Financial Literacy

PROGRAMS

The Dream Is Real Foundation is committed to changing the narrative in education through digital storytelling, critical thinking and social/emotional learning.

We create solutions for students that recognize their value to society, regardless of their social and cultural background, by providing an interactive and in-person curriculum that reflects the student’s personal experiences, ideas, and dreams. By utilizing animation, relatable language, popular music and gamification, we are able to engage students on an unprecedented level. Our standards-based curriculum adapts to the needs of the students and prepares them for 21st century hands on digital learning and literacy while improving student education.

Financial education has the potential to shape the future of the youth. Our program focuses on changing mindsets and engages students in a way that makes the lessons relevant to their own lives. Financial intelligence means understanding more than the mechanics of money, but also the habits and emotions that drive our financial behaviors. Research and policy recommendations emphasize the value of targeting parents at the same time as young people, making our programs an ideal setting for advancing financial literacy. Financial literacy matters, but financial intelligence matters more.

The Challenge

Money is the second leading source of stress in the United States.

Health estimates that 40 million Americans suffer from anxiety, which financial woes can easily trigger. Yet, according to Council for Economic Education’s (CEE) 2018,financial independence may be out of reach for many because K-12 students are not receiving adequate tools and training to make informed financial decisions

40

Americans suffer from anxiety, which financial woes can trigger

of the U.S. states require high school students to take a course in personal finance

The Statistics

The social, cultural and economic background of students influences how well-prepared they are to make financial decisions.

The social, cultural and economic background of students influences how well-prepared they are to make financial decisions. The wide array of backgrounds and experiences of U.S. students may contribute to their range of financial literacy scores.

In addition to their socioeconomic background students’ financial literacy is affected by their interaction with financial institutions. The majority of students receive some form of income, and therefore need to make financial decisions about saving and spending. Financial literacy is an essential skill, much like reading and writing.

47.5

of the workforce employed by small businesses

400

Small businesses operating in the US

30.2

Small businesses operating in the U.S.

”"Financial illiteracy is not an issue unique to any one population. It affects everyone: men and women, young and old, across all racial and socioeconomic lines. No longer can we stand by and ignore this problem. The economic future of the United States depends on it."
Wall Street Journal

The Solution

Financial education starting from school

In K-12 public schools, students do not typically receive financial education until the end of 11th or 12th grade and more than a dozen states with financial literacy standards for high school have no such standards for earlier grades. Yet there are a number of arguments for starting financial education before the end of high school—and even as early as elementary school.

By their teenage years, many young people have some income of their own and make decisions about how to use their money. Early experiences with financial decision-making—as well as interactions with family and friends—can shape lifelong financial preferences, attitudes, and behaviors. Early, formal financial education can be “preventative,” acting as a barrier against and corrective for detrimental misconceptions and habits before an individual is faced with substantive financial decisions.

Additionally, even if specific financial knowledge and skills are less relevant to young children in elementary school, they may still benefit from age-appropriate education that promotes the acquisition of foundational skills that affect financial behaviors and well-being. For instance, among adults, self-efficacy—confidence in one’s own abilities—has been tied to a range of financial outcomes, including the quantity of individual savings and investment holdings. Numeracy—or mathematical competency—is positively associated with financial knowledge and, more generally, with greater deliberation in judgements and careful decision-making. These findings are robust to controls for other predictors of financial literacy, like income and education.

As shown in financial literacy, familiarity with core concepts influences the ability to attain specific knowledge and skills and, ultimately, to successfully make sound financial decisions. Research on a number of financial education programs for children in elementary school—and even for those in preschool—support the idea that young children are capable of grasping certain basic, core financial concepts.

Less common in these programs is a deliberate, curricular emphasis on the development of foundational skills like self-efficacy, executive function, and long-term strategizing. We believe that both these elements are important components of financial literacy and should be incorporated into education programs.

PROGRAMS