Developing Financial Expertise Through Mathematics and IT School Curricula

Abstract

To illustrate the importance of compound interest in finances to middle and high school students, real-life situations are formulated as mathematical word problems. Such approach involves the whole class in inquiry based learning and thus mathematical modeling comes to use. The answers are found analytically by solving equations or inequalities and then checked by means of information technologies. The use of spreadsheets to mimic financial situations provides valuable experience to middle and high school students, which is also applicable later on in life. The practical aspects of the word problems motivate them to comprehend the idea of compound interest and gain near-expert financial knowledge. The search for solutions gives them the role of financial advisors and for many this could be a starting point to a future career. The acquired knowledge aids students in becoming literate users of accounting and banking products, if not future financiers or entrepreneurs.