Pedagogy Wheel Research-Based Print (Test)

YOUTH PERSONAL FINANCE PEDAGOGY

A research based model

A youth developmental model
CFPB’s research into adult financial well-being has
identified a broad range of skills, habits and norms
that appear to characterize adult financial capability.
These include the factual knowledge and financial
skills needed to engage in financial decisionmaking, and the healthy money habits, norms, and
rules of thumb needed to effectively navigate
day-to-day financial life. Other important personal
traits include impulse control and the ability to
delay gratification, perseverance in the face of
obstacles, and belief in one’s ability to manage
money and achieve financial goals. Our research
also suggested that most if not all of these abilities
and attributes begin to develop in childhood. We
have identified strategies for schools and educators
seeking new ideas and insights as they deliver
research-based, and developmentally appropriate
financial education.

Introducing the CFPB’s four-part
personal finance pedagogy
Pedagogy, the art and science of teaching, is an
essential part of our education system. Every day
teachers bring lessons to life through accessible,
understandable, and actionable teaching
techniques. The personal finance pedagogy is a
guide for educators to teach the development of
youth personal finance skills.

Consumer Financial
Protection Bureau

The personal finance pedagogy
has four parts:

1. Improve executive functioning skills such
as planning and problem solving
2. Create and encourage positive financial
habits and effective money management
3. Build financial research skills to compare
and contrast options
4. Provide safe opportunities for youth to
practice financial decision making

Personal finance pedagogy takes into account
that behaviors, skills and attitudes develop
as children mature. Teachers can incorporate
developmentally-appropriate teaching strategies
in their lesson plans to help children gain the skills
they need for making sound financial decisions.
The Personal Finance Pedagogy is not meant to
replace existing tools for teaching financial literacy.
Rather it is meant to be a valuable addition to the
existing resources created by teachers, schools,
agencies and other organizations.

Foundation for building youth
financial capability skills
The CFPB’s Personal Finance Pedagogy is designed
to promote lifelong learning and financial skills
development. It outlines strategies for instructing
students of all ages with a broad range of skills,
habits and attitudes that appear to characterize
adult financial capability.

Learn more at consumerfinance.gov

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An effective way to teach youth financial capability
skills is to acknowledge and address youth
developmental milestones. Our research into the
developmental origins of adult financial capability
uses a youth development model to demonstrate
that youth financial capability is built on three
building blocks:

§§ The Personal Finance Pedagogy is rooted in
research, case studies, and expert interviews that
sought to identify the key needs and challenges
in supporting the instruction of personal finance.
Personal Finance Pedagogy can serve as a guide
for educators to confidently and effectively help
students build a foundation for strong financial
decision-making.

§§ Improving executive function: Strong executive
function makes it easier to plan, focus attention,
remember details and juggle multiple tasks.

Making a difference through
personal finance education

§§ Creating and encouraging positive financial
habits: Financial habits and norms are a
person’s values, standards, routine practices,
and rules of thumb around financial matters,
which help us to automatically navigate our dayto-day financial lives.

Making responsible financial decisions is a habit
that develops through lifelong learning. The
recommended building blocks that drive the
personal finance pedagogy address the optimal
Learning strategies
times for teaching specific concepts at the ideal
§§ Building financial knowledge and decisionEntrepreneurship
Intergenerational
making skills: Deliberate financial decision-education ages for learning them. If these building blocks can
programs
be implemented throughout the education system,
making, like financial planning, research, and
students will emerge from school prepared for the
intentional decisions
such as retirement planning
Teaching
techniques
lifelong learning that ultimately creates responsible
or buying a new home.
ed
on
adults who can achieve financial well-being.
Personalized
Gamification

instruction

Executive
Function

ation

Self-control,
working memory,
problem solving

erative
rning

Building
blocks

Employment
opportunities

More information:

Financial
Habits &
Norms

CFPB Youth webpage: consumerfinance.gov/youthfinancial-education
Blended
Teacher Online Resource Center: www.fdic.gov/
learning
Financial

Healthy money
habits, norms,
rules of thumb

consumers/education/torc
simulations

FLEC webpage: mymoney.gov/Pages/default.aspx

Primary
development:
ages 6–21

Primary
development:
ages 3–21

Financial
Knowledge &
Decision Making Skills

FTC webpage: consumer.ftc.gov/features/feature0022-financial-educators
Simulation

Factual knowledge, research
and analysis skills

Competencybased
instruction

ncial simulations

Primary development:
ages 13–21

Projec t-based
learning and
simulation

Consumer Financial
Protection Bureau
Real-world case studies

Understand
financial
products

Personalized
and direct
instruction

Financial coaching
and mentoring

Learn more at consumerfinance.gov

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