SmartPolicy.Org: Economics and the Educational System
Have you ever noticed how little is taught about economics and finance in elementary and secondary schools? Often, society sets a series of low expectations, in which the ability to read, write and do simple arithmetic is considered a sufficient indication of educational success. Yet, many students graduate high school without ever balancing a checkbook, participating in a business, or understanding the most basic economic concepts. Parents and teachers are responsible for the quality of the education offered by public schools, but it takes involvement and commitment. Luckily, there are a few model programs that can serve to expose students to the world of business and economics in a fun and engaging way. Let's look at a couple.
4-H Clubs
From humble roots in rural America, 4-H Clubs have grown to involve 6 million young people across the country in all aspects of agriculture, including the economics of running a farm or farm-related company. It's not just a petting zoo anymore. Today's 4-H Clubs emphasize technological awareness, good citizenship, and business skills. Students are taken behind the scenes to see first-hand how market forces of supply and demand have direct economic impact on an individual or family. Many farms go bankrupt every year - how many could be saved if their owners had a better understanding of finance and economics? The 4-H Clubs provide a learning opportunity not often available in the public educational system. The challenge is to adapt the 4-H model to other industries that span inner cities as well as rural environments. Participating in a real business with a real product or service is an invaluable adjunct to the standard education offered in public schools.
School Fundraisers
Many students like to participate in fundraising efforts to help their schools, but how many master the microeconomic principles underlying a successful fundraiser? Our schools must view students not only as "labor", but also as "management" - students must understand how costs must be controlled so that a fundraiser nets real profits. The concepts of wholesale and retail must be mastered. And students must learn how discounts and promotions can increase overall profits by increasing customer traffic. A good example is a peeler card fundraiser, in which students sell coupons for free or discounted merchandise underwritten by local merchants. Each participating student should understand the economics regarding the spread between the cost and price of the coupons. But in addition, merchants should be recruited to help students understand how the coupons help business grow and build a stronger community.
It has been said that "the business of America is business". Our educational system needs to turn out economically-literate students to fulfill this motto.
What's New
Center for Economical Development is working to understand the importance of embracing brand reputation management as a strategic imperative to online business monitoring. This effort is to educate brand marketers on how to effectively deal with online brand damage. Teaching strategies will mirror the online writings of reputation management expert, Michael Fertik. Online brand reputation protection is key to insuring the growth of well known brands within a fragile economical climate.
The Center for Economic Development at Carnegie Mellon University would like you to know that we have updated our website! This latest update includes a mix of research on the financial market, payday loans, and other resources and information on events of interest to the economic development community.
"Education starts with perfecting the basics like reading and we sometimes forget that poor literacy skills are still common in developed countries like Canada. Making reading and learning fun at a young age we hope will help to address this problem in our community" said Josh Felker, Managing Director and Co-Founder of Vigilant Futures.
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The FASA program (pdf, 1.8Mkb)
Published: March 10, 2008
Do you need debt consolidation help? Do you need an accountant? If so, the Center for Economic Development provides information and links to various resources covering debt trends. A recent study by researchers and graduate students has shown that while much of America is suffering under intense pressure from the shear weight of credit card debt loads, universities and colleges all across this great nation are doing their part to find out what can be done to help the nations economy. Here at Carnegie Mellon University, we seek to be a part of that educational movement.