eventually added the element of debate, around economic topics which included: “Should the Penny Stick Around?” and in so doing, incorporated elements of reading and writing. My students learned the importance of research, interviews, and public speaking in addition to developing an understanding of the need to save for the future, but not just any future, THEIR future. The mini-economy was a success at getting even the most reluctant student out of the sidelines of learning and into the heat of debate. For example, my most reluctant writer would always have his essay ready so that he could be on one side of the debate when it was time to start talking about economic issues.

The mini-economy even outgrew our classroom and spread to other classes on the grade, including inter-visitations for debates. Most importantly, it empowered the students to feel confident about making financial decisions, understanding the importance of saving, and it even made the most reticent students outspoken about the importance of economics in their life. Economics instruction ultimately became embedded in the very math and reading skills that originally seemed to have no room for anything more and in so doing, equipped my students with the traditional skills taught as well as essential economic skills.

POSTED: April 17, 2015 | BY: Annamarie Cerreta | TAGS: , , , , ,

Nothing is More Powerful than Teaching Financial Literacy

Darren Gurney Nothing is More Powerful than Teaching Financial Literacy By Darren Gurney, Economics Teacher, New Rochelle High School, New Rochelle, NY, 2014 Alfred P. Sloan Foundation Teaching Champion Awardee.

As an educator, nothing is more powerful than teaching financial literacy. Having taught a variety of social studies topics during the past 18 years as a teacher, I know that financial literacy is as valuable as any topic that students are exposed to in their schooling. Moreover, other than health education no subject is as “real world” applicable as exposing adolescents to personal financial issues.

DGURN 300x167 Nothing is More Powerful than Teaching Financial Literacy When students enter my classroom for the first time, it astonishes me how little they know about basic financial concepts. Balancing a checkbook, using credit cards, understanding mortgage rates, contributing to retirement accounts, stock/bond investing, using debit cards, opening savings accounts, applying for car loans, and other day-to-day financial areas are topics which students are not exposed to in their primary education. These are activities that all adults face in their daily lives. Why are children taught trigonometry, chemistry, and other concepts that are irrelevant to their existence? Perhaps our schools’ inability to evolve past our “liberal arts” educational goals or a dependence on our countries’ long standing subject areas, the content provided to our students and future citizens is nonsensical.

Why not create educational curriculums that focus on material which students of all educational abilities will utilize later in their lives? Schools should be focused on teaching skills, such as critical thinking, analytical, public speaking, writing, arithmetic, and communicating effectively with others (socialization). The content used to foster these skills is largely insignificant. But, in learning these skills it serves our nation best by introducing financial literacy concepts that our youth will deal with daily as they age and move through college and into their careers.

Most of all, students enjoy learning about financial literacy. Stock market investing competitions, studying entrepreneurs and small business topics, completing tax returns, studying mortgage rates and real estate prices, and analyzing state/federal taxation policies ultimately motivates students a great deal. Why should we force our children to battle through William Shakespeare’s writing or memorize terms like mitochondria or pi, when most Americans are financially illiterate? Maybe if we channel our energies in these areas, the typical US household will not be saddled with so much debt. In turn, our nation’s leaders may be able to do a better job of not growing our $17 trillion national debt.

POSTED: April 16, 2015 | BY: Daniel Thompson | TAGS: , , , ,

It’s All About Implementation: Promising Results for State Financial Education Mandates

J. Michael Collins Its All About Implementation: Promising Results for State Financial Education MandatesBy J. Michael Collins, Ph.D., Center for Financial Security, University of Wisconsin-Madison

The growing complexity of financial decisions facing American consumers has prompted an increased emphasis by policymakers on promoting financial education at all stages of life. One group of specific concern is young adults, as they have been shown to have particularly low levels of financial literacy (Lusardi et al., 2010 ).

The 2008 financial crisis further demonstrated the need for broad-based financial education. However, the existing body of research on the effectiveness of financial literacy education has yielded limited evidence that it improves financial outcomes and behaviors according to research (Fernandes et al., 2014 and Willis, 2011

Policymakers have promoted financial education in schools as a means of combating negative financial behaviors and low levels of financial knowledge. However, research on the effectiveness of financial education has found, at best, mixed evidence in terms of education resulting in changes in financial behaviors. Even in the absence of evidence on the effectiveness of financial education, policymakers at the state level have expanded and strengthened personal finance and economic education requirements for K–12 students, a topic which has been taught in K–12 public schools in the U.S. since the 1950s. Determining which particular financial education programs yield the greatest benefits would allow states to design an effective curriculum.

Yet, we have natural “experiments” in states all the time, where school systems implement new mandates for courses that must be taught–and tested–before a student can graduate. At least 2 states, Georgia and Texas, did so in 2007. Thanks to data from the Federal reserve, my CFS [] colleagues Carly Urban [ ] and Max Schmeiser [ ] were able to obtain a sample of credit records for people in these states and nearby states (New Mexico and Florida–both states with no change in financial education mandates for high school graduation).

