“The New Literacy Set” Project 2015-2017 1 BEHAVIOURAL APPROACH TO MONEY Financial literacy curricula Workshop number 11 Name of the institution: Institut Carles Vallbona Date: March 2017 Goal of the workshop: Students will reflect on their attitudes towards money and will learn how to avoid misbehaviours linked to a wrong use of money and savings. Learning outcomes: At the end of the lesson the student will be able to: 1. The cognitive domain (knowledge-based): ◦ Understand better how money affects his/her life, from own approach to society rules and strategies. ◦ Create a board game simulating the real life expenses. 2. The Affective domain (emotive-based): ◦ Provide strategies for identifying emotions related to money. ◦ Understand the relationship between emotions and situations. ◦ Coaching skills for expressing feelings and needs associated with them. ◦ Provide guidelines for accepting positive and negative emotional states and provide control techniques to regulate emotions. ◦ Evaluate his/her own motivation to earn and save money. ◦ Evaluate his/her own behaviour when consuming. ◦ Recognize their own vulnerability financially speaking. ◦ Learn personal abilities to cope with adversity: resilience, negotiation. ◦ Apply some strategies to avoid personal financial crisis and stress. ◦ Improve self-esteem and emotional autonomy. Teacher qualifications: • general professional knowledge and skills (teaching, psychological development, sociological, financial awareness, business knowledge, legislative-legal). • knowledge and use of the learning and teaching processes (cross-curricular and subject-planning, programming, learning and teaching focused on learning and student achievement). • knowledge and application of new methods of learning and teaching (ICT), knowledge and application of methods of evaluation and self-evaluation. Anticipated age of participants: From 14 to 18 years old. Class methodology: Didactic type of class: A class has the following structure: 1. Most of the ideas will be worked out throughout debates and examples to create empathic connections. 2. The teacher explains the theory and poses situations to arise questions.
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“The New Literacy Set” Project 2015-2017
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BEHAVIOURAL APPROACH TO MONEY Financial literacy curricula
Workshop number 11 Name of the institution: Institut Carles Vallbona Date: March 2017 Goal of the workshop: Students will reflect on their attitudes towards money and will learn how to avoid misbehaviours linked to a wrong use of money and savings. Learning outcomes: At the end of the lesson the student will be able to:
1. The cognitive domain (knowledge-based):
◦ Understand better how money affects his/her life, from own approach to society rules and strategies.
◦ Create a board game simulating the real life expenses.
2. The Affective domain (emotive-based):
◦ Provide strategies for identifying emotions related to money.
◦ Understand the relationship between emotions and situations.
◦ Coaching skills for expressing feelings and needs associated with them.
◦ Provide guidelines for accepting positive and negative emotional states and provide control techniques to regulate emotions.
◦ Evaluate his/her own motivation to earn and save money.
◦ Evaluate his/her own behaviour when consuming.
◦ Recognize their own vulnerability financially speaking.
◦ Learn personal abilities to cope with adversity: resilience, negotiation.
◦ Apply some strategies to avoid personal financial crisis and stress.
◦ Improve self-esteem and emotional autonomy. Teacher qualifications:
• general professional knowledge and skills (teaching, psychological development, sociological, financial awareness, business knowledge, legislative-legal).
• knowledge and use of the learning and teaching processes (cross-curricular and subject-planning, programming, learning and teaching focused on learning and student achievement).
• knowledge and application of new methods of learning and teaching (ICT), knowledge and application of methods of evaluation and self-evaluation.
Anticipated age of participants: From 14 to 18 years old. Class methodology: Didactic type of class: A class has the following structure:
1. Most of the ideas will be worked out throughout debates and examples to create empathic connections.
2. The teacher explains the theory and poses situations to arise questions.
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3. The students will interact between themselves to learn that may be other opinions than theirs.
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Sociological form of class:
The teacher switches between explaining the content and giving examples and allowing the students to interact and discuss about what they think and feel.
Working methods:
• working in groups
• debate and self-criticism,
• gamification. Class resources and supplies:
• Teacher computer with Internet access and projector.
• Students will need access to Internet.
• Prezi presentation.
• Extra activity: cardboard, scissors, dices, game board pieces, colour pencils, glue. Estimated cost:
• For the extra activity described in the last section (Personal financial stress) and for each team of 5-6 students:
◦ A big cardboard approx. 50Cm X 50 cm. Students can propose new shapes and sizes.
◦ Recycled game board dices and pieces.
◦ Scissors, colour pencils, glue... Time schedule: The estimated time for this lesson is around 135 minutes. Courses:
1. Secondary school: Tutorials, and civics and ethics classes, Sociology and Economy in Baccalaureate. 2. Vocational training and Short Cycles in Higher Education: Tutorials, International Trade, Human
Resources, Commercial Activities. Evaluation: There will be both self-evaluation and peer-evaluation.
