Financial Literacy for 21St-Century Learners

Show Me the Money Resources: Financial Literacy for 21st-century Learners

BY KAREN GAVIGAN

INTRODUCTION on Financial Literacy discovered that the average K-12 educators (8 in 10) say it is important to

: Some economists have called the current U.S. student's score regarding personal finance issues teach financial literacj in 1 .S. classrooms, only economic environment the worst financial crisis was 56% (Delisio, 2007). about half currently teach some form of financial since the Great Depression (Hilsetirath, Ng &c literacy (Networks Financial Institute, 2007). * More young people filed for bankruptcy than Paletta, 2008). Many educators and parents graduated from college in 2001 (Suiter & believe it is mure important than ever tor students WHAT CAN SCHOOL LIBRARIANS DO? Meszaros, 2007). to master financial literacy skills. To become School librarians need to be informed of what, if successful and responsible 21 st century citizens, • Forty-five percent of college students today face any, the financial literacy standards and guidelines our students need to graduate globally competitive credit card debt with the average debt totaling are for their state. The National Council on for work and posrsecondary education. Yet, as over $3,000 (Delisio, 2007). Economic Education reported in 2007 that Pam Erwin, president of Wells Fargo Foundation 40 states have personal finance standards or The message is clear; there is much work to be California states, "You can't put a fourth grader guidelines (up from 34 in 2004), 28 states with DUNE in K-1 2 SCHOOLS to help students become behind the wheel ot a car and expect him or her standards require them to be implemented, 9 financially literate. Even though the majority of to automatically know how to drive. Managing states require testing ot student knowledge money is a learned skill I hat comes with education

and experience" (Education World, 2007). TABLE 1 - FINANCIAL LITERACY EDUCATION NATIONAL PROGRAMS AND COMPETITIONS Unfortunately, the need to teach 2 Ist-ceniury skills, such as financial literacy, is often overlooked in today's schools. Many educators are reluctant to • Fed Challenge—PROVIDES HIGH SCHOOL STUDENTS THE OPPORTUNITY TO LEARN ABOUT add one more thing to the core curriculum given THE FEDERAL RESERVE AND HOW THEIR POLICIES AFFECT THE ECONOMY. this era of high-stakes testing. School librarians can WWW.FEDERALRESERVEEDUCATION.ORG/TEACHERS/FEDCHALLENGE/FEDCHALLENGE_INTRO.HTM play an instrumental role in infusing financial skills • Feed the Pig for Tweens—HANDS-ON FINANCIAL LITERACY PROGRAM FOR 4TH-6TH GRADE and knowledge in schools and helping to improve STUDENTS SPONSORED BY THE AMERICAN INSTITUTE FOR CERTIFIED PUBLIC ACCOUNTANTS (AICPA) financial literacy proficiency tor all students. AND THE AD COUNCIL, HTTP://TWEENS.FEEDTHEPIG.ORG/TWEENS

WHAT IS FINANCIAL LITERACY AND WHY • Hands-on Banking: Money Skills You Need for Life—DESIGNED FOR BOTH SELF- SHOULD IT BE TAUGHT IN SCHOOLS? PACED, INDIVIDUAL LEARNING AND CLASSROOM USE. DIVIDED INTO FOUR AGE GROUPS INCLUDING Financial LITERACY is the ability to make informed KIDS, TEENS, YOUNG ADULTS, AND ADULTS. PROVIDES INSTRUCTOR'S GUIDES. DEVELOPED BY WELLS judgments and effective decisions regarding the use FARGO BANK, WWW.HANDSONBANKING.ORG/EN and management of money (Networks Financial • Money Math: Lessons for Life—A FOUR-PART LESSON CURRICULUM FOR MIDDLE SCHOOL Institute, 2007). Unfortunately, a large number of MATH CLASSES USING REAL-LIFE EXAMPLES FROM PERSONAL FINANCE. INCLUDES TEACHER'S GUIDE American adults have not mastered basic economic with LESSON PLANS, REPRODUCIBLE ACTIVITY PAGES, AND TEACHING TIPS. DEVELOPED BY THE skills and are considered financially illiterate. When CENTER FOR ENTREPRENEURSHIP AND ECONOMIC EDUCATION AT THE UNIVERSITY OF MISSOURI-ST. it comes to the financial literacy of America's young LOUIS IN ACCORDANCE WITH NATIONAL SCHOOL MATHEMATICS STANDARDS. people, the news is equally disturbing. Consider the following statistics: WWW.treasLtrydirect.GOV/FNDIV/TOOLS/TOOLS_MONEYMATH.HTM

