The Federal Reserve Bank of Boston (above) has created a new exhibit designed to educate high school students on the importance of financial literacy and economic development.

Before there were 401k’s and stock options, mortgage loans and certificates of deposit, and the ability to increase individual wealth and prosperity by the click of a mouse, New Englanders relied on the pennies they received for their crops and inventions to make a living.

From the textile industry to the Industrial Revolution, inventors and patrons of the community lived simply and paved the way for a better way of living that came centuries later. Through it all, money was spent and saved, and the notion of investing was an important aspect carried on through generations.

In an effort to educate high school students on the importance of financial literacy and economic development, the Federal Reserve Bank of Boston has created a new exhibit featuring interactive illustrations about how economies grow, based on stories from New England’s history.

The New England Economic Adventure is an interactive educational exhibit that encompasses crucial moments in American industry throughout the centuries to the beginning of the Digital Era, and demonstrates the importance of innovation and investment in shaping how New Englanders live today.

“Economic literacy is an essential skill in today’s world, and raising awareness of economics with today’s youth is of importance to the Federal Reserve,” said Cathy E. Minehan, president of the Federal Reserve Bank of Boston. “With the New England Economic Adventure, we hope to show students how economic growth affects their lives in real, concrete ways.”

‘Intangible Senses’

The New England Economic Adventure is an inside look at the way people once lived in this region by depicting scenes from the farms of the early 1800s, to the emerging cities of the 1890s, to the 1960s suburbs. The adventure tracks the path of the New England economy, illustrating how goods, services, finance and investment increased in both quality and quantity.

The centerpiece of the exhibit is the Invest-in-Growth game, which highlights economic advances by using illustrations from New England’s past. Students participate in a competition by way of an interactive experience that transports them to three critical time periods focusing on the textile industry, manufacturing and technology.

Students evaluate Francis Cabot Lowell’s plans to lay the groundwork of New England’s textile industry and then make decisions on investments and finance as Col. Albert Pope did when he jockeyed for market position among bicycle manufacturers. Finally, students join management representatives of Digital Equipment Corp. as they debate the price for a revolutionary new computer. Players make investment decisions and then watch the consequences of their choices unfold, teaching them not only the value of a dollar but also the importance of wise investing.

“New England’s economic history is ideal to illustrate the economic growth process, as it was the first part of the country to industrialize, and has been a perennial breeding ground for technological innovations,” said Lynn Browne, executive vice president and senior economist at the Boston Fed. “The focus is economic growth, and this is ultimately what the Federal Reserve is all about. The real focus is trying to make economic growth meaningful by giving students intangible senses, as well the tangible way people lived, including how much they made, what they spent and how they used their possessions.”

The improvement in the standard of living, the increase in the quality and variety of goods and services, the role of improvement in labor productivity and the contributions of technological innovation and investment are all featured in the Economic Adventure.

In one specific activity featuring the dramatization of Lowell’s plans in the textile industry, his idea of a joint stock company is presented to the students.

The joint stock company, a vehicle used to combine funds together, was used centuries ago to finance the Colonial settlements.

Lowell proposed the idea where people pooled their money and preserved wealth for their descendants, and they were successful in their savings and trading, said Browne.

“There are references to financial markets … but there is an element of risk in this,” said Browne. “We try to get the idea across that their investments carry risk. You can make what you view as the right decision, but the success of the decision might also depend on timing.”

Other exhibits include a Material Life exhibit that depicts the lives of New England families through time, from a farm in 1810, to the city in 1890 and to the suburbs of 1965. In that exhibit, objects, tools, and appliances, as well as information on health, life expectancy and education, demonstrate the advances in the standard of living over the past two centuries.

Browne said those types of learning exhibits are for financial literacy and teaching the importance of understanding where money goes and the impact of one’s economic decisions.

“A key aspect is that economics can be fun and it’s not something that students that should be afraid of,” said Browne. “We want to introduce the concept of the importance of investments and the importance of savings, and the role of markets and prices and how it all factors in. We want people to feel comfortable with the concept of financial markets.”

Melanie Nayer may be reached at mnayer@thewarrengroup.com.