• DINERO, Revista de Poética Financiera e Intercambio Espiritual nº 0-1-2; Miguel Brieva e Industrias GLISMÓN; May, 2004
For the teachers:
• Luna-Arocas, R & Tang, T. LP; The love of money, satisfaction, and the Protestant work ethic: money profiles among university professors in the USA and Spain; Journal of Business Ethics, 50 (2004), pp. 329–354.
• Lea, SE & Webley, P; Money as tool, money as drug: The biological psychology of a strong incentive; Behavioural and Brain Sciences; 29 (2) (2006), pp. 161–209.
• Ruiz, Eugenio and others; Recursos humans i responsabilitat social corporativa [Human resources and Corporate Social ]Responsibility; Ed. Mc Graw Hill; 2014.
• Book about the financial crisis of 2007–2008 : The Big Short: Inside the Doomsday Machine; Lewis, Michael; 2010.
• Giraudo, Alessandro; Cuando el hierro era más caro que el oro [When the iron was more expensive than the gold]; Ed. Ariel; 2016.
• Por el bien del imperio. Una historia del mundo desde 1945 [For the good of the empire. A history of the world since 1945]; Fontana, Josep; Ediciones de Pasado y Presente; 2011.
• The world without us; Weisman, Alan; Thomas Dunne Books, 2007.
INTRODUCTION: Time: 20 minutes. Goal of the activity: Becoming aware about our thoughts, feelings and attitude towards money. Content: Money is a tool in our society. Without money it would be more difficult to acquire some goods. Otherwise,
how would you buy your bread and other daily expenses? Do you know other means? Possible answers the
students could come up:
• Bartering, bargaining, haggling
• Stealing
• Time bank (which is another mean of having a currency)
But society needs some rules, doesn't it? A survey could be run with the following questions:
Do you think that money makes us more free?
Do you think that money is a false need generated by current society?
Arguments for both opinions can be given:
1. Think of an Indian in the Amazon forest. Would he be more free with or without money?
2. Think of a slave-miner in Africa searching for diamonds. Would he be more free with money if he
wants to run away?
3. Think of the economical, ecological, ethical and social crises that our world is going through.
Capitalism, consumerism, wars...what else?
Money is also related to power and happiness. The next links can amaze and sparkle debate:
• Britain's teen claims that wining the lottery ruined her life : http://metro.co.uk/2017/02/12/britains-youngest-euromillions-winner-wants-to-sue-lotto-for-ruining-her-life-6442874/
• The lie we live: https://www.youtube.com/watch?v=ipe6CMvW0Dg
HIGHLIGHTS
We must not lose sight of the fact that emotions are processed in the brain at the same area where ethical and moral values are processed. This means that when debating we all could get out of bounds easily.
Time: 40 minutes. Goal: Understanding your own attitude towards money. An individual survey will be run to assess how much money is important for everyone. We can use plickers (https://plickers.com/): an online tool that combined with the smartphone is fun to use. It is also interesting if the students ask each other.
A presentation on Prezi follows: https://prezi.com/lbsl71e5ryym/personal-approach-to-money/
1. PERSONAL ATTITUDE TOWARDS MONEY The Love of Money Scale (LOMS) (developed by Luna-Arocas and Tang) has been tested in several cultures, languages and religions. It is stated that we all relate with money according different five factors:
The Apathetic Money Managers are more intrinsically satisfied, have internal locus of control, are
more self-determined and therefore do not perform activities for the money but for the satisfaction that they provide. In Bhutan it is believed that the economic approach of western countries dehumanizes the development process. For this reason the government of Bhutan measures the success of the country by its remaining citizens' happiness. The index used is called Gross National Happiness (GNH) and is pursued by limiting access to foreign culture.
The Achieving Money Worshippers consider money a symbol of success and status and they also manage their money carefully. Thereby, they are more motivated by money than the other groups and best performed within a system of rewards for job performance. Individuals classified as Careless Money Admirers are extrinsically satisfied, have external locus of control and are less self-determined. Individuals in this group are concerned with extrinsic rewards which lead to less intrinsic satisfaction. Money is an important motivator for these individuals and there is a possible implication, highlighted by more recent studies, that these individuals may be tempted to engage in unethical behaviour inside their organizations. The strive for money is quite strong for these people. Everybody has a price!
Finally the Money Repellent Individuals present more negative attitudes towards money. Individuals in this group characterize money as evil, they consider it not a reflection of success and it does not function as reinforcement for them. Activities:
1. After this explanation everyone will evaluate by him/herself his/her own results of the previous survey.
2. Try to guess the profile of someone of the class you think you know very well. Talk to him/her. Did you guess it?
3. In groups of 3 select the 5 top questions of the previous survey that according to you define a profile. The teacher will assign one profile to each group. When the teams finish their selection they will have to explain to the other groups.
