November 3, 2024

Personal Economic Consulting

Smart Investment, Bright Future

Andrew Hill on Why Economic Education Matters

Andrew Hill on Why Economic Education Matters

Economics is all around us.

From the student contemplating an extra shift at work over an evening out with friends, to the teacher analyzing how different lesson plans benefit diverse learners, to the cafeteria worker calculating prices for the weekly lunch menu, the everyday decisions we make are influenced by economic principles.

It’s one reason why teaching the knowledge and skills that help people make sound financial decisions is part of the Federal Reserve’s mission to support a strong and stable economy. At the Philadelphia Fed, the Economic Education team has developed a number of resources and tools, as well as professional development programs for teachers, to bring these essential economic concepts into the classroom, and the community.

 

Andrew Hill leads the Philadelphia
Fed’s economic education function.

In this Q&A, we learn more about the Philadelphia Fed’s goals around economic education across the Third District, and beyond, and why elementary school is an important place to introduce economic concepts. Andrew Hill is the Philadelphia Fed’s assistant vice president of economic education, leading the economic and personal financial education program.

Q: Many people know of the Federal Reserve’s role in monetary policy and supervising banks. But economic education is also a focus. Why?

AH: Empowering individuals to better understand the opportunities and choices that are available to them and the costs and benefits of their individual financial decisions can go a long way toward building a solid financial future. An informed public also strengthens our economy through the financial choices and employment decisions people make, as well as how they understand the policies that impact their lives.

Q: You’re a proponent of introducing economics and personal financial education in schools early. Why is this important, and what is the Philadelphia Fed doing to encourage economic education?

AH: The earlier you can get started introducing economic ideas, the more success that students will have in learning and using these concepts. Whether it is supply and demand basics, the opportunity cost principle, or cost-benefit analysis, these foundational concepts provide a good starting point for understanding how businesses work, how consumers decide on what goods or services to buy, and how this all impacts the larger economy. These building blocks then provide a foundation for expanding on other lessons like money and banking, credit and interest, and more.

Today, 27 states and the District of Columbia require high school students to take an economics class to graduate high school, and 35 states require a personal finance course, according to the Council for Economic Education’s 2024 Survey of the States. New Jersey and Pennsylvania, which are part of the Philadelphia Fed’s Third District, have these requirements. Delaware, another Third District state, includes economics as part of its education testing, so this encourages teachers to incorporate economic concepts into their lesson plans.

Many high schools in Pennsylvania, New Jersey, and Delaware are using the Philadelphia Fed’s Keys to Financial Success program, a semester-long personal finance course. We introduced this program in partnership with University of Delaware Center for Economic Education & Entrepreneurship in 2001, and we are continually updating it with current, high-quality materials. The program includes 10 themes and 47 lessons, which give educators an expansive base to build on using active- and collaborative-learning teaching methods. Each summer, the Delaware Council for Economic Education and the Philadelphia Fed offer a weeklong, in-person training that is open to all educators across the three states. Additionally, we’ve been able to expand the program into high schools in Washington state through a partnership with the Financial Education Public Private Partnership. To date, more than 500 teachers have been trained to teach personal finance using the Keys program.

Q: Is the focus exclusively on teachers? Can this information be used in other community learning settings?

AH: Our goal is to help students understand economics and to have the knowledge and tools they need to make informed decisions as citizens, future workers, and potential business owners. We focus on teachers because they affect the lives of hundreds, if not thousands, of students throughout their careers. Teachers really have this extraordinary multiplier effect that can continue to impact generations to come.

We also see economic education as the onramp for diversifying the economics field. It’s vital that our lessons are accessible to a wide range of learners, particularly students who may not fit the traditional mold of an economics student. We are continually collecting feedback and researching the materials and methods that keep students learning. There is also a growing list of publications and lesson plans that can be used by educators and consumers in other community learning settings. You can find those resources here.

The Philadelphia Fed’s Economic Education team, from left, Todd Zartman, Andrew Hill, Rebecca Chambers, Arlesia Smith, and Meaghan Vitale, discuss lesson plans in a new classroom space at the Philadelphia Fed. Each year, the team hosts teachers from throughout the Third District to learn and collaborate on methods for teaching economics in the classroom.

Q: Why should middle schoolers care about economics? How can we get their attention?

AH: The economy, and how we all participate in it, is ever changing. When young students are introduced to economics in grade-appropriate ways, they can begin to build a foundation for understanding more sophisticated economic concepts as they continue their education or, perhaps one day, start or manage a business.

One way to incorporate economics in the classroom is by mimicking real-life scenarios. Teachers agree that hands-on activities are important, especially for visual learners. A simulated market, some play money, and a limited supply of coffee beans can bring the concept of supply and demand to life while offering tangible ways to teach students about credit, costs, benefits, and more. This interactive lesson is just one of several classroom activities that are highlighted as part of our teacher training programs. Our goal is to make economics concepts accessible to students and get them excited about learning.

Q: Is this information available all year? How can schools take advantage of all the resources that are available?

AH: We offer professional development opportunities for teachers all year long. In the summer months, we offer one-day and multiday training programs. When school is in session, we offer evening professional development programs that include dinner. Our website is always a great starting point for teachers to explore the lessons plans and programs that we offer. There are lessons for all ages and grade levels.

Additionally, for schools looking to implement a personal finance course into their curriculum, now is the time to begin planning. With 10 themes and 47 lessons, the Keys to Financial Success course gives teachers the tools to teach personal finance using the economic way of thinking and active- and collaborative-learning teaching methods. The summer training ensures that new Keys teachers are well prepared to begin teaching the course the following September. For details, contact Rebecca Chambers, economic education advisor.

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