COMPETITION FOR HIGH SCHOOL STUDENTS " Former Federal Reserve chairman Alan • National Economics Challenge—A Greenspan stated that our children arc SPONSORED BY THE GOLDMAN SACHS FOUNDATION. THE CHALLENGE ENCOURAGES STUDENTS TO financially illiterate and unable to inherit the APPLY THEIR ECONOMICS KNOWLEDGE, WORK IN TEAMS, AND IS NOT ONLY FUN BUT OFFERS PRIZES. global economy unless we start to educate them HTTP://ECONOMICSCHALLENGE.COUNCILFORECONED.ORG in elementary school (Godfrey, N.S., 2006). • National Endowment for Financial Education—AN AWARD-WINNING FREE, • Seventy percent of U.S. parents say that most NONCOMMERCIAL FINANCIAL EDUCATION PROGRAM FOR HIGH SCHOOLS, HTTP://HSFPP.NEFE.ORG children feel a sense of entitlement. "They • Stock Market Game—GIVES STUDENTS IN GRADES 4-12 THE OPPORTUNITY TO INVEST A expect to have whatever it is they want, HYPOTHETICAL 5100,000 IN AN ONLINE PORTFOLIO. FEES VARY FROM STATE TO STATE. SPONSORED whenever they want it" (Godfrey, N.S., 2006). BY THE NEW YORK STOCK EXCHANGE AND OTHER COMPANIES ACROSS THE FINANCIAL SERVICES • After surveying more than 46,000 high school INDUSTRY, WWW.STOCKMARKETGAME.ORG/INDEX.HTML students nationwide in May 2008, the Council

24 LIBRARY MEDIA CONNECTION ®<3>® March/April 2010 on personal finance content, and 7 states require as a model and the Coalition advises educators and across grade levels. As outlined in the AASL's students to take a personal finance course to to determine their own pian for addressing these Standards for the 21 st-Century Learner, "school graduate (Young Americans Center for Financial topics in their schools. A pdf version is available librarians can collaborate with others to provide Education, 2009), If your state does not currently at http://pueblo.gsa.gov/cic_text/education/ instruction, learning strategies, and practices in have standatds and guidelines, or if you want jumpstart/k-12.pdf. using the essential learning skills needed in the CO supplement your own, you can turn to the 21st century (AASL, 2007). Once school librarians familiarize themselves with National Standards in K-12 Personal Finance financial literacy guidelines and standards, they can School librarians can also provide teachers and F.ducation, developed by the JumpStart Coalition pattner with other educators and administratots to students access to the resources necessary for for Personal Financial Literacy. This document develop ideas on how to integrate financial literacy financial literacy learning. One way is by making offers a list of the financial skills that K-12 learning opportunities throughout the curriculum administrators, teachers, and parents aware of students should possess. These guidelines serve

TABLE 2 - SHOW ME THE MONEY RESOURCES: A SELECTIVE BIBLIOGRAPHY (Continued next page)

COUNTING MONEY—FICTION The Coin Counting Book All about Money Counting on a Win Williams, Rozanne L.Watertown, MA: Roberson, Erin. New York: Children's Press, 2004. Aboff, Marcie. Len Epstein, ill. Mankato, MN: Cbarlesbridge Publishing, 2001. Grades K-4. Grades 1-3. Picture Window Books, 2009. Grades 1-3. An introduction to simple math and to the coins Simple text and photographs introduce the After a fun day at the boardwalk, Jody calculates we use every day. concept of money, the history of currency, and the whether she has enough money to play one values of currency. more game and maybe win a special prize for her CURRENCY brother Max. Money EARNING MONEY—FICTION Cribb, Joe. An Eyewitness book. New York: Dorling Isabel's Car Wash COUNTING MONEY—N0NFICTION Kindersley, 2005. Grades 6-12. Bair, Sheila. Judy Stead, ill. Morton Grove, II: Albert Whitman & Co., 2008. Grades K-4. Counting Money Examines in text and photographs the symbolic Dalton, Julie. New York: Children's Press, 2005. and material meaning of money, from shells and To earn money to buy a doll that she wants, Grades 1-3. beads to gold, silver, checks, and credit cards. Isabel starts a car wash business with money

