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Your household budget is precarious but balanced. You’ve found affordable housing and a low-rate loan for a reliable used car. Just when you think you’ve got it all figured out, joyful, budget-breaking news arrives. Twins?
That type of scenario drove home the challenges of making ends meet for about 80 students participating in a “Mad City Money” financial simulation co-hosted by $118 million, 14,300-member United Educational Credit Union, Battle Creek, Mich.
In the simulation, marketed by the Credit Union National Association, students receive packets that assign jobs, salaries and family circumstances. They move from booth to booth, which are manned by adult “salespeople,” to shop for housing, transportation, furnishings and other necessities and extras. Along the way, students receive messages from the “Fickle Finger of Fate” delivering unexpected news to break or boost their budgets.
“The key to the success of this learning experience is absolutely the hands-on element, plus some chaos and student/adult interaction mixed in,” says Joan Miller, executive assistant/marketing for United Educational CU. “In most cases, the adults at the various booths were there to sell, not necessarily guide the students to the most sensible option, just like they might encounter in real life. The CU booth was different, however, as it was the place to seek help, along with handling financial transactions.”
Seven CU employees volunteered to staff booths, and teachers and local businesspeople, including real estate agents and car salespeople, joined in. At the November event, planners allotted about 75 minutes each for two groups of students. Next time, Miller says, they will probably plan for two hours to give students more time to complete their budgets, and they may let students choose jobs that interest them and research their starting salaries.
Students developed their own budgets but often conferred with friends about how to stretch their budgets, like buying gently used furniture. “I think that camaraderie was another nice component of the program, and the whole process was neat for the adults to watch, too,” Miller says. “A teacher who manned the home furnishings booth noted that the faster he talked, the quicker they made their decisions. He liked creating the ‘high pressure’ environment they might encounter at a store.”
Karen Bankston is a long-time contributor to Credit Union Management and writes about credit unions, membership growth, marketing, operations and technology. She is the proprietor of Precision Prose, Stoughton, Wis.
