Dissimilarity between Rural and Urban Children
What is FSM?
The Financial Simulation Model (FSM) is an innovative approach aimed at educating young minds about financial literacy while simultaneously addressing the issue of corporal punishment through a system of positive reinforcement. A survey conducted by Nepal Rastra Bank reveals that only 57.9% of Nepali adults have a basic understanding of financial concepts. Furthermore, despite Nepal being the 54th country globally and the first in South Asia to ban corporal punishment, such practices continue to be reported in communities and media.
How will the Financial Simulation Model (FSM) address these challenges?
To tackle these challenges, the Financial Simulation Model introduces a system where students earn daily tokens based on their performance in academics, hygiene, and extracurricular activities. These tokens can be spent at a monthly FSM market or saved in a bank that offers a 20% interest rate. This model not only promotes positive behavior but also teaches students the importance of saving and financial management, thereby enhancing financial literacy and reducing the reliance on corporal punishment.
As development practitioners, it is crucial to thoroughly understand the context in which we work. Operating in rural and urban areas represents two distinct spectrums, and the same approach may not be effective in both settings. This principle holds true across the broader process of problem identification, understanding needs and wants, and addressing them through a bottom-up approach.
Challenges and Opportunities in Implementing the Financial Simulation Model (FSM) in Rural and Urban Schools:
During the implementation of the Financial Simulation Model (FSM), we encountered several challenges in the initial months. While we were aware of the differences between rural and urban contexts in theory, there was a lack of sufficient awareness and adaptation during the practical implementation of the model in these diverse settings. This highlighted the importance of tailoring strategies to fit the unique dynamics of each environment.
There are significant differences between children from rural and urban areas, shaped by their early development, societal structures, socialization processes, and community dynamics, all of which profoundly influence their upbringing. While implementing the Financial Simulation Model (FSM), a behavioral stimulation model designed to promote financial literacy awareness, we observed notable contrasts in these aspects.
In rural areas, schoolchildren are often less privileged, typically coming from vulnerable economic and social backgrounds. Their behavior reflects this context—while they can be mischievous, they are also soft-hearted and kind. During marketplace days, they greeted us warmly, eagerly inquired if it was a marketplace day, and began planning their purchases as soon as it was confirmed. Their choices of goodies are simple and often limited. They carefully count their tokens and try to spend as much as they can, though some choose to save their tokens for the next marketplace. New and fancy items particularly appeal to them, and even though they understand that the functionality of items may be similar, they prefer purchasing new ones. Distinctively, children from urban areas are well familiar with the goodies, new trends and items in the marketplace. Sometimes, the pain and regular stationary items may not excite them; however, being a kid, they slowly adapt to those.
Comparison is common among these children. They compare the number of tokens they have and the quantity of goodies they purchase. Their stimulation and purchasing habits also differ from those of urban children. Rural students are easily excited by new items in the marketplace, a reaction less common among urban students. In summary, while rural children may appear shy, reserved, and mischievous, they have actively engaged with the Financial Simulation Model. This participation has led to noticeable improvements in their financial knowledge, behavioral changes, and overall awareness.
Strategies for Overcoming Challenges:
- Selecting goodies by actively listening to students’ needs and preferences.
- Adjusting prices in each marketplace to reflect the principles of supply and demand.
- Offering a wide price range for both essential items and luxury or fancy goodies.
(Namgyal Ghale and Nirash Dulal work on the ground to implement the Financial Simulation Model (FSM) in schools.)
No responses yet