When I was designing my classroom management strategies, I wanted to centre them around responsibility and respect for our classroom community. I also wanted to integrate financial literacy – Which is why I went with a classroom economy!
Learn how I use my classroom economy for classroom management, see where to get my resources, and learn about our class store in the article below.
What is a classroom economy?
A classroom economy is a system designed to simulate real-world economic concepts within the confines of a school classroom. It involves using a currency (we use classroom dollars), teaching students the basics of managing finances, making decisions, and understanding the consequences of their actions.
You can purchase my package on TPT which has classroom cash, job application forms, and class jobs!
Earning cash
To earn money, each child applies for and works their classroom job, and earn money when they get their agendas signed or I notice exceptional behaviour. You can also pick a goal that aligns with whatever your class is currently working on!
Spending or losing cash
They might lose money by getting a speeding ticket (my class was a little wild in the hallways…) or from the “desk police” (when their desk is wildly messy).
With older grades, I would also implement monthly payments such as paying rent for a desk to really teach personal financial literacy. But, since we’re in grade three, they can wait to pay rent for a few years…
I also emphasize that their money is their responsibility. When it comes to fines, I have used the phrase “if you don’t like the consequence, don’t do the action” more than once… And I’ve only had to give out four speeding tickets so far (never to repeat offenders, either!).
Benefits of implementing a classroom economy
Implementing a classroom economy offers several advantages:
- Financial literacy: It helps students learn essential financial concepts and responsibilities.
- Behavior management: It creates a behavior management system with real consequences.
- Student responsibility: It fosters a sense of responsibility and accountability.
- Real-world skills: Students learn practical money management skills.
Setting up your classroom economy reward system
The four main components
To create a successful classroom economy, you need to select how you will implement the four main components, which are:
- Classroom money: This is the currency students will earn and spend in your classroom. I print my classroom dollars on colored paper to save colored printing.
- Classroom jobs: These are the roles and responsibilities assigned to students within the economy. We change ours monthly.
- Classroom store: This is where students can purchase school supplies, rewards, or privileges. I created this with them and really emphasized purchasing items I do not have to buy!
- Classroom economy fines: These are penalties students may incur for undesirable behavior.
Creating a classroom store
The classroom store is where the magic happens. This store allows students to spend their hard-earned money on items such as school supplies, rewards, or privileges. Items in the store can be categorized by price, and students can save their money over several weeks to purchase more significant items.
I also let my kiddos pool their money for big prizes like a class soccer game or a class theme day. The idea is I am not managing their money at all – Like I told them: No one helps me manage my money, I have to budget and save just like they do! And, when students earn money, they are taught to keep it in a safe place in their desk (we created classroom wallets from envelopes).
Classroom jobs and their significance
Assigning classroom jobs to students is crucial for the functioning of the economy. Jobs may include roles like banker, store manager, or monitor. These positions teach responsibility, teamwork, and job applications, preparing students for future employment opportunities.
If you don’t want to come up with your own, I suggest purchasing my package on TPT! It has class jobs, printable class money, and a job application form.
Financial literacy and student responsibility
A classroom economy also focuses on teaching financial literacy and student responsibility. It’s important to help students understand the concepts of earning money, paying rent for their desk (if they’re old enough), and making wise spending decisions. This mimics the real world, where individuals must manage their income and expenses.
Bi-weekly pay and managing student money
To give the classroom economy a sense of reality, students should receive bi-weekly pay. This pay can be distributed in the form of classroom money, which students can save, spend, or even invest. It’s essential to teach students how to manage their money over time.
Conclusion
Implementing a classroom economy reward system in your elementary classroom is a fantastic way to teach financial responsibility, help with classroom management, and teach kiddos real-world skills. By creating a dynamic system with classroom money, jobs, stores, and fines, you can provide a hands-on learning experience that will benefit your students for years to come.
Remember, you are not just teaching them about money; you are preparing them for a brighter financial future!
Do you have a classroom economy system? I’d love to hear all about it! Tell me about your economic system in the comment box or connect on social media.
Frequently Asked Questions (FAQs)
What are the main components of a classroom economy?
A classroom economy typically consists of classroom money, classroom jobs, a classroom store, and classroom economy fines.
How can a classroom economy benefit students?
Classroom economies teach financial literacy, behavior management, and real-world money management skills, fostering responsibility and accountability
What are some common classroom jobs in a classroom economy?
Classroom jobs may include roles like banker, store manager, or monitor. These positions teach responsibility, teamwork, and job applications.
How can a classroom economy motivate students?
By implementing a classroom economy reward system, students are encouraged to work hard, behave well, and create income. Rewards can motivate active participation.
How can teachers evaluate and adjust their classroom economy system?
Throughout the school year, teachers can evaluate and adjust their classroom economy system by gathering feedback from students, other teachers, and parents, making necessary changes to keep it engaging and effective.
What are the main components of a classroom economy?
A classroom economy typically consists of classroom money, classroom jobs, a classroom store, and classroom economy fines.
How can a classroom economy benefit students?Classroom economies teach financial literacy, behavior management, and real-world money management skills, fostering responsibility and accountability.
What are some common classroom jobs in a classroom economy?Classroom jobs may include roles like banker, store manager, or monitor. These positions teach responsibility, teamwork, and job applications.
How can a classroom economy motivate students?By implementing a classroom economy reward system, students are encouraged to work hard, behave well, and create income. Rewards can motivate active participation.
How can teachers evaluate and adjust their classroom economy system?Throughout the school year, teachers can evaluate and adjust their classroom economy system by gathering feedback from students, other teachers, and parents, making necessary changes to keep it engaging and effective.
How can a classroom economy benefit students?
Classroom economies teach financial literacy, behavior management, and real-world money management skills, fostering responsibility and accountability.
What are some common classroom jobs in a classroom economy?
Classroom jobs may include roles like banker, store manager, or monitor. These positions teach responsibility, teamwork, and job applications.
How can a classroom economy motivate students?
By implementing a classroom economy reward system, students are encouraged to work hard, behave well, and create income. Rewards can motivate active participation.
