A New Approach to Teaching Personal Financial Education

Abstract

This paper outlines a new approach to teaching a financial planning/financial literacy course. It begins with personality assessments and other tools to help students build a solid foundation upon which they can create goals and develop a financial plan. In contrast, most financial planning textbooks outline the financial planning process, provide an overview of the economic system, and then focus on time value of money concepts and goal setting. All the texts start with the basic assumption that each student knows his or her goals. Educators need to be sure their students have a solid foundation of self-awareness before they can plan for their future. A self-awareness foundation would include knowledge of core values and key strength competencies, awareness of the importance of strong relationship skills, hope for the future, expressions of gratitude, and meaningful work. Without a solid foundation, goals and objectives cannot provide the same level of life satisfaction and happiness desired in life. Sample assignments are provided that would help educators introduce these topics in an undergraduate course. Implementation of these elements in an undergraduate personal finance course increased student evaluations of the course by 7%.