ESSI Money Program - Financial Literacy for Adolescents

A new program has been designed by the 'Financial Basics Foundation' to teach 'financial literacy' skills to students. The ESSI Money Program (Earning, Saving, Spending and Investing), takes around 6 hours and is based on simulating financial decisions over a 6 month period.

www.essimoney.com.au

"The game is a teaching resource designed around the concept of a challenge or quest. It is a structured exploration of financial concepts using mentors and educational scaffolding to create a valuable learning experience primarily for teachers and students, though individuals can register and play at their own pace."

What was interesting to me with regard to ICT literacies, was not just the fact that the whole program is computer based, but that understandings about the financial impact of communication using different technologies, is addressed within the framework of 'financial literacy'. Some of the key learning areas addressed relate directly to the use of specific technologies, such as 'Spending on mobile phones' (bills) and 'Investing scams' (such as bogus emails).

When channel surfing whilst having my morning coffee, I happened upon a segment on a TV about this, where Katrina Birch, from the Financial Basics Foundations was discussing how the program worked. The example given was that students are required to read mock newspapers that emerge in the course of the game. Later in the game, they receive a scam email: if they had not read the article on this scam in an earlier mock-newspaper, then it is highly likely they will fall for the scam. Part of financial literacy it seems, as configured by this Financial Basics Foundation program, is being aware of the contextual surroundings of individual financial decisions. This seems to be an extension on the concept of "cultural literacy" (Shirato & Yell, 2000), where an essential component is contextual understanding of communications. In this case, it is important to have an understanding of the financial risks involved in responding to some emails, whilst having knowledge of social and cultural practices occurring in the wider society (ie. the existence of scammers). A social practice is configured in this situation in terms of monetary understandings and knowledge.

Examining the use of mobile technologies by young people under the key learning area of 'spending', seems to reinforce a common cultural discourse that young people experience financial difficulties as a result of mobile phone bills. Whilst the alarmist promotion of this issue by the media is seemingly supported by an array of anecdotal evidences (testimonies from tearful teenagers and families who have experienced financial ruin as a result of runaway mobile phone bills), this idea is not always supported by research. In conducting focus groups with young people, the Australian Psychological Society found that dramatic difficulties over paying for mobile phones was not a massive issue for young people, with most able to manage this financial commitment competently (2004). I am not suggesting that a focus on 'Spending' on mobile phones is not an important part of a concept of 'financial literacy' - rather, in today's world it would seem to be a rather natural and common bill for most people - rather, I would suggest that we should not automatically assume that young people need our help in this respect.

It must be remembered that this new ESSI Money program is not limited to young people. Indeed, anyone can play it, although your character in the game - you - is only every 18 years old. With current Australian personal debt being at an all-time high, perhaps there are wide swathes of the rest of the community who would benefit from playing this game.

Of course, just how financially literate young people and adolescents already are, is still an area in need of more research.

The concept of financial literacy also got me thinking about my own concens with mobile technology costs, which I had termed broadly as a form of 'economic literacy'. Are 'financial literacy' and 'economic literacy' the same thing? Are these two concepts interchangeable or are they different?

References

The Australian Psychological Society (2004). Psychosocial aspects of mobile phone use among adolescents. Sydney/Melbourne: The Australian Psychological Society. Accessed on 16th January, 2007 at: www.psychology.org.au/news/mobilephoneresearchreport.pdf

Financial Basics Foundation (2007). Earning,Saving,Spending,Investing. Essi Money Website. Accessed on 22nd June, 2007 at: www.essimoney.com.au .

Mornings with Kerri-Anne, Broadcast Friday, 22nd June, 2007. Sydney/Melbourne: Channel 9. Accessed on 22nd June, 2007 at:
www.kerri-anne.com.au/news.php?newsid=437

Schirato, T. & Yell, S. (2000). Communication and Cultural Literacy: An Introduction (2nd ed.). St Leonards, N.S.W.: Allen & Unwin.