Learning is not limited to the school campus. We learn at home, on the bus, at the grocery store. Life is the ultimate teacher and the world around us is our classroom.
When we consider tools students will need to navigate the future, we have spent a lot of time discovering how to teach conceptual math, the science of reading, and educate the “whole child” with anti-racist and intersectional identity affirming values. We’ve made strides to transition from lecture-based instruction to more culturally-responsive and project-based learning approaches.
However, there is still a critical missing link in education today. We have not fully invested in teaching our students how to use the essential tool which translates across all backgrounds and careers: Money.
For years, we’ve been exploring the academic achievement gap. We’ve evolved to recognize the disparities in student outcomes are actually not attributed to intelligence, but rather they are the consequences of systemic, inequitable access and opportunities. We’ve been Waiting for Superman. Looking for the next best thing, initiative, or novel idea. However, we have not yet moved the needle significantly for all students across the country.
Financial Literacy is a Strategy to Close Gaps
According to the Nation’s Report Card, 4th and 8th grade students’ scores in Reading and Mathematics declined significantly during the 2022-2023 school year. The data is also sobering because the analysis highlights the persistent gap in performance between poor students and their more affluent peers. The results between these two student groups has been stagnant for over 40 years. The lowest income students’ learning level is up to four years behind the highest income students.
Unfortunately, research shows more than 4 in 10 children live in a household struggling to meet basic needs. Between 7 million and 11 million children live in conditions in which they are malnourished because of the cost. Black, Hispanic, and American Indian and Alaskan Native (AIAN) children have the highest rates of poverty when compared with their White peers.
The COVID-19 global pandemic added complications and contributed to undeniable learning loss. Intensive tutoring and family engagement initiatives are all effective recovery tools in schools. However, if we really want to help kids living in poverty, we must acknowledge that the solution may actually be linked to the problem itself. We have to teach kids about how money works. They need to learn how to acquire and use money as a tool responsibly and wisely to live independently and pursue their respective goals.
Exposure is powerful. Through the pedagogy of wealth, we must show them how they can establish comfortable lives. It is not impossible. While economic reforms are still needed and the exploitation of the poor must cease, we ought not delay the urgent reality to equip all students with personal finance lessons now.
Research shows that having a personal finance education offers numerous benefits and helps to make solid decisions around saving, investing, and more. Research from the National Library of Medicine shows that financial health is a measurable determinant of both physical and psychological health contributing to the levels of stress and anxiety we may experience.
Teaching critical, financial life skills for students living in homes where families may have hit hard times has the potential to break the cycle of generational challenges.
A Wake-Up Call for the Importance of Financial Education
Right now, it is trending that states are slowly and steadily beginning to adopt financial education high school graduation requirements. As of June 9, 2023, there are 22 states which require students take at least a one semester personal finance course before they obtain their high school diplomas. Groups such as Jump$tart, Next Generation Personal Finance, National Financial Educators Council, and others are elevating this critical message of financial education and empowerment.
Learning about money should start even younger at the elementary and middle school levels. Money is a part of our daily lives and therefore these lessons can be incorporated from the cradle and beyond.
We must remember…
Financial education is not a luxury. It is a basic human right.
Here’s how we all can help:
- Teach the young people in your life what you’ve learned about money
- Advocate for financial literacy education
- Support youth employment
- Support scholarships and programs for students in need
Check out the article for more ideas and strategies: It’s Always the Right Time to Teach Kids and Teens About Money.
Financial literacy is not constrained to the traditional classroom. As a community, we can all collectively help to empower the next generation with strong, personal finance competencies. For our children and youth living in poverty, learning more about money is a promising strategy we have yet to fully explore.