The National Debt for 6th Graders
If we are to be competitive with emerging economies of the world (see China and India), our schools must speak to what has come to be known as "21st century skills." These are skills that are absolutely critical for a student to be successful in postsecondary education and more importantly, the workforce. Some of these skills are absolutely not new: effective communication, critical thinking, problem solving, and analytical thought are key ones. However, according to the Partnership for 21st Century Skills, a national non-profit that advocates for a new direction of school reform, equally critical are 21st century interdisciplinary themes such as global awareness, environmental literacy, civic literacy... and get this- financial, economic, business, and entrepreneurial literacy. This clearly has a lot of implications for how and what we teach kids, particularly around the standards of "understanding how to make appropriate personal economic choices" and "understanding the larger role of the economy on society."
These thoughts ruminated in my head as I read a piece in a recent morning faculty bulletin from Miscoe Hill Principal Ann Meyer. It was a simple exercise for kids and adults alike to put the national debt in perspective. It read like this:
Below is a nice simple view of the financial problem in the U.S. It is also the reason why Standard & Poor downgraded the U.S. credit rating:
- U.S. Tax Revenue: $2,170,000,000,000
- Federal Budget: $3,820,000,000,000
- New Debt: $1,650,000,000,000
- National Debt: $14,271,000,000,000
- Recent Budget Cut: $38,500,000,000
- Annual family income: $21,700
- Money the family spend: $38,200
- New Debt on the Credit Card: $16,500
- Outstanding Balance on All Credit Cards: $142,710
- Recent Budget Cut: $385
- "I don't get it... how can you spend more money than you make??"
- "This family really didn't cut much from their budget.... ya think??"
- "Dad, do you think that this family would lose their house? I do."