Students get in StEP with market economy

Third through fifth-graders survey a table of opportunities- silly bands, basketballs, notebooks, Frisbees. Which will they choose? That depends, of course, on how much they have to spend. It's part of the Student Enterprise Program (StEP), an initiative of the nonprofit Economics Center, located at the University of Cincinnati.

The more than 4,000 Cincinnati elementary students who participate in StEP earn a maximum of $15 per day for attendance, homework completion and behavior. Their hypothetical money is logged in a ledger and spent via checks that students fill out themselves. Students get practical financial education and skills as classrooms are converted to small businesses and students as hold jobs, save, spend and invest school currency. Through saving and spending their money, students learn about supply and demand, opportunity cost and the value of their work.

From Western Hills to Bond Hill and more than three dozen points in between, StEP offers more than a simple addition and subtraction lesson, says marketing manager Jaclyn Smith. Experiencing the impact of thoughtful financial decision-making - should I buy a notebook now or save for a basketball? - empowers students.

Students learn what it feels like to delay gratification, and even have an opportunity to develop and market their own products in preparation for StEP's annual Market Madness event in the spring, Smith says. More than 700 students travel to UC in the spring to showcase their business ventures, which range from flowerpot shops to bakeries. During the event, students also tour UC's campus.

The results impact students long after their market days are over. From better grades and more interest in their classwork to improved attendance, StEP participants prove that innovative incentives can make a real difference in learning.

Do Good:

• Mind the shop. Spend some time as a volunteer at a StEP school store near you. Email StEP Director Dr. Val Krugh for details.

• Help a start-up. Interview students for management roles for their business ventures or make a direct donation to the program.

• Give a tweet. Follow the Economics Center on Twitter.

By Elissa Yancey

Photo courtesy Economics Center