We then compared the changes in credit scores and loan delinquencies in states after implementation of the mandate to the changes in comparable states that did not pass mandates. Both GA and TX implemented well-documented requirements and testing, so we are confident students who graduated after 2007 were exposed, at least on average, to more financial education. Overall, we find that if a rigorous financial education program is carefully implemented in schools, it can improve the credit scores and lower the probability of delinquency for young adults. In Georgia, graduates after the new education mandates have credit scores 11 points higher and 30 day delinquencies are lower by 4.2 percent. In Texas, graduates after the mandate have credit scores over 31.7 points higher and lower 90-day delinquency rates by 6 percent, a relative decrease in delinquency rate of 33 percent (view full report: ).

All young people have lower credit scores—they are learning by experience. And, according to our data, nearly a quarter of young people are 30 or more days behind on at least one account. Yet, payments have big effects on the credit score of someone with a brief credit history and therefore, avoiding missed payments can have real long run effects.

More work needs to be done to understand what forms of education best benefit young people, if starting earlier has larger effects, and if less intense requirements might result in similarly sized benefits. We still do not know how well these effects will persist into later adulthood—but formal education may jump start trial and error learning that young adults often experience in credit markets.

POSTED: April 15, 2015 | BY: Daniel Thompson | TAGS: , , , ,

Improved Financial Literacy Will Help Improve Financial Well-Being

Tim Pawlenty 214x300 Improved Financial Literacy Will Help Improve Financial Well BeingBy Tim Pawlenty, President/CEO of Financial Services Roundtable.

Americans are increasingly responsible for their own financial security after retirement. Fixed payout pensions have largely given way to 401(k)s.  This transition brings new opportunities and challenges.  It also is another reason why financial literacy and education is more important than ever.

Studies show many American workers are not well-prepared to manage their finances. One study found nearly half of the older workers interviewed didn’t understand the type of pension or retirement plan they had and a large majority knew little about basic rules relating to Social Security benefits.[1]

The need to better understand personal finances doesn’t just begin as workers approach retirement. Financial skills matter throughout life as people consider questions such as the affordability of owning a home or how to best prepare for funding their children’s education.  Financial literacy is also needed to avoid financial exploitation.

It is often said that the first step towards solving a problem is admitting the problem exists.  Americans know we need to improve financial literacy. The National Foundation for Credit Counseling Financial Literacy Survey recently revealed that 41 percent of adults gave themselves a grade of C, D or F on their knowledge of personal finance and 61 percent admitted to not having a budget.[2]

Financial literacy is one of the highest priorities for the Financial Services Roundtable and our member companies. Making progress is a shared responsibility of the private sector, government, and consumers.

FSR and our member companies work to provide financial literacy resources and support to help educate and inform consumers.

Examples of such efforts include Bank of America partnering with the nonprofit Khan Academy to offer “Better Money Habits,” an online resource that offers videos on financial literacy topics such as understanding credit, home buying, saving and budgeting. U.S. Bank has created a “Credit Wellness Center” that helps consumers take control of their credit score by highlighting  tips about how to protect and maintain good credit scores. And State Farm Insurance’s “Make It Possible Program” hosts “A Slice of L.I.F.E.™” financial education workshops for underserved young adults, covering topics including the home buying process, the importance of credit, buying a car and establishing financial goals. More information efforts to improve financial literacy by FSR member companies is available at our Corporate Social Responsibility website, or by downloading a copy of FSR’s 2014 Impact Report.

Financial literacy is an important part of avoiding financial mistakes and planning for a strong, secure financial future. FSR and our member companies continue to raise awareness and support for enhanced financial literacy during Financial Literacy Month and every month.

[1]Source:Lusardi, Annamaria (2007): Household saving behavior: The role of literacy, information and financial education programs, CFS Working Paper, No. 2007/28.



POSTED: April 14, 2015 | BY: Daniel Thompson | TAGS: , , , , , , , , ,

Money Math Mondays: Supply and Demand

BTM Money Math Mondays: Supply and DemandIt’s our second “Money Math Monday” and this week’s Bedtime Math problems show that demand is high for some crazy products—anyone need eyelashes for their car? Click here to see how Bedtime Math gets your kids thinking about supply and demand.



Check out these supply and demand lessons on

econedlink logo 300x71 Money Math Mondays: Supply and Demand




Grades K-2, 3-5
To Market To Market
This lesson will help students become good consumers and producers by taking turns buying and selling things in a classroom-created market. Students will establish prices for items and observe what happens during the sale of those items.

Grades 3-5, 6-8
Not Your Grandma’s Lemonade Stand
After a review of elementary economic concepts, students will apply their understanding of supply and demand by playing an online computer game, Lemonade Stand.

Grades 6-8
Supply and Demand, Lessons from Toy Fads
The concepts of supply and demand are taught through stories about toy fads of the past, including Hula Hoops and Silly Bandz.

Grades 9-12 (Math)
Using Systems of Equations with Supply and Demand Application
Supply and demand is the meat and potatoes of all economic analysis. In this lesson, students will have the opportunity to put their Algebra 1 math skills to work in a real-world situation by mathematically determining the equilibrium price and quantity using a system of equations.

Grades 9-12 (Economics)
Would You Demand It?
How many students would demand a cell phone that costs $3,995? That was the price of the first cell phone available to the public back in 1983. Now that prices are so low, almost everyone has a cell/smart phone. In this lesson, students will learn about demand and its determinants by examining Internet subscriptions, food and the car industry.

POSTED: April 13, 2015 | BY: Annamarie Cerreta

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