Retired business teacher Kathy Britt reacts to the budget put forth by a Westerville South senior.
On Tuesday, November 19, Westerville South High School Personal Money Management classes participated in a Real Money, Real World simulation sponsored by The Ohio State University Extension Agency. The event took place in the school’s Media Center. This simulation is an active, hands-on experience that gives young people the opportunity to make lifestyle and budget choices similar to those they will make as adults.
The students were assigned occupations and received a monthly salary for that occupation, along with a savings and checking account register. After subtracting the savings, taxes, and health insurance, and retirement amounts, the “net” salary figure was deposited into the checking account and recorded in the check register. Pupils then proceeded through the Real Money, Real World simulation.
Community volunteers from local businesses, along with parents, guidance counselors, teachers, administrators, and retired educators set up and staffed booths representing real-life businesses. In this simulation, participants assume that they have a chosen career, are married (most with children), and are the main income providers for their families. Students spend their “salaries” on items found in a typical monthly budget. They do this by visiting the appropriate booths: housing, transportation, insurance, utilities, food, clothing, entertainment, child care, communications, contributions and credit. In addition, chance and financial advice booths are included. Throughout the activity, the participants keep track of their finances by recording them in the check register. Whether they have adequate funds or run out of money, they continue through the simulation and finish with either a positive or negative balance.
“I did not have enough money to meet my expenses” is often a response of participants after completing the Real Money, Real World simulation. Some finish with a positive checking account balance, while others have a negative balance. Participants are made to understand that a negative balance (overdrawn account) in real life can have dire consequences! During a post-simulation evaluation session, students examine the spending choices they made. If they had a negative balance, they consider what alternatives might be taken, such as:
- Getting more education/training, thus improving earning potential;
- Balancing expenses to income by making wiser consumer/lifestyle
Choices and developing a realistic spending plan; or
- Selecting a different occupation.
This post-simulation reflection and assessment is a very important part of the Real Money, Real World program. These are just a few of the comments expressed by students who participated in the exercise:
“All my expenses cost more than I ever thought.”
“It makes me want to save just in case of unexpected incidents.”
“It helped me learn how to balance my money more.”
“I realize that I definitely need a college education to live well.”