Real Money, Real World consists of three parts:

• Pre-simulation preparation
• Hands-on budget management and decision making simulation
• Post-session evaluation of choices made.

How does the program work?

Prior to the simulation, teachers prepare students for the simulation by going through the following four simple lessons:

Lesson 1:  How Occupation Affects Income

Lesson 2:  What You See Is Not What You Get:  Deductions

Lesson 3:  How to Use Checking and Savings Accounts

Lesson 4:  Making Real Money, Real World Choices

Program Overview - Goals

• To increase participants’ awareness that the level of education they achieve and career they choose will influence their future income.
• For participants to understand that spending money on one thing affects what they can spend on other things.
• To increase participants’ awareness that income and lifestyle choices affect the amount of money available for discretionary spending.

Objectives

Participants in Real Money, Real World will:

1. Explain how future income and lifestyle are determined by education and career choices.  Explain how level of education influences future lifestyle.
2. Use financial tools available to balance income with spending and saving.
3. Adjust spending habits or make trade-offs during the simulation.
4. Practice making consumer choices and using financial tools in lessons and simulation.
5. Set education and personal objectives that will help them achieve future lifestyle goals.

Performance Outcomes

Participants in Real Money, Real World will:

1. Choose an occupation based on income data according to educational achievement levels.
2. Determine the percentage of gross income represented by deductions.
3. Calculate net income based on tax tables, health care costs, and suggested retirement savings.
4. Complete banking transactions.
5. Calculate savings and investment interest over an extended period of time.
6. Maintain checking account balance in check register.
7. Create monthly household budget according to income and expenses.
8. Discuss trade-offs that are necessary for reaching a financially secure lifestyle.

Community Involvement

Community volunteers set up and staff booths representing real-life businesses. In this simulation, participants are to assume that they have completed basic educational requirements for their chosen career and are the sole 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, groceries, clothing, entertainment, child care, communications, charity, credit, and long-term investments. 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.

Real Results

Results of the 2009 Follow-up Study (Released July 2009)

Comments from Students

How did they do?

“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 must 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
• Selecting a different occupation 

A few comments expressed by young people who have participated in the program.

“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”

For more information contact:

Steve Brady, Extension Educator, 4-H Youth Development