Financial Literacy: a Classroom Economy builds Community - 7th TEKS

FINANCIAL LITERACY – CREATE A CLASSROOM ECONOMY & BUILD COMMUNITY - YEAR LONG

(loosely based on the program by Thom Gibson)

INTRODUCTION:

Goals:

1) Teach student’s financial literacy and build a strong community by allowing them to participate in a classroom economy.

2) Don’t overload the facilitator while accomplishing goal 1 or take up too much learning time.

Why Implement this System?:

1. It fulfills several 7th grade TEKS for financial literacy and gives you a context in which to teach the others ( 6 assignments: Budgeting X2 , Taxes, Interest, Online Banking, Student Job Application ).  
2. It increases classroom cohesiveness and gives the class more of a sense of community.
3. It helps students understand why financial literacy is important in the real world.
4. It makes the facilitator/teacher’s job easier because of the support jobs students do.
5. It largely runs itself once it is implemented.
6. It takes up little learning time.
7. It helps with behavior management because:
8. Students ideally form the behavioral standards themselves and therefore buy in to them more than if they are imposed from above.
9. There are fines for behavioral infractions.
10. It is relatively easy – all the handouts, paperwork, and systems are already created for you.  They can be found in the accompanying folder.

Overview of system:

1. Students apply for jobs in the classroom by filling out a brief job application.  Jobs are assigned by the facilitator.  Every student has a job.  Many of the jobs are support jobs to make the facilitator’s job easier.
2. Students are paid a monthly salary for their job which is automatically deposited in a simulated online banking system (software is free).
3. Students pay rent on their desks/chairs/seats but are encouraged to save their money so they can buy the desk and eliminate the monthly expense.
4. Students pay fines for misbehavior in the classroom.
5. A monthly class auction which takes about 15-20 is another place students spend money.
6. Students can earn bonus money by donating items to the auction, completing external community service which is documented, or other activities instructor decides on.  Bonus $ accounting takes 10-15 minutes of class time a month.
7. Bankers (one of the classroom jobs) keep track of, add, and monitor bonus $ and only come to the teacher if there is a problem.
8. Free Budgeting software is used.  All students complete a spending plan at the beginning of the year. (2 assignments included)
9. This system can be expanded to include taxation, mortgages, entrepreneurship, inflation etc. if desired.

In Classroom Time budget:  minimum – 25 minutes of class time monthly plus several 10 minute sessions to set up the system/train students at the beginning of the year

1. Students can check their online balances as desired and should not have to ask the teacher.
2. 15-20 minutes monthly for auctions
3. One 10 minute Banker sessions monthly for bonus $ and accounting
4. Some jobs may require extra time at lunch to accomplish for the students but the facilitator can decide if they want to include jobs like this or not.
5. Some jobs produce a product or service which is delivered in 1-2 minutes at the beginning or end of class but the facilitator can again decide if they want to include these.

This package includes 26 files (6 assignments) including:

1) A detailed explanation for the facilitator which includes descriptions of included add-ons like income-tax, entrepreneurship, mortgages, & inflation (the facilitator chooses if they want to implement these extras or not).

2) A list of suggest Materials

3) Documents for the bankers such as bonus $ guidance

4) A Volunteer form to earn bonus $.

5) A Charity Letter to Parents & a Charity Certificate (students can donate to charity)

6) A business proposal form.

7) Suggested Fines for Behavioral Issues

8) A guide to GoodBudget (the free online budgeting software) & 2 assignments

9) A guide to MyKidsBank (the free online banking system - can print bank notes)

9) An Inflation exercise with an assignment.

10) Job descriptions, a job application, a jobs worksheet for the facilitator, a jobs flier to post in the classroom & job icons for use in any other materials you might generate (job application can be used as assignment)

11) A Mortgage Agreement, Desk Deed, and Compound Interest assignment.

12) Simplified income Tax documents including W-2, 1040 form, and business income form (use tax form as assignment).