INDEPNDENCE – Real Money. Real World. (RMRW) is a financial literacy program that was recently presented to the Independence Jr/Sr High students in the Real Living class. RMRW provides young people the opportunity to learn basic money management practices in the classroom and then make simulated lifestyle and budget choices similar to those that adults face on a daily basis through a spending simulation. RMRW is a great example of “learning-by-doing.â€
The objectives of the classroom lessons are to analyze the cost and benefits of obtaining education or training after high school, to identify the costs associated with childcare and maintaining a household, develop a spending plan, describe common deductions for taxes, withholding, savings and insurance, and distinguish how lifestyle decisions impact financial future.
Youth participants learned to subtract savings, taxes, and other deductions from their monthly income. Their balance prepared them for spending decisions during the simulation phase of the program.
The hands-on budget management and decision-making activity involving Extension professionals, school staff, and local adult volunteers was held February 3rd. During the simulation, students assumed the role of a 27-year-old adult who is the primary income provider for a family. They received a fictitious occupation, monthly salary, and possible spouse and number of children.
The youth spent their monthly salaries by visiting 14 different booths staffed by “real world†community volunteers on items typically found in a monthly budget including housing, utilities, groceries, insurance, childcare, and transportation. Entertainment and volunteering contributions were also factors to consider with the adult volunteers at the event.
Throughout this simulation, students tracked their finances and made decisions with the goal of maintaining a positive balance.
The following comments are representative of those expressed by the students that day:
“I was surprised at how much everything costs and how fast your money is gone .â€
“One thing I will remember to do is pay off my credit card debt quickly.†“Life is hard. And kids are expensive!â€
This is the second year that the ISU Extension and Outreach Educator, Lori Dietzenbach, has presented this program to the Independence Jr/Sr High along with the partnership of the Independence Area Chamber Director, Nikki Barth, the Buchanan County Executive Director of Economic Development, Lisa Kremer, and the Independence High School Guidance Counselor, Shaylon Frye.
