evaluation
Evidence type: Evaluation i
Information about the programme design and rationale
Evidence about Financial Capability outcomes for programme participants
Evidence that the Financial Capability outcomes were caused by the programme
Evidence about programme implementation, feasibility, and piloting
Evidence about relative costs and benefits of the programme
My Classroom Economy (MCE) is a K-12 experiential financial education programme that aims to increase understanding of financial management.
Participants are upper elementary-aged students aged 8 to 11. The programme centres around a classroom economic system. Students apply for classroom jobs and practice budgeting and saving through several core activities including: (1) earning salaries (in the form of classroom currency) for performing assigned tasks; (2) managing expenses, including paying rent for or purchasing their desks; (3) earning bonuses or incurring fines for particular behaviors; and (4) making spending decisions at classroom auctions and stores.
The course takes place in elementary schools in the US. The evaluation took place in the School District of Palm Beach County (SDPBC), the twelfth largest district in the country with a diverse student base across 276 schools.
This study assessed the growth in financial knowledge and behaviour of 1,972 students primarily in grades four and five (ages 8 to 11) in 15 schools in Palm Beach County, Florida: 1,187 students in 69 classrooms, across 15 schools took part in the MCE, alongside a control group of 785 students who did not take part in MCE but were evaluated. 763 parents also took part.
In-class assessments included six main measures of interest:
Students were asked questions on each topic before and after the programme, and the control group of students were asked the same questions. Survey questions included in the pre- and post-assessments were developed based on validated measures presented in prior studies.
The study took place in a context where educators are keen to shift financial education from older students to elementary age students.
The study found that the MCE programme produces statistically significant changes in student financial knowledge after only ten weeks. These knowledge gains are notable given that MCE does not employ direct lessons on financial topics, but instead simply exposes students to financial situations. Differences in pre and post assessments also reveal improvements in students’ financial behaviours, including the frequency with which students are engaging in budgeting and money management as well as student reports of discussing financial management at home and outside of school.
Students in schools with MCE also report taking part in more economic experiences, such as using a bank account. Parents of students in MCE schools report that their children’s school is more likely to teach personal finance topics. The size of these effects vary, but all are statistically significant and positive.
There is no clear evidence that MCE helps children to plan for the future, but the effects of the programme appear to positively influence results in social studies, economics, and maths. These findings suggest that experiential financial learning can have positive effects that equal or exceed those of more formal grade school financial literacy efforts.
The authors conclude that MCE and similar approaches show promise as a relatively efficient mechanism to promote financial capability among K–12 students and could serve as an important component of a comprehensive effort to promote financial well-being.
Methodological limitations:
Relevance:
Generalisability / transferability:
Applicability:
http://gflec.org/wp-content/uploads/2017/04/ODDERS-WHITE-Paper-Cherry-Blossom-2017.pdf?x28148
http://gflec.org/wp-content/uploads/2017/04/ODDERS-WHITE-Paper-Cherry-Blossom-2017.pdf?x28148
Michael Batty [email protected]. Michael Collins [email protected] O’Rourke [email protected] Odders-White [email protected] is from the Board of Governors of the Federal Reserve System.Collins, O’Rourke, and Odders-White are from the University of Wisconsin-Madison.