Each student starts their session with a month’s worth of their salary. The State Bank of New Richland has volunteers present to assist the students. Each junior is set up with a check register as well as inactive credit and debit cards that the bank has donated to the school.
The reality begins to set in as they rotate from station to station to pay for their monthly expenses. Insurance, clothing, housing, phones, clothing, groceries, utilities, furniture, investments, dining and entertainment and donations are just some of the things the students must consider.
Students may also encounter unexpected life events. A New Richland police officer walks around handing out random tickets for infractions, such as going through a stop sign or speeding. The school nurse distributes medical events to students and they must figure out how to pay for the care they would need. One student needed to find a way to pay for a new water heater.
At the end of the assignment, students must have $200 left in their checking accounts. If they don’t have this amount, students must visit the bankers and discuss how to remedy their financial situation.
Hannah Light, a junior from New Richland, said, “The biggest surprise was getting the unexpected life problems and I had to pay $1500 for spraining my ankle.” While many of the costs she encountered were expected, Hannah had never thought about paying for pets, investing in retirement, or making donations. One big surprise for Light was the cost of a license plate, which in her situation was $500. “Being here and going through what life is going to be like really opens your eyes to the real world,” she said.
Junior Nick Goette, from Ellendale, echoed her sentiments. The biggest surprise for Nick was “How much it costs and how quickly it all adds up.” He, too, expected most of the expenses, but didn’t realize just how costly they would be. The simulation cultivated in Goette an, “Appreciation for how my parents had to go through this,” as well as, “The realization of how hard life on your own can be.” Aside from having the money in the bank to cover the monthly costs, Nick also said that the actual act of balancing the numbers can be trickier than expected for many people.
NRHEG school board member John Harrington was one of the more than 20 volunteers for this activity. He observed the replication creates a, “Real shock to the system for these kids.” And he firmly believes it has a real impact, because, “Even though it’s make believe, the kids are sitting side by side comparing budgets. They’re behaving as if this is real life and real money,” said Harrington. But the kids aren’t the only ones who get something out of the reality store. Harrington said that for the volunteers, “It’s heartening. These kids have been great. This is the hands-on education everybody hopes for.”
Dinneen and Schumacher conducted follow-up discussions with their classes in the days following the reality store. Dinneen said that ultimately the question they ask is, “You want this lifestyle, but is the career you want going to provide you with this lifestyle?”
Dinneen made sure to point out that they, “Really appreciate the volunteers that came and gave their time,” because without them the day wouldn’t be possible.
And that’s reality.
