Creating Smart Money Managers Through a Classroom Economy

I am a third grade teacher at a Title 1 school that includes children from various backgrounds. I teach all subjects - math, language arts, science, social studies, art and physical education. We experienced Hurricane Katrina in August of 2005. As a result, our student body changed somewhat. Our school is a wonderful school of about 500 children total, grades pre-k through 3. The majority of our students receive free or reduced lunch and come from a lower socio-economic background. As a whole, people today face many issues due to mismanaged money and debt, as well as lack of responsibility. We are surrounded and bombarded by products and have fallen into that instant gratification attitude. Children need to have an understanding of the value of money, the gratification of saving for larger items, the economy, and how to mange their money wisely. I would like to institute a classroom economy. The purpose of this economy is to create a hands on, real world learning experience that covers all subjects across the curriculum, as well as reinforces social skills and acceptable behavior. Through this classroom economy, students would be paid based on fulfilling classroom jobs, making good choices, and fulfilling responsibilities. They will be paid via a paycheck printed from the computer. They will have the option of cashing their check for money or depositing it to save. They can also spend money in our classroom store (featuring pencils, treats, trinket, school supplies, etc.). Prior to instituting the actual economy in the classroom, students will be taught about money, economy, supply & demand, saving and spending. In order to fully institute this plan, I will need books to use when teaching about money, economy, supply & demand, saving and spending. I will also need office/business supplies to actually create the checkbooks, bank, and the class store. This experience creates life long learners as well as teaches real world skills. Our country us the richest country. However, there is so much poverty and debt. It's my hope that by aligning this year long economy lesson with my state standards and grade level expectations and teaching my students at this young age about the economy, using/budgeting their money wisely it will set a foundation so that they will not be another debt statistic, and will grow to be wise money managers and consumers. Thank you for your consideration of this project!