Friday, April 14, 2023
By the time students enter a personal financial literacy (PFL) class, they have had many “lessons” on handling money, many of them unconscious. Children see how parents react when a bill comes in the mail or when the paycheck arrives on Friday. So it should come as no surprise that students may have picked up emotional reactions to money. Our challenge as PFL educators is to help students understand the “why” behind their financial choices. In fact, teaching financial mindset, or behavioral economics, is the first step in helping students accomplish their financial goals.
Often, we associate bad money habits with families who have very little. There is some basis to this. The latest research from the Federal Deposit Insurance Corporation (FDIC)’s National Survey of Unbanked and Underbanked Households shows roughly 2 percent of Wisconsinites (approx. 116,000) are unbanked. Nationally, lower-income households are one of the groups more likely to be unbanked as they struggle to meet minimum balance requirements, credit-score limits, and lack trust in the banking system. Yet undisciplined spending indiscriminately affects all socio-economic classes. What can educators do to support students in these situations?
Teach the basics without judgment. It is easy to tell a class exactly what the “right” way is. To reach students who have no notion of the “right” way, however, move away from right and wrong. Instead, simply provide the steps a student can take to be financially responsible and start a relationship with a financial institution. Field trips to local banks or hosting guest speakers might help inspire a student to open a checking or savings account.
Money is not just numbers and math. Help students identify their feelings connected to money and their reactions to financial decisions. Get the ball rolling by sharing how you felt when you received the first statement for your student loan payments, how you were shocked looking at your first paycheck and all the deductions, or how proud you were to reach a money milestone. Teaching financial math is important, but also teaching that emotions will happen gives students a fuller understanding of how money can impact their life.
What educator resources are available. A Google search provides a wealth of knowledge, but you have other options, too. WISELearn Personal Financial Literacy resources were curated last summer and the Personal Financial Literacy in Wisconsin group contains lessons broken down by PFL standard strands. Next Gen Personal Finance also has several lessons and mini-units available on these specific topics that you can adjust for your classroom needs. A few to check out include:
Financial literacy is a lifelong journey. Get all of your students off to a good start with these words from Dave Ramsey, a personal finance personality: “You must gain control over your money, or the lack of it will forever control you.”
—Submitted by Jennifer Jackson, Business and Information Technology Consultant, CTE Team, Wisconsin Department of Public Instruction