4. There will be several labels previously prepared with the names of the profiles. In teams of 5 students will target at least 3 well known people. Papers or padlet.com (the digital wall) can be used. The teacher can use the photos given in the attachments or students can search them on the internet.
In short, the motto discussed here is:
Can money buy happiness?
Considering these four profiles, it is important to know that some organizations establish different strategies in order to motivate their employees as a whole and individually. Related to this, it is worthwhile mentioning the famous Maslow Pyramid of needs which describes the pattern that human motivations generally move through. The most fundamental levels of needs are at the bottom of the pyramid and the need for self-actualization at the top.
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If the 4 bottom layers are not met one feels anxious and tense. Maslow's theory suggests that the most basic level of needs must be met before the person focus on higher level needs.
Activity:
• Work in group of 3 people. Imagine you are the responsible of the Human Resources department in your enterprise and design rewards for the profiles given. Use a shared on-line tool (https://padlet.com) to write your ideas. Look at the problem from two or three perspectives: the employer's, the workers', the moral aspects, the productivity concerns, etc.
• Do you manage to think of a reward that satisfies all the profiles?
• Have you thought of a reward that you cannot buy with money?
• Connect to the url https://answergarden.ch/446366 and answer the question. (Which needs do you think you have fulfilled?) Choose the words in the pyramid (food, water, warmth...). For each need press enter.
• Which is the need most fulfilled?
• And the least one?
• Do you think your answers can change along your life? Which ones?
Western culture tend to link happiness with extrinsic and material aspirations such as:
• self-image However Asian culture which has influenced some movements in the west, focus on intrinsic aspects:
• deep and enduring relationships
• helping others, community engagement
• physical health
• inner growth
• learning new things Researches show that even though people with extrinsic motivation may achieve their goals they do not become happy and worst, increase anxiety and depression when attaining their goals. On the opposite side close relationships, community involvement, personal growth and physical health related posivitely to basic pyschological need satisfaction and psychological health. So here we have the answer:
Money can not buy happiness
Activity:
Secretly students will write down their top intrinsic motivation on a paper and fold it so that no one could read it. The teacher will keep all them in a bag. At the end of the class every student will take one randomly as a gift to think about it at home.
It cannot be denied that the corruption cases, financial and real-state speculation, food intoxication,
environmental disasters, lack of truthfulness of advertising and politicians and their power abuse have led
to citizens to demand that both enterprises and government act according to ethical principles and values:
honesty, transparency, responsibility and commitment with the environment and the society.
Not only the problems listed above have contributed to this demand but also the boom of the globalization
which has meant a growth of corporate power and besides the delocalisation of most companies. In this
way the local laws have become insufficient and inadequate and thus the local government power has
diminished. Besides the decisions of these companies affect millions of people (Google, Facebook,
Microsoft...) therefore most people demand more responsibility of their actions.
Nowadays enterprises and politicians make an effort to bind themselves to ethical values and gain the
confidence of consumers and voters. Moreover employees' satisfaction and motivation grows, raising also
their productivity, improving attitude and drawing more qualified staff to the company.
Let's see some examples:
(1) In 1.982 the American company Johnson & Johnson detected that one of its products (shampoo
Extra Strength Tylenol) provoked harmful effects on health and even death. After paying hundreds
of millions of dollars to face the damage caused, 31 millions of jars where retired and other
thousands tested, showing the results to the public. All customers were able to replace their
products and even the production and packaging processes were remodelled. Thanks to all these
measures the credibility level increased and so the company profits.
(2) Martin Shkreli has been entitled as the greediest man in the world and the most hated as well.
Why? (Let the students google up a little bit before showing the answer). He has earned an
immense wealth buying irreplaceable drugs against cancer and AIDS multiplying for 300 its price
without reason. For instance a pill which cost $13.50 now costs $750. The problem is that it is legal;
so the problem is his or ours' society?
Activity:
a) Work in groups of 2. Between the previous cases 1) and 2) choose with which one would
you like to work with and try to think one reason why. Compare with another team your
reasons and think of one way for the society to avoid that individuals' actions can effect the
rest of the population so easily.
b) Great Place to Work (https://www.greatplacetowork.com/) is a consultant specialised in
measuring the working environment of companies. They set which are the most important
values that help to build a confidence environment between employers and employees.
