The Importance of Financial Literacy and Adaptive Teaching

By Banzai

Financial literacy is an integral part of our lives from the moment we start working until the day we retire. The ability to understand personal finances and make smart money decisions is what guides people through choosing where to invest, what insurance to get, and how much of their paycheck to put into savings. Yet this knowledge is at a deficit in this country.

A recent study by the National Financial Educators Council found that a lack of financial literacy costs individual Americans, on average, $1,819 in 2022. Among all six age groups represented in this study and generalized to the rest of U.S. residents, the NFEC approximated that nearly $436 billion dollars were lost overall because people lacked a basic understanding of how to manage their personal finances. So how can we change that?

The answer is simple: teach it. In school, students are taught to read, write, and do math—but not necessarily how to manage money or avoid debt. Although the integration of financial literacy curriculum in schools has increased throughout the years, with roughly 15 states mandating it, there are still many ways we can improve. The truth is, most schools don't address financial education topics enough—some hardly address it at all. And there's a reason for this: financial literacy isn't easy to teach, especially for those inexperienced in personal finance themselves.

Adaptive Teaching Strategies

Adaptive teaching strategies strive to personalize lessons and activities based on the skills and needs of individual students. The success of an individual should never be assumed based on how high they scored in any given area, rather how much they learned over the course of completing several different learning resources. Everyone has to start somewhere and adaptive learning accommodates that.

Financial literacy-based adaptive learning lets people experience the rollercoaster of emotions associated with money management—struggling through starting a business, earning money, saving money, losing money, and more—without truly losing anything. Sitting through lectures and reading textbooks can only do so much. In fact, people learn better when their minds and emotions are stimulated.

The nature of financial literacy makes it difficult to learn in one sitting. It's a lifelong process that requires real-life experience or a simulated one via adaptive learning tools that change in real-time. Tools such as these allow anyone on the internet access to financial education without having to go through an expensive degree program or pay for pricey certifications.

Adaptive Learning & Banzai

Adaptive learning platforms such as Banzai provide people with engaging content that changes based on needs and preferences—it’s an approach to education that focuses on the needs of the student and can be used in any type of community or school-based class.

Programs like Banzai give communities and schools resources to teach the importance of financial literacy with activities that vary in teaching styles. Online courses and games, physical workbooks and worksheets, expert presentations, and more allow every type of learner to find something that resonates with them. Not only that, but the courses adapt to the user’s personal life scenarios and change based on the path they choose to take while completing the course. As opposed to the courses’ more hands-on, direct approach to teaching, Banzai workbooks, articles, and printed materials give learners a more indirect and visual form of learning.

Takeaways

Financial literacy isn't just about numbers: it's about understanding how to use those numbers to create a positive future for yourself and your family. And adaptive learning enables students of all ages to focus on what suits them best. Skills like setting goals, budgeting, and saving help people live a better, more fulfilled life. And while many people have used adaptive learning tools, they are just now becoming more mainstream.

Financial knowledge enables people to make moneysmart decisions about everything from choosing a career field to buying a house or car. Ensuring that people receive the education needed to make smart financial choices is not just beneficial for individuals; it's also good for the greater community and even the economy. This is an age where information—in all forms—is readily available. Providing the best hands-on financial education to future generations is so vital when trying to create financially savvy people who will be a generation of doers and creators instead of sufferers from economic downturns. All of this goes beyond simply having access to digital textbooks; it's about creating a curriculum that responds to the needs of our students and communities.