One Problem With Financial Literacy In Schools
One Problem With Financial Literacy In Schools
We believe in teaching financial literacy, and that is one topic we cover at the Glad Academy in the summers. So, by no means do we want to eliminate financial literacy from schools. We DO want educators to think responsibly about introducing the topic because doing so hastily can backfire.
Although there are several pitfalls to avoid when engaging the topic, we want to bring to your attention one particular difficulty. This one is not something you may be able to control, and neither may their parents, but you will have to deal with it. Not every student is in the same situation, but there are enough to make this a big problem to consider.
They’re Broke
Why shouldn’t science students trust atoms with their money? Because they make up everything.
The kid who can take money out of their pocket and hold it can add a tangible aspect to their learning about money. Lacking this is like a student answering a question about wildlife in a forest on an assessment without ever seeing wildlife or a forest. That context could add an experiential insight to the learning process. Having no money as a resource or reference point is a disadvantage for the student, one with unknown costs (no pun intended). Money can serve as a great tangible tool like math blocks do. Without the money, there is a missing piece of the puzzle.
$0 Income
Why did the student quit their last school? Teachers weren’t making enough cents.
Teachers go to work and get paid for it. Students not only don’t get paid to work at school, many do not pay money to attend. You may live pay check to paycheck, but students are not necessarily earning any paychecks at all. There is nothing to replenish without anything to lose. This can impact the conversations about the difference between cash and cash flow or the confidence to apply money principles and relying on prior experience to accomplish new goals. Students may fail to respect the value of money as a tool if they have never worked to obtain it.
Overcome
I tried to make a belt out of dollar bills, but it was a waist of money.
Here are some ways to overcome some of these roadblocks:
- Give students (fake) money and assign it value in the class
- Survey students on their thoughts about money
- Incorporate realistic scenarios students can understand
- Tell stories that resemble students accomplishing money successes
