East Dunbartonshire Numeracy Project

1
East Dunbartonshire Numeracy Project

• Problem Solving in Financial Education 1
• What is Financial Education?

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What is Financial Education?

• There are four aspects of financial capability
• Financial Understanding
• Financial Competence
• Financial ResponsibilityFinancial Enterprise

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What is Financial Understanding?

• Understanding the concept of money.
• Where does it come from?
• Where does it go?
• The nature and role of money in society,
  including foreign currency
• Sources of income
• Taxation, spending, saving and investment
• Credit and debt
• Financial services/products and advisory services
• Consumer rights, responsibilities and protection
• The impact of advertising, ICT and the media.

4
What is Financial Competence?

• Knowing how to look after and manage money.
• How do we plan to look after our spending?
• Keep financial records
• Analyze financial information
• Assess value for money
• Prepare and use budgets
• Make informed financial decisions.

5
What is Financial responsibility?

• Making personal life choices, and thinking about
  the ethics of money.
• Do the choices we make impact on others and if
  so, how?
• Take increasing responsibility for making
  decisions with respect to themselves
• Analyze the potential impact of financial
  decisions made by others on society and the
  environment both locally and globally
• Analyze the potential impact of their financial
  decisions on other people and the environment
  both locally and globally.

6
What is Financial enterprise?

• The use of financial resources in an innovative
  and confident manner.
• How can we evaluate risks and returns
• Evaluate potential risks and returns
• Use financial and other resources in an
  innovative and confident manner
• Apply knowledge and skills creatively in a range
  of situations.

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How has shopping changed since we were children?

• The availability of unsecured credit e.g. store
  cards
• Can we assume that children realise that using a
  credit card is not a free transaction?
• Direct debit may be used on many occasions are
  children are aware that heating is actually paid
  for? Few of us make the trip to the shop to pay
  our bills
• The use of credit and/or debit cards may mean
  children do not see adults use cash that when
  the teller asks us if we want cash back that
  children realise this money belongs to us it is
  not the shop offering us money!
• Are children are aware that using a cash line
  machine or writing a cheque depends on us having
  money in the bank in the first place?

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What assumptions do we make?

• Advertising offers us a quick fix option
• No matter how much dept we find ourselves in
  there is a company willing to give us a debt
  clearing loan no matter our financial
  background! Are children are aware of the
  possible consequences involved?
• Can we assume that children purchase goods in
  shops themselves?
• Can we assume that children have individual
  interaction with a shopkeeper?
• Can we assume that children still visit a
  traditional corner shop to buy sweeties or spend
  pocket money?

9
What are we trying to do in the Financial Maths
project?

• We are teaching the children the appropriate
  mathematical skill associated with money sums and
  developing their Personal Financial Capability.
• It is not just about the ability to add/subtract
  money and know what your change should be when
  shopping.
• Its not just about how much money you have but
  how you manage it!
• Its also about managing debt In today's world
  many of us have mortgages, rent, car loans,
  credit cards etc, etc, etc

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Our children need to make informed choices based
on

• Needs - These are essential to our health and
  well-being food, clothing and shelter
• Wants These are non essentials items, which
  enable us to enjoy quality of life e.g.
  Television, holidays
• Budget -These choices have to be made no matter
  how limited or vast our financial resources are
• Best Value -We constantly make choices in this
  area
• Quality versus quantity. We live in an age of
  disposable consumer goods e.g. It can be
  cheaper to replace a watch than have it repaired.

11
Why is this Financial Maths Project so important
today?

• We grew up in a cash based economy
• Our curriculum evolved in this cash based economy
• The majority of resources available to support
  the learning and teaching of maths concepts do
  not address financial capability
• Some childrens experience of money is still very
  much within a cash economy
• Some may be in a financially excluded society
  which does not have access to legal financial
  services
• Cultural diversity can give children
  varying/different experiences
• More/less money does not affect financial
  capability