1. Aligning Financial Capability Efforts
to the Common Core Standards
October 14, 2014
Panelists:
Lisa S. Krueger
Adjunct Professor, College of Business Administration
Rider University
Pat Page
Rhode Island Teacher of the Year
Rhode Island Department of Elementary and Secondary
Education
Anne DeMallie
Mathematics Statewide Program Coordinator,
Massachusetts Department of Elementary and Secondary
Education
Moderator:
Albert Barnor
Sr. Community Affairs Analyst, Boston Fed
www.bostonfed.org
2. Financial Literacy Education
& the Common Core
State Standards (CCSS)
in Mathematics
Boston Federal Reserve Bank
October 14, 2014
Lisa S. Krueger
3. Common Core State Standards
(CCSS)
• Developed by the National Governors Association and the Council of
Chief State School Officers, NOT the federal government
• A set of rigorous academic standards in mathematics and English
language arts/literacy (ELA) that outline learning goals for what a
student should know and be able to do at the end of each grade.
• Voluntarily adopted by 45 states and the District of Columbia.
• The CCSS are a “Disruptive policy change” - an opportunity to spur
innovation and increase willingness/need to expend resources in order
to align with these standards.
• Implementation of the CCSS, including assessments (e.g., Smarter
Balance and PARCC), instructional materials, professional development
and information technology (IT) spending, is expected to cost as much
as $15 billion dollars over the next 5 years.*
*Source: http://pioneerinstitute.org/download/national-cost-of-aligning-states-and-localities-to-the-common-core-
standards/
4. Importance of Financial
Literacy
Americans' ability to build a secure future for themselves
and their families requires the navigation of an
increasingly complex financial system. As we recover
from the worst economic crisis in generations, it is more
important than ever to be knowledgeable about the
consequences of our financial decisions. … We recommit
to improving financial literacy and ensuring all Americans
have access to trustworthy financial services and
products.
President Barack Obama Presidential Proclamation – National
Financial Literacy Month, March 31, 2011
5. Importance of Financial
Literacy
Recent economic challenges have highlighted the
importance of teaching our kids to understand personal
finance. The day-to-day relevance of economic concepts
and financial responsibility will only continue to increase
as the world is rapidly transformed by science and
technology. Providing students with the practical tools
they need to apply that knowledge will help them succeed
financially by creating businesses, driving innovation, and
achieving personal dreams. Working together, we can
infuse our classrooms with the necessary foundational
capabilities and make financial education a centerpiece of
our public and private agenda.
Richard D. Fairbank, Founder and CEO of Capital One.
6. Importance of Financial
Literacy
Financial literacy is strongly correlated with use of
financial services, savings and retirement planning.
A compelling body of survey evidence from developed
countries shows that households with low levels of
financial literacy tend not to plan for retirement, borrow at
higher interest rates, acquire fewer assets and participate
less in the formal financial system relative to their more
financially-literate counterparts.
Source: World Bank, May 2009.
7. Economic/Financial Literacy
Education
For the first time all 50 states
and DC include economics in
the K-12 standards.
24 states require that a high
school course in economics
be offered.
22 states require that students
take a course in economics.
62% of students on free &
reduced lunch are taking an
economics course (58% of
students overall).
Source: Survey of the States, 2014, CEE.
8. Economic/Financial Literacy
Education
• 43 states include personal
finance concepts in their
standards.
• 35 states require that these
standards are implemented.
• 19 states require that a high
school course be offered.
• 17 states require that students
take a course in personal
finance in order to graduate.
• Only 6 states require testing of
personal finance concepts.
Source: Survey of the States, 2014, CEE.
9. What is Financial Literacy?
The OECD INFE (International Network on Financial
Education) has defined financial literacy as follows:
‘A combination of awareness, knowledge, skill, attitude and
behaviour necessary to make sound financial decisions and
ultimately achieve individual financial wellbeing.’
FLEC (The Financial Literacy Education Commission) of the
US Treasury defines financial literacy as the ability to use
knowledge and skills to manage financial resources effectively
for a lifetime of financial well-being and defines financial
education as the process by which people improve their
understanding of financial products, services and concepts, so
they are empowered to make informed choices, avoid pitfalls,
know where to go for help and take other actions to improve
their present and long-term financial well-being.
10. What is Financial Literacy?
The good news is that there is general agreement on
what should be taught!