Simple text and photographs introduce the value of invested by her friends, hoping to make a profit coins and the increasing values of additional coins. The Doiiar Bill in Translation: for everyone. Includes information on selling What it Really Means shares in business. How Much Money? Forest, Christopher. Mankato, MN: Capstone Endres, Hollie. J. Bloomington, MN: Yellow Press, 2009. Grades 4-6. Lunch Money Umbrella Books, 2006. Grades K-2. Clements, Andrew. New York: Simon & Schuster Presents the dollar bill and explains its meaning Books for Young People, 2005. Grades 4-6. Simple text and photographs introduce the value and symbolism using everyday language. of various American coins and how those values Describes the events that led to the creation of Twelve-year-old Greg is surprised to find himself increase with more coins. currency and its significance through history. teaming up with his rival, Maura, to create a series of comic books to sell. The Penny Pot The Big Buck Adventure Murphy, Stuart J. Lynne Cravath, ill. New York: Gill, Shelley and Deborah Tobola. Grace Lin, ill. A Dollar for Penny HarperCollins Children's Books, 1998. Grades 2-5. Watertown, MA: Charlesbridge Publishing, 2000. Glass, J. Joy Allen, ill. New York: Random House, Grades K-2. 2000. Grades K-1. The face painting booth at the school fair provides plenty of opportunities to count Rhyming account of a little girl's quandary as she Penny sets up a lemonade stand to earn combinations of coins adding up to 50. tries to decide what she can get with her dollar in money for her mother's birthday card and a candy shop, toy store, deli, and pet store. learns about currency. Using Money at the Lemonade Stand Rauen, Amy. Pleasantville, N.Y: Weekly Reader Follow the Money Owen Foote, Money Man Books, 2008. Grades 1-4. Leedy, Loreen. New York: Holiday House, 2002. Greene, Stephanie. New York: Clarion Books, Grades K-3. 2000. Grades 2-4. A successful lemonade stand keeps two boys A quarter describes all the ways it is used from the Ingenious eight-year-old Owen wants to make busy counting coins. Also in the series: Using time it is minted until it is taken back to a bank. money for the things he absolutely needs, such Money on a Shopping Trip by Jennifer Marrewa. as plastic vomit, but he tries to come up with some alternatives to earning an allowance, which sounds like too much work.

March/April 2010 ©d>© LIBRARY MEDIA CONNECTION 25 TABLE 2 - SHOW ME THE MONEY RESOURCES: A SELECTIVE BIBLIOGRAPHY (Continued)

Sweet Potato Pie ENTREPRENEURSHIP Supply and Demand Lindsey, Kathleen D. Charlotte Ritey-Webb, III. IV/iar Color Is Your Piggy Bank?: What Do Banks Do? What is Money? New York: Lee & Low Books, 2003. Grades K-3. Entrepreneurial Ideas for Self-Starting Kids During a drought in the early 1900s, a large, Cellini Linecker, Adelia. Montreal: Lobster Press, How Economics Works. loving African-American family finds a delicious 2004. Grades 6-8. Minneapolis, MN: Lerner Publications, 2006. way to earn the money they need to save their Shows kids how to increase their bank balance Grades 4-8. family farm. while doing what they love. Banking

