Fourth-graders learn money management

By Andrea J. Cook, Journal Staff Writer | Saturday, April 29, 2006

Previous Page

Share

• del.icio.us
• Digg
• NewsVine
• Fark

Print

Email

RAPID CITY - Gripping handfuls of cash, fourth-graders at Horace Mann Elementary School browsed through the selections of merchandise and services their classmates offered for sale this week.

“Business is great,” said Hannah Cone, 10, a co-proprietor of Double HG, a mini- variety store spread across two tables in Rebecca Sobolewski’s classroom. The store’s business license and a selection of colorful business cards were available.

“We have tons and tons of money,” Hannah said.

Hannah and her business partners, Hayley Rivers and Gina Mowry, stock Double HG with everything from school supplies to snack items. They also market a desk-cleaning service.

“Erasers and small, cheap candy sells best,” Hannah said. “And the chocolate wafers.”

Teamwork is important to a successful business, according to Hannah.

“It doesn’t look professional to fight over who’s going to sit where and who’s going shopping,” Hannah said.

Scholar Dollars is a program Sobolewski created when she started teaching 15 years ago as a way to teach the rewards of good behavior and job responsibility. She compensates students with Scholar Dollars redeemable for school supplies and small items.

Sobolewski uses her own money to stock the classroom store.

Incentives make a big difference in classroom management, Sobolewski said.

She doesn’t have any problem with rewarding kids for coming to school and doing their jobs, she said.

“I wouldn’t be here if I wasn’t being paid,” she said.

Scholar Dollars evolved into a detailed economics program complete with a bank, checkbooks, interest-earning money market accounts and now entrepreneurship.

Students earn $20 a day for attending school. Bonus cash is paid for finishing homework on time, keeping desks clean, doing book reviews, good behavior, weekly improvement and good grades on tests.

At the same time, kids learn valuable economic lessons.

Classroom jobs are compensated according to a salary scale. Students are hired weekly after filling out a job application listing their qualifications.

The classroom banker writes the “paychecks,” and students have a choice of putting money into checking accounts, money market accounts (interest is 10 percent compounded daily) or stashing their cash.

Every Friday, students draw a “life card” that can throw their finances into a tailspin or strengthen them financially.

Disasters such as a broken mailbox must be covered.

“You have to pay it, so if you don’t have any money, you’re going to get an overdraft,” Sobolewski said.

“Sometimes they’re good ones — Mom sent you $50,” Sobolewski said. “I tell them this is how life is; you never know what’s going to happen.”

Some students are thrifty, squirreling away money and watching their money market accounts grow while others pay penalties for such things as poor behavior or not turning in their homework.

Nathan Atherton, 10, has discovered a frugal streak and the value of having extra cash for emergencies.

“I save more than I spend,” Nathan said. “I save for important things.”

Some people spend too much money on clothes and shoes, Nathan said.

“And then if they get old or sick, they don’t have any money,” he said.

Those are lessons some of his classmates are learning.

“There are always some that have nothing, no money. Some that don’t even want to deal with a checkbook,” Sobolewski said.

A few students said checkbooks are too stressful, and they elected to deal with cash.

“That’s OK. This is a good thing to learn,” Sobolewski said.

Whenever possible, Sobolewski incorporates Scholar Dollar activities into other classroom activities. It fits particularly well with math, she said.

The student-operated stores, open every two weeks, were a recent addition. Each young entrepreneur wrote a business plan, signed a business agreement, bought a license and will pay 10 percent of their sales for taxes and fees.

Some stocked their shops with items supplied by moms and grandmas, and others tapped into hobbies such as rock collecting and drawing.

Kjersten Eisenbraun sells boys’ and girls’ surprise packages for $25 each.

Scholar Dollars has taught Kjersten that she’s “not really” a saver.

“I want to spend my money,” she said.

Sobolewski said parents have responded well to the program, recognizing how much their children are learning.

Before school closes this spring, Sobolewski plans to have an auction where students can redeem their Scholar Dollars.

“I’m soliciting contributions for that,” she said. “I’d like to have a big item like a bike.”

Kids are already reaping big rewards from Scholar Dollars.

A generous Kelly Surrounded, 11, graciously offered the visiting reporter a $100 bill for a classroom shopping spree.

When Kelly joined the class two weeks ago, his new classmates donated some of their cash to give him start-up money.

Now, he has two checkbooks and $1,000 in savings.

Contact Andrea Cook at 394-8423 or andrea.cook@rapidcityjournal.com