3rd to 5th Grade: Big Ideas, Essential Questions, & Content Standards for ages 7 to 11
(Ages 7 – 11)
The development team found that the age breakdowns in existing industry guidelines did not align with student’s cognitive abilities to evaluate key concepts. To address this problem, the NFEC team interviewed educators and sought research to provide evidence-based reasoning for the age breakdowns of the Framework & Standards.
The big ideas, essential questions, and content standards are separated into 4 groups: 1) PK – 2nd grade, 2) 3rd – 5th grade, 3) 6th – 8th grade, and 4) teen and adult. The NFEC separated each age range grouping into ‘beginner,’ ‘intermediate,’ and ‘advanced’ categories using Webb’s Depth of Knowledge framework. This design gives the instructor flexibility to assess and push participants to encourage higher levels of achievement.
Both the Core Knowledge Theory and Piaget’s Theory also were explored during standard development. Piaget’s cognitive development theory says that children learn by reconciling inconsistencies through four developmental stages. In some instances the Core Knowledge Theory challenges Piaget’s theory by saying that age or developmental stage matter less than the level at which a child engages with particular theories about the world. Yet while these theories differ in some respects, they also share commonalities. Piaget’s Theory supports current researchers to conclude that effectively teaching kids about money must connect lessons to existing cognitive structures; core knowledge theorists hold that effective education will relate to existing theories or models. Both schools of thought emphasize that children are active learners who filter new information to fit with their current beliefs. (1)
The Financial Literacy Framework & Standards for kids was developed using Piaget’s Theory of Cognitive Development as a model and their understanding of key concepts – separating material based on cognitive abilities (pre-operational ages 2 to7, concrete operational ages 7 to 11, and formal operational for those older than age 11). The NFEC converted the ages to grade levels to ensure that students had the cognitive abilities and skills necessary to successfully complete the lessons at each level.
Above age 11, the framework and standards were separated based on students’ math abilities and understanding. In the 7th and 8th grade (ages 11 to 14) students are learning the skills essential to making fundamental personal finance calculations, including negative numbers, rates, decimals, and basic statistics needed to solve personal finance problems.
For younger children, the NFEC also explored the key concepts featured in the report ‘Financial Literacy Programs Targeted on Pre-School Children: Development and Evaluation,’ including development of the concepts of number, time, money and income, value, market and exchange, choice, and social values.
The NFEC asserts that high school students can and should learn advanced personal financial planning topics. Starting in high school, most students possess the cognitive abilities (according to Piaget’s Theory of Cognitive Development) and math skills needed for the majority of the financial literacy lessons. The learning outcomes for high school students and adults of all ages are the same and the standards have been broken down into beginner, intermediate, and advanced lessons based on the Depth of Knowledge framework.
It is important to note that, although the subject matter taught to teens and adults is similar, the NFEC’s Framework for Teaching Personal Finance highlights the importance of understanding the audience and modifying how lessons are taught to maximize appeal to the targeted ages. The Framework also addresses the importance of providing a timely financial education – for example, reaching participants when they are considering a major financial step.
1. Financial Literacy Programs Targeted on Pre-School Children: Development and Evaluation by Karen Holden, Charles Kalish, Laura Scheinholtz, Deanna Dietrich, and Beatriz Novak at the University of Wisconsin-Madison.
The topics included in the Financial Literacy Framework & Standards were selected based on 8 years of refinement, research of existing standards, review of academic studies, suggestions from our Curriculum Advisory Board, and feedback from organizations around the globe.
For adults and teens the topics are broken down into 10 personal finance topic areas: Financial Psychology, Budgeting, Account Management, Jobs & Careers, Credit Profile, Loans & Debt, Risk Management & Insurance, Investments & Personal Finance Planning, Entrepreneurship, and Economic & Government Influences.
The kids’ (PK to 8th Grade) topics are broken down into 5 areas: Financial Psychology / Budgeting, Savings & Investing / Income, Career & Entrepreneurship / Credit, Debt & Loans / Risk Management & Insurance.
When teaching fundamental lessons to kids, the curriculum development team found that many of the lessons were interconnected. That is, curricula for specific lessons bridged many of the separate topics that are included in the teen and adult material. All of the 10 topic areas in the teen/adult package are addressed in the material; however, we considered it best to combine areas for kids to show how the lessons interrelate.
In the Financial Literacy Framework & Standards below you will find big ideas, supporting standards (teen & adult framework), and essential questions (kids’ framework). The big ideas provide the context of what students should learn and show the relationships between critical components. The standards describe what is necessary to achieve the big ideas. The kids’ framework currently provides essential questions and skill sets, the method preferred by our development team; we are currently in process of expanding this framework into content standards.
The Framework & Standards for 7- to 11-year-olds were developed for children in the Concrete Operational phase of development according to Piaget’s Theory of Cognitive Development. During this phase children can use multiple dimensions of a problem or situation to reason about the world, as long as the situation is made concrete.
