espacio a is proud and excited to announce that Financial Education will become the fourth school pillar that drives the school’s mission to help students become life-long learners! This fourth pillar will focus on assisting students in developing healthy, confident financial mindsets that support their decision-making abilities and successful financial planning.
Imagine you were given $10,000. What would you do with the money?
Save for retirement? Invest in Tesla stock? Buy a car? Donate the funds to charity?
What influenced your decision?
According to a research project by Principal Financial Group and behavioral psychologist Dan Goldstein, “seven out of ten Americans postpone making financial decisions.” The common myth explaining this phenomenon is that people lack income or financial opportunities.
Research points to a different, more illuminating truth - that people lack a confident financial mindset. Interestingly, when allowed to learn about financial planning, systems, and management, people are “75% more likely to feel confident about their financial future” and improve their financial decision-making.
espacio a understands the importance of developing a financial mindset from an early age. Financial management is crucial to planning a sustainable and resilient future. Too often, schools focus solely on teaching students basic and advanced math such as finding percentages, doing arithmetic, and mastering fractions, but lack opportunities for students to apply this knowledge to financial situations.
Think back to your early years as a young adult or teenager. When was the first time you had to calculate the tip for a waiter? When was the first time you opened a credit card account, and how did you assess the interest rates of that card? When was the first time you invested in the stock market, and how did you calculate your gains and losses?
How did you think through those decisions? Were they stressful? Do you think your education prepared you for them?
Completing the actions mentioned above does not require deep knowledge of algebra, calculus, or geometry. A student with an average understanding of general 7th - 8th-grade math (integers, decimals, ratios, percentages, exponents, fractions, scientific notation, and root radical) has all the basic knowledge to tackle the situations listed.
But would they have the confidence to do so?
espacio a is committed to providing students with opportunities to discover their money mindsets. Students will develop comfort with financial decision-making through a robust program that engages their mathematical knowledge in real-life economic contexts. Understanding interest rates, taxes, investments, loans, credit, debt, retirement funds, and liquidity are some of the basic concepts students will learn during their Financial Education courses at espacio a. Through activities, games, problem-solving exercises, and real-life scenarios, students will accumulate knowledge and experiences to support them in their future financial endeavors.
We’d love to hear from you and your own experiences learning about financial systems, management, and planning. If you are a professional with experience in the financial industry, we encourage you to reach out to discuss the possibility of leading a workshop for the benefit of espacio a’s students.
As always, we appreciate the time and attention you have given us by reading this blog and being an active member of our growing community. Thank you!