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“Groceries cost too much,” “I’ve got to get a cheaper car,” and “Kids cost too much!” are sentences not usually uttered by pre-teens. However, Northwestern seventh-graders in Kendra Rarick’s “Personal Finance” class did just that while they studied financial literacy during a “Real World, Real Money” (RWRM) spending simulation on May 2 at Northwestern Jr/Sr High.

RWRM includes five financial literacy lessons as well as the spending simulation. Students learn the difference between checking and savings accounts, how education and occupation affects income, the difference between gross and net pay, and how to make good financial choices.

The free program is taught by OSU Extension Educators in conjunction with local teachers. Kathy Green is Clark County’s Extension Educator specializing in Family and Consumer Sciences. Rarick works through the Springfield-Clark Career Technology Center (CTC) satellite instructor program to teach Family and Consumer Sciences at Northwestern.

During RWRM, each student assumes the role of a 27-year-old adult and is randomly assigned an occupation, a corresponding monthly salary, and a number of children to raise. Students also receive a check register to keep track of much they “pay” for such things at a number of booths representing real expenses including credit debt, housing, child care, clothing, transportation, food, utilities, insurance, etc. Financial advice is also available for students struggling to make their salaries cover their expenses.

Phoenix was one student struggling to make ends meet. Originally assigned a $50,000 a year job, he lost his that job when he lost his assignment sheet. Now working as a Janitor making $24,000 a year, Phoenix was having a tough time paying his living expenses, especially after gaining two young children.

“Do you have any idea how expensive kids are?” grumbles Phoenix, “I don’t have enough money! Food and clothes are really expensive....and I haven’t even been to housing yet. Do I really have to buy that much food?” he asks Green, who directs him to Financial Advice to help him sort out his financial woes.

“That is exactly why we do this,” explains Green, “Money is beginning to be a real thing to this age group. Some of them are beginning to earn money themselves. This exercise gives them a real feel for the value of their money, the importance of handling it responsibly, and the value of an education.” Phoenix stops when Rarick asks what financial advice he received.

“Do you have any idea how much stupid childcare costs?” Phoenix asks his teacher. “It’s $826.40 a month because I have two kids. Now I have to figure out transportation and I am running out of money again,” he sighs, shaking his head in frustration as he heads to the Transportation booth.

Phoenix isn’t the only student frustrated by the cost of childcare. The volunteer working at the Childcare station admitted she manned the most unpopular booth of the day. “The majority of kids complained about expensive it is to have children. A few students even said they were never having kids because of the expense, while others were adamant that their parents were going to babysit for free...whether they liked it or not!”

Rarick says the lessons students learn as they compare their finances with each other is an eye-opener for them, “The kids are shocked by the differences in the decisions they can make based on just a few hundred dollars in their budgets. While the kids must have housing, one may have to choose to rent because they can’t afford to purchase one, while their classmate gets to buy a nice home with no problem.”

Rarick stops Phoenix one final time to ask how things turned out. He reports he picked up a second job at Burger King working 80 hours a month to help meet expenses, “I ran out of money again,” he explains, “So I went to Financial Advice again and got the job. I ended up with less than $30.00 in my savings, even with getting the cheapest things I could get.” He says in spite of his difficulties, he liked the simulation, especially getting “free money” from the Earned Income Credit. When asked what he would change if he had his original income, Phoenix answers he would buy better clothes and food for his children, “I feel bad that I couldn’t get better things for my family, but kids are just so expensive and I didn’t have the money to get nicer stuff.”

For information about bringing OSU Extension’s RWRM program to your local school, contact Kathy Green in the Clark County Extension office at 937-521-3860 or via email at: This email address is being protected from spambots. You need JavaScript enabled to view it.