What My Students Know About Money

Last week I wrote a few posts about money, what seems age-appropriate for kids to know, and how parents should begin sharing financial information with their kids. Since my topic is lining up nicely with my new reading unit in my class, I thought it would be a great time to follow up with some real-life data. I probably should rephrase that title, it should say what my students know about money. So, this week I opened up a new thematic unit on money. Granted, I’m currently teaching 3rd grade, so these kids are between the ages of 8 and 9 years old – a time when I think parents should be introducing chores and allowances if they haven’t already. When I first introduced the theme I asked questions to find out what they already knew about money so that I would know where to start. Some of their answers were really surprising! Here is just a smattering of what they said:

• “Money is paper.”
• “You pay money for your money.” (the student meant paying off a credit card… hmmmm, very interesting.)
• “Money is hard to make.”
• “Money comes from trees.”
• “You use money to buy expensive items.”
• “You use money to buy things you need.”
• “Money means nothing to me.” (I was surprised by this one, but this is coming from one of my students whose parents are more financially secure in comparison to the others.)
• “You need money to pay bills.”

For the most part, my students had some understanding about money. One even mentioned that her mother was paying Chase, I assumed she was paying off her Chase credit card. This brought up the topic of debt. Many of the students didn’t know what this word meant, so I quickly defined the word for them. One student asked what happened to a person if they didn’t pay off their debt; they were thinking they might go to jail. Since this is a 3rd grade class and I didn’t want to frighten them, I said that going to jail was a very, very slim possibility. That student quite seemed relieved! (Many of my students’ parents have been laid off or are economically challenged.)

Because our reading is focused on money for the remainder of the school year, I’ve started “paying” the students with play money to keep them motivated and on task. At the end of the day, they are allowed to purchase a candy, pencil, or treasure box item (all priced accordingly). I’m noticing that most of my students can count their coins, as I’ve told them I’m not counting for them. A few are clueless as how to count out the amount they need, often having to return to me two or three times before they have the correct amount. I’ve also seen a few disappointed faces when they realize they don’t have enough money for an item.

Only two of my students seem to understand the concept of “saving.” They save their coins, then trade them in for a paper dollar bill. A couple of other students have caught on to this strategy, something they are supposed to learn about by the end of the unit. I’m planning on introducing an “expensive” item later on in the unit to enforce the idea of saving for something big. I might also have to throw in a little monkey wrench and “charge” them a fee for disrupting the peace, or something to that effect. Those students without any money saved will be in debt. The goal of the unit is to have a basic concept of money; money is used to purchase things you need and want, it’s important to save money, money is valuable, and money is something that is earned (a couple kids thought you just go to the bank and they give you money and some have asked why you can’t make your own money!…All good questions.)

Have you asked your children or nieces and nephews what they think money is? Did you save your money as a kid? Do you pay your kids an allowance? How does this help children understand the value of money?

As the national economy has been in a deep recession this past year, the state I live in has been hit quite hard. My state is basically broke. There’s little to no money available for education or children’s services. In response to my state not being able to balance their budget and cut less important services or inflated salaries, the state has decided to increase state university tuition by 30% next year. Yes, that’s right by 30%!

This definitely affects me as I have gone back to school this year for a teaching credential. My goal is to pay for the program in cash and not take on any student loans, as I still have old ones I am paying off.  Instead of paying $1,900 a semester for part time classes, I may be paying $2,470. I had originally budgeted the total cost of my credential at $7,200 (for a total of 4 semesters.) Now, I’m looking at closer to $9,880.  That’s $2,680 more than what I budgeted. Yikes, that hurts!

The next question would be, is my credential worth the cost? Well, yes. I have been teaching for 8 years as a substitute teacher and have stayed at the same salary base all these years. As a credentialed teacher, I’d immediately get a pay raise of about $10,000 for the year. This out-weighs the cost of the credential program. This, however, assumes there will be teaching jobs available when I finish my program. As of now, my state is in such a bind that they are cutting education monies and increasing class sizes. When class size increases, teachers are let go. This year alone, about 1,500 teachers were let go in the district I teach in. Our district is threatening laying off another 7,500 teachers, unless they agree to a 12% pay cut (my current salary would be affected by this cut as well.) It’s a ridiculous amount they are talking about, but they are desperate.

