Conceptually and Developmentally Appropriate Education for Financially Literate Global Citizens

Abstract

This themed issue of Citizenship, Social, and Economics Education comes at a critical time for a globally aware society. The twenty-first century witnesses a climate where prosperity and poverty co-exist as highly extreme conditions. Research by Richard Wilkinson and Kat Pickett (2009) describes correlational relationships between the degrees of financial disparities among countries and among states and the magnitude of various social ills. Their findings illustrate the importance of relating financial literacy and citizenship conceptions. Bridging the financial gap between the affluent and impoverished represents an important aspect of improving social welfare. Preparing a citizenry to meet the challenge of closing this gap presents a formidable challenge for social educators, particularly in a ‘first world’ setting that espouses capitalist-based principles of citizenship. The content and dispositions advocated through financial literacy teaching and learning define the nature of quality living on local and global scales. Conceptions of financial literacy fall along a spectrum that frames the patterns of knowledge and principles that are necessary to pursue closure of the wealth gap. The teaching of financial principles to those in need has long been advocated by scholars. At one end lies the traditional perspective, which interprets financial practice as concerning acquisition, management, disbursement and accumulation of financial resources. Scholars of this view consider financial behavior as predominately a matter of individual choice. Associated research efforts depend on the assumption that personal financial weakness results from both a lack of knowledge and lack of selfdiscipline to resist temptations that distract from the accumulation of wealth. Huston (2010) defined financial literacy within this vein through her analysis of over 70 research studies that pursued measurement of financial literacy. Yet, her inclusion of only one academic outlet (College Student Journal) outside of the fields of consumer education, economics, and finance among her sources indicates that traditional conceptions of financial literacy are either (1) under-examined in other fields of study or (2) not recognized by mainstream financial literacy scholars. An emerging alternative view interprets financial literacy as involving a broader conception than is conventionally understood. The financial crises of first world financial markets have invigorated scholarly effort to examine prospects for alternative financial education conceptions (e.g. McGregor, 2010; Sandlin & McLaren, 2010). While there has been some work on the part of economic educators that concerns moral issues (Wight, work in process), a revisionist approach to financial education defines financial decision making through the social contexts in which it occurs – thus, it may actually blend notions of personal finance and personal economics. According to this view, financial literacy considers personal choices as related to patterns of origin and as necessitating reconsideration of principles for financial practice. Financial education efforts find themselves at a crossroads of sorts. One direction involves the traditional, prudent choice, premised on the conception of financial approach, with caution and discipline being meritorious, and anticipating long-term benefits from financial patience and self