The big ideas and content standards for this age group are broken down by topic, subtopic, and skill level. ‘Beginner’ level is best-suited for 2nd to 3rd grade, ‘Intermediate’ level for 3rd to 4th grade, and ‘Advanced’ for 4th to 5th graders. This design gives the instructor flexibility to assess and push participants to encourage higher levels of achievement.
Financial Psychology
Big Ideas, Content Standards & Common Core Alignment
Accounts, Savings & Budgets
Big Ideas, Content Standards & Common Core Alignment
Income, Careers, Business & Entrepreneurship
Big Ideas, Content Standards & Common Core Alignment
Credit, Debt & Loans
Big Ideas, Content Standards & Common Core Alignment
Risk Management & Insurance
Big Ideas, Content Standards & Common Core Alignment
Complimentary Resources – 3rd – 5th Grade
Testing & Surveys (complimentary testing and results)
NFEC Lessons & Sample Workshop (complimentary)
Your feedback is appreciated and we use your suggestions to support efforts to develop material that best meets your needs. Visit the NFEC’s Comment Center or Join our Advisory Board.
Financial Psychology
Big Ideas
- Life involves making decisions.
- Setting goals helps us get what we want.
Essential Questions
- How can I know what outcome my choice will have?
- How do I know which goal to choose?
Skills
- Determine possible outcomes of given scenario.
- Identify evidence for drawing conclusions.
- Recognize choices have outcomes (benefit or consequence).
- Recognize that sometimes we have to choose one goal over another.
- Connect that short-term goals help us accomplish long-term goals.
- Gauge the effects of a specific choice.
- List steps in decision-making.
- Recognize personal values and criteria used for making choices.
- Define short- and long-term goals.
- Name benefits of short-term goals; name benefits of long-term goals.
Big Ideas
- Life involves making decisions.
- Reaching goals requires a plan and follow through.
Essential Questions
- How can I make the best decisions for my future?
- How do I create a plan to reach my goal(s)?
- What motivates me to work and persevere in my goals?
Skills
- Use decision-making steps to generate and evaluate different options.
- Identify (estimate) consequences of decisions.
- Create list of motivators/incentives. Categorize which are positive and negative, and which are intrinsic (internal) and extrinsic (external).
- Recognize that decisions I make now will affect my future.
- Connect motivation to the achievement of ones goals.
- Describe elements of setting goals.
- Create a specific plan for achieving a short-term goal.
Big Ideas
- Life involves making decisions.
- Reaching goals requires a plan and follow through.
Essential Questions
- What is influencing my decision(s)?
- How can I balance my immediate goals/desires with my long-term goals?
Skills
- Identify common factors that influence decisions.
- Recognize who/what may be influencing my decisions.
- Setting goals/prioritizing life/planning.
- Describe elements of SMART goals (specific, measurable, attainable, relevant, time-bound).
- Create a specific plan for achieving a long-term goal.
- Recognize that many things can influence the decisions we make.
- Connect that it is important to enjoy life now as well as save for future.
Accounts, Savings & Budgets
Big Ideas
- When we say ‘yes’ to one thing, we are saying ‘no’ to another.
- We take charge of our money when we pay attention to it.
Essential Questions
- How can I make the best choices for me? How can I pay positive attention to my money?
- How can I best manage my money?
- Why would I want to save?
- What short-term goals do I want to save for?
- What are my short term goals?
- What long-term goals do I want to save for?
- What are my long term goals?
Skills
- Predict outcomes based on choices made.
- Summarize reasoning/criteria behind choices made/summarize the steps you worked through in making a decision.
- Explain the purpose of a budget.
- Define income and expense.
- Describe what balanced budget means.
- Explain what interest is.
- Calculate simple interest.
- Describe the purpose of saving money.
- Identify different ways to save money.
- Identify the steps involved with developing the habit of savings.
- Explain the benefits of developing the habit of saving.
- Identify examples of instant gratification, short- and long-term goals.
Big Ideas
- There are many ways to make money without working
Essential Questions
- How can I make money without working?
- How can time help my money grow?
- What are ways my money grow?
Skills
- Identify examples of how time has an impact on money.
- Explain compound interest.
- Relate compound interest to real life situations Identify different vehicles for saving money (e.g., bank account, money market, CDs, savings bond).
- Explain different ways savings can become a habit.
- Explain what an investment is.
- Define investment portfolio.
- Compare and contrast saving versus investing.
- Describe benefits of saving and investing.
- Connect that time has a positive impact on the growth of money.
- Recognize that savings and investing are ways to make money on your money.
Big Ideas
- It is important to begin the habit of saving early.
- There are different ways to use money to meet the needs of your life.
Essential Questions
- Why would I want to save?
- What is the best way for me to use my money?
- How can I care about the world in an active way?
Skills
- Define the idea of rainy day (emergency) accounts.
- Distinguish the difference between non-investment periods and low-risk periods.
- Describe the importance of building emergency accounts during low-risk periods versus waiting for issues to arise.
- Connect charitable giving with making the world a better place.
- Compare and contrast saving, investing and sharing.
- Explain reasons for using money in different ways saving, investing, and sharing.
- Define charitable giving.
