How educational technology is shaping students' financial literacy

Key points:

Financial education is highly undervalued in today's digital age. Half of all American adults They are financially illiterate, as millions do not know how to calculate interest or protect themselves against inflation.

Similarly, many Americans overvalue their financial knowledge but fail to understand fundamental monetary concepts such as stocks, bonds, and mutual funds. Millions of people may be sleepwalking into financial trouble due to inadequate financial education.

Educators can improve money management and financial literacy skills by using digital tools to teach the next generation of savers, investors, and consumers. This can help people ensure their money goes further and will lead to a more stable economy in the long term.

Digital financial resources

Research shows that students need to be more prepared to enter the world of commerce. Fred Fransen, CEO of Certell, echoes this sentiment, stating, “If students do not improve their understanding of economics and finance at the high school level, they may never be exposed to it.”

However, many students overlook economics and personal finance courses in favor of the traditional variety of courses. Educators can buck this trend and get more students to take money management classes by offering more curricula packed with engaging digital tools that help shape students' money management skills.

Today, educators can take advantage of resources like Discovery Education's financial literacy resources to create lesson plans that excite students and improve their money management skills. Discovery Education has partnered with well-known brands like the NBA and WNBA to create in-depth resources that help students understand the value of being wise with their money. Similarly, Discovery Education offers age-appropriate resources like the Fixies Channel. This educational content is perfect for younger students who are new to the idea of ​​saving, spending, and investing.

Video games as teaching tools.

Video games have always been popular among teenagers. However, in recent years, the gender ratio in the video game industry has increased. approached towards balance. This is great news for educators, who can use engaging video games to boost the value of money management skills among their students.

Money management video games don't have to be boring, overtly “educational” gaming experiences either. In fact, many of the world's most popular degrees now teach financial literacy. Educators creating personal finance curriculum can use video games that teach students about moneyas:

• Roblox: A very popular title, Roblox It is a free online application that offers a large number of games. Educators can choose to assign games like Theme Park Tycoon 2 and Work At A Pizza Place to teach young children the value of budgeting.
• animal crossing: Originally released in 2001, animal crossing is a social simulator game that incorporates key skills such as saving, working and borrowing.
• No man's sky: no man's sky (NMS) is perfect for older students. They will need to budget resources, increase their investment in income-generating activities, and learn many of the skills that small business owners overlook.
• The Sims: The Sims is a multi-generational classic that literally simulates the process of educational achievement, work, budgeting and financial planning. It's a great way to teach children of all ages about taxes, utilities, and saving for material goods.

Fundamentally, educators cannot assign video games to students and believe their work is done. For video games to be educational and not pure entertainment, educators has to Prompt students to think about the skills they have learned along the way.

For example, a professor who assigns a semester of Stardew Valley You should combine this “homework” with regular formal and informal reflections. This may mean asking students to freewrite about the financial lessons they learned while playing or, when larger projects come due, asking them to produce presentations that reflect their financial progress within the game.

Educators will also need to talk about real-world financial concepts. This ensures that people can successfully apply their knowledge of NMS “Units” and The SIMs Simoleons to real monetary concepts such as debt, cash flow and investment.

Getting started with real money

Professors who teach personal finance classes cannot tell students what to do with their own money. However, they can give students the best opportunity to make their money go further by giving them access to reliable resources. Educators can guide students through potential obstacles that many young people also face.

For example, teachers leading a class of older students may want to provide some lessons on best practices when open a bank account. This includes:

• Document collection: Students will need a valid form of identification in addition to basic identifying information such as an SSN.
• Proof of address: Most financial institutions require proof of address.
• Choose an account: Choosing between a checking and savings account will ensure that students store their money in the right place for their needs.
• Understand the rates: Students should be aware of fees applied to accounts that do not meet their standards. For example, some banks require a minimum amount in savings accounts or charge for the service.

Teaching young people how to open their own accounts can also help people escape financial abuse. This is crucial, since 65 percent of teenagers have reported that others have exercised financial control over them and may be at increased risk of financial abuse. For many, opening their own bank account marks the first step in regaining control of their finances.

Digital tools can assist in efforts to teach key financial concepts related to saving, spending, investing, and budgeting. Even simple video games, such as those offered on Robloxcan improve financial literacy and empower students to take control of their finances. However, educators who decide to invest in educational technology must ensure that engaging digital lessons are followed by robust reflection and evidence.