① Treasury Core Competencies
② JumpStart Coalition Standards
③ CEE National Standards
④ PISA Framework
⑤ NEFE HSFPP
11. What is Financial Literacy?
Treasury Core Competencies
Source: Federal Register / Vol. 75, No. 165 / Thursday, August 26, 2010 / Notices
13. What is Financial Literacy?
CEE (Council for Economic Education)
National Standards for Financial Literacy
Earning Income
Buying Goods and Services
Using Credit
Saving
Financial Investing
Protecting and Insuring
14. What is Financial Literacy?
PISA (Programme for International Student Assessment)
2012 Financial Literacy Framework
money and transactions
planning and managing finances
risk and reward
financial landscape
15. What is Financial Literacy?
NEFE (National Endowment for Financial Education)
Source: www.HSFPP.org
19. Financial Literacy & Math CCSS
Financial Literacy is an effective, rich and relevant context
to teach and assess the math common core.
Source:
http://www.moneyasyoulearn.org/ideas/
28. Financial Literacy Assessment
Role of assessment
Recall that only 6 states require testing of personal
finance concepts, even though 43 states include
personal finance concepts in their standards, 35
states require that these standards are
implemented, 19 states require that a high school
course be offered and 17 states require that
students take a course in personal finance in order
to graduate.
Florida is the first state to formally adopt a
comprehensive set of financial literacy standards
(CEE).
29. Financial Literacy Assessment
Role of assessment
Financial Literacy education will only work if districts and
schools are accountable.
Standardized assessments set clear expectations for
students and teachers and also for content developers.
Results can provide a baseline on which to measure
progress, can inform future instruction and curriculum
development, and can help target and tailor resources to
the most at risk and vulnerable students.
Do we need a comprehensive national assessment in
financial literacy?
30. R E S O U R C E S T O S U P P O R T
BUILDING FINANCIAL CAPABILITY
IN TODAY’S YOUTH
Pat Page, MBA, MAT
Business and Computer Technology Educator
2014 RI Teacher of the Year
Board member, RI Jump$tart Coalition
Disclaimer: The professional perspective I present is my own. It may not reflect the policy or
programmatic position of the East Greenwich Public Schools or the RI Department of
Education and related entities.
31.
32. DISTRIBUTED MODEL
PERSONAL FINANCE EDUCATION
Personal
Finance
Augmenting
Common
Core
English
Language
Arts
Mathematics
Goal:
To maximize touch points by
augmenting Common Core curriculum
with Personal Finance concepts
Resources:
Connecticut:
Resource Guide
http://tinyurl.com/of96qes
Personal Finance/ELA Crosswalk
http://tinyurl.com/p7gpnyp
Personal Finance/Math Crosswalk:
http://tinyurl.com/knuh4l7
National Jump$tart Coalition
Council Economic Education
33. CONTEXTUAL MODEL
PERSONAL FINANCE EDUCATION
Personal
Finance
Supporting
Common Core
Mathematics English
Language Arts
Goal: To provide direct instruction
and relevant contextual application
within a Personal Finance Class in
support of CCSS.
Resources:
National Jump$tart Coalition
Council Economic Education
35. An Organic and Integrated Approach to Building Financial Capability
36. POINTS TO PONDER…
AND PAT’S PERSPECTIVE
Is the distinction between Financial Literacy versus
Financial Capability more than semantics?
How do we address the teacher capability /
confidence gap that has a direct correlation to
student financial literacy and capability levels?
Should states consider a competency/credentialing
model to identify teachers who are “qualified” and
passionate about Personal Finance?
39. Financial Education in
Our Schools
Financial Literacy Pilot Program
Anne DeMallie
Mathematics Statewide Program Coordinator
STEM - Curriculum and Instruction
40. Program Overview
Legislation: Establishes a Financial Literacy Pilot program for
Gateway Municipalities and an advisory committee
To equip high school students with the knowledge and skills
needed to become self-supporting and to enable them to make
critical decisions regarding personal finances.
National Standards for Financial Literacy
http://www.councilforeconed.org/wp/wp-content/uploads/2013/02/national-standards-for-financial-literacy.pdf
I. Earning Income
II. Buying Goods and Services
III. Saving
IV. Using Credit
V. Financial Investing
VI. Protecting and Insuring People
MA Mathematics and Technology Curriculum Framework
http://www.doe.mass.edu/frameworks/current.html
Functions
Exponents
Spreadsheets
Massachusetts Department of Elementary and Secondary Education
40
41. Timeline
Award – June 30, 2013 Planning Period
July 2013 - June 2014 1st Year of Implementation
July 2014 – June 2015 2nd Year of Implementation
July 2015 – June 2016* 3rd Year of Implementation
Massachusetts Department of Elementary and Secondary Education
41*Pending appropriation of funding
42. Grantees
Competitive grants awarded to 10 districts (11 high
schools) partnered with banks, credit unions, community
organizations, and/or higher education institute.
