Annotated Bibliography

Helping Students to Become Money Smart

Viola Supon

Being money smart has value that offers individuals skills for a lifetime. "Lawmakers had no way of knowing in 2007 that the U. S. economic situation would be where it is today, making financial education for students now even more crucial than at any other time in recent history" (Black, 2009, p. I). According to Beverly & Burkhalter (2005, p. 1), financial education or financial literacy is the "knowledge and skills related to money management." With the increased focus on preparing students for high-stakes testing in schools, a reasonable approach to teaching students about being money smart (financial literacy) is through varied instructional methods. It is recog- nized that the knowledge of money enables "changes in financial behavior" (Johnson & Sherraden, 2007, p. 122). Hence, from early childhood to adulthood, the value of money has significance. "To ensure that students make sound financial decisions as adults, financial education experts contend that schools and families should start fostering financial literacy before the teen years" (Allen, 2009, p. 5). As teachers and educators, we are responsible to enhance learning in our classrooms and prepare students. Therefore, it is necessary to explore the opportunities and strategies to teach students to be money smart. Godfrey (2006) states, "Our children are financially illiterate and unable to inherit the global economy unless we start to educate them in elementary school" (p. 1).

The purpose of this paper is to determine the significance of teaching financial literacy, relate suggested teaching strategies for in- structing money today, and point out resources relative to instructing financial literacy. Significance of Financial Literacy

It is apparent that "interest in personal finance education in U.S. schools has in- creased significantly since the 1990s" (Walstad, Rebeck, & MacDonald, 2010, p. 336). The researchers also point out when students took an economic course in high school they attained concepts related to financial knowledge. Further, Classroom Connection (2008, p. 7) cites research from the National Council on Economic Educa- tion indicating that "41 states now require educational standards be implemented for economics." While the research continues to

Dr. Viola Supon, Professor of Educational Studies and Secondary Education, Bloomsburg University.

Correspondence concerning this article should be addressed ot Dr. Viola Supon at vsu- [email protected].

evolve, the significance of teaching financial literacy encompasses benefits. These include providing opportunities for students to Ieam the value of money while promoting respon- sibility. Students are acquiring skills for leaming time management skills. They can begin to develop an awareness of monetary means, evaluate unnecessary purchases, and increase their work ethics. Students have the opportunity to Ieam appropriate choices rela- tive to purchases which definitely includes prior planning for the money being spent. This enables students to be more analytical and cognizant ofthe advertising world. They begin to comprehend the difference between luxuries and necessities. In our digital, yet disposal society, students must distinguish between their needs and desires. By building a foundation for the significance of money, students are leaming mathematical concepts and developing a sense of logic. The role of teachers has transformed to encompass more than just academic content and men- toring. Teachers have the immense duty to prepare students to be informed citizens in their community. In today's society, leam-

68

Money Smart.. / 69

ing fiscal responsibility and financial literacy are required skills to becoming a functioning member of society.

Teaching Strategies Teacher preparation and the amount

of instmctional time available are impor- tant factors if students are to gain financial knowledge. Teachers must be familiar with the content and use appropriate strategies of delivery to their students. Strategies begin by introducing students to basic vocabulary terms relative to today's money and seizing opportunities for incorporating financial knowledge into lessons and/or courses in the school curriculum. Amster (2009) em- phatically states that financial literacy can be integrated into all academic courses. He provides a strategy of integration:

Mathematics and financial literacy ap- pear to be the most closelycorrelated. There are opportunities to combine studies in thesetopics...a teacher could design a worksheet like a checkbook, then ask students to add and or subtract the amount of money they "use" from the balance. In this simple classroom situa- tion, students leam the fundamentals of balancing a checkbook while reviewing essential math skills, (p. 3)

Other opportunities exist, and teachers can integrate financial concepts into their ex- isting curricula or tap into available resources.

Teacher Resources Relative to Instructing Financial Literacy

"In response to the perceived need to improve financial literacy, a wide range of private businesses, nonprofit organizations and govemment agencies have developed financial education materials and programs" (Walstad, Rebeck, & MacDonald, 2010, p. 337). Various initiatives have included cur- riculum strategies, state standards, and pre- developed finance programs, including lesson plans. Other strategies include literature for

children and youth, role playing scenarios, interactive computer programs, and DVDs that clearly provide strategies for helping students to begin building a framework for leaming, eaming, saving, and money manag- ing. (See suggested resources)

Conclusion Teachers are encouraged to develop

strategies for communicating the significance of financial literacy to students and weav- ing appropriate aspects of this timely issue into their curriculum and academic content areas. Increasing communication provides new insights for students relative to financial literacy. Utilizing a designed program/course and/or a broad array of suggested resources enables teachers to help students to become money smart. This enables students to pos- sess a greater understanding while acquiring skills needed to be literate in a financial world.

Suggested Children's Literature Bailey, G., & Law, F. (2006). Common

cents: The money in your pocket. Minneapo- lis, MN: Compass Point Books.

Drobot, E. (2004). Money, money, money: Where it comes from, how to save it, spend it and make it. Toronto, Canada: Maple Tree Press.

Foster, C. (2004). Financial literacy for teens. Conyers, GA: Rising Books.

Kiyosaki, R., & Lechter, S. (2004). Rich dad poor dad for teens: The secrets about money - that you don't learn in school! New York: Wamer Books.

Mototsune, K. (2007). Money: Deal with it or pay the price. Toronto, Canada: J. Lorimer.

