JA Takes a Different Approach to Teaching Financial Literacy

Jennifer Connelly and William Kwolek stand beside the portrait of JA co-founder Horace Moses, which, Connelly insists, is “staying right where it is.”
However, the impressive painting is just where it belongs in the central Tower Square location of the nonprofit that Horace Moses, president of Strathmore Paper, created almost a century ago. “Horace is staying right where he is,” said Jennifer Connelly, president of JAWM. “JA USA in Colorado wants the painting, which is an original, but they’re not getting it!”
The painting was donated by a woman in Springfield who had the artifact in her attic for years. Her father was a friend of Moses, and she felt the painting belonged with the organization that Moses and the two other well-to-do gentlemen, Theodore Vail, president of American Telegraph and Telephone (AT&T), and U.S. Sen. Winthrop Murray Crane, formed in 1919. As the Industrial Revolution changed the American business landscape from agricultural to the business of manufacturing, the three men knew that the younger generation would need the additional education to learn new skills and be able to handle new money.
A humble JA started as a collection of small, after-school business clubs for students in Springfield. From that early vision, JA of Western Mass., a member of JA Worldwide, is now a part of a global organization that operates in 123 countries and reaches 9.7 million students around the globe, according to its Web site, jawm.org. Locally, JA serves the young people of Western Mass. and Vermont.
Today, JA is facing a new challenge: the same technology revolution that has changed the way we all communicate, learn, and promote products and services. The purpose of JA remains basically the same — to educate and inspire youth to value free enterprise, business, and economics to improve the quality of their lives — but different avenues of technology are enabling the small office staff and a very dedicated board and volunteer team to connect to teachers, students, and donors in the area.
One of the key elements of all JA programs — which are presented at no cost to area schools regardless of the age of the student — is an understanding of real-life decisions and what one more step in the thinking process can mean. Connelly talks of a high-school boy who, when asked what he would spend his first few meaty paychecks on, said a down payment on a new red sports car. When Connelly asked where he lived, he said with his mom.

Last fall’s Stock Investing Contest involved dozens of area college students, and has become an important addition to the JA portfolio.
Today, the process of reaching out to those kids who want cool new sports cars before they even have a garage to put them in is a bit different than in Moses’ time. In this issue, BusinessWest examines what else has changed within JA and, perhaps more important, what has not.
Drop Head
Since BusinessWest last visited JA, Facebook, Twitter, and a slew of online programs that volunteers can use directly from the Internet in the classroom and at events have become a part of everyday education and outreach. JA is active not only with advertising events and linking financial stories of interest on social networks, but collaborating with other JA chapters on best practices and recent successes.
But JA’s main mission is to be in the schools with talented volunteers and offer a different approach to financial literacy for students in all grades. For the younger students, the programs involve games and role playing to provide their first glimpse of economic education and financial literacy. In middle school, the programs involve more historical references to how business has grown in America, how money circulates in the global economy, and how personal interests, skills, and values can shape career aspirations.
According to Connelly, middle-school teachers are the hardest to convince. Because of the tough Massachusetts Comprehensive Assessment System (MCAS) guidelines and the Massachusetts Curriculum Framework, the teachers fear losing so-called ‘blackboard time.’ But Connelly points out that JA programs mirror the state’s requirements, and building relationships with those teachers is vital because JA has to be invited into the classrooms.
And a ‘cool factor’ online program helps.
Take, for instance, the Web-based business-simulation program for high-school students called JA Titan. Set in the year 2035, JA Titan creates a world in which players are CEOs of their own companies, complete with their own avatars. During game play, students must run a manufacturing company and master six key business decisions: price of product, production levels, marketing expenses, research and development costs, capital-investment level, and charitable giving. Various corporate assistants help the player through each phase.
Last May, at Berkshire Community College, Springfield and Pittsfield high-school students participated in the first JA Titan Challenge in the Commonwealth, and Springfield won. This was significant, said Connelly, because Pittsfield at that point had more experience with the program.
In order to keep the nonprofit organization financially healthy, educational foundation grants, corporate underwriting, fund-raising events, and requests via social networking and Web for individual donations are in constant practice. This past April, JA launched its first-ever Horace A. Moses Legacy Breakfast and introduced a public-awareness campaign, It All Starts Here. The goal was to educate new friends about JA’s mission and successes, to raise $50,000, and to convert some of those donations into three-year pledges.
“We are extremely pleased to have had more than 150 in attendance, many of whom are totally new relationships for JA, and we raised more than $65,000,” said William Kowlek, development officer. “The fact that we were able to convert more than 50% of those donations to three-year pledges is an amazing feat our first time out.”
JA has deep relationships with many large companies in the area and a dedicated board that reads like a directory to the most successful businesses in the area. Other annual fund-raising events keep JA busy throughout the year, including the Bowl-A-Thon, the Readiness 5K Run, the JA Golf Tournament, and the extremely popular Stock Investing Competition.
The annual fall stock-market event is an exciting simulation in which teams of four receive $1 million in fictitious dollars to invest in 50 different stocks. Every 60 seconds is a fast-paced new trading day, and the competition determines which team can amass the largest net-worth portfolio in the teamwork-building challenge. A video of the event can be found on YouTube via jawm.org.
While the event centers on the technology of a stock-market program, technology almost killed the event in October 2010. The company that JA had used for years, Fun-Raising, had major technical issues with the computer program that simulated the stock market ticker, and all those fictitious dollars got lost on the big screen.
“It was a mess,” says Connelly. “One of our long-time volunteers, Jon Toner, took a look at the screen and said he thought he could reproduce the program, and he did.” Toner, who at the time was in the information technology department of a large local corporation, created a new and improved program, and, after testing with more than 200 students buying and selling at high volume, the program was slated to be used in the next stock-market event.
The new Stock Investing Competition, formerly the Stock Market Challenge, launched the first public use of Toner’s new program last October, and it was deemed a complete success. Connelly saw an opportunity for Toner with all the other JA chapters around the country, with which the now-for-sale Fun-Raising company had contracts for their own stock-market events.
“And it was great timing because he separated from his corporate job, and this new career was already in motion,” says Connelly.
By this past January, Toner had jumped from a job-loss situation and was instantly in the process of securing various JAs for their stock-market events; his new company, Future Financiers, and a sweet deal were born. For every event that Toner books with other JAs, the JA of Western Mass. receives a $1,000 donation, and the computer program for their October stock-market event is free.
“The stock-market program is also designed to be available to the students that actually were at the October 2011 event so that they can go back at any time, 24/7, log in, and review, turn-by-turn, their decision-making process,” said Toner. “This is just another way that JA has made the learning process for students an online experience that fits their personality.”
The Next Step
The JA mission is to inspire and prepare young people to succeed in a global economy, and with enthusiastic volunteers and the consistent, multi-level use of technology, Connelly says the JA of Western Mass. is definitely succeeding.
“We teach innovation, and if we can continue to evolve in today’s business community and show students the connection between what they are learning and reality, then we are a success.”
Added Connelly, “if the one thing a student decides is that they don’t want to be in a certain career because of the huge cost after college, then that means they really are taking that next step to ask important financial questions and make wise decisions based on what they’ve learned through our programs.”
And making that next step part of someone’s thought process is what JA is really all about.




























