Introduction. This article examines the modern educational approach in the field of liberal arts and practical finance, democratisation of the decision-making system in educational institutions through the active engagement of students on the example of US schools and universities. This approach is based on initiative, or participatory budgeting, i.e. students are involved in the process of allocation of budgetary funds of schools and universities. Such participatory practice has educational and administrative objectives, as it serves to improve the quality management in educational institutions through the involvement of students in major decisions. Taking into account the fact that students are the key beneficiaries of the education system, their opinions lead to increased efficiency in educational institutions.Aim. On the basis of real cases, the current research is aimed to identify and describe participatory techniques that can integrate the teaching of theoretical knowledge in the field of civil society with the formation of practical skills in this area.Methodology and research methods. Desk research method of analysing primary and secondary sources (websites of educational institutions, academic publications, and articles in the media) and the field sociological method of expert interviews were used. Expert interviews with representatives of schools and universities, teachers, officers from educational institutions, consultants from the Participatory Budgeting Project, the leading consulting organisation in North America were conducted.Results. The results of the study reveal several participatory techniques for students’ engagement in the allocation of budgetary funds of schools and universities that are applied in New York and Arizona. The identified and described technologies of participation contribute to the formation of students’ knowledge of socio-economic disciplines, practical finance and civics, project management skills, as well as an increase in civic engagement.Scientific novelty.The present study expands the ideas about how to improve the process of teaching social and economic disciplines at schools and universities, practical finance and project management. The method of improving the efficiency of educational institutions through democratic practices is identified.Practical significance. In the future, the proposed approach can be applied in Russian educational institutions.