Three Tips for Teaching Financial Literacy
Celebrating Financial Literacy Month
Every April we celebrate Financial Literacy Month, an observance founded by The Jump$tart Coalition to improve financial literacy, especially among our nation’s youth, and to promote financial well-being for all consumers.
Studies have found that providing students, as early in their education as possible, with foundational financial education skills and educational programs can build overall financial wellness. Unfortunately, the OECD’s 2018 PISA Survey results reveal that one in five US students fail to demonstrate more than a basic level of financial knowledge and skills, and students are performing below the baseline level of proficiency. [2]
This means that the vast majority of students struggle with simple financial management concepts, such as recognizing the value in budgeting for their future purchases and investments, saving for college, building strong credit, planning for retirement, buying a house, and other critical life decisions.
Fortunately, it’s never too late to get your students on track to financial health. Below are three easy tips to help you promote and instill critical financial skills in your learners:
Cover the Bases
Becoming a financially and professionally literate adult takes a great deal of time and experience. As educators, parents, and families, we can give young people a head start by empowering them with skills in managing money, self-awareness, and professionalism. We recognize how challenging it can be for educators, who already must integrate a great deal of content into the school day, to add yet another learning space to cover. But for those who are exploring financial and professional literacy, or perhaps for those who want to engage parents and families in this instruction, we have collected a variety of financial and professional literacy teaching resources. While every classroom and student will of course have very different professional and financial literacy needs, these areas account for some of the most common topics and skills.
Understand the Policies Behind It
Nearly 21 states have passed laws requiring schools to offer financial literacy or personal finance courses at the high school level. Unfortunately, the vast majority of states stop short of requiring students to take the course as part of the high school course requirements for graduation.
Research suggests that mandating financial literacy coursework and programs is the most effective way to increase access to financial literacy and better position students for their futures. While there is considerable, existing evidence of its direct correlation to students’ success, financial literacy courses are traditionally offered as economics, civics, or math elective, at best.
Approach It In a Fun and Sustainable Way
From the outset, financial literacy can seem like a dry, boring, and disengaging subject to teach and learn. On the contrary, however, these skills can be taught through relevant and hands-on activities that students will find both enjoyable and instructive.
In this blog, Presidential Achievement of Excellence in Math Awardee Flo Falatko describes the full financial literacy curriculum her school employs. As part of it, students earn virtual money through jobs in their classrooms, which they use to pay “rent” and other bills. Through investment apps, they learn how to make money off their money, and through participation in charities, they understand how to use money to give back. According to Flo, her students love learning the ins and outs of economics and finance and find the activities rewarding and fun.
Read Flo’s blog for more financial literacy ideas:
Additional Resources
