1. Experiential Financial Literacy: A Field Study of My Classroom Economy
J. Michael Collins

2. Financial Education in Schools
2013 study of 5-lesson course in elementary schools
 Found gains in quiz scores and behavior...but:
….Teachers not well prepared for content
….Competing demands on time
Simulation or experiential approach may be easier to integrate into schools…
….But are in-class simulations as useful as formal courses?

3. Classroom management tool Materials are free (myclassroomeconomy.org).
Experiential
Focus on behaviors
Minimal teacher training
Customizable

4. Earn currency for performing jobs
Manage expenses
Earn bonuses
Pay fines
Spend on auctions

5. Job
Tasks
Salary
Banker
Keep records of balances and payments
700
Police officer
Record and collect fines
650
Loan Officer
Manage loans for banker
550
Custodian
Classroom cleaning
500

6. Evaluation
Palm Beach County, Florida in ,000 students in 4th- 5th grades 115 classrooms in 24 schools Schools randomly assigned

7. Parent non-English Speaker 32% Number of Students 1,972
Age
9.3
% White (non-Latino)
41%
Parent non-English Speaker
32%
Number of Students
1,972

8. Average student had an account balance of $1,295
Student Engagement
Average student had an account balance of $1,295
About one in three students (32%) bought their desks, instead of paying weekly rent
60% of students reported buying at least 1item
3 out of 4 reported paying a fine
95% received bonuses

11. Outcomes: Changes After 10 weeks
Financial knowledge [13-item quiz] Budgeting behavior [5-item scale] Financial socialization [2-item scale] Economic experiences [5-item scale] Also Administrative data on student grades

12. Financial Knowledge Measures
Sample questions (all multiple choice or True-False)
Q1. A plan for spending money is called a ______.
Q2. Jill had $50 in her checking account. She made a withdrawal of $10 and a deposit of $20. What is Jill’s balance in her checking account?
Note: MCE does not “teach” financial topics, only experiences.

13. Effects Compared to Comparison Students

14. ~More questions on quiz correctly answered
Average IMPACTS
~More questions on quiz correctly answered
~10% improvement in budgeting behavior
~15% more likely to engage in money management outside of school.
~20% more likely to talk about money at home
Parents also reported more financial education activities at school and home

15. School Administrative Data
Percent of Standards Passed
Social Studies Standards Passed / 16 (mean=49%)
Economics Standards Passed / 2 (mean=34%)
Math Standards Passed / 12 (mean=64%)

17. Teachers reported high satisfaction: 95% will use again
Key to Success
Teachers reported high satisfaction: 95% will use again
Classroom management system first, financial education program, second.
Teachers with no experience teaching financial content were successful with three hours of formal training.

18. Prior Study: Traditional Education Program
Financial Fitness for Life: fffl.councilforeconed.org
Batty, Collins, & Odders-White, Experimental evidence on the effects of financial education on elementary school students' knowledge, behavior, and attitudes. Journal of Consumer Affairs, 49(1), pp

19. Comparing APPROACHES

20. DiscussioN
Impacts: Effect size of close to 0.20 Mode: Pedagogical value similar to traditional method. Implementation: Operates as a classroom management system Bigger Effects: Could be operated concurrently with other curriculum or programs. Longer Run: State mandated financial education and the credit behavior of young adults - fewer defaults; higher credit scores (Brown, Collins, Schmeiser & Urban, )

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22. Center for Financial Security
J. Michael Collins
Center for Financial Security
wisc.edu
cfs.wisc.edu