No more repetition in math class

Before, I used to teach finance in the following way:

Hand out a notes page, where the students would follow along and we would answer various questions.  I would use charts, usually years old, and students would fill in answers I completed on the board.
This year, I took an extremely different approach.  I handed out my finance project:

I no longer required my students to calculate the mortgage by hand, or by using a chart, but allowed them to determine the payment how most citizens would; using a program.

The students completed the project entirely using the Internet.  By booking a computer lab, and bringing laptops into the class, students became extremely engaged in the project.  After completing the sheet, they were required to create a presentation on their information.

Usually, when a student completes an assigned task they are assigned more of the same type of concept they just completed. (Which usually results in DRILL AND KILL). I took a different approach by assigning an entirely new task.  When students completed the original task, I asked them to develop a budget for one month's spending, including their calculated mortgage payment.

The learning amazed me.  In one instant, I had a student working on an excel sheet, which is a concept I plan on covering in two days.  Other students were learning the difference between an open and closed mortgage; an outcome not required by the course. 

Not once did I hear "When am I going to use this?" When students were having troubles they started researching all on their own.  As I walked around the computer lab, I witnessed students on electricity websites, cell phone plans, cable companies, and other various utility websites.

Some students completed the extended tasks, and then analyzed if their "dream job" would cover their monthly expenses.  Here are two of the presentations I received: 

Math 30 Applied (Finance) on Prezi

Finance Project on Prezi

The real lesson on finance

As I look through our mandated outcomes for finance and the monetary system, we have outcomes such as:

"Use the compound interest formula......"

"Calculate the simple interest.........."

I was searching for some application and stumbled over a blog by Jason or FrugalDad.  After reading his blog I decided to share his ideas about "10 things students should really learn about money".

1. No one owes you a thing. Too many people go through their entire lives with the expectation they are owed something. This is not the case, or at least it shouldn’t be. All you should ever expect is to be judged, compensated and respected based on your work ethic and your ability to create, inspire and hustle.

2. Debt is a cancer. Debt is a cancer on our society, on households, and on us as individuals. It saps creativity. It creates pessimism. It robs your future dollars. It limits your freedom. Avoid debt like the plague. Remember the old adage:

“He who understands interest – earns it. He who doesn’t understand interest – pays it.”

3. Save for emergencies…big emergencies. When you are young and many years from considering retirement (and not earning much), it’s tough to save money. But I have discovered no softer pillow than having money in the bank for emergencies. Aim to save about a year of your basic living expenses in a simple savings account (no risky investments here). With a one-year cushion, you’ll be able to weather storms many others will not.

4. Live simply. In 2011, life seems pretty complicated. By the time you are adults, I imagine it will be even more so. There will be new gadgets and toys and cool services and “got to haves.” The problem is, all these things compete for your earnings. I’m not advocating living like a pauper, but limit yourself to only a few of life’s luxuries.

5. Sleep on big financial decisions. When it comes time to buy a car, or a house, or book your first major vacation as a family, sleep on the plans for a couple nights. People selling you these things want you to act immediately to lock in their commission, as I would expect them to, but remember that you are the one who has to pay the bill. Some of my biggest financial regrets came because of a knee-jerk reaction. Be slow. Be methodical. Listen to your gut.

6. Protect your credit. Not because you hope to borrow money, but because you may find people extending a service to you may do so for less cost if they think you aren’t a big risk. And if those people don’t know you well, your credit score may be their only determining factor. It’s not necessarily fair, but it’s a part of life. Credit blemishes can hang around for a decade, so it’s best to avoid them in the first place.

7. Learn to do things yourself, but don’t be afraid to call in the experts. You may remember the time your dad rescued a toy from the toilet trap, saving us an expensive plumbing repair bill. Or the time I climbed up in the attic to unclog the air conditioner drain. But your dad knows his limitations, and calls in the experts when necessary. That’s what emergency savings are for.

8. Shallow people judge your things, real friends judge your character. Some of the saddest, loneliest people I’ve ever known have been surrounded by the nicest things money can buy. They often acquired these things to impress people they thought mattered, and in many cases it did – temporarily. Meaningful relationships are based on things money cannot buy: trust, respect, integrity, compassion, love.

9. Don’t trade the things you care about for a big salary. Remember what mattered to you most when you were a kid: Family, fun, dreams. These things should remain important to you as a grown-up, but often adults sacrifice these things to earn a big salary. Now, everyone has to sacrifice some to earn a living, but by learning to be content, you may be able to earn a comfortable living while still enjoying other things.

10. Start saving early. Remember those money games we used to play when you were a kid? One of them was an attempt to get you to understand one of the great financial wonders of the world: compound interest. You see, when you save money you earn interest on it. The next month you earn interest on the money you first put in, plus the interest you earned the month before. That’s right; you earn interest on interest. Now carry out that example for many years, even decades, and you can understand how some people are able to accumulate wealth. The trick is, you have to start early.

Parents, consider opening a kid’s savings account to get them started early. Our kids deposit a portion of allowance earnings every couple weeks and it has taught them a lot about the mechanics of banking – completing a deposit slip, balancing their savings register, etc.

Finally, keep in mind something your great grandfather taught your dad about finding balance. Be frugal, but remember to occasionally stop and smell the roses. Life is short, and it is meant to be enjoyed. Take an expensive vacation every now and then. Buy something of your “heart’s desire,” even if it doesn’t make sense financially. Be frugal in other areas of your life to make room for things you truly enjoy.


Click here to see what a trillion dollars look like.