Preparing Students for a Successful Future Starts with Financial Literacy
By Florence Falatko, Presidential Achievement of Excellence in Math Awardee
Today we hear a lot about “finding your passion” or your “why.” This is so important for educators. As I thought about this, I started journaling what about teaching do I love and what gets the children and me excited. My passion in teaching is financial education to help create a financially literate society.
I truly feel that much of the baggage that our children and teachers bring to school are driven by financial struggles.
Our society is driven by debt, and too many people are facing life’s biggest decisions, such as buying a home, paying for college, and retirement, ill-prepared.
Families need to understand the importance of such concepts as:
- Compound Interest: the interest calculated on the principal including all previous accumulated interest.
- Pay Yourself First: an automatic deduction from your paycheck that goes to a retirement account.
- Budgeting: a realistic approach to gaining your needs and wants.
- Opportunity Cost: the loss of potential gain when a financial decision is made.
- Building Wealth: investing your money to make it grow (stocks, mutual funds, etc).
- Giving Back: the understanding that we are a community and need to support and help all members of the community.
As the Magnet Resource Teacher at my school, I feel the answer to these needs is a financial education that is sustainable and transferable. There are basic concepts at the very core of our financial education program. These concepts are: what is money, spending and saving, budgeting, and opportunity cost.
Teaching About Budgeting
At my school, these concepts are taught through a schoolwide financial community. All students have jobs in their classrooms, receive a virtual salary of $5 per week, and pay rent of $2 per week. The students can purchase items weekly or save for more expensive items in the store. They experience opportunity cost first-hand through their spending and saving choices.
Our fourth-grade students manage the online banking program for our community. They manage purchasing, sales, and pricing in the school store, and keep inventory using Excel.
Having multiple grade levels participating in the program ensures that children learn through the years about budgeting. It is not just a one-week unit. It is part of their lives at our school.
Participating teachers have shared that they see a stronger sense of community in their classrooms. This has transcended to fewer behavior problems in our school. We also share facts about economics and finance on our school morning announcements. The feature is called “Financial Friday.”
Teaching About Investments
Fourth- and fifth-grade students participate in the Stock Market Game through the SIFMA® Foundation. This is where students work in small groups of three or four and manage mock portfolios of $100,000 with real-time trading. Students learn how to complete short-focused research on various stocks and mutual funds. They learn about fundamental (how is the company doing?) and technical analysis (how is the company trading?). This research involves Common Core Math Standards and 21st Century Skills, while creating an awareness that we are a global society.
When something happens in one country, it can affect the stock market in our country.
Students also can participate in the InvestWrite® competition sponsored by the Stock Market Game. They respond to a writing prompt that is of high interest to them and apply it to their knowledge of the stock market.
Teaching About Giving Back
Our school uses trade books and activities with all grade levels to teach financial concepts. We often pair our younger students with older students to create a stronger sense of community. Our students also participate in two philanthropic activities. One is the Empty Bowls Program of Baltimore. Students who can, donate $10 and paint a bowl for the program. Our school pays for students who can’t. The program raises money for families who need support.
We also are transferring the grounds of our school to have all native Maryland plants. This involves the removal of the non-native plants, purchasing native plants, and the physical labor of planting the new plants. Both programs continue to build that sense of community.
Our showcase event is an evening for all stakeholders of the community called “Ignite Financial Literacy.” Members of the financial community run sessions for the parents. Some of the presentations involve our Maryland 529 College Plan, an Estate Attorney, Consumer Credit Advisors, and the Maryland Council on Economic Education. While the parents are participating in these programs, our Fifth-Grade Leadership Club runs sessions for the younger children. These sessions include games, crafts, and music that are all geared towards financial education. The evening is a celebration of our school’s commitment to financial literacy.
I encourage all teachers to find their passion for teaching, share this passion with others, and build a community to pursue this passion. Financial Literacy is truly essential to the fabric of our country’s success.
Florence (Flo) Falatko is a Presidential Achievement of Excellence in Math awardee. She is also a two-time recipient of the Maryland Financial and Capability Award in Elementary Education. Flo is a Master Teacher for the State of Maryland in financial literacy. She has collaborated with teachers not only in the state of Maryland, but also teachers from other states to help increase awareness and passion for financial education in our schools. Flo was featured on the Today Show for her work in the area of financial literacy. Flo attended the United States Patent Office Summer Conference for Educators in 2019. She also recently taught teachers in the United Arab Emirates in the area of STEAM education.
To be reminded why your work is so very important and for more stories and advice, visit our collection of teacher perspectives at The Art of Teaching.
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