Tag Archives: financial literacy

Don’t bank on Dollarmites to teach financial literacy: here are our alternatives

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Research shows combining maths education and financial literacy concepts is a better way to teach children good financial habits and boost numeracy. http://www.shutterstock.com

Catherine Attard, Western Sydney University

The recent royal commission into banking has revealed rampant wrongdoing by the big banks. As a result, there is renewed public interest in school banking schemes. The Commonwealth Bank’s Dollarmites program has once again come into the spotlight.

Dollarmites was awarded a 2018 Choice Magazine Shonky award. The program has over 300,000 active participants, and although it’s not the only school banking program, it’s the largest by far.


Read more: Should banks play a role in teaching kids about how to manage money effectively?


According to the Commonwealth Bank, the motive behind the Dollarmites program is to teach good savings habits and develop financial literacy. But I could find little independent research evidence it actually does.

On the surface, the Commonwealth Bank’s intentions are good. But research has found 40% of people develop loyalty to their banks and continue banking with them into adulthood.

We need to consider other options. Here are some research-backed alternatives.

Alternatives to school banking

Financial literacy can be taught both at home and at school, in practical and meaningful ways. If we consider the core business of schools to be learning, then our classrooms are not an appropriate place for the distractions of corporate marketing. There is definitely no time to be wasted on the logistics of organising school banking.


Read more: Financial literacy is a public policy problem


In fact, schools have several options when it comes to teaching financial literacy. There are a number of free resources already aligned to the curriculum.

In my research, using ASIC’s MoneySmart resources, financial literacy was combined with maths. Students did activities that allowed them to deal with real money while applying maths skills.

For example, some students borrowed money from the school principal to set up small businesses. They then ran their business at a school market day, and used their profits to buy Christmas gifts for underprivileged children.

Simple activities such as setting up classroom economies or allowing children to help plan events (such as class excursions) are also excellent at engaging children in financial literacy in a fun, realistic and interactive way.

Findings from my study showed learning about money and maths improved engagement, understanding of mathematical concepts and knowledge of financial concepts such as budgeting, profit and loss, lending and interest.

There are also resources such as Banqer, a free subscription-based app that allows students to manage fictitious money to budget and cover expenses (such as “renting” a desk). In my professional opinion, apps such as this are high quality. They may have corporate sponsorships, but are offered brand-free, which is preferable.

Parents can teach financial literacy too

Parents are one of the biggest influences on the financial habits of children. Parents have a responsibility to model good financial behaviours.

Involving children in shopping, having discussions about family budgeting and encouraging children to save some of their pocket money using a bank account of their choice all contribute to the development of financial literacy. These are really simple, everyday things parents can do to help their children learn financial literacy.


Read more: Teaching kids about maths using money can set them up for financial security


Catherine Attard, Associate Professor, Mathematics Education, Western Sydney University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Teaching kids about maths using money can set them up for financial security

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Catherine Attard, Western Sydney University

As the world of finance becomes more complex, most of us aren’t keeping up. In this series we’re exploring what it means to be financially literate.


One of the most common complaints children have about learning maths is its lack of relevance to their lives outside school. When they fail to see the importance of maths to their current and future lives, they often lose interest.

This results in opting out of mathematics study as soon as they can, and proclaiming they are “not good at maths”.

Financial literacy – learning about budgeting, saving, investing and basic financial decision making – taught by both parents and teachers can help keep them engaged.

Three strategies for teachers

The Australian Association of Mathematics Teachers promote the teaching of financial literacy through maths with the help of contemporary teaching and learning resources that reflect students’ interests. These include lesson plans, units of work, children’s literature, and interactive digital resources such as games.

A wide range of resources are available from websites such as MoneySmart and Financial Literacy Australia. These are an excellent way to begin teaching financial literacy concepts, with some units of work specifically designed with a mathematics focus. However, these units can and should be adjusted to suit the specific needs of the students in your classroom.

Additionally, teachers should consider using resources that are familiar to students’ everyday lives. These could include items that are in the news media, shopping catalogues, television commercials etc. Keep watch for interesting photographs or misleading advertisements. They are great for starting discussions about maths. Questions such as “is this really a good deal?”, “what is the best deal?” or even “what mathematics do we need to know and understand to work out if this advertisement is offering a bargain?” could begin discussions.

There are also a range of apps that could be used alongside maths and financial literacy explorations, including budgeting apps and supermarket apps such as TrackMySpend, Smart Budget, or My Student Budget Planner . If you like using picture books to introduce and teach concepts, the Money & Stuff website has an extensive list of books relating to financial literacy.