Many positive things could happen within the next year that could remedy this depressing outlook. But for now, I’m not holding my breathe. I have to plan on where the additional funds are coming from to cover the potential increased costs of my credential. I currently save about $400 a month towards my credential program. With the 30% increase looming, I would have to eek out another $150 a month for a total monthly savings of $550. As a last resort, I could always apply for a small student loan, but this will be in desperation. A brief outline of my plan:

• Save $550 a month for 5 months = $2,750 (each semester is separated by about 5 months August through January)
• Complete my credential program by Spring 2011 (or Fall 2011 at the latest adding an additional $2,750 to the total cost)
• Get a job by Fall 2011 (hopefully the job outlooks will be more promising than this coming year)

The other day I wrote a post about urban education guiding children towards specific careers, mainly blue-collar jobs that are meant to keep them off the streets. My problem with this method of teaching is that 1) it is based on a consumerist economy and 2) it limits these kids’ interest with the idea that they can’t perform more complicated or intricate tasks that would lead them down a higher achieving career path. Yet, what really enforced my belief behind allowing all children to explore more options is an article I read at Grist.org a couple of days ago. It was entitled “Ponziconomy: Our Global Pyramid Scheme.”

The imagery in this movie poster encourages people to continue with their obession. (I didn't see this movie, but I know in the end she turns her life around).

The main topic of this article was how our mega-consumer based economy was exploiting our resources to the point of a potential no-return option. Basically, we aren’t paying enough money for the items we consume. The reason we aren’t paying enough for these items, is that our economy is based on a never-ending consumption model. This really caught my attention, again thinking about how children of today will have to pay dearly in the future for the mistakes we are currently making. If we don’t arm our children with higher-level, critical thinking, and problem solving skills, they will be completely at a loss in the future. And our problems will just continue in a never-ending cycle towards oblivion.

I’m not necessarily saying that we must depend on the future generation to clean up our mess. I think that as a country, as an economy, and as individuals, we need to begin changing our lifestyles and our consumer ways now. It’s much easier to teach by example than to tell children, “Do as I say, not as I do.” Some ideas I’ve outlined below are a good start for teaching a more sustainable economy and lifestyle to children. If adults can follow these steps themselves, then children will more likely imitate them:

• Purchase items that are necessities and limit frivolous expenses.
• Reduce the quantity of ‘stuff’ and in doing so, you limit the amount of trash created.
• Purchase and use reusable bags for shopping (keep some in the car, near the door, in your purse).
• Recycle cans and bottles, turn them in for cash value. Place that cash in a ‘savings’ jar or piggy bank for one special item.
• Purchase and use a reusable, bpa-free, water bottle. This can easily fit inside a reusable lunchbox.
• Recycle clothing and breathe new life into it by sewing patches and embellishments on stains or holes. This extends the life of clothing, especially if the item gets handed down to another child in the family.
• Walk, ride a bike, or take public transportation whenever and where ever you can. Today’s kids are at a loss for navigating their own neighborhoods, this will build up navigation skills and get them outside and keep them active.
• Limit the amount of television for the whole family. So many commercials are full of crap (excuse my language) and encourage our consumer-based economy. Things don’t make you happy, experiences do. Play a board game instead, or go outside and play with a Frisbee, or read a book to one another.

These are just some ideas that will help reduce the amount of items we consume. The last bullet point I mention helps kids build those problem-solving skills and encourages them to think outside the box, instead of vegging-out in front of one.

Are their some points I’ve left out that readers would like to add? Does anyone agree or disagree with the exploitation of our natural resources through our consumer-based economy? Please feel free to add your comments, I truly appreciate them.

I’ve recently been reading Jonathan Kozol’s Shame of the Nation as an assignment for one of my teaching credential courses. Lately, I’ve only had time to read books that have been assigned, and not so much for pleasure. However, I find Shame of the Nation intriguing and pleasurable to read. One particular chapter described how state testing and test results have molded school curriculum’s, primarily in urban schools, towards a utilitarian type teaching model. Meaning, the students were being taught in subjects that would eventually employ them in specific industries and businesses. The curriculum was also limited to what would be on the state test, so many children were lacking common knowledge of history and science. What particularly sparked my interest was Kozol’s opinion that these children were being boxed into a certain career path and had very few choices. Basically, they weren’t being taught how to think independently or creatively. His explanation of this method of teaching inner-city children, is that there worth was viewed as less important factors in the overall economy. (I’m summarizing his view point in this statement).

This lead me to thinking that these school-to-work programs, as they are called, are formed upon a consumer-based economy. What would happen if our economy changed and it wasn’t so consumer driven? How would these school-to-work programs succeed if there wasn’t a need for so many restaurant cooks at the Hilton (one particular school-to-work example in the book). My thought behind this is what is to come of our future generation if we gear them towards a specific trade, but then that trade doesn’t exist in the future?

