Junior Achievement’s Finance Park: Solving Innumeracy with Financial Literacy

Although it’s been more than two decades since its first publication, John Allen Paulos’ Innumeracy: Mathematical Illiteracy and Its Consequences (1989) popularized and advocated for better education in reasoning and numeracy. Numeracy, or quantitative literacy, is not a specific, complex mathematical topic, but the application of basic math concepts in “‘sophisticated settings,’” many of which affect adults every day (Gilliland, Melfi, Sikorskii, Corcoran, & Melfi, 2011, 2). In fact, at roughly the same time of its publication the National Research Council (NRC) and the National Council of Teachers of Mathematics (NCTM) released publications that changed the course of mathematic curricular design from one of mathematical topics to critical thinking, problem solving and practical applications (Schoenfeld,2002). The publications emphasize an undercurrent in mathematics instruction relevant to all students of all backgrounds—logical thinking and reasoning.

In the past two decades, a multitude of publications, reforms and revisions have affected curricular design and have resulted in a movement toward clear instruction within states and between states. The Common Core Standards, which seek to educate every student in mathematical topics and quantitative literacy, was adopted formally by Colorado in 2010. While it is critical that students have a thorough understanding of the topics taught in mathematics curricula, “making decisions in one’s personal life, on the job, and in matters of public interest calls increasingly for quantitatively sophisticated reasoning” (Schoenfeld, 2002, pg. 13). Traditional mathematics instruction in conjunction with an emphasis on reasoning and analysis, such as found in quantitative literacy and financial literacy like Junior Achievement, can help prepare students for personal and professional success.

Junior Achievement (JA) is a non-profit organization dedicated to bridging the theoretical with the practical and the community with the classroom, and has done so for over 60 years. JA offers free programming to schools that emphasize the three pillars of its mission—entrepreneurship, workforce readiness, and financial literacy. JA’s essential programming addresses the connection between financial literacy and quantitative literacy in its programs throughout Colorado. In an era when only 48% of students demonstrate proficiency on financial literacy tests (Mandel, 2008) and when financial literacy is considered a type of quantitative literacy (Gilliland, Melfi, Sikorskii, Corcoran, & Melfi, 2011,10), JA’s programs fill a critical need. To date, JA’s programs result in an aggregate 19% rate of gain, according to internal evaluation results. JA’s programs “[allow an] authentic assessment [opportunity] for teacher and student—[and measure] students’ ability to apply the ‘economic way of thinking,’” according to a high school teacher.

JA’s “authentic assessment” and “economic way of thinking” bridge quantitative literacy with real-world applications to state standards, as well as knowledge and skills that prepare students for college and careers, and emphasize higher order thinking skills. According to P21, a national organization focused on 21st Century skills, students excel when, in addition to common core subjects, students are given opportunities to focus on the 4Cs—collaboration, communication, creativity and innovation, and critical thinking and problem solving. JA integrates core knowledge and the 4Cs to provide comprehensive programming. Internal evaluation results demonstrate that 94% of surveyed educators believe JA’s programming encouraged critical thinking. Critical thinking through financial literacy programming is just one way to bolster students’ quantitative literacy skills. 

In addition to JA’s classroom K-12 programming, JA also offers a variety of capstone projects and programs to enhance financial and quantitative literacy. In October 2011, JA launched JA Finance Park, presented by Great-West Life & Annuity Insurance Company. JA Finance Park is a hands-on, budgeting simulation and opportunity, which provides free curriculum — taught in the classroom by teachers — to help students build a foundation for future personal financial success. During the one-day simulation, students create a budget based on a randomly assigned family and income profile, make purchase decisions while managing credit and debt, and donate their time, money or talent to various nonprofit organizations. This program meets all of the 8th grade and most high school Colorado Personal Financial Literacy standards in social studies and math, which include how saving and investing are key contributors to financial well-being. JA Finance Park demonstrates to students that a practical application exists between financial literacy and quantitative literacy. Students are required to think through purchasing and investing decisions, and balance a budget by the end of the day. JA Finance Park also helps students prepare their career and academic plan (ICAP) by connecting education milestones to specific jobs and their compensation. In 2008, a third-party evaluator assessed the quality and effectiveness of JA Finance Park. Not only did 98% of teachers say they would recommend JA Finance Park to other teachers, but also that their favorite aspects of the program include the real-world learning and practical applications of math. Teachers’ enthusiasm is reflected in students’ results. Before beginning the program, the students demonstrated an average pre-test score of 52% and, upon completion of the program, students correctly answered 72% of the post-test questions.