Pitching in for Eubie Vision of Beauty: The Story of Sarah Earning Money Nolen, Jerdine. E.B. Lewis, ill. New York: Amistad, Saving Money Breedlove Walker 2007. Grades K-3. Lasky, Kathryn. Nneka Bennett, ill. Cambridge; Let's See Library: Economics. Lily tries to find a way to pitch in and help her Candlewick Press, 2000. Grades 2-5. Minneapolis, MN: Compass Point Books, 2004. family make enough money to send her older A biography of Sarah Breedlove Walker who, Grades 2-4. sister to college. though born in poverty, pioneered in hair and All about Money beauty care products for black women, and Lawn Boy Earning Money became a great financial success. Paulsen, Gary. New York: Wendy Lamb Books, Saving Money 2007. Grades 4-7. Spending Money MICRO LOANS A 12-year-old boy learns valuable lessons One Hen: How One Small Loan Made a Teen Finance. about capitalism, commerce, and life when his Big Difference Detroit, Ml; Ominigraphics Inc., 2005. Grades 9 -12 lawn-mowing business expands beyond his Milway, Katie Smith. Eugenie Fernandes, ill. wildest dreams. Cash and Credit Information for Teens: Toronto: Kids Can Press, 2008. Grades 2-6. Tips for a Successful Financial Life Dear Mr. Rosenwald This micro-finance tale takes place in Africa and it Savings and Investment Information Weatherford, Carole Boston. R. Gregory Christie, illustrates how a little help (such as a small loan for Teens ill. New York: Scholastic, 2006. Grades 2-5. to buy a hen) can make a big difference to those living In poverty. Young Ovella rejoices as her community comes STOCK MARKET together to raise money to build a much-needed The Stock Market: Understanding and school in the 1920s. SAVING MONEY Applying Ratios, Decimals, Fractions, and Rock, Brock and the Savings Shock Percentages Bair, Sheila. Barry Gott, ill. Morton Grove, II: Albert EARNING MONEY—NONFICTION Zuravicky, Orli. New York: PowerKids Press, 2005. Whitman & Co., 2006. Grades 2-4. Money, Money, Money: Where It Comes Grades 3-8. From, How to Save It, Spend It and Make It Gramps teaches his twin grandsons the value of Discusses the understanding and application of Drobot, Eve. Toronto: Maple Tree Press, 2004. saving money when he pays each a dollar a week ratios, decimals, fractions, and percentages with Grades 4-6. to help with summer chores, then matches every practical examples from the Stock Market. dollar each boy saves. An overview of money and currency facts and stories, with information on the modern world of Less than Zero TAXES electronic banking. Murphy, Stuart J. Frank Remkiewicz, ill. New York: Paying Taxes HarperCollins Children's Books, 2003. Grades 2-5. De Capua, Sarah. New York: Children's Press, Smart Girl's Guide to Money. One-Hundred 2002. Grades 3-5. One Money Making Ideas, Quizzes, and While trying to save enough money to buy a Tips Help Girts Learn about Money, Saving, new ice scooter, Perry the Penguin learns about Discusses the understanding and application of managing his money and about negative numbers. ratios, decimals, fractions, and percentages with and Smart Shopping practical examples from the Stock Market. Holyoke, Nancy. Chicago, IL: Pleasant Company, 2006. Grades 5-9. SERIES BOOKS ABOUT MONEY/FINANCE First Facts: Learning about Money. AUDIOVISUAL This new offering in American Girl's A Smart Girl's Mankato, MN: Capstone Press, 2006. Schoolhouse Rock: Money Guide series offers advice on earning, saving, and DVD. Disney Educational Productions, 2008. spending money. Checks, Credits, and Debit Cards Goods and Services Songs tike Where the Money Goes and The History of Money Check's in the Mail use catchy melodies to teach Saving Money kids about the national debt and the importance Scarcity of fiscal responsibility. Includes an interactive Spending Money assessment activity to reinforce key learnings.