The money connection

One way to improve engagement with mathematics is for schools to teach it in ways that children are familiar with. Most children are familiar with money, and many are already consumers of financial services from a young age. Research has found that it’s not uncommon for children to have accounts with access to online payment facilities or to use mobile phones during the primary school years. It’s clear that financial literacy and mathematics skills would be beneficial when using such products.

Financial education programs for young people can be essential in nurturing sound financial knowledge and behaviour in students from a young age. Using real-life contexts involving financial literacy can help children learn a range of mathematical concepts and numeracy skills like lending and borrowing, budgeting, and interest rates. They are more likely to remember and understand what they have learned because they applied mathematics to something they’re interested in and something that they can use in their lives.

Research into the teaching of financial literacy combined with mathematics in primary schools shows how important it is for all children to understand the importance and value of money and recognise the maths that underpins consumer and financial literacy.

They also need to engage in real world projects and investigations relating to consumer and financial literacy to understand how mathematics is applied in everyday decisions that could influence life opportunities.

Shopping is a teaching opportunity for parents

Many young children don’t understand where money comes from. It’s important that they begin to develop some understanding of how our economy works, even from a young age. Research has found a pattern emerging where children whose parents talk to them about money develop an earlier understanding of its importance. They are also provided with more opportunities to deal with making decisions about money.

If you have young children in primary school, it’s a great time to start their financial literacy and mathematics education. There are plenty of opportunities when you are out shopping to include your child in discussions and decisions where appropriate, or explain the financial decisions you make on their behalf. Talk about the mathematics involved in financial decision-making. Where possible, encourage children to make their own financial decisions with things like pocket money or savings. If you feel you need to improve your own financial literacy first, there are many resources available for adults.

The ConversationTeaching children about money through mathematics helps children learn. It helps them use mathematics in real-life scenarios and, more importantly, can help set them up for future financial security.

Catherine Attard, Associate Professor, Mathematics Education, Western Sydney University

This article was originally published on The Conversation. Read the original article.

 

Free resources that every teacher, student and parent should know about!

There are two brilliant mathematics resources that I believe everyone should know about and use to improve mathematics in schools and in our community. One is designed for people of all ages, and the other is one of my favourite mathematics problem solving websites. Some of you would have seen and used these two websites. If you haven’t, I would encourage you to take a look – these resources are free and of high quality! Although quite different, these websites have educational resources that access a broad range of mathematics content, and more importantly, the processes of mathematics. That is, the Australian Curriculum: Mathematics proficiencies, or if you live in New South Wales, the Working Mathematically components of the current mathematics curriculum.

Last week I wrote about financial literacy and what it means in the context of mathematics and primary schools. Since then, I have spoken to several more teachers and children at schools in low socio-economic areas as part of my current research project on financial literacy and mathematics. A result of my conversations is that I am even more convinced of the importance of teaching consumer and financial literacy in the classroom and beyond, in the wider community.

Part of my research involves the participating teachers using the existing MoneySmart resources to introduce their students to consumer and financial literacy prior to developing their own context specific units of work. This requirement led to some professional development based on the MoneySmart resources (https://www.moneysmart.gov.au/), which have been funded by the Australian Securities and Investment Commission (ASIC). Prior to this professional development, almost all of the teachers I have spoken to did not fully understand that financial literacy is much more than being able to recognise currency and the adding and subtracting of dollars and cents. Some teachers also expressed a need to develop their own financial literacy to improve their own financial health.

After exploring the range of resources on the MoneySmart website I am convinced that this resource should be used in every school and community. The website provides educational resources for people of all ages and stages in life and could potentially change lives by promoting the development of healthy consumer and financial habits. It’s not enough that we are promoting financial literacy amongst children – the message needs to spread beyond the school gates, and I believe MoneySmart has the power to do this.

The second free resource that everyone needs to know about is the NRICH mathematics enrichment website (http://nrich.maths.org/teacher-primary), published by the University of Cambridge as part of the Millenium Mathematics Project. I have been using this site for many years now and it continues to improve and evolve. The standard of the mathematics problems on this site are excellent and an added benefit is that there are also many resources that provide professional development for teachers. Although the website is based on the British school curriculum, it aligns quite well with the Australian Curriculum.

The best thing about the NRICH website is that it is based on rich mathematical problem solving and investigation, which lies at the heart of our mathematics curriculum in Australia. The activities can be used in the classroom, for homework (if you have to set homework), and can be accessed by parents who are looking for some mathematics they can do with their children.

So what do these fabulous free resources have in common? Apart from the fact that they’re both free, they promote high quality mathematics education by using either contextual, real-life project based learning or rich tasks that can help children (and adults) learn mathematics in a much more engaging way than traditional text books and worksheets. They also promote the development of skills and understandings that can be applied beyond the mathematics classroom and have the potential to improve life opportunities – that’s got to be a good thing!