Roderick, S., Warwick, E., & Melny- chuck, M. (2008). Centsibility : The planet girl guide to

money. Toronto,Canada: Kids Can Press. Thomas, K., & MacEachem, S. (2004).

The kids guide to money cent$. Tonawanda, NY: Kids Can Press.

70/ Journal of Instructional Psychology, Vol. 39, No. 1

Web Resources http://www.clemson.edu/fyd/hsfpp.htm http://www.councilforeconed.org/ http://www.educationworld.com/a_les-

son/lesson232 .shtml http://www.edutopia.org/financial-

literacy-introduction http://www.federalreserveeducation.

org/PFED/ http://www.fdic .gov/consumers/ consumer/money smart/young .html

http://www.jumpstartcoalition.org/ , http://www.kidnexions .com/links .htm

http://kidsmoney.org/ http://www.mapwing.com/explore/

view_tour.php?t= 1 kj6O67tZ6267tO http://mn4h .net/Youth&Money/ http://www.moneyinstructor.com/

spending .asp http://www.ncwd-youth.info/assets/

info_briefs/infobrief_issue 16.pdf http://www.nefe.org/ http://publicdebt.treas.gov/mar/marm-

math.pdf http://salliemae.com/bedebtsmart http://www.saveforamerica.org/ http://www.stretcher.com/index.cfm http://teachingfinancialeducation.com http://www.thesalliemaefund.org/smf-

new/news/aiO7/jan08_middle_school .html http://www.theiei.org http://www.treasurydirect.gov/indiv/

tools/tools_moneymath.pdf http://www.youngmoney.com/

References Allen, R. (2009). Financial literacy: An

imperative in economic hard times. Education Update, 51(2),1,3,5.

Ameser,J. (2009,February). Should financial literacy courses be required? American Teacher, 93(5),3.

Arrowood, J.C (2006). Financial success for young adults and recent graduates: Manag- ing money, credit, and your future. Blue Ridge Summit, PA: Rowman & Littlefield Education.

Bemheim,B.,Garrett,D.,&Maki,D.(2001). Education and saving: The long-term effects of

high school financial curriculum mandates. 7o«r- nal of Public Economics, 80(3), 435-465.

Beutler, I., Beutler, L., & McCoy, J. (2008, July). Money aspirations about living well : Middle school student perceptions. Financial Counseling & Planning, 19(1), 44-60. Retrieved March 10, 2009, from Academic Search Complete database.

Beverly, S., & Burkhalter, E. (2005, April). Improving the financial literacy and practices of youths. Children & Schools, 27(2), 121-124. Retrieved March 10,2009, from Academic Search Complete database.

Black, S. (2009). An investment in literacy. American School Board Journal, 196(2), 44-45.

Carter, K. (2008, Summer). Students Ieam about financial literacy at Chicago school. The Crisis, 1-2.

Clarke,M.,Heaton,M.,Israelsen,C,& Egg- ett, D. (2005). The acquisition of family financial roles and responsibilities. Family and Consumer Sciences Research Journal, 33(4), 321-340.

Davis, K., & Durband, D. (2008, July). Valuing the implementation of financial literacy education. Financial Counseling & Planning, 19(1), 20-30. Retrieved March 10, 2009, from Academic Search Complete database.

Devane, B. (2009). "Get some secured credit cards homey": Hip hop discourse, financial literacy and the design of digital media learning environ- ments. E-Learning, 6(1), 4-22.

Financial literacy in schools. (2008, April). Techniques (Associationfor Career and Technical Education), 83(4),!-?,.

Fox, J., Bartholomae, S., & Lee, J. (2005, April). Building the case for financial education.

Journal of Consumer Affairs, 59( 1 ), 195-214. Godfrey, N. (2006). Making our students

smart about money. The Education Digest, 71(1), 21-26. Retrieved May, 26,2009 from Education Full Text database.

Johnson, E., & Sherraden, M. (2007). From financial literacy to financial capability among youth. Journal of Sociology & Social Welfare, 34(3), 119-146. Retrieved March 10,2009, from Academic Search Complete database.

Lauber, G. (2010). A case for teaching finan- cial literacy. School Administrator, 67(7), 41-41.

Mandell, L., & Klein, L. (2007). Motivation and financial literacy. Financial Services Review, 76(2), 105-116.

Money Smart. . / 71

McCormick, M. H. (2009). The effective- Walstad, W., Rebeck, K., & MacDonald, ness of youth financial education: A review of the R. (2010). The effects of financial education on literature. Journal of Financial Counseling and the financial knowledge of high school students. Planning, 20(1), 70-83. Journal of Consumer Affairs, 44(2), 336-357.

Shobe ,M. A.,& Stunn,S. L. (2007). Youth Wilhelm, W., & Chao, C. (2005, December individual development accounts. Children & 1). Personal financial literacy: Shaping education School, 29(3), 172-181. policy. Delta Pi Epsilon Journal, 47(\), 20-35.

Stoney,L.(1999).Lookingintonewmirrors: Retrieved March 10,2009, from ERIC database. Lessons for early childhood finance and system (ERIC Document Reproduction Service No. building. yoMngC/ü'tóren, 54(3), 54-59. EJ735858)

Varcoe, K., Martin, A., Devitto, Z., & Go, C. (2005). Using a financial education curriculum for teens. Financial Counseling & Planning, 76(1), 63-71.

Copyright of Journal of Instructional Psychology is the property of Educational Innovations and its content may

not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written

permission. However, users may print, download, or email articles for individual use.