26 LIBRARY MEDIA CONNECTION ®(S>® MARCH/APRIL 2010 existing literacy programs such as those listed in table 1. By tapping into these established programs, schools can get students Irom all grade levels "School librarians can play an instrumental role involved in national activities and competitions. in infusing financial skills and knowledge in SHOW ME THE MONEY RESOURCES schools and helping to improve financial literacy In a recent study on financial literacy education, the majority ot the teachers surveyed stressed proficiency for all students." the need for more grade-appropriate, quality financial litetacy resources in schools (Networks Financial Institute, 2007). Since school librarians the ever-popular Schoolhouse Rock series does a JumpStaft Coalition survey shows that just 10 are professionally trained to develop collections an excellent job covering economic matters hours of financial literacy training has a profound that support the curriculum, they are well suited through its Schoolhouse Rock: Money Classroom effect on young people (Godfrey, 2007). Working to address this need, librarians can help promote Edition, Additionally, the websites listed in Table 3 with other administrators and educators, media consumer, economic, and personal finance offer hands-on financial literacy lesson plans and specialists can develop a school-wide stimulus education by providing support materials for activities as well as other resources for teaching plan for financial literacy that will help students teachers as well as engaging resources for students. basic financial skills. This also reinforces one of comprehend how to manage their personal These resources can serve as sound investments the common beliefs of AASL; technology skills are finances intelligently as they ptepare for a lifetime for a successful financial literacy program. crucial for Futute employment needs (AASL, 2007). of financial security. Table 2 provides a selective bibliography of current materials that can be integtatcd throughout the CONCLUSION REFERENCES curriculum to help students learn about real-life K-12 students need financial literacy skills now American Association (if School Librarians. Standards financial issues. For example, the two picture for the 21st-century Learner, Chicago, IL: American more than ever before. As information specialists, books by Sheila Bair, Chair of the Federal Deposit Association ol School Librarians, 2007. school librarians can serve as school leaders who Insurance Corporation (FDtC) provide students Report from Hoys & Cirls Clubs of American and Charles provide resources and facilitate collaborative Schwab foundation Shows Increased Knowledge among with helptul ideas about managing their money. learning experiences that help students become lecns Leads to Positive Behavioral Change, 27 January Younger children will also enjoy One Hen (Milway, proficient in crucial 21st-century financial literacy 2009. Boys & Curls Clubs of America and Charles 2008) a story about micro loans that takes place Schwab Foundation. 9 June 2009 www. business wire. skills. The news is not all doom and gloom when c< i m I pa n al /si te/sc h wa bl i n dex. js p? n d m V ie w I d=n e ws_v ie in Kenya. A humorous novel for older students it comes tu the tinaiiu.il literacy ol out young w&tidmC lonfigId= 1016332&newsld=20090127005745 is Ltnvn Boy by Gary Paulsen, in which a 12-year- people. A 2008 study by the Boys & Cirls Clubs Sinews Lang=cn. old boy learns valuable lessons about capitalism, of America and the Charles Schwab Foundation Delisc-o, Lllen li. "Practical Hands-On Financial commerce, and life. found that teens who reported learning about Literacy Lessons." Education World, 2007. 9 June 2009 \\vr\v,cdiication-world.com/a_issues/cliat/chat2 I I .shtml. saving money were more likely to save regularly The bibliogtapby also includes nonftction series Godfrey, Nealc S. "Making Our Students Smart about (72% vs. 57%) (Boys & Girls Clubs of America titles on financial issues as well as some informative Money." Education Digest. 71:7 (2006): 21-26. and Charles Schwab Foundation). Furthermore, standalone books. In terms of audiovisual resources, Hilsenrath, Joe, Ng, Serena and Paletta Damian. "Worsi Crisis Since '30s with No End in Sight." Wall Smet Journal (Eastern edition; New York) 1H September TABLE 3 - FINANCIAL LITERACY WEBSITES 2008: A-l.

National K-12 Financial Literacy Qualitative and Council for Economic Education. Among other things, this website provides more Quantitative Research. March/April, 2007. Networks than six hundred lesson plans for all grade levels to help kids understand economics and Financial institute at Indiana State University. personal finances, www.councilforeconed.org. Grades K-12. 9 June 2009 www.networksfinancialinsiitute. org/ S i teCol 1 ec t i o n Documents/ Nation.ilK 1 2 Financial LiteracySiudy.pdr. KidsBank.com. Colorful characters help young people learn about money management. Developed by a regional bank, Sovereign Bank, www.kidsbank.com. Grades 3-6. Suiter, Mary and Bonnie T. Mes^aros. "Teaching about Saving and Investing in the Elementary and Middle School Grades." Social Education. 69:2 (2005): 92-95. Kiplinger.com: Money Smart Kids. Sound advice for kids, their parents, and teachers who are interested in learning more about how to manage their money. l-'inancial Literacy Statistics: The State of financial Literacy in America. 2009. Young Americans Center Includes information about the stock market, http://www.kiplinger.com/guides/ for Financial Education. 9 June 2009 www.yacenter. moneysmartkids. Grades K-12. urg/i]idex.cfm?fuseAction=imaiicialLittjracyStatistics. fmanciall.iteracyStatistics. Practical Money Skills for Life: Financial Literacy for Everyone. Visa-sponsored website provides information for students, teachers, parents, and others who wish to KAREN GAVIGAN is the know more about money management. Also available in Spanish or Chinese, www. director of the Teaching practicalmoneyskills.com. Grades K-12. Resources Center at the University of North Carolina at YoungBiz.com. A complete guide to the complexities of starting a business at this site Greensboro, North Carolina. designed for young entrepreneurs, www.youngbiz.com. Grades 6-12.

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Title: Show Me the Money Resources: Financial Literacy for 21st-Century

Source: Libr Media Connect 28 no5 Mr/Ap 2010 p. 24-7 ISSN: 1542-4715 Publisher: Linworth Publishing, Inc. 480 East Wilson Bridge Road, Worthington, OH 43085-2372

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