While these gains are significant, evaluations also revealed that the students retained the information presented through JA Finance Park in the long term. In fact, lifelong retention of a concept or skill occurs if the knowledge has been stored in memory for approximately two years. In 2009, external researchers conducted a retrospective study to determine what students recall three or more years after participation in JA Finance Park:

• 91% could correctly define a budget
• 81% said that they were more likely to use a budget
• 76% understand how credit works
• 89% knew that three variables (amount, interest and time) affect saving
• 71% know how to find out if a stock price went up or down

Although these results may appear to be financial literacy specific, in fact these are the same real-world applications that promote quantitative literacy. The high rate of retention among participating students may reveal that the more students invest in quantitative problem-solving, the more likely they are to retain information in hopes of becoming successfully critical adult consumers.

These results illustrate the short- and long-term value of this financial and quantitative literacy program, which is offered free to schools and students by JA. JA Finance Park and JA programs empower young people to own their economic future.
For more information regarding JA and JA Finance Park go to www.JAColorado.org. For specific media coverage of JA Finance Park, visit JA in the News.

About the author: Rachel Knaizer is the Research and Evaluation Manager for Junior Achievement-Rocky Mountain, Inc. and an adjunct instructor at University College, University of Denver.

The less obvious benefit of volunteering for JA is the positive impact it can have on a person’s personal and professional life. Whether the volunteer learns something new about the stock market, hones his or her public speaking skills, or is empowered by their own words to further their education, volunteering for JA has far-reaching benefits. Following is a story by Sharon Gaare who graciously agreed to share her story about how volunteering for JA changed her life for the better.

At this time I am going to school to get my Master’s in Leadership. I have to tell you though, the reason I decided to return to school was because of JA.

I went and taught for a day a 6th grade class and we played a game of whether you work or go to school and at the end you get a Master’s if you stay in school. One of the kids asked me if I had a Master’s and I said, “no.” Then I thought to myself, “Why don’t I?”

That very day I went and applied for entrance into the Master’s program. So, JA not only makes a difference in the lives of the kids, but also those of us who volunteer!  -Sharon Gaare

Congratulations Sharon and good luck with your Master’s program! If you would like to learn more about getting involved with JA, visit the Volunteers section of our website.

According to the NFCC’s 2011 Consumer Literacy Survey, many adults (41%) would give themselves a grade of C, D, or F on their knowledge of personal finance, marking a statistically significant increase from 2010. This comes at a time when credit card debt is trending up; November saw consumer debt grow at the fastest rate in 10 years. In contrast, the majority of JA Finance Park middle and high school students are confident that they can make budget for current (80%) and future expenses (78%), differentiate between gross and net income (86%), and plan for their financial future (81%). An impressive 88% of middle school students who visited JA Finance Park could share the disadvantages of using credit.

Click here to read more about JA Finance Park outcomes

The difference could be attributed to the fact that fewer than 1 in 10 adults survey by the NFCC learned about financial literacy at school (9%). Since JA Finance Park’s initial launch in September 2011 in the Wells Fargo Atrium in downtown Denver, almost 1,300 middle and high school students dedicated time to differentiating between net and gross income, and making credit and purchasing decisions.

JA Finance Park is a hands-on, budgeting simulation opportunity and free curriculum that helps students build a foundation for future personal financial success. The 5,500-square-foot touring business community, which boasts nearly two dozen storefronts and kiosks, a gathering park and a college and career corner all sponsored by local companies, is set to reopen on February 7 at its new location at the American Furniture Warehouse store in Thornton.

Provided at no cost to students or schools, the JA Finance Park experience begins in the classroom with four units of curriculum that culminates in a day at the park. The curriculum also directly fulfills new state-mandated scholastic economic, math and reading, writing and communications standards including 21st century skill and concepts for middle and high school students.

