Enhancing Critical Thinking through Financial Literacy in High School

In the July 2024 webinar “Using Financial Literacy for Critical Thinking and Problem-Solving,” that was part of Everfi’s 5^th annual LearnOn Conference, Darren Scott and Jennifer Perella shared their expertise on integrating financial literacy into K-12 education. Darren Scott, a Customer Success Staff member at Everfi, brings a wealth of experience in supporting educational initiatives. Jennifer Perella, learning director at Fortitude Prep Academy in Tampa, and a former charter school and public school teacher in Washington, DC, is known for her contributions to financial literacy education.

Together, they discussed the importance of critical thinking skills, the growing emphasis on financial literacy requirements across the United States, and practical methods for combining these two essential skills in the classroom. Their insights and examples provided valuable guidance for educators looking to enhance their teaching strategies and better prepare students for the future.

Key Insights

The Importance of Critical Thinking Skills

Critical thinking is a crucial skill in the workforce, yet many employers find employees lacking in this area. The webinar discussed various critical thinking skills, such as attributing, comparing and contrasting, classifying, sequencing, prioritizing, determining cause and effect, analyzing for bias, and decision making. These skills are essential for students to navigate complex problems and make informed decisions.

A case study presented during the webinar involved a classroom activity where students were asked to analyze different financial scenarios. They had to determine the cause and effect of various financial decisions, such as taking out a loan or investing in stocks. This exercise helped students develop their analytical skills and understand the consequences of their financial choices.

Financial Literacy Requirements

The webinar highlighted the growing emphasis on financial literacy education across the United States. Currently, 26 states require a stand-alone high school graduation financial literacy course, while 22 other states have integrated financial literacy standards. This means that 96% of states plus Washington, DC, require some form of financial literacy education.

Jennifer Perella shared an example of how financial education has positively impacted her students. After teaching them topics such as budgeting, saving, and understanding credit, her students reported feeling more confident in managing their finances and making informed financial decisions.

Combining Critical Thinking and Financial Literacy

The webinar provided practical examples of how to merge critical thinking and financial literacy in the classroom. One effective method is through activities that require students to classify expenses as fixed or variable, helping them understand budgeting concepts. This approach not only teaches financial literacy but also enhances students’ critical thinking skills.

In one classroom activity, students were given a list of expenses and asked to categorize them as fixed or variable. They then created a budget based on their classifications and discussed the impact of their financial decisions. This exercise helped students develop their budgeting skills and understand the importance of financial planning.

Everfi Resources for Financial Education

The webinar showcased how Everfi resources can be used to teach financial literacy effectively. Everfi offers modules in its Modern Money: Safe Digital Banking high school level course that cover topics like peer-to-peer transactions, online banking, and identity theft. These resources provide educators with the tools they need to teach financial literacy in an engaging and interactive way.

Jennifer shared her experience using the Everfi: Financial Literacy for High School modules and other Everfi resources in her classroom. The modules included interactive lessons on topics such as budgeting, saving, online banking and identity theft. Students found the lessons engaging and reported a better understanding of financial concepts.

Conclusion

Integrating financial literacy and critical thinking into the K-12 curriculum is essential for preparing students for the future. The webinar “Using Financial Literacy for Critical Thinking and Problem-Solving” provided valuable insights and practical examples for educators. By incorporating these skills into their teaching strategies, educators can help students develop the modern critical thinking and financial literacy skills they need to succeed in today’s world.