Finance author Barbara van der Merwe says there are typically three reasons why a personal finance program isn’t working – and shares how to fix it.
Let me guess. You’ve tried (a few times now) to implement personal finance education within your high school. But results have been … lacking? Students aren’t engaged. They don’t seem to be taking anything on board. In fact, students seem to leave more disillusioned than at the outset. What’s gone wrong?
There are three places you’re likely taking a wrong turn:
- The pathway of your program
- The packaging of your program
- The placement of your program
Let’s go through each, and identify the correct course of action.
Wrong turn number 1: pathway
The difficult thing about money is that it’s such a big, wide and winding subject. Students get lost in the subject matter. They have trouble connecting each isolated puzzle piece to the bigger picture. It’s up to you to create a clear and purposeful journey, leading them across this vast terrain.
In practical terms, this comes in the form of an explicit learning structure. A contained learning path with a start, end, and clear learning outcomes. This gives students a sense of control over the subject matter. Despite there been existing infinite tangents to follow, you create focus and clarity.
Your pathway is best shaped as a ‘T’. Stay broad across the length of the journey to maintain interest, context and storyline. At key checkpoints, embed more technical concepts to dive into. This shape makes technical concepts easier to both teach and learn; the high level pathway builds pre-existing context and appreciation for the more complex detours.
As an example, let’s use the mathematical concept of ‘interest’. Should you begin on a blank slate teaching ‘interest’, you will likely struggle to connect the maths to a high schooler’s field of interest. Yet, if you take a natural segway down from a pathway they are already invested in, clearly signposting your tangent, students will have a foundational appreciation for the importance of ‘interest’. They will now view interest as a supporting actor in the bigger equation. No longer the ‘boring’, overwhelming, disconnected maths lesson.
Wrong turn number 2: packaging
Money isn’t boring, but it definitely can be difficult to make it exciting. The good news is encouraging students to ‘want’ to pay attention is simply an exercise in storytelling – a general teaching technique you’re likely already an expert in. But how could you possibly create an exciting story about finance?
There is one key adjustment to help create this engaging story. Shift focus away from the technical skills students are learning, and towards the practical benefits they will achieve. For example, rather than explaining that they will be learning ‘how to build a budget’ and ‘manage cashflows’, describe the learning as ‘being able to organise their money so that they can afford what they want, both now and in the future’.
Students are not interested in ‘super’, ‘interest’ or ‘tax’, yet they are interested in ‘retiring early’, ‘growing their money’ (without working for it), and ‘not feeling lost or anxious when it comes to doing their tax return’. To create an exciting package for students, steer away from a patchwork of isolated technical concepts. Instead, embed the concepts within a storyline, from the perspective of the student, and in the context of their young life.
Wrong turn number 3: placement
There is no obvious place for financial education within the Australian and respective state curriculums. This leaves you no option but to get creative; slicing, sculpting and squeezing vital lessons across maths, business, economics, careers, wellbeing subjects. While this scattered approach is better than no approach, the dots are placed too far apart for students to connect together. So, where does personal finance education fit?
You have two options. Your first option is to continue delegating learnings into different subjects, but with the addition of a cohesive program overlay. Reflecting back on learnings in pathway and packaging (above), find a way to unite the learning experience. Perhaps it’s as simple as having a central checklist which students tick off as they go along. Or, perhaps it’s a more involved coordination where the storyline is taught in sequential order; centralised and enriched in wellbeing, careers, homeroom or house sessions.
Your second option is to carve out dedicated space within one of these subjects, or as an elective. This is the more challenging route at the outset; getting approval from the powers that be, finding the time and resources. Yet, this placement will allow you to achieve the continuity of pathway and packaging necessary to deliver an effective program.
Financial literacy programs are difficult to implement effectively. They take a heavy dose of inspiration, time and expertise. Spending time upfront to plan and structure effectively will make all the difference. These learnings come from half a decade of working with schools to build and implement personal finance programs. I hope that sharing my experience will help you in your efforts to build an effective program.
About the author
Barbara van der Merwe is author of Australia’s first personal finance textbook for high school students. She is also Founder and Director of Mandy Money, a financial education provider which specialises in working with schools, businesses and individuals to build a generation of financially empowered young Australians. Ms van der Merwe is passionate about helping learners take the ‘first step’ towards financial empowerment.
