Integrating Quantitative and Financial Literacy

• Activity Number: 222
• Type: Topic Contributed
• Date/Time: Monday, August 1, 2011 : 2:00 PM to 3:50 PM
• Sponsor: Section on Statistical Education
• Author(s): Joseph Ganem*+
• Companies: Loyola University Maryland
• Keywords: quantitative Literacy ; financial literacy ; personal finance ; math instruction resources ; behavioral finance ; high school math curriculum

Abstract

This paper proposes that financial literacy be integrated into the current math curriculum rather than taught separately because it is an ideal subject for teaching quantitative reasoning-a skill set for which educational assessments consistently show student deficits. Some educators have argued that improvement in students' quantitative reasoning ability would improve higher-order math skills-such as algebra-and reduce the growing need for remedial college math. The personal finance problems given for teaching quantitative reasoning are examples of "obvious benefit/hidden cost" problems. These are based on studies in the interdisciplinary field of behavioral finance of consumer responses to "framing" of financial propositions. Presented in this paper are Web-based instructional resources created using the Flash programming language that illustrate examples of "obvious benefit/hidden cost" problems. Each Flash calculator provides one possible quantitative decision-frame and is accompanied by a short description that explains the reasoning.These instructional resources are available for use on the Web at http://www.ComputeGasSavings.com, and http://www.GoldPricingOnline.com.