Wisconsin Public Radio recently produced a segment on the UW-Madison Center for Financial Security, which received a $440,000 grant from the U.S. Department of the Treasury to study financial literacy in children.
Elizabeth Odders-White, the U.S. Bank Associate Professor in finance and associate dean of the Full-Time MBA Program, will be a co-investigator in the Center’s research. Odders-White will examine the effectiveness of a program called “My Classroom Economy,” created by a Los Angeles teacher.
In the program, the students are given fake money and must make decisions on how to allocate their funds. Odders-White will study these decisions and what they imply about delayed gratification and the students’ ability to budget.
“Kids do things like have to pay rent for their desks, and they're assigned classroom 'jobs' and they can save some of that money. They can spend it on things at the 'store,'” Odders-White told WPR.
Hear the full segment on the WPR website.