Website design By BotEap.comMost children are taught the story of Sir Isaac Newton sitting under the apple tree and being hit on the head by a falling apple and how the falling apple led him to discover gravity. What the children are not told, however, is that that same event triggered another invention of Newton’s. Gravity is the force that describes how things are pulled towards the center of the earth. To explain the concept of gravity and to make the new concept more useful, Newton invented a new branch of mathematics called calculus. I have an engineering background and have taken more math classes than the vast majority of the population. Although teaching calculus to children at an early age can be difficult, the basic concepts behind calculus are very simple, easy to illustrate, and are vitally important in teaching financial literacy concepts.

Website design By BotEap.comBefore the invention of calculus, it was very difficult to make sense of many things in nature, because mathematics was limited to snapshots. Algebra, geometry, and trigonometry only make sense for data given at any given time. If you wanted to see how things behaved over time, you needed to figure out the equation at several different points and draw the graph to see it. Calculus allowed us to see how things are changing at any given instant. It allowed us to see that if we are in our car and we brake hard, we can predict how far and how long it will take us to stop. It allowed us to see if we are spending money at a certain rate and making money at a lower rate, how long it will take until we run out of money. These kinds of measurements were not easily made before the invention of calculus.

Website design By BotEap.comWhen it comes to personal finances, each of us does the math all the time, even if we don’t realize it. Calculus is used to measure the rate at which something is changing at that instant. Week by week, month by month, adults always work on the net income equation to make decisions. Net income is simply total income minus expenses. Most financial education is geared toward increasing the rate of change of the net income equation. When we work to be more frugal, we are reducing expenses. When we invest, take on additional jobs, or get salary increases, we are increasing the gross income side. Both increase the rate at which the net income equation changes.

Website design By BotEap.comBy using the net income equation, we can make predictions about where we will be financially in the future. When will I be able to pay for that new item? Will I have enough money to buy groceries or go to the movies? Will I be able to pay my tuition bill? Will there be enough left over to continue paying for other things? These are the questions that one can reasonably answer with the help of calculus.

Website design By BotEap.comI find it unfortunate that teachers in schools often talk about the first discovery Newton made that day, but so often forget to mention the last one. Children need to know the concept behind calculus and rate of change at an early age. It will help you throughout your life. If you think about it, you’ll find many ways to illustrate these concepts to your children in the car, on the playground, and at home.

Website design By BotEap.comThis kind of learning is important, because gravity tells us that on earth, unless we do something about it, things will fall down. This applies to both checking account balances and apples.