In his book, “The Psychology of Money”, author Morgan Housel wrote “Your personal experience with money makes up maybe 0.00000001% of what’s happened in the world, but maybe 80% of how you think the world works.” My journey with money started in a working-class household where saving was considered a luxury. Living paycheck to paycheck persisted into my adulthood. However, my perspective on finances transformed when I embarked on a 20-year career in the financial services industry, guiding others on retirement planning and long-term investments. Initially, I believed that only the wealthy could afford to save, but as my career progressed, I realized it was the well-informed who understood the value of saving.
When I began teaching personal financial literacy I tended to guide my instruction toward my past experiences with money. To me, psychologically, financial security comes through the saving and preservation money. For instance, I like seeing the balances grow in my savings and investment accounts which has reduced my dependence on credit. Therefore, my lessons on budgeting, banking, and investments were more in depth and engaging than my lessons on credit and taxes. The prior topics excited me as I felt they were the most important and my enthusiasm was demonstrated to the effort I devoted to creating those lessons. In my capacity as an instructional leader, I often have the opportunity to coach other personal finance teachers. It’s interesting to observe how their psychology of money influences how they approach teaching the content. Their personal beliefs and experiences influence everything from lesson content to instructional strategies.
Content
Teachers who view money as a tool for stability and security often emphasize budgeting, saving, and prudent spending in their lessons. They might prioritize teaching students about emergency funds, long-term financial planning, and the importance of living within one’s means. This approach helps students understand the foundational principles of financial responsibility and risk management.
Conversely, teachers who see money as a means to achieve freedom and opportunities may focus more on investing, entrepreneurship, and innovative financial strategies. They are likely to introduce students to concepts like stock markets, passive income streams, and the benefits of taking calculated financial risks. This perspective can inspire students to think creatively about their financial futures and recognize the potential of their financial decisions.
I once worked with a teacher with a background in car and appliance sales. Not surprisingly he emphasized saving, credit, and insurance. He introduced students to the value of saving money for a down payment, the importance of managing credit, and how insurance protects assets. Another teacher was a successful stock market investor. She found a way to incorporate investing into almost every topic she taught. She connected checking accounts to brokerage accounts and interest rates to return on investment. The connections were logical, but it was clear her philosophy was centered on asset growth.
It was very clear to an observer in which areas of personal finance they were most comfortable because their instruction was more engaging and student-centered. Students learned valuable skills in each of these teacher’s classrooms, but they deserve the benefit of both experiences.
Instructional Strategies
A teacher’s comfort level with money can affect their teaching style. Those confident in their financial knowledge may adopt interactive and dynamic teaching methods. Observers of their classroom will see more strategies to engage students in the learning process. These teachers are more likely to include activities such as simulations, games, and real-world problem-solving activities.
In contrast, teachers who are less comfortable with money matters might rely more on traditional instruction methods. Given the limited availability of instructional resources for personal finance and the inadequate personal knowledge of the content, teachers may primarily use textbook-based instruction or downloaded worksheets. As a result, the lesson activities might lack alignment and relevance, focusing more on task completion rather than fostering a deeper understanding of financial concepts and skill development.
Next Steps
As educators, I think we can agree to the purpose of personal financial education is to provide students with tools to make informed financial decisions in their future. Ultimately, a teacher’s philosophy about money doesn’t just impart knowledge; it shapes students’ attitudes towards financial management. Therefore, it may be enlightening to teachers to investigate their personal relationships with money and how it influences their instruction. Then after a thorough evaluation of your psychology of money, seek avenues to build content knowledge and instructional strategies in areas you are least familiar. You then provide students with consistent high-quality instruction and balanced curriculum.
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Vincent Branch, from Houston, Texas, serves as the Assistant Principal at Booker T. Washington High School within the Houston Independent School District. With a Masters in Educational Leadership and Policy Studies from the University of Texas at Arlington, he is dedicated to advancing educational outcome. As a Next Gen Personal Finance (NGPF) Fellow and Professional Development Ambassador and a Partnership and Instruction Specialist with Social Studies School Service, Vincent focusing on empowering teachers and students alike with the critical skills needed to make informed and prudent decisions in personal finance and social studies education.