- Define the terms donation and charitable organization.
Income, Careers, Business & Entrepreneurship
Big Ideas
- Some jobs and businesses involve working with people and some work with things/ideas.
- We don’t keep all the money we make (gross pay and net pay/ income and expenses).
Essential Questions
- Do I like working with people or do I prefer working with things/ideas?
- How is the money I earn different from the money I keep?
Skills
- Describe basic characteristics compatible with given job types.
- Compare and contrast job types (relative to personality).
- Describe difference between gross pay and net pay.
- Distinguish gross pay and net pay on paycheck.
- Explain income and expenses.
- Identify income and expenses on financial sheet.
Big Ideas
- Good planning leads to good career choices.
- We can choose to work for an employer or to work for one’s self (be an entrepreneur).
- Part of our salary is taken in the form of taxes.
Essential Questions
- When does my career / entrepreneurial journey begin?
- How will my interests and skills help me in choosing a career or start a business?
- Why do I have to pay taxes?
Skills
- Locate, evaluate and interpret career information.
- Identify positive work/study habits.
- Distinguish interests and motivations of entrepreneur vs. employee.
- Match personal interests/aptitudes to some career choices.
- Identify and explain three types of taxes (income, sales, property).
- Identify at least four uses of income tax.
Big Ideas
- Different jobs and businesses have different lifestyles.
- Different jobs/businesses require different kinds of preparation.
Essential Questions
- What kind of lifestyle do I want to create for myself?
- What kind of career(s) do I want to prepare for?
Skills
- Identify components of lifestyle.
- Compare and contrast lifestyles related to different careers/occupations.
- Identify and describe components of a given career preparation plan.
- Recognize factors that influence choice of career/occupation.
- Describe career preparation plan for three different occupations.
Credit, Debt & Loans
Big Ideas
- There are different ways to make purchases.
- There is a cost to buying on credit.
- Credit is a promise that we’ll get something now in return for giving something back in the future.
Essential Questions
- How can I make purchases with or without cash?
- How much does it cost me to buy something on credit?
- Why would I use credit?
Skills
- Identify and describe four different forms of payment.
- Analyze when to use different forms of payment in different situations.
- Explain the terms line of credit, billing cycle, APR.
- Calculate cost of item if paid in full vs. paying minimum monthly payment on credit.
- Calculate total cost of simple loan, including interest.
- Explain the term credit.
- Compare and contrast credit and cash/debit usage.
Big Ideas
- There are pros and cons to using credit, cash, debit to make purchases.
- There may be a penalty for not giving something back when you promised.
- Spending more than we earn without a plan for repayment causes financial risk.
Essential Questions
- How can I decide the best payment method for my purchases?
- How can I avoid penalties when borrowing?
- How can I use credit responsibly?
Skills
- Explain advantages and disadvantages for purchasing with cash and credit.
- Use decision-making process to determine method of payment for various purchases.
- Calculate cost of late fees over given time period.
- Identify penalties associated with borrowing agreements (e.g., library, bank).
- Categorize various purchases into Credit worthy and Non-credit worthy.
- Define debt.
- Define bankruptcy.
- Identify criteria for responsible use of credit.
Big Ideas
- Contracts let us know what both the buyer and seller are gaining and risking.
- There is a specialized vocabulary we use for loans and other financial terms.
Essential Questions
- How can I make wise choices when signing financial contracts?
- How can understanding specialized financial terms help me in my future?
Skills
- Read a contract and summarize its main points.
- Describe terms and conditions of simple contract.
- Apply decision-making process to contractual agreements.
- Identify definitions of financial terms/concepts.
- Apply knowledge of financial terms to aid in decision-making.
Risk Management & Insurance
Big Ideas
- There is a cost to protecting the things we value.
- There are strategies to lower the risk of losing things we value.
Essential Questions
- How can I guard against losing things I value?
- Is protecting the thing I value worth the cost?
Skills
- Describe ways to protect/lower risk of losing valuables.
- Predict outcomes/consequences.
- Identify cost(s) of protecting valuables.
- Compare cost of protection vs. cost of losing/replacing item.
Big Ideas
- We can protect valuables with insurance.
- Risk can have positive and negative consequences.
Essential Questions
- How can I use insurance effectively?
- Is risk always a bad thing?
- When is taking a risk appropriate?
Skills
- Describe purpose of insurance.
- Compare cost of car insurance vs. cost of accident.
- Determine cost(s) of specific risk.
- Calculate probability.
- Identify positive risks (e.g., running for class president) and negative risks (e.g., driving while drunk).
Big Ideas
- There is a process for comparing costs and benefits of insurance.
- There are ways to identify factors that may jeopardize our valuables (or goals).
Essential Questions
- When does it make sense to buy insurance?
- How can I assess risk?
Skills
- Compare expected costs vs. expected return/benefits of insurance.
- Analyze insurance advertising in media.
- Using school scenarios, determine likely risks what is risk and who will be affected.
- Identify what can be done to mitigate or lessen risk(s).
- Compare cost vs. benefit (risk vs. reward).