Epistemologies of Simple and Compound Interest

This study investigates how financial education is incorporated into the curriculum of middle and high school mathematics across Canada and what pedagogies teachers are using. Financial education is shown to increase students’ motivation in mathematics while developing deeper understanding of mathematics in everyday life. It also has the potential to tackle inequalities and promote social justice. The project focuses particularly on the concept of financial interest given its omnipresence in all provincial mathematics curricula and importance for financial education. Financial interest refers to a payment owed to a lender in addition to the principal amount. Understanding financial interest is important because it lies at the roots of many financial products and services consumed in everyday life: credit cards, mortgages, bonds, and utility bills. Ensuring that individuals have a proper understanding of this concept is paramount to making sound financial decisions and to ensuring financial security and the wellbeing of consumers and citizens.

Despite its importance, financial interest is not integrated into mathematics curricula consistently across Canada. While some provinces introduce it as early as grade 8, others approach the concept at the end of high school, in grades 11 and 12. Such a drastic difference implies that teachers have distinct ways of understanding and teaching the concept. Teachers rely on their curriculum to define how concepts are taught and which connections they can make with other mathematical concepts and real-life situations. Yet, we still lack knowledge about the implications of distinct approaches to teaching financial interest. In this study, we investigate how each of the 10 provincial curricula integrates the concept in mathematics. Furthermore, we analyze the impacts of the curriculum on teachers’ pedagogy in two provinces with drastically different approaches, Ontario and Quebec.

The study contributes knowledge to research focused on the integration of financial education in schools, particularly in mathematics. With growing efforts to make financial education a reality, it is urgent to understand the impacts of teaching certain financial concepts in different grades. The study also sheds light on the connection between financial interest and other existing mathematical concepts in the curriculum.

The results of this project are of value to various audiences. Teachers are able to improve their pedagogy. Teacher educators learn how to better prepare future teachers for financial education. Educational stakeholders and policymakers can design new strategies to support the teaching of financial concepts. Community organizations and employers are able to use the results of the project to improve their programs targeted at diverse groups. Ultimately, the knowledge generated from this project benefits the general public by improving financial education to help individuals make better financial decisions and avoid debt, ultimately promoting financial wellbeing. Understanding how financial interest works promotes awareness about personal finance, the financial system, and citizenship among Canadians.