By Kara Brown, Education Manager

“The most important thing I learned from BizWorld was how to spend money wisely.”

These words of wisdom came from a 6th grade student in Anaheim, CA. As a former middle school teacher, I can tell you that most of the sixth graders I interacted with were much more concerned with Justin Bieber or the latest YouTube video sensation than finance. Maybe that’s because kids are constantly bombarded with a ton of different information and images about money and consumerism. However, very little of that information revolves around how to handle money responsibly. Many kids are growing up without being given the opportunity to learn about money, business, and the world of finance in their daily lives, let alone in the classroom.

With the economic troubles that have come to light in the past few years, many people - both inside and outside of the classroom - have realized how vital it is to teach kids these skills. Last year, President Obama debuted the Money as you Grow campaign to promote financial literacy. Increasingly, the financial know-how and entrepreneurial spirit are being celebrated. Anyone remember Caine’s Arcade, the Internet sensation from 2012?

These examples illustrate just how important it is make financial education a priority. Financial literacy standards, written by the Council for Economic Education, show what our students need most in order to have a well-rounded financial education, and they cover everything from saving and using credit to making wise investment choices.

One of our goals here at BizWorld.org is to make sure our programs teach financial concepts in a FUN, yet comprehensive manner. In BizWorld - our flagship program - students work in teams to start, fund, and run their own friendship bracelet companies. Kids that participate in our programs don’t just practice leadership and teamwork skills; they learn the financial nitty gritty details that I wish I had learned as a kid.

Words like profit, revenue, bank loan, and stock come up constantly in the students’ daily discussions about their business. Not only are 10 and 11 year olds using these terms, they’re actually showing they understand the concepts as they budget for their company’s expenses and create a successful business.

Part of creating that successful business means raising start up funding for their company. In BizWorld, all students have the chance to pitch their business plan to an investor so they may sell shares of stock for cash. During the pitch, students put their negotiation skills to the test as they go back and forth deciding how many shares of stock to sell and for how much. As we’ve seen from shows like Shark Tank, this can be an intimidating and tricky situation to maneuver. I know that I would certainly be nervous when pitching to a potential investor! Yet time and again, I watch fifth graders enter a room confidently, shake hands with the investor, and speak clearly as they make a case for the amount their stock is worth based on their expenses and projected revenue.

Once students have secured their start up funding, they shop for their supplies. Students really show off their financial savvy when they decide how much raw material to buy, whether to purchase in bulk or wholesale, and when they should just save their money. Hearing students prioritize and use critical thinking skills in regards to money is refreshing...and, it’s a life skill.

So, in honor of Financial Literacy Month, I encourage all of you out there to bring some financial knowledge to your classroom! After all, how many of us can say we made it to adulthood and thought, I really wish I’d had less instruction on finance.

Learn more about how BizWorld.org programs align to financial literacy standards!