Consumer and Financial Literacy a vehicle for developing numeracy in our students

What is Numeracy and why is it important? What is Consumer and Financial Literacy and why is it important? How are the two linked?

What is Numeracy?

Some myths about Numeracy Numeracy is the same as maths Numeracy is the name used for ‘basic maths’ subjects Numeracy is the business of the maths teacher

Some lay views Numbers (‘doing sums’, arithmetic) The basic maths people need in order to survive in the real world The name for primary school maths The name for the ‘vegie’ maths subject in secondary school

underpinning mathematical concepts and skills from across the discipline; mathematical thinking and strategies; general thinking skills; and grounded appreciation of context’. Report of the Numeracy Education Strategy Development Conference, Numeracy = Everyone's Business (October 1997) adopted by Australian Association of Mathematics Teachers ‘To be numerate is to use mathematics effectively to meet the general demands of life at home, in paid work, and for participation in community and civic life. …. In school education, numeracy is a fundamental component of learning … across all areas of the curriculum. It involves the disposition to use, in context, a combination of: Definition

‘Using Technology to Enhance Numeracy’ Merrilyn Goos (University of Queensland) Skills Concepts Estimation Problem Solving Risk Initiative Flexible Thinking Confidence Digital Physical Representational Contexts Mathematical Knowledge Dispositions Personal and Social Citizenship Work Tools

Why is Numeracy important?

‘People without numeracy skills suffered worse disadvantage in employment than those with poor literacy skills.’ ‘Poor numeracy skills make it difficult to function effectively in all areas of modern life.’ Bynner and Parsons (1995 & 2005)

Implications for all teachers All teachers within a school have a role in supporting their students to: apply their mathematics in order to carry out tasks requiring mathematics to ‘make sense’ of their learning area critique the use of maths in their learning area.

Identify the numeracy moments Consider whether the students possess the mathematical skills and knowledge necessary to access the learning Use this numeracy opportunity to link to prior learning Use this numeracy demand as a chance to explain new learning. (It is necessary to learn the mathematics first.) YES NO Numeracy across the curriculum

What is Consumer and Financial Literacy?

Definition Consumer and financial literacy is the application of knowledge, understandings, skills and values in consumer and financial contexts and the related decisions that impact on self, others, the community and the environment. National Consumer and Financial Framework, MCEETYA, 2005

Why is Consumer and Financial Literacy important?

The National Consumer and Financial Literacy Framework rationale The world of consumers is becoming increasingly complex. Research indicates that levels of consumer and financial literacy among adults, parents and young people alike are insufficient to cope with many of these complexities. Effective decision making related to consumer behaviours and the management and evaluation of personal financial matters comes from improved consumer and financial literacy. Young people increasingly influence household spending and should understand the financial consequences of satisfying their needs. There are economic and social benefits for the whole community of increased levels of consumer and financial literacy.

In a typical group of 100 teenagers today, at normal retirement age: RICH Will be RICH INDEPENDENT Will be INDEPENDENT WORKING Will be WORKING DEAD Will be DEAD BROKE, DEPENDENT ON GOV’T OR CHARITY Will be BROKE, DEPENDENT ON GOV’T OR CHARITY (Financial Basics Foundation –

Views of young people 1 Research in 2007 of 533 young people aged 12–17 found strong support for financial literacy education in school. Topic Important learning for (%) Saving 90% Information about money83% Understanding rights and responsibilities91% Recognising a scam88% Planning for the financial future85% Budgeting84% Dealing with financial service providers84% Managing debt83% Dealing with credit cards73% Understanding financial language82% Source: Financial Literacy: Australians understanding money, Financial Literacy Foundation, September 2007

Views of young people 2 72% of young people agreed that saving a small amount regularly is the most effective way of saving but only half of them said they did. 90% were interested in improving their knowledge across a range of money issues, including budgeting, saving and managing debt. 59% have the attitude of ‘Financially, I like to live for today’ yet 91% think it is important to learn more about financial language. 64% identified school as where they learn about money management and, of these, 82% found the information useful. Source: Financial Literacy: Australians understanding money, Financial Literacy Foundation, September 2007

Consumer and financial literacy dimensions of learning Each year level has four dimensions to the content that they are expected to cover: Knowledge and understanding is about the nature and forms of money, how it is used and the consequences of consumer decisions. Competence is the application of consumer and financial knowledge and skills in a range of changing contexts. Enterprise is the opportunity to use initiative, build financial capabilities and manage risk-taking when making consumer and financial decisions. Responsibility is appropriate consumer and financial decisions that display care for self, others, the community and the environment.

How are Consumer and Financial Literacy and Numeracy linked?

‘Using Technology to Enhance Numeracy’ Merrilyn Goos (University of Queensland) Skills Concepts Estimation Problem Solving Risk Initiative Flexible Thinking Confidence Digital Physical Representational Contexts Mathematical Knowledge Dispositions Personal and Social Citizenship Work Tools

Personal and social context Personal finance Personal health – food, exercise, leisure activities Travel

Personal and social context Personal finance

Personal and social context Personal health

Personal and social context Travel

Work context

Citizenship context

‘Using Technology to Enhance Numeracy’ Merrilyn Goos (University of Queensland) Skills Concepts Estimation Problem Solving Risk Initiative Flexible Thinking Confidence Digital Physical Representational Contexts Mathematical Knowledge Dispositions Personal and Social Citizenship Work Tools

Mathematical knowledge

Tools

Dispositions

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