FY2014 Data
Massachusetts Department of Elementary and Secondary Education
42
Gateway
Districts
High School(s)
Number of
Teachers
Delivering
Curriculum
Number of
Students
Engaged
Fall River BMC Durfee High School 30 560
Haverhill Haverhill, High School 3 570
Holyoke Dean Technical High School 3 74
Lowell Lowell High School 10 261
Lynn Lynn High School 5 608
Quincy
North Quincy High School
Quincy High School
3
4
74
48
Revere Revere High School 10 92
Salem Salem High School 2 109
Springfield Putnam Vocational High School 4 546
Worcester Worcester Technical High School 7 50
43. District Strategy
All Students
All Freshman
Special Populations
Community Outreach
Stand alone course
Add to Math courses
Add to the multiple disciplines
Add to Business Major (Voc)
Add to Advisory Blocks
Credit/Money Strong for Life Fair
Family Financial Literacy Day
2014 National Economics Challenge
Massachusetts Department of Elementary and Secondary Education
43
44. Curriculum Resources
Academic Innovations
National Endowment for Financial Education
(NEFE)
Junior Achievement
Valmo Village
Boston Federal Reserve Bank
Network for Teaching Entrepreneurship
National Financial Educators Council
Massachusetts Department of Elementary and Secondary Education
44
45. Evaluation
University of Massachusetts Donahue Institute
(UMDI)
Student content knowledge?
Student behavioral changes?
Educator impact?
School/District impact?
http://www.doe.mass.edu/STEM/grants.html
Massachusetts Department of Elementary and Secondary Education
45
46. Findings
Massachusetts Department of Elementary and Secondary Education
46
Student Impact:
Demonstrated gains in financial literacy knowledge
and skills;
Relevant to students’ lives and financial decision-
making;
Greater impact on students’ understanding of the
financial literacy standards than on their mathematical
and technology knowledge and skills.
Experiential activities had positive impacts on student’s
financial literacy knowledge.
(such as financial literacy fairs, capstone projects, budgeting
exercises, job shadowing, and stock market simulations)
47. Findings
Massachusetts Department of Elementary and Secondary Education
47
Program Models
The sites created program models that
contained a diversity of curricula and activities.
Sites commonly implemented their program
through existing courses.
Several schools provided stand-alone events.
Several project leaders reported that
experiential activities were the most effective
way to engage students.
48. Findings
Massachusetts Department of Elementary and Secondary Education
48
Program Implementation
Factors that supported/facilitated the implementation:
the establishment of courses dedicated to financial literacy,
the provision of collaboration and sharing opportunities,
the use of adaptable curriculum,
teacher and administrator enthusiasm, and
the use of technology.
Challenges commonly encountered included:
finding curricula and approaches that engaged 9th and 10th
grade students,
the need for more financial literacy courses and interventions,
struggles to integrate new or unfamiliar content, and
software compatibility or other technology-related problems.
49. FY2015 Scale-up
Strategic considerations
Students may be served best by exposure to financial literacy concepts
throughout the four years of high school.
Financial literacy curriculum should be targeted to the interests and
capacities of different age groups.
Increased family outreach may benefit student and family financial
decision-making.
Massachusetts Department of Elementary and Secondary Education
49
Gateway
Districts
High School(s) FY14 FY15 FY16
Fall River BMC Durfee High School 560
Haverhill Haverhill, High School 570 610 675
Holyoke Dean Technical High School 74 175 225
Lowell Lowell High School 261 446 1080
Lynn Lynn High School 608 750 810
Quincy
North Quincy High School
Quincy High School
122 137 137
Revere Revere High School 92 131 200
Salem Salem High School 109 130 250
Springfield Putnam Vocational High School 546 525 650
Worcester Worcester Technical High School 50 158 171
50. Next
Massachusetts Department of Elementary and Secondary Education
50
The FY14 Financial Literacy Pilot Program
Legislative Report.
Year 2 of Implementation and evaluation is
under way.
Our Goal:
To equip high school students with the
knowledge and skills needed to become self-
supporting and to enable them to make critical
decisions regarding personal finances.
