With the cost of living rising, it’s timely to start teaching budgeting skills young.
Hebron Middle School student Jake Cox might feel the sting of financial limitations a little less when it’s just a dress rehearsal, versus the live performance.
“I’ll do the $400 car,” he tells the volunteer at the transportation booth at Junior Achievement Town set up in the ballroom of Harre Hall at Valparaiso University Tuesday morning.
“What’s your job?” asked VU finance major Cici Wilson.
“Mailman,” he replied.
“I would recommend getting a less expensive car,” she said, basing her opinion on his mock $45,000 salary and monthly net income of $2,812.50.
While the simulated salaries appear realistic, the pretend costs of living are low, such as the $70 students are told to budget for electricity and natural gas, admits Roz Malouhos, director of the Northwest Indiana Division of Junior Achievement, a not-for-profit that aims to foster entrepreneurship, financial literacy, and work readiness for young people. The organization sponsored the free event, held for the first time at VU.
Known as Junior Achievement Town, the events are offered all over Northwest Indiana. “It’s getting them used to the idea of budgeting,” Malouhos said.
Dozens of VU students staffed the stations to guide the 80 Hebron middle schoolers through the process. “I’m going to have to stay home,” said eighth grader Kayden Umfleet, who was assigned the career of landscape tech at an annual salary of $30,000.
“You are, big time,” agreed VU business management and human resources major Adrian Huizar, a junior, helping the kids decide what kind of housing they can afford.
“I never got to experience this when I was a middle schooler,” he said. “It’s a good eye-opener. A lot of them seemed like they didn’t know what to do with the money stuff. They say their parents handle everything.”
Eighth grader Corinna Sanders found deciding on how she would spend her food dollars easier than choosing housing. She was worried about whether she would rent or buy. At the transportation booth, Wilson helped her keep her spending in check.
“I would recommend a used ride because I see you have some higher prices here,” she said, looking over Sanders’ budget sheet. “Do you have any questions about cars? I can answer them.”
When grilled about what an oil change would cost her, Sanders replied, “Like $100.”
“I don’t want to be dining out every single day,” said her classmate Zooey White at the food booth. “Understandable,” replied VU sports management major Alexa Stefanovich.
The senior commuter did want White to consider her lifestyle when planning her food budget.
“There are a lot of things I’m driving to. I eat out, I’ll admit. I do not cook,” she said.”
Hebron Middle School’s College and Careers Class teacher Dan Pastrick said they’ll be going over the budget sheets in class in the coming days.
“Some of the kids understand, have a good grasp at their age, what it’s going to be like,” running a household, he said. “Some of them have no idea what taxes is going to do to their income.”
They’ll have lots to talk about. Like the cost of a real NIPSCO bill.
“Would you have made different decisions?” Malouhos wanted to know at the end of the session. “A lot of you who came to the Accomplishment Center had quite a bit of money left over, which means you did a good job.”
Shelley Jones is a freelance reporter for the Post-Tribune.