Downloadable PDF of our Submission
We submitted a discussion paper to Stanford's Initiative for Financial Decision Making in response to their request for papers assessing the effectiveness of financial education (and its impact on financial behavior and other outcomes). Below is a summary. The paper can be read in its entirety above.
A timing mismatch delays the very real consequences of not acquiring productive money habits in our youth. Our money habits and beliefs are established as early as age 7. However, most citizens face the majority of consequential financial decisions in adulthood. In between, unproductive money habits and beliefs are left to solidify and entrench; their ability to undermine a person’s personal financial future gets masked by the fact that “the big financial decisions” are yet to be made.
Middle-school mindful spending lessons are a simple upstream solution that addresses one of the root causes of financial illiteracy for many: not acquiring productive money habits early.
We don't start any other subject "in the middle". We learn the alphabet, then how to read. We learn our numbers, then how to do math. What comes before having to budget and select a credit card, financial institution, or financial product, such as a car loan or mortgage? For many citizens, almost nothing. Yet mastering the basics is what gives young people (and their subsequent older selves) the appetite and confidence to learn more about any subject—why would personal finance be any different?
How do mindful spending lessons help children build foundational financial literacy? They allow students to experience first-hand that anyone can ask simple questions about typical (childhood, tween, or teen) purchases before spending to avoid disappointment and waste. They allow students to understand that financial jargon (e.g., cost-per-use) is nothing more than vocabulary without understanding. These two things together help students acquire a powerful insight: anyone can get and use financial information to improve their lives.
Why should they take place in middle school? Middle school is when most young people begin to earn (via allowance, after-school jobs, holiday, or birthday gifts) and spend small amounts of money, so they have “skin in the game", and their money personalities are still developing.
Ask an educator. Middle school is when burgeoning capability and mental flexibility collide. In addition, mastering the basics of personal finance before age 15 gives young people their high school and post-secondary years to practice making low-stakes financial decisions before making "the big ones," such as choosing a college, a financial institution, an employer, or a spouse.
Please click on the pink or blue buttons below to learn more about the mindful spending tool we use to deliver lessons on why thinking before buying is a powerful, rewarding life skill.
Child Development For Parents For Teachers
