Financial Literacy - Simple Math, A Recent History

One of my guru's is Todd Ballenger of KendallTodd, Inc.

Below is part of a recent post to his BLOG which speaks for itself.

What will the standards of financial literacy look like for the next generation?

Good luck to us all.

Alex Weiss, co-founder
www.WealthBuilderUniversity.com

Financial Contagion and the Evolution of Math

 

Last week, I purchased a combo meal at a Burger King NC. The cost was $4.57. I handed a $5 bill to a young man at the counter, and reached into my pocket to see what spare change I could liberate from the dark and noisy front left pocket. He had rung up the 'out of $5.00' when I handed him $.07 in lose change. Expecting him to hand me back $.50, he paused - and calmly called for his manager.

This reminded me of an email I got some time ago about the shifting evolution of math education. Our continued orientation and focus relates to using arithmetic and their own goals to help the consumer navigate through their decisions related to borrowing. Borrowing from an industry that lowered eligibility requirements over the last several years while continuing to the ignore suitability requirements of that borrowing - hence the subprime hangover.

I learned math (basic arithmetic) in the 70's, and really related to a math teacher's recent perspective on how math was being taught in some schools ...

Teaching Math In 1960:

A logger sells a truckload of lumber for $100.  His cost of production is 4/5 of the price.  What is his profit?

Teaching Math In 1970:

A logger sells a truckload of lumber for $100.  His cost of production is 4/5 of the price, or $80. What is his profit?

Teaching Math In 1980:

A logger sells a truckload of lumber for $100. His cost of production is $80.  Did he make a profit?

Teaching Math In 1990:

A logger sells a truckload of lumber for $100. His cost of production is $80 and his profit is $20. Your assignment: Underline the number 20.

Teaching Math In 2000:

A logger cuts down a beautiful forest because he is selfish and inconsiderate and cares nothing for the habitat of animals or the preservation of our woodlands. He does this so he can make a profit of $20. What do you think of this way of making a living?