Junior Achievement also offers an online version of the program, JA Finance Park Virtual. Much like the hands-on version, JA Finance Park Virtual users adopt a fictional persona, create an avatar and make fiscal decisions based on a pre-determined life circumstance all through an online environment.

Schools and teachers interested in offering JA Finance Park in their classrooms can learn more at JAColorado.org or may contact Stephanie Murphy at SMurphy@JAColorado.org or 303-260-6284. If you are interested in volunteering at JA Finance Park, contact Megan Silbert at MSilbert@JAColorado.org or 303-628-7369.

JA Finance Park, presented by Great-West, helps students build a foundation for making intelligent, lifelong, personal financial decisions through hands-on, realistic site-based experiences. The program includes in-school, teacher-led activities culminating in a visit to JA Finance Park and a post-visit assessment.

In September 2011, JA launched JA Finance Park in the Wells Fargo Atrium in downtown Denver. During JA Finance Park’s first three months, 1,300 students dedicated time to differentiating between net and gross income, and making credit and purchasing decisions. Participating middle school students scored an average of 39% on the pre-test and 58% on the post-test, showing a significant knowledge gain. The majority (83%) of the more than 200 middle school students surveyed said that their visit to JA Finance Park taught them how to manage their money and demonstrated the following results after their visit.

High school students report that their visit to JA Finance Park is more than a simulated event, it encourages them to change their spending habits in relation to one another and to not live beyond their means. More than 80% of students found their experience made them more confident in planning for their financial future.

JA Finance Park will reopen in February at the American Furniture Warehouse in Thornton.  JA is currently accepting registrations from middle and high schools for both locations. Contact Stephanie Murphy at 303-260-6284 for more information about how to participate.

This is the third straight year that the top two resolutions are saving more and spending less in the survey measuring shoppers’ financial goals. On the 2012 New Year’s list, paying off debt jumped to the third spot; last year it was the seventh most popular resolution.

The results of the survey demonstrate that now is the time to prioritize your finances and to become a more financially responsible consumer. JA has the tools necessary to instill responsible spending and savings habits and to help prevent bad habits before they begin. Our programs help young people become financially responsible adults.

According to the survey, 46 percent of people who are considering a financial resolution for 2012 say saving more money is their top priority. The median annual target savings amount is $2,400 for long- and short-term goals, which doubles last year’s goal of $1,200.

The new survey results imply that people are eager to take control of their finances.  But you should not have to undertake this challenge alone. JA is here to help teach children how to proactively manage their finances. Youth need to understand early on why it is important to maintain good credit and have a savings account.

The day of JA was one that sparked a light inside of me that had been out for a long time. The day was foreshadowed with anticipation about whether I would be capable of teaching a classroom, if the students would listen to my lessons, and if my presence in that school would make an impact. That morning I think I believed the answer to all of these questions would be, “No.”  But as soon as I stepped into the front doors of the elementary school with my teammates on either side, the perspective shifted.

Immediately greeted by a warm smile and an inviting introduction, the teacher ushered us into his 5th grade classroom, overcrowded with desks. After stating his appreciation for our presence, he told us of the demographic of students we would be meeting. The school had every child on free lunch programs due to the high rate of poverty. Most students lived in neighboring trailer parks often being raised by single parents or grandparents. If that wasn’t enough to break our hearts, he went on to tell us that many students were struggling to read and write at their grade level. All this information was noteworthy, but what I remember better than any other words he spoke was, “ I love these kids, they know I’d do anything for them.” His compassion and dedication to these students was inspiration enough to get us amped for the day.

I taught the first lesson to the class, looking into the eyes of 30 strangers. I think looking at each one of them, calling them by name, seeing their smiles, hearing their laughter and knowledge, eradicated our unfamiliarity. By the end of that day, not one of those incredible children was a stranger to me. I knew their family stories, classroom crushes, hobbies, strengths, fears, dreams and aspirations. The children’s willingness to engage, ask questions, share ideas and listen was astounding. I was so impressed by the uniqueness that each student brought to the atmosphere of the room. With each lesson, the teacher would reassure us of the great job we were doing with the conduction of his classroom. I think all the praise he gave us for that one day should be returned to him tenfold. The compassion, time, interest, patience and wisdom he gives to those students everyday is more than honorable. Teachers truly deserve much more admiration and respect than they receive for the difficult yet essential position they employ.

