ldt program 2007 master’s project vic vuchic greg warman
TRANSCRIPT
responsibility
• sociology• social exchange theory
• evolutionary biology• altruism as adaptive
trait
• psychology• diffusion• reciprocity• liking
• religion• prescribed value
system as identity
• philosophy• Hume’s ’generous
action’
• political theory• marxism
• education• student as teacher
a fiscal crisis is looming
2005 was the first year since the Great Depression with a personal negative
savings rate.
a fiscal crisis is looming• About 43% of American families spend more than they earn
each year.• 2003 Federal Reserve
• As of 2004, of households that have at least one credit card, average households debt is over $9,000.
• CardTrack.com
• Personal bankruptcies have doubled in the past decade.• The Fragile Middle Class: Americans in Debt
• Average household debt excluding mortgages was $18,654/household!
• Federal Reserve Board, 2003 survey
• Formal “financial literacy” tests among youth reveal a significant decrease in financial knowledge.
• 2006 Jumpstart Survey, the mean was score of 52% (a passing grade was 60%)
learning problem
• People with an understanding of financial concepts have better financial habits than others who do not understand basic personal finances.
• Given that financial literacy is not mandatory in most school curriculums, people educated in the U.S. are mostly left to fend for themselves.
Something significant has to be done to teach financial literacy in a manner that impacts behavior.
Our educational environment is not effectively teaching financial concepts to its citizens and this is reflected in people’s financial habits.
our process
1. Research2. Synthesize findings3. Design Solution4. Test Prototype 1: Internal5. Test Prototype 2: External6. Launch Beta (today!)7. Conduct Assessment
research
InterviewsObserve FLeducation
Reviewcurrent
offerings
Review literature
Financial literacy
Transfer
Gaming
Motivation
Mobile learning
Persuasion
Learning & Cognition
Mary Morrison
Adam Tolnay
@ Stanford U
@ Eastside HS
from Banksfrom FL Advocates
IN P
AR
ALLEL
Group Brainstorm
1. It’s critical to get information to individuals at a time in their life when they’re most receptive to learning and applying it (Prochaska and Velicer, 1997)
synthesis & design
Target LearnerStudents, High School or College, on the verge
of graduating and entering the workforce.
2. Rudimentary financial knowledge is lacking among youth (OECD Report, 2003).
synthesis & design
Learning GoalsBasic, sequential building blocks regarding Cash
Flow, Credit Management, and Savings.
3. Challenges vary from person-to-person and it is counter-productive to “hit people over the head with what they’re not doing.” (Gurney, 1988; NEFE Conference Proceedings, 2004)
synthesis & design
Pre-AssessmentDetermine the learner’s financial habits and then
match him / her with a similar protégé. The resulting game scenario is relevant for the
learner.
4. For financial literacy, experience is cited as the best teacher, followed by learning from friends & family (Hilgert et al, 2003)
synthesis & design
Model ExperienceLearner navigates scenarios and witnesses (and
hears about!) the direct impact on his/her protégé
5. Behavioral economics demonstrates that people will make decisions counter to their best interest because of ‘loss aversion’ in today’s marketing saturated culture. (NEFE Conference Proceedings, 2005; Tversky and Kahneman, 1991)
synthesis & design
MetricsPoor financial decisions are shown to be a loss
of happiness and future freedom
6. There is an asymmetry between the financial literacy concepts taught in most financial literacy interventions and how they manifest in practice. The mismatch of elements impedes transfer, (Thorndike and Woodsworth, 1901).
synthesis & design
Context of DecisionsColloquial language and the ‘money map’ bridge
concept and practice. Through the mobile interaction the timing of financial decisions more
closely resembles reality.
7. Financial matters are emotionally charged. Cultural taboos, fear of being duped, and frustration with financial jargon impede financial literacy education.
synthesis & design
Framing & Structure of FS!FS! is a single-user experience and positioned as an opportunity to learn how to “stick it to the
man!”. And yes, gameplay is fun!
8. Conflict in the brain (emotional vs. analytical) makes it challenging to maintain a patient, long-term view to finances. (Laibson, 1997; NEFE Conference Proceedings, 2005)
synthesis & design
ImplementationFS! will include a “mechanism for action” to help
the learner start practicing good financial behaviors immediately.
prototyping
Evolving the concept:1) Internal
– Technology: Excel, Word, and “SneakerNet”
2) External– Technology: Flash and SMS
assessment
4
1
LOWERS HAPPINESS
INCREASES HAPPINESS
LO
WE
RS
FR
EE
DO
MIN
CR
EA
SE
SF
RE
ED
OM
2
3
scope of decision outcomesSubjects are given a list of scenarios and asked to determine:
a) What would they do?
b) Why?
The answers to (a) will be compared to best practice (as per the learning goals).
The answers to (b) will be reviewed to see if learners’ explanations reflect the relationship between happiness and freedom.
How do I get my character?
1. Complete the pre-assessment answering questions like “If I were to receive an unexpected gift of money I would…”
Based on your determined “money personality”, you receive a circumscribed list of possible characters.
These characters’ scenarios reflect the type of money challenges appropriate for one’s “money personality”.
why mobile?
• Meet the learner on their terms– 158 billion text messages in 2006 (double previous
year). Those aged 13 to 24 are heaviest users.
• Amplify sense of social interaction (i.e. liking)– “Email is for business, text is for friends!” HS Student
• Reflect nature of financial decisions– Multiple, disparate, spontaneous
• Ease of implementation– minimize class time requirement for use
• It’s fun!!!
responsibility
• kinship• Identification – select character• Liking – social responses from character
• reciprocity• Exchange – framing of game as opportunity to learn
• reputation• Reciprocity, Dominance – high scores list
• ownership• Singular onus – 1:1 match between character & learner
Learning Goals and Scenarios
• Cash Flow– Build a budget to track their money– Differentiate between ‘needs’ and ‘wants’– Compare alternatives before committing money– Won’t overspend on monthly budget
• Credit Management– Utilize credit card to build a good credit history– Exhaust liquid (low-interest) savings prior to carrying debt– Avoid debt unless it is an emergency or investment related– Take advantage of lower cost borrowing before carrying a balance on credit
cards– Compare alternatives when applying for credit cards
• Savings– Participate in employer’s retirement plan when matching funds available– Save money for unforeseen emergencies (3x monthly ‘needs’ expenses)– Save money for long term goals (e.g. further education, car, retirement)