The Real-world Classroom is a unique teaching model for personal finance classes. I developed the RWC model as a method for students to make real-life decisions within the safe envirnment of the classroom. 

How it works.

The RWC is more of a cultural component to the course than a standard curriculum. It turns the course into an ongoing role-playing game that is constantly progressing in the background of the class. Students get paid a virtual salary for being in the course, and one week in class represents one week in the "real world." Every week on Mondays, students got paid. And every week on Friday, they had bills due. Students financial success in the class became a direct result of their own choices. 

In the RWC, students' wealth and income are the direct result of decisions they make. Salaries change with academic success. Discretionary income depends on income and lifestyle. Students purchase assets, take on liabilities, devlope credit scores, make investments, deal with unexpected events (both good and bad), and have opportunities to generate additional income. 

But the real secret to it all is simple: the RWC uses real money. 

Anything that can be exchanged for wants and needs is a form of money. In order to make the virtual salary of the RWC "real," teachers simply started charging students for the things they want, and even some of the things they need. Priveleges are no longer free; students pay for things like hall passes, phone priveleges, tardy fines, and extra assessment resources like 3x5 cards. Students purchase major assets like houses and cars which come with free perks to make them more valuable. And ultimately, teachers sell assignment points as a form of assessment. If students have been making good choices, learning from thier mistakes, and budgeting wisely, when the times comes, "Write me a check. You get an A." If not... they get whatever they can afford. Now, the money is real.

Why it works.

The RWC functions on decision-based learning (DBL). In practice, when students learn a financial principle, they will internalize that principle significantly more if it carries wieght, if it is meaningful to them. If that principle is attached to a decision, one that carries consequences that they have to live with, then that meaning is materialized and experienced first hand and immediate. Adding this level of investment to student learning motivates students to develop mastery by embuing the learning with purpose. Add a level of autonomy to the process unlike any course they have ever been through, and students take ownership of their education and move in directions that are as inspiring as they are suprirising.