51. Financial Education in
Our Schools
Financial Literacy Pilot Program
Anne DeMallie
Mathematics Statewide Program Coordinator
STEM - Curriculum and Instruction
If only our efforts to build awareness; a conceptual foundation and change immediate and long-term behaviors as they relate to Personal Finance could be reduced to Just One Page
Treasury Department did identify 9 Big Concepts that can serve as a jumping-off point for Personal Finance to develop frameworks within a state and develop curriculum
Comparable to the 6 Financial Literacy standards set forth by the Council for Economic Education and the 6 categories and underlying standards set forth by the National Jumpstart Coalition.
Not surprising giving the collaboration across these organizations and government work groups.
So what does the implementation of these Big Concepts, Frameworks, Standards look like:
Reduced it two models
Time article – slip into
Ironic given that
Beyond algorithm—
Given this growth in support for financial education, researchers Way and Holden expected that these educational policies would have some influence on whether teachers had taken or taught a course related to financial education, or felt competent to teach these topic areas.
Visa: Practical Money Skills
Gamification: Practical Money Skills / Financial Football
Blended Learning:
Vision: Create a vetted database – equivalent of Amazon or Yelp:
Target audience
Financial literacy is primarily concerned with the knowledge of how to best manage one’s finances. It endeavors to impart information and cultivate understanding while also affecting behavior. Financial capability similarly includes information and knowledge elements, but is distinct in that its core emphasis is on attitude and behavior change.
Massachusetts Gateway Municipalities have a
population between 35,000 and 250,000,
average household income below the state average
average educational attainment rate (Bachelor's or above) below the state average.
Reference Section 3A of Chapter 23A of the Massachusetts General Laws put in place in 2009 and amended in 2010 expanded the group to 24 cities.
NS for FL – benchmarks at end of 4th, 8th, and 12th
Fall River: BMC Durfee High School with Bay Coast Bank
Haverhill: Haverhill High School with Haverhill Bank
Holyoke: Dean Technical High School with Junior Achievement of Western Massachusetts
Lowell: Lowell High School with Jeanne D'Arc Credit Union and Community Teamwork
Lynn: Lynn Classical High School with Centerboard and Metro Credit Union
Quincy: North Quincy and Quincy High Schools with Quincy Credit Union and Quincy College
Revere: Revere High School with Revere Municipal Credit Union
Salem: Salem High School with Cyberspace, Salem State University, Cabot Money Management, and Salem Five (bank)
Springfield: Putnam Vocational Technical Academy with Junior Achievement of Western Massachusetts and Elms College
Worcester: Worcester Technical High School with Worcester Credit Union and UMass Medical Regional Science Resource
Vocational: Holyoke, Springfield, and Worcester
All Students – Revere
All Freshman – Fall River, *Haverhill, *Lowell, *Springfield *Upper classmen FL electives
Special populations – QUINCY - Gaining Opportunities for Acquiring Learning Skills (GOALS), Positive Academic and Social Success Program (PASS), Quincy Teen Mothers Program (QTMP), Quincy Evening High School (QEHS) and English Language Learners Program (ELL)
Community Outreach – Worcester
Stand alone course – Haverhill, Quincy, and Salem (Money Matters)
Add to Math courses – Lowell (Math Seminar)
Add to multiple disciplines – Fall River (SS, ELA, Sci., Math), Lynn (Alg. 1&2, Com Lit, Law & History2) Revere (Adv-all/Math-9,10), Worcester (FL/Pre-Calc)
Add to Business Major (Voc) – Holyoke, Springfield, and Worcester
Add to Advisory Blocks - Revere
Credit/MoneyStrong for Life Fair – Haverhill, Lowell, Salem, Springfield, and Quincy
Family Financial Literacy Day - Lynn
2014 National Economics Challenge – Holyoke
FE Fair: http://www.mass.gov/treasury/docs/fineducation/fltf/youth-financial-fair-toolkit-final-10-30-13.pdf
Academic Innovations – Career Choices and Lifestyle workbooks FALL RIIVER
National Endowment for Financial Education (NEFE) – HAVERHILL, LOWELL, & SALEM
Junior Achievement – HOLYOKE & SPRINGFIELD
Valmo Village - Financial Fluency Program and youth empowerment (Lead) – LYNN & REVERE
Boston Federal Reserve Bank - Financial Fluency Program and youth empowerment
Network for Teaching Entrepreneurship – WORCESTER
National Financial Educators Council – online certification for teachers HAVERHILL and SALEM
Students participating in the Financial Literacy Pilot program represented a range of socio-economic, English language proficiency, and achievement levels. The participants were also diverse in terms of gender, race, special education status, and grade level.
Every site addressed the six National Standards for Financial Literacy and the three required topics from the Massachusetts Curriculum Frameworks for Mathematics and the Technology Literacy.