Visit its website and check which enterprises are the best to work with in your country,
Europe and the world.
c) We will watch another video: https://connectere.wordpress.com/2016/03/26/consumerism-capitalism-exploitation/
Do you buy products of enterprises that do not follow ethical principles and values? Check the website: https://www.fairphone.com/en/ What do they do? Do you check the origin of the raw material and the providers of the product you buy?
d) Every year the institute Ethisphere (https://ethisphere.com/) publishes the ranking of the
most ethical enterprises in the world. Check which are they and whether there is some in
your country.
e) Would you work in an enterprise that does not follow ethical principles and values?
Research why this company is an example of success: http://www.fageda.com/es/yogures/
f) Would you buy rather products of companies that do not follow ethical principles and
values?
(3) Governments also practice power abuse from ever. Balancing accounts has led Economy Ministry to
unusual measures throughout the history:
Beard taxes was introduced in Britain back in 1.535 by King Henry VIII making facial hair a
status symbol. His daughter Queen Elizabeth updated the tax so that men with a beard over
two weeks had to be taxed. The Russian Emperor Peter the Great also forced to pay men
with beard in order to modernise the country's society.
Windows, doors and chimneys were also burdened by taxes in France and Britain for years
(c. XVIII-XX). People walled them to hide them from the government inspectors. As a side
effect, the houses were worse ventilated and sadly the diseases spread more.
At the end of the XIX century the Canada government created the Chinese Head Tax as a
means of controlling Chinese immigration.
Nowadays Portugal has created the Sun tax: houses facing the sun will have to pay 20%
more in property tax.
Candles, bricks, salt, wigs also have become subject of taxes. Even some taxes provoked the wrath of the population and ended up with the French Revolution or the Independence of India. As the saying goes: in life there are two sure things: One is death, the other is paying taxes.
g) How would you feel if you were forced to pay unfair taxes? Would you pay them? List the
main taxes you have to pay in your country. Do you think they are unfair or necessary?
Time: 30 minutes. Goal: Learn personal abilities to cope with adversity.
3. PERSONAL FINANCIAL STRESS It is important to mention that we are going to talk about a serious emotional situation and we have to take care of the students' reaction throughout this activity. Students will be shown some pictures of homeless people and will be asked about how they feel:
Activity: Work in groups of 3 people and ask yourselves the following questions. When you are done, search for another group and join them. Compare your conclusions.
a) Questions: 1. How do you feel when watching these pictures? Uncomfortable/Pity/Sad 2. Do you personally know someone with financial problems? 3. Has he/she asked for help? How? 4. Do you think you could end up asking for help in your life? 5. What would you do in such situation? 6. What consequences do you think this situation could bring in anyone's life?
Possible answers to the last question could be:
• physical illness,
• divorce rates,
• domestic violence,
• suicide attempts and suicide rates,
• poor cognitive decisions,
• decrease in productivity in the workplace.
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When people are in crisis, they may seek help and resources through:
• family,
• friends,
• community,
• military,
• faith-based programs. The focus is often on addressing the immediate need for food, shelter, medical care and safety. But then what? People who have received help may then find themselves in a similar situation again even. This is true even if they had been lucky enough to receive training on financial management skills: how to budget, get out of debt, shop wisely and save. Knowledge, alone, may not be enough. Today there is more awareness that emotional money triggers have tremendous influence on our financial choices. Recently there has been a lot of focus on understanding emotional triggers and how they influence financial behaviours.
b) Work in groups of 3. Think of specific actions that can prevent or solve any of the facts that may have led to such situations. When you are done, go to another group and spread the word. The aim is that at the end of the activity all the students have to know all the proposed solutions.
1. Wrong planning. 2. Unwisely shopping. 3. Lack of information about how to save money. 4. Debts impossible to pay back. 5. Compulsive overspending. 6. Financial dependency. 7. Psychological problems.
c) As homework: write a list of the products that you could put aside. Open your wardrobes, draws... Sum up the total amount that you could have saved. Compare with your peers if you chose the same items.
Money disorders are the result of emotional difficulties, and that people with problematic money behaviours engage in these behaviours to avoid feeling intense and unresolved emotions. For our purposes, we define disordered money behaviours as maladaptive patterns of financial beliefs and behaviours that lead to clinically significant distress, impairment in social or occupational functioning, undue financial strain or an inability to appropriately enjoy one’s financial resources. Symptoms may include anxiety, worry, or despair about one’s financial situation, a lack of savings, excessive debt, bankruptcy, conflict with family or others around money, compulsive overspending or hoarding, financial dependency, or excessive financial risk-taking. These maladaptive patterns of money beliefs and behaviours persist despite their emotional, relational, and financial consequences.
Extra activity: Last, an extra activity that may take some sessions is proposed:
Students will work in groups of 5-6. In the fashion of the famous board game Monopoly students
will have to design a game to manage their own finances at home.
• They will write the rules before starting.
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• They can recycle dices and pieces from other original games.