The hardest lessons are usually taught by the school of hard knocks. But in Nichole Van Sickle's Grade 6 and 7 French Immersion class at Port Coquitlam's Maple Creek middle school, students are learning some powerful lessons about how money is earned, the value of hard work, and the risk of debt - long before they get their first credit card.
Inspired by reading Rafe Esquith's book Teach Like Your Hair's On Fire, Van Sickle developed a classroom economy complete with jobs (pay varies depending on the work), a real estate market (desks serve as "homes," with different values depending on location), and even a business sector and a legal and banking system.
Did she know what she was getting into? "I was scared at first," Van Sickle said.
But as the months went on and the students began sharing their experiences, she said she found that they were getting more out of the daily "lesson" than even she bargained for.
"When you give them real-life experiences in the classroom, they love it," said Van Sickle during a recent classroom visit.
EARNING & SPENDING
Here's how it works:
Starting in September, Van Sickle's students were paid by cheque in "francs" - it is a French Immersion class - and could buy classroom perks such as listening to their iPod during silent reading.
But they also had to pay rent, factor in taxes (filling out a tax form with a T4 slip Van Sickle provided), fork out utilities for going to the bathroom and getting water from the school fountain. Twice during the year, they could spend their cash at an auction for things such as a DVD player and candy.
But if students didn't do their homework or meet classroom expectations, they had to pay fines, handed out by police.
Meanwhile, the garbage collectors sorted recyclables, the bankers kept track of the money and small business owners rented or sold equipment, such as game controllers.
It wasn't long before a class system evolved that had Van Sickle marvelling at how the classroom economy mirrored the real world.
One girl amassed enough property to practically live on the income from rents while another bought the teacher's desk and now Van Sickle is paying her rent.
There was even one boy who ended up "homeless."
"I just wanted to prepare them for the real world," Van Sickle said.
MONEY SMARTS
Financial literacy is becoming a hot topic, especially since the last recession, and the best lessons are those taught through experience and fun. According to a recent federal task force that consulted with individuals across the country, Canadians need more knowledge and confidence to make responsible financial decisions to help them meet their personal goals, enhance their quality of life and make Canada more competitive.
Starting early in the classroom is one such way to impart financial literacy lessons to kids. There is a significant unit on financial planning in Planning 10, and issues such as the rule of compound interest are tackled in senior math courses.
But these are "abstract" concepts that mean little to most students, according to SFU professor Peter Liljedahl, who addressed the issue via email from Europe.
This is not the case in Van Sickle's lively Grade 6/7 class, where Jordan learned the value of honesty, thrift and hard work. The Grade 6 student was fined for not doing homework and other problems, and found himself sitting on the floor because he didn't have any money to pay rent.
"I was just hanging in there, I couldn't wait until pay day," he recalled.
He went home that night and thought about his dilemma, and came up with the bright idea of bringing his guitar to school and busking for money. Some "rich kids" with cash to go along with their compassion paid him for his singing and he was able to rent his desk again.
"I'm now extremely rich and I've stopped getting homework problems," Jordan said.
HE WAS 'HOMELESS'
Other lessons were learned as well.
Sean was down to his last 120 francs when he decided to blow it all on a lottery started by a couple of the other students.
"I won $800 - the jackpot," he said, although he cautioned others not to take the same risks with their money. For one thing, $200 had to be paid in taxes and for another, thing, he said, "iIt's not a good life lesson.
"You have to have a better plan than spending the rest of your money on lottery tickets," Sean said. "It's like throwing it away."
For other students, saving money and buying real estate was the ticket to a comfortable life. Shannon ended up being the one of the richest students in the class. She cautioned against going into debt and the student banker didn't use the credit cards that were freely available to students who applied for the Van Sickle card.
"Don't spend it all at once," was Shannon's advice. "You have to manage your money well."
Aside from the have's and the have-not's, a burgeoning middle and professional class developed as well.
All students had the same opportunity to apply and interview for jobs with different levels of pay. But some entrepreneurial students started their own businesses on the side - advertised on the community board - and a legal system was started when one boy represented another in a legal dispute.
The case was lost but there were no hard feelings. "I charged him cheap because I felt bad," said Ben.
But the lessons weren't all about the trickle down economy, the value of money and capitalism. Students were also encouraged to give to charity and get involved in their school community by helping out with school clubs.
Van Sickle said she couldn't be happier with the results of the economy project and is looking at some new wrinkles for the next school year, such as the establishment of an RRSP system and an enhanced legal system.
Her advice for teachers who take on this project is to start out slow and see where the students take it.
"Far from making students obsessed about money," she said, "I've actually seen it result in them being more involved, more charitable and more serious about thinking towards the future."
