We created this innovation after working closely with public school children and seeing that many struggled with money-related decisions later in life because they were never exposed to financial thinking early on. We realized that habits around choice, value, and responsibility start forming much earlier than formal education addresses them. Financial Stimulation Model (FSM) was created to give children a safe, playful way to practice these skills early, before mistakes become costly.
Through experiential learning, children not only have developed financial literacy but have been educated on making rational choices in life and thinking critically before making any consumption. In a long run, this innovation is believed to break the cycle of generational poverty in Nepal where majority of the parents have been struggling with.
In practice, the Financial Stimulation Model (FSM) is implemented through a structured yet child-friendly system inside the classroom. Each classroom installs a behavior chart that tracks positive actions such as cooperation, responsibility, attendance, cleanliness, and participation. Students earn points daily based on their behavior and engagement rather than academic performance.
At the end of each month, these points are calculated and converted into tokens. The tokens act as a safe learning currency that students can use in a small classroom marketplace. The marketplace stocks basic goodies and essential stationery items such as pencils, notebooks, erasers, and snacks.
Students decide how to use their tokens—whether to save them, spend them immediately, or plan their purchases. This process helps children experience real-life concepts like earning, saving, prioritizing needs over wants, and understanding consequences.
FSM also indirectly engages parents. As children begin purchasing their own stationery and small items, parents become aware of the system and its purpose, opening conversations about money and responsibility at home. Over time, this reduces small financial burdens on families while building children’s confidence, independence, and practical financial habits in a supportive school environment.
The Financial Stimulation Model has primarily spread through direct implementation, school-to-school learning, and local ownership rather than formal promotion. FSM was first introduced through pilot activities in public schools, where teachers and students experienced the model in practice. As schools observed positive changes in student behavior, responsibility, and engagement, many chose to continue the model independently using their own resources.
To date, FSM has been implemented in over 15 public schools, with more than 75% of these schools fully adopting the model and running it independently after initial guidance. Teachers adapted the tools, behavior charts, and marketplace system to fit their classroom contexts, demonstrating the model’s flexibility and ease of use.
The model has also gained support from three local governments, which recognized FSM as a practical way to encourage positive behavior and basic financial skills among students. These local governments have supported implementation in community schools and are actively planning to expand the model to additional schools within their municipalities.
FSM’s spread has been driven by its low cost, simplicity, and visible results, making it easy for schools and local authorities to adopt without heavy external funding.
A recent and important addition to the Financial Stimulation Model is the Resource Bank, designed to strengthen long-term sustainability and reduce dependency on external support. The Resource Bank is a dedicated space within the school where stationery, learning materials, goodies, sports items, and teaching aids are systematically stored, tracked, and distributed.
Under this model, Social Lab supports schools during an initial transition period by partially restocking essential items, while schools gradually take ownership of inventory management. The Resource Bank operates through the existing token economy, combined with dynamic pricing based on demand, supply, and sponsorship availability. This helps prevent overconsumption, reduce wastage, and ensure fair access to resources.
The introduction of the Token-Based Access System (TBAS) allows students to redeem tokens for essential stationery at any time, not just during periodic marketplaces, ensuring continuous access to learning materials.
By integrating sponsor contributions, community support, and school-led management, the Resource Bank transforms FSM from a classroom activity into a school-wide sustainability system that builds student responsibility, improves resource planning, and ensures long-term availability of essential learning materials.
If you want to try the Financial Stimulation Model, start small. Choose one classroom, install a simple behavior chart, and decide how students will earn points for positive actions. At the end of a week or month, convert points into tokens and set up a small classroom marketplace with basic stationery or goodies. Observe how students respond, reflect with them on their choices, and gradually adapt the system to fit your school context. No special training or expensive materials are needed—just consistency, curiosity, and commitment.