Unemployment Chart - Google

Today,  I read an article in the Los Angeles Times that our nation’s unemployment figure is 9.8%, however, this may not truly reflect the entire unemployment rate. They estimated it could be as high as 17%! The article also went on to describe how our economy may be coming out of this recession, but the employment will most likely lag behind for some time to come. Our current economic model is based on consumers purchasing items. If consumers are out of work, or scared because they might lose their jobs, they aren’t spending their money on frivolous items. This ultimately affects our economy.

If people’s spending habits change, due to this recession, what will the future economic model look like? Will our economy shrink? Will people, who have lost their jobs, have to become creative thinkers and start their own business or freelance permanently? What will the students, who are enrolled in the school-to-work program, do once they graduate? If they haven’t been taught how to think independently, or creatively, or lack the skills outside of the trade they have been taught, what kind of future do they have?

I obviously have many questions and not many answers. My obvious solution to educating our future children is allowing them to think outside the box, be creative, get those higher-thinking skills in place. This is something state testing doesn’t test, nor is it something that can be measured in a standardized test. Of course students need solid reading and math skills for everyday activities and tasks, but they also need to be knowledgeable in history and science, and ask thought-provoking questions about things that interest them. If we want to continue to be a prominent country in a world economic model, we need to prepare children accordingly.

What are your thoughts about the future of our economy? Will our economic model change or shrink? Are there other successful economic models to compare ours to? Should children be viewed as assets and taught specific trades if they are viewed as not being capable of far greater things? I’m curious to know what other’s think, feel free to share your thoughts.

Average Joes' (That's Me!)

I grew up in a house where I was deemed the ‘average’ child. My brother, in comparison, was the ‘gifted’ one. My parent’s didn’t have very clear expectations for me, I think because I am a girl, they probably thought I would get married and become a housewife. My brother, on the other hand, was supposed to go to college and become a physicist or doctor. It’s strange how things turn out, not always as expected.

The reason I bring  up this topic is that I wonder if some people are destined to be exactly the way their parents think of them, or if they rebel against them to prove they are wrong, and what are the personality traits of successful people? In my case, I rebelled against my parents in almost every way I could think up. If they said, “Turn down that music!”, I would turn it up. If they said, “You can’t have a car until you can pay for it yourself!”, I went out as soon as I had saved $500 and came home with a beater. If they said they, “Didn’t think college was a good idea for me,” I told them I was going anyway. I did many things in spite of my parents and it molded who I am, an independent person who doesn’t give up easily.

I was truly an average student throughout my childhood, I never tried very hard and usually brought home B’s and C’s. I didn’t really put any effort towards education until I chose to go to college. Then, because it was my choice, I tried my best. In contrast, my brother was supported academically throughout high school. He did fairly well in academics, but struggled with social situations and events. He went off to college, but because he was finally on his own for the first time ever, he failed miserably. My parents’ had helped him so much as a child and teenager, he lost those vital independent skills needed to survive. Their ‘gifted’ child couldn’t hack college, and still is unable to live on his own (he’s nearing his 30th birthday!)

Now that I’m older, I try not to criticize my parents choices or how they raised us. I am not a parent, so I feel I really can’t analyze their choices too much. Yet, when I work with my students at school, I try not to categorize them as ‘gifted’, ‘average’, or ‘low’. My thought behind this is that if you box a kid into a category, he or she might be the type that doesn’t fight too hard to get out of that box, or the opposite can occur and a head-butting contest ensues. For children that meet the criteria for the ‘gifted’ program, it’s not a good idea to constantly remind them that they’re gifted. They might decide they don’t need to work hard, they become lazy. When something difficult comes up, they don’t know how to work through it. Telling kids that they’re ‘low’ may make them feel worthless and give up easily.

What all this boils down to are the key elements, or qualities, each person needs so that they can be successful as an adult. I’ve compiled a list that isn’t completely comprehensive, but it’s a good start:

• Tenacity – doesn’t give up until there are literally no other means.
• Independence - kid’s need to learn this young, they can begin doing their own laundry and small household chores in elementary school. This will prepare them for adulthood. (my gifted brother still can’t do his own laundry!)
• Money sense – the idea that money doesn’t just appear magically in a bank account. You have to have a job and earn that money.
• Basic accounting – if you can add and subtract, you can balance a check book register.
• Work Ethic -hard working people aren’t always the richest people in the world, but they are usually the ones employed.
• Being on time – this sort of falls under work ethic, but being on time with paying your bills, getting to work, making sure you make it to the movies before the movie starts so you don’t disrupt others. I’m sure you get the point, it’s basically being considerate of others.

Are there some I’ve left out, but you’re compelled to add? Am I wrong about the boxing people or kids into a certain modality? Were you the ‘gifted’ child who succeeded? I’m curious to hear from my readers (now that I actually have some readers ).