Tackling Timely Topics: Speyer's Financial Literacy Curriculum Takes Over the Boulevard
Talk of advertising claims, the impact of geopolitical issues on the economy, and wage estimates floated through the Boulevard as the Middle Schoolers welcomed professionals from PricewaterhouseCoopers (PwC) during the first of their three visits to Speyer, as part of our financial literacy curriculum. This year the instructor teams included Speyer Parents and Staff to assist in the program as the PwC team has not yet returned to full in-person work. Taking a break from their usual morning schedule, each grade explored various financial topics.
Would you rather buy a $250 phone or $450 dollar phone (assuming, in answer to some very pointed questions from Speyer sixth graders, they had identical features, were offered by the same providers, and there are no hidden costs associated with either)? But what if 100 trees were axed to make the $250 phone and only 5 to make the costlier version? And would your answer change if you had an unlimited budget? It was thrilling to hear the career options of the 8th graders who balanced earnings potential with their personal passions, the 7th grader who wanted to know the implications of the latest stock market news (or the group that wanted to short the market), the 6th grader who still opted for the cheaper phone despite the peer pressure but was willing to donate or plant more. And of course, most interesting, the incredibly creative ads created by some of the 5th grade teams who “followed” the FTC rules with small print disclaimers for their products.
Welcome to Speyer’s financial literacy curriculum for the year. Working closely with faculty and administration, the financial firm PwC developed learning pieces that not only awaken students to issues of importance in the financial world but are doing so in a way that is open-ended, allowing students to push deeply into topics that are timely, edgy, and do not have clear answers.
The format of instruction works well for Speyer. The Parents/Staff/PwC instructors arrived in force. This led to some very intimate and provocative dialogue. Asked how one should feel when the sneakers that he spent his birthday money on didn’t make him “faster” or “more popular” as the advertisement had promised, fifth graders were not satisfied with an easy answer. “Did he need sneakers anyway?” one girl asked. “Were they fairly priced?” another wondered.
The themes link to elements in the broader curriculum. The fifth-grade investigation of commercials and advertising, ties into themes of contextualization and understanding the motive of a writer of history. It also informs thinking about research. The instructors challenged the children to question the validity of a claim, to investigate and ask further questions and to take advice from people with information. As we all know, a healthy skepticism is a useful skillset.
Sixth grade is considering how economics and the environment interplay. The students are wrestling with the question of whether technology and progress is an unambiguously good thing. The learning session ended (as one knowing Speyer might anticipate) with an unplanned scenario. When the wood supply of their company was interrupted by a forest fire, one group sourced their materials overseas, while another acquired their supplier of bamboo – clearly not part of the anticipated solution! One instructor noted he’d expected the curriculum would be rather challenging for 6th graders. Instead, he said, he had to raise his instruction a couple of notches. In particular, the students’ knowledge of geopolitical issues surprised him.
The seventh graders have been learning about the stock market: the different types of investments; what a fiduciary does; how you select an investment time horizon; how often you should rebalance a portfolio; and what can go wrong. Aside from the unplanned challenges of the markets, students will also learn about charitable giving (and hopefully build a lifetime respect for its importance), about how to build consensus and advocate for causes respectfully, about how the macroeconomic world, politics, and current events impact asset values, and about the importance of saving and planning. A centerpiece of the 7th grade curriculum is that the students manage a real portfolio. Each incoming grade has a gift of $20,000 and over their 9 years at Speyer, this portion will grow with investment returns. At the time of their 8th grade graduation, the original $20,000 rolls forward to the incoming Kindergarten class and the increase in total value from inception is quantified. This value is then split into two: first half is allocated by the 8th graders as a graduation gift back to Speyer and the second half is gifted pro rata to the students themselves to further their education.
The seventh graders take responsibility to review and rebalance the portfolio (with input from CFO Scott Molin and Head of Middle School Michelle Cristella as well as advice and oversight from Wells Fargo Advisors). Despite recent market volatility, the portfolio stands at $330,000. We know of no other 7th graders in the country managing an investment portfolio of this magnitude. We believe this is unprecedented and another element that makes Speyer’s curriculum so rich and relevant.
The eighth grade completed a career interest survey, reviewed occupational employment, and wage estimates reports and looked at career planning options and financing college for various fields of study. Students shared surprise at the level of education needed for some careers, the projected trajectory of demand over the next ten years and the annual average earnings from these jobs. The richness of investment in education needed for the planned outcome was eye opening to many (including the instructors).
Financial literacy is a key element of the modern world and one that many students in college do not always grasp. But if our Speyer graduates can frame difficult questions appropriately, filter and apply the relevant data, and collaborate with others to build, test and modify solutions in real time they will play a critical role in the changing world. With its delivery of financial content and Socratic delivery process, Speyer’s financial literacy curriculum is continuing the enhancement of our curriculum.
Finally, the ultimate student question “When is our next session for Financial Literacy?”
(Thank you to this special reporting for Speyer News from Greg Peterson, P’20)