After all the lessons had been taught, my teammates and I decided to share our personal stories of getting into college. We spoke of coming from single parent households, living under the poverty level, overcoming adversities and gaining strength through hardships. The room was heavy with emotion as the children listened to stories that sounded strangely like theirs. We all concluded with encouragement for the children to pursue college regardless of their circumstances. Then children rushed to share their personal experiences with hardship, fears regarding college and ask questions about our stories. One child told us that he wants to be a surgeon, an accomplishment that would far outreach this mother’s 5th grade education.

We chatted with the students about life, about school and about family until the bell rang. Then the children gathered around us giving us hugs, high-fives, “thank you” and “I’ll miss yous.” Their thankfulness seemed out of place, because we were the ones truly blessed by the experience of JA. Our day teaching that 5th grade classroom marked the ignition of rediscovered passion for concern with children, education and community awareness as I experienced the impact my feeble story could create for the hearts and minds of these young students.

Thanks to Ginger and all of our wonderful volunteers! 

If you would like to learn more about getting involved with JA, visit the Volunteers section of our website.

This survey underscores the importance of JA programs in schools. Junior Achievement offers a number of programs centering on entrepreneurship and free enterprise ideals, including a weeklong summer camp for high school students called JA Business Week where students work with local companies on an “Apprentice”-style project, learn how local business got their start and find out more about themselves and their futures.

Read the full National Free Enterprise Survey executive summary and contact us to find out how you can help inspire students to be entrepreneurial.

Volunteer Feedback

“I thought it was a great experience. The children thoroughly enjoyed the content and activities and were highly engaged throughout the entire day, which I found pleasantly surprising.”

“I have enjoyed being a JA volunteer it makes such a difference in the day-to-day grind of the lives of these kids as well as for me I love hearing their stories and their ideas for the bright shining future as they are our future I think investing time into them is one of the best things we can do as adults. I just love it!”

“It is funny how the anticipation of teaching little kids can make you nervous, but the materials that were provided by JA helped me feel at ease as I began the day. The lesson plan was engaging and well-suited for the grade level of the students. In the end, my feet hurt and the kids wore me out, but I had a great time!”

“I loved getting to know all the students by name. I was thrilled to teach the kids about getting a pay check and then having to pay taxes. And that the government doesn’t sell goods, they need taxes to pay the government workers. And that the even the government workers pay taxes. They really get it!! It’s amazing and rewarding to see that.”

“This is a great school and all of the kids except two in my class have completed all five years of JA through elementary school. Each one said they have kept the certificates and can’t wait for the next time we visit.”

Teacher Feedback

“This is my second year having JA in my room. The kids love it!!! They have really learned a lot. It is great to have a five-week program in which the students learn such great information!”

“When the students were doing the lesson about what they want to be when they grow up, they had a lot of unique and different ideas of what they could do. I think this was due to the previous JA lessons and the discussion that was done before the students shared their choice of what they wanted to be.”

“This is my first time using JA in my classroom. I liked how it was something new and different for the kids. They were so excited for it every week and especially excited about all the fun pages they got to take home to show their families.”

“I have had JA in my classroom for many years. I love having a person from the community come in to work with the kids. The kids LOVE it also. I think it has helped having the same volunteer year after year!”

“My students always enjoy when our volunteer comes and leads them in their business simulation. It is a chance for them to take what they have learned throughout the semester and apply it to a real-life scenario. My favorite experience is when I have a student say, ‘oh this stuff does actually work in real life.’”

It’s clear that volunteers, teachers and students alike find value in JA programs. Share your JA experience with your family, friends and neighbors and encourage them to get involved with Junior Achievement-Rocky Mountain. Visit www.jacolorado.org to learn more about how to become a volunteer or to register your class for a JA program.