As a father and a home educator, one of my biggest regrets would be knowing that I 'taught' my kiddos curriculum and courses that did not add value to their lives.
I want my children to view education as beneficial and meaningful. I hope the time we spend teaching in our home will be the starting point of their educational journey, not a means to an end.
With that in mind, my wife, my oldest daughter, and I embark on a new journey this semester as we live out everyday, real-life examples of CONSUMER MATH.
Source - Image by Ana Bolena from Pixabay
What is consumer math, and why does it matter?
According to iPractiveMath Source
Consumer math is a branch of math that uses basic math skills in real life situations like shopping, calculating taxes, estimating monthly budget, calculating interest rate for a loan, etc. Teaching kids about spending, saving and other aspects of "money math" will prepare them to make better financial decisions.
With the above definition in mind, let me explain why I think consumer math is essential.
First is the emphasis on basic math skills. Math is a challenging and intimidating subject for a lot of people. One bad experience in a high school math class can cause someone to functionally reject math for the rest of their life. Instead of pushing people away from math, we must help our kiddos establish a strong foundation of basic math skills. When the basics are enough, then teach the basics. If your child wants to pursue a career or job that requires high-level math, that is awesome. Go for it! But remember, we all need the basics because math is everywhere, in all aspects of life.
Second is the emphasis on finding real-life applications where math is used. I have heard so many people talk about taking a class in high school but never using the information from that class in real life. I am one of those people. But I get excited when math and the real world collide. I want my kiddos to be excited as well. So, I need to help them find real-world situations where they can apply what they have learned. And real-life examples are everywhere!
Third is the emphasis on mastery to make wise financial decisions. I do not believe that we should approach math with a check-box mentality. A check-box mentality leads to people talking about taking a class in high school and never applying what was learned in the real world. We must approach math (especially consumer math) with a mastery mindset. That which is learned should be applied. What is applied should be used over and over. What is used over and over leads to mastery. And the result? Our students (aka our children) feel confident to make wise financial decisions because they understand foundational math skills that will transform their lives.
We are already finding real-life examples.
At first, I thought it might be challenging to find enough "lessons," but real-life math is everywhere, especially in our homes while with our families.
PRO TIP #1: Let your kiddos see behind the scenes. This may be challenging if you did not grow up in a family where financial literacy or transparency was common.
Once you find a new lesson, explain the basics, model the principles, and empower your child.
PRO TIP #2: Let your kiddos become doers, not just seers. Consumer math is not about checking off boxes. Mastery comes through doing and experiencing.
Rinse and repeat. Consumer math is not limited to a stage of life. It is not limited to a specific place or time. Financial literacy and independence are parts of a journey that we hope becomes a lifestyle.
The following are some lessons we are learning.
 | HEALTH INSURANCE AND MEDICAL PAYMENTS I opted for a high deductible insurance plan through my work. As my daughter and I discussed this decision, I explained why I made this choice, how this decision helps us save money on monthly insurance costs, and how much money we need to contribute each money to cover deductible expenses. I taught my oldest how to cross-reference our health insurance statement and make a payment with the HSA card. |
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 | HOW TO WRITE A CHECK Writing a check may seem like an old-fashioned financial tool, but I have found that it is still needed in many situations. Although my oldest is not able to sign the check, we have started asking her to fill in all of the required information when we need to pay a bill. In addition, we are discussing the principles that guide tracking financial transactions that come in and out of our checking account. Knowing how much money we have in an account allows us to prioritize needs and future expenses. Next step: Setting up a checking account for my kiddo. |
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 | PRICE COMPARISONS Price comparison is not just about the overall price spent on a item. For a while, we have been working on price per unit (for example, price per ounce) with all of our kiddos. Another important concept of price comparison is understanding the overall value versus the price. Important Questions to Ask - Does an extra feature justify a higher cost? - Is it okay to pay more for a product that will last longer? - Do I have enough money for a higher-priced product? |
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 | DISPUTING CHARGES Everyone makes mistakes, including business and organizations that offers services and sell products. It is important to review receipts and statements to ensure we have been charged the correct amount based on what we receive. We have the right to receive a refund when we have been overcharged. Disputing charges requires a strong understanding of the math and a growing sense of confidence. Consumer math often teaches more than just math! |
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 | AUTO INSURANCE Making a auto insurance payment every six months has its pros and cons. We avoid multiple transaction fees, but we must budget correctly in order to have enough money to pay for such a large expense. Budgeting must consider regular and irregular expenses. It must consider daily, weekly, monthly, and even yearly expenses. Helping a child see how things work when they are not personally responsible helps them execute their budget better when they are personally responsible. |
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Let's Continue the Conversation
- How comfortable are you with letting your kiddos see your bank statements, bills, and other financial transactions?
- What types of consumer math topics do you recommend home educators teach to their kiddos/students?
- If you have a creative way to teach a financial principle, please provide more details in the comments section.
Thanks for stopping by!
I was lucky enough to find a kiddie version of The Richest Man in Babylon. It opened a whole new universe of math topics to my daughter. I let her watch me when I fill out the monthly budget file I created and I also let her budget her allowance. I give her a weekly allowance even though she's homeschooled. This way, she gets enough practice for paying herself first and for deciding when and where to use her extra cash. I'm about to teach her how to make her money work for her, but I'm taking it one step at a time. I want to make sure that every topic is clear to her and that the habit of financial responsibility is already formed in her.
@romeskie - I have heard of The Richest Man in Babylon but have never read it. I had no idea there was a kid's version.
Our take on allowance might be a bit different than most. First, we don't give that much, but we want to give enough so that our kiddos can learn the basics of how to save, spend, and give. Second, we want to make sure that serving our family is not always connected with financial gain.
That being said, there are some less common jobs that can earn a child some extra money. I appreciate how my children are looking for ways to earn money outside of the home. Babysitting and hand-made crafts have been great money opportunities.
This is so important. We need to make sure that our children take ownership of their own financial literacy and decisions. It may take time, but it will be such a blessing for them in the end.
I never consciously set out to teach my kids maths in this way, but I always discussed these things as we did them. My biggest one was probably price comparisons and why I chose what I did when shopping. When buying high cost items, like tech, appliances etc, we always check reviews and balance price with reliability. It's better to spend a bit more on something that will last rather than keep paying out for cheap items that break down. I say the same for clothes. If it's not what you really want, then better to go without than make do with something you then don't wear.
Something else we've always been big on is avoiding credit/loans. You pay back way more than you think, so if you must go that route, look to paying it back sooner if you can and make sure you don't get stuck in a debt cycle. We often talked to our girls about examples with that kind of thing.
@minismallholding - One wonderful thing about homeschooling is that we don't have to all do things the same way. Your parent/child combo is unique and different from my parent/child combo. And one of my parent/child combos is different than other kiddos under our roof.
I appreciate you bringing up reviews as a part of the price comparison process. Understanding debt/loans is very important as well. Understanding the total you will pay for something (including interest) is something a lot of people don't think about. There are a few things that I have utilized debt for, but those are limited cases.
Thanks for your input and helping to continue the conversation.
I find this matter interesting and informative. Kids need to know calculations in different situations. Thanks for sharing.
I think it is an excellent learning idea!
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