Students get eye-opening financial lessons
- Laurie Sidle, OSU Extension Wayne Co.
- June 12, 2024
- 580
Discovering what it’s like to live in the real world with real expenses can be a real eye-opener. Here’s what some middle school students had to say about it.
“Just living is so expensive.”
“Children are very expensive.”
“The real world isn’t what I thought it was, and it’s gonna be expensive.”
These are a few comments from students who recently took part in Ohio State University Extension’s Real Money. Real World.
In May our family and consumer sciences program conducted the RMRW simulation in three middle schools/junior highs — Chippewa, Dalton and Triway — giving students the opportunity to make lifestyle and budget choices similar to those they will make as adults.
During classroom lessons that preceded the simulation, students were assigned an occupation, monthly income, credit card debt and a child or children. They also calculated retirement savings and tax deductions.
With their monthly “paychecks” in hand, students visited spending booths providing various services such as clothing, groceries, transportation, childcare and utilities, housing, and insurance. Childcare costs are one of the biggest surprises for students, especially those who may have been assigned more than one child.
Students who spent wisely may have had money left over. Those with lower salaries or who made expensive purchases wound up with a negative balance on their checkbook worksheet.
If they couldn’t make ends meet, they were directed to the financial advice booth for options and advice on how to add to their income.
Life’s little surprises were demonstrated at the chance booth, where students chose from a deck of cards listing unexpected expenses and income such as:
“You receive a speeding ticket. Pay $75.”
“You receive a gift of $100. Add it to your account.”
At the contributions booth, students learned about the importance of donating to nonprofits and faith-based organizations. If they could not spare any of their monthly income, they were encouraged to think about giving their time.
The booths were staffed by community volunteers, in some cases alongside high school students.
Chippewa High School’s National Honor Society requested the RMRW program for one of its projects. Students organized the simulation and served as volunteers in a presentation to the school’s eighth-graders.
In evaluating the program during a classroom wrap-up session, students said the program provided a glimpse into adulthood. Here are a few comments:
“I felt like an adult. Now I know what my parents feel like.”
“It was very fun to see everything leading up to being an adult.”
“I overall think this actually is an amazing idea. It’s the perfect way of showing kids the real challenges they have to face.”
Asked about one thing they planned to change as a result of the program, students shared this sampling of comments:
“Have more money saved up.”
“Stop spending money on things I don’t need.”
“I will think more before I buy things.”
“Start saving more and choose needs over wants.”
These are concepts that can be taught at an early age. Children can learn to stop and think so they can choose what’s best for them before they spend money. Financial experts say the sooner parents start discussing the value of money and saving and spending wisely, the earlier children will develop critical skills for them to build financial literacy.
A good place to start is to be a good role model and lead by example so the financial advice comes naturally. When shopping, point out essentials such as food and clothing and ask your child to describe what items he or she may want but are optional or not necessary.
Talk about how your family decides what to buy and what to pass up. Which is more important, buying cookies or fresh fruit? Soda or milk?
Think out loud about your budget and how you mentally divide up a finite amount of money into sections for food, rent or house payments, clothes, or optional items.
Discuss choices children have when they don’t have enough money to purchase something they want to buy.
These teachable moments will prepare them for the real world.
Laurie Sidle is an Ohio State University Extension family and consumer sciences and 4-H program assistant and may be reached at 330-264-8722 or sidle.31@osu.edu.