Eighth-graders learn real-life lessons through Real Money, Real World program

As eighth-graders, many middle school students are busy thinking about music, gaming, their social life and life at school.

What aren’t they thinking about? Insurance, credit, child care and all the things many adults think about daily.

Helping young people to better understand what is coming at them in life as adults is the focus behind Real Money, Real World.

According to Kate Shumaker, educator with Holmes County Ohio State University Extension, which hosts this annual event at East and West Holmes middle schools along with Holmes County 4-H, adult life is challenging, but with a little bit of foresight and money management, it gets a lot easier.

Real Money, Real World is a financial literacy program that features hands-on experiences about the cost of living, making decisions and evaluating those decisions.

Real Money, Real World was hosted at Hiland High School’s Perry Reese Community Center, and the outcome was a valuable life lesson for the youth.

Kate Shumaker said every station is designed to be a realistic example of the hidden expenses that lurk in real life, from auto insurance to entertainment, groceries, utility bills, child care and more.

“I’ve been involved with this program for close to 20 years, and it continues to be a valuable tool for these eighth-graders,” Shumaker said. “It’s a very big eye-opener for these students. We hope they all go home and say thank you to their parents after recognizing how expensive things are and how much it takes to survive in the world today.”

She said the hope is this experience pushes kids to ask questions with parents, adults and even one another as they think about furthering their education or moving into the workforce.

While the event took place Friday, Oct. 31, Shumaker set the stage by visiting the middle school prior to the event on Monday to discuss budgeting, how education and job choice affect income, and the process of the event.

Each student also was randomly assigned a career and either one or two children, with their spouse currently working toward obtaining employment.

“We want each student to understand the idea that it is expensive to support children,” Shumaker said. “We take out taxes first, which is always interesting to see how they react, and the hope is that they can find a way to save money. Real-life expenses add up quickly.”

She said eighth-graders are at a tipping point of trying to discover who they are and want to become, and it is an ideal age to initiate this type of thinking.

By having the spouse not gainfully employed but trying to gain valuable employment (the spouse does bring in a small amount of money), Shumaker said it provides an experience that reinforces the idea that despite any struggles, things are going to get better.

One benefit for this event is the community’s willingness to provide professionals to man each station. Shumaker said without their eagerness to contribute, it would be an impossible task.

“We have volunteers and businesses that have been with us for 20 years,” Shumaker said. “It’s a blessing to have that type of support.”

Ella Lorentz, representing 4-H, said going through this process is something that can really show what will hit them once they reach adulthood and the sacrifices that sometimes come with raising a family.

“Money doesn’t grow on trees, and this shows them everything that could possibly get thrown their way as adults,” she said.

Paula Aurand and Addy Haggi of Killbuck Savings Bank had the pleasure of introducing the cost of child care to the students. Aurand said it serves as a reminder to how much their parents spend on them, from clothing and cellphones to food and entertainment.

“It’s a whole bunch of little things that really add up,” Haggi said. “Hopefully, they will learn how to get their priorities straight and learn how to budget.”

Kobe Shetler of Kaufman Realty & Auctions was at the real estate station, where kids were gaining insight on renting versus owning a home.

“It’s not always about the bottom line of what they are paying each month,” Shetler said. “Right now monthly mortgage payments can be significantly less than rent payments, but there are other factors they need to recognize like taxes, insurance, utilities and maintenance that factor into the equation, whereas renting may not have those expenses.”

These types of unknown expenses are the type of information the eighth-graders were learning.

Shumaker said by the end of the journey, the students are mentally ready to be done.

“I try my best to not let any kid leave here with a negative balance, although it can take plenty of negotiating financially to make it happen. Sometimes they must cut corners and juggle expenses, but that’s the real world," she said.

As a graphic designer, Tucker Miller was struggling to make ends meet.

“The reality of what adults have to go through has been very eye-opening,” Miller said. “The insurance is really getting me. I 100% have more appreciation for what my parents do for me.”

Bella Troyer and Olivia Taggart were going station to station together, and they both agreed they learned sacrifices must sometimes be made for the family.

“Sometimes you don’t get to have the best things, and you need to make compromises,” Troyer said.

And just like that, the lessons of Real Money, Real World were being recognized.