After high school, most students go off to college or enter the workforce. They get their own apartment or house, regular paychecks and responsibility. However, the first month after leaving their parents’ home may shock them if they are not prepared.
Phil Campbell Jobs for Alabama Graduates (JAG) Specialist Tina King is preparing her 9th-12th grade students for the future with the H&R Block BudgetChallenge.
“It makes them aware of when the go to college how to handle their budgets,” said King. “I advised them during the program to think about what they really needed such as basic cable tv and a reasonable cell phone plan.”
The challenge, which began on February 13 and will last until April 16, is a computer simulation that allows students to interact with monthly bills and weekly budgets. All of the students started with $700 in their bank accounts and have the same job as a Junior Widget Analyst for ProperLiving Widget Engineering and Design with a bi-weekly paycheck of $1,603.88.
Although some aspects of the program are fixed, the students were able to make decisions about apartments, roommates, cable tv and internet, employer 401k, bank accounts, insurance, car loans, cell phone plans, utility bill and credit cards.
“The hardest part of the challenge is making sure you pay your bills as soon as you get them,” said PCHS Senior Jordan Sharp, who will be attending college next year. “I learned to thank my mom a whole lot for everything she has ever gotten me. I also learned that I do not need a credit card until I actually need one.”
The credit card bill has been the most difficult thing that the students had to keep up with during the challenge. In the simulation, it is almost like someone has stolen your credit card, used it for everything from hair cuts to clothing and you have to pay for it all.
“The simulation charges their credit cards almost every day,” King said. “They get a late fee added for each day late plus they lose 25 points per each late fee.”
The limit on the credit cards is $1,000, but some students have balances up to $1,400. However, to make up for some lost points there is a weekly quiz the students have to take.
Although the program is tough for the students, there is a reward for hard work. The H&R Block Budget Challenge is a nationwide program that allows students from different schools compete against one another for scholarships and classroom grant money. H&R Block will award $3 million in classroom grants, college scholarships and cash prizes via the H&R Block Budget Challenge to students and classrooms that excel. The one student that proves that he or she is “real-world ready” will receive a $100,000 college scholarship.
“The honest truth is that the challenge is really hard,” said PCHS Sophomore Hayden Copeland. “But we are making progress. However, I am still not ready for life.”
