Volunteer Guide. Curriculum made possible by:

Transcription

1 Volunteer Guide Curriculum made possible by: Updated September 2017

2 Volunteer Overview Welcome! Thank you for joining us at JA Finance Park for what promises to be an exciting learning experience. For several class periods, students have been learning about financial institutions, careers, taxes, budgeting, credit, and more. JA Finance Park, the simulation, gives students a hands-on opportunity to put this learning into action. Before students arrive at JA Finance Park, a JA Staff member will conduct a volunteer training to review the day s procedures and instructions. Prior to this training, please familiarize yourself with this guide. Don t hesitate to ask questions during training or during the simulation day. We are here to help you, which in turn, will help students have a more successful and enjoyable day. When students arrive, they will gather for a brief orientation in the center of JA Finance Park for their day s activities. Students will receive an ipad once they arrive in their business, which will link to a program they will utilize for the simulation experience. The ipad will give them a persona for the day. This persona details their gross annual salary, taxes, family situation, existing debt and savings, etc. Students will convert their gross annual income to a net monthly income and then plan for and implement a monthly budget. Your role is to be a group facilitator and student mentor, working with 6 to 8 students, at your assigned business group table. During the day, your group of students will work through the initial Set-Up, Research, Budget, Shopping, and Payment time periods where specific activities will take place. Thank you for assisting the students. Without parents and volunteers, this program could not successfully operate. Remember to ask as many questions as necessary during the volunteer training. We want this to be the best day possible for you and your students. Have a super day! Page 2

3 Expectations Volunteers Provide guidance and assistance to students. Facilitate scheduled group discussions. Monitor and verify students work progress. See that a JA Finance Park ipad is signed out to each student and collected at the end of the day. Please wear your nametag. Food and drinks must remain in the snack/dining area (Chick-fil-A). At the end of the day, please leave this Volunteer Guide in the storefront area. Please remain the JA Finance Park space until after student departure. Students Students must remain inside the Park area for the entire day. All food and drink must remain in the snack/dining area. No gum or candy is allowed in JA Finance Park. Students must consider their assigned family when making all budget and shopping decisions. Important Information Evacuation routes are posted on the wall of each business. Questions or concerns you aren t equipped to answer should be referred to a JA Finance Park Staff member. There is a first aid kits in the front desk and an emergency kit in the staff area Page 3

4 The Paperless Simulation Daily Schedule (Time frames do not include presentation times) (20 minutes) Opening Presentation Students gather for a career presentation and overview of the day. Students watch the Career PowerPoint and the Welcome PowerPoint. Students disperse into small groups and join their assigned adult volunteer. (40 minutes) Set-Up and Savings Volunteers sign-out a tablet to each student and assign them an account number and associated PIN number. Students login to the software and answer six lifestyle questions about their plans/hopes for their financial future. Volunteers lead a discussion in which students share highlights of their assigned persona including income, job title and education background, marital status, if they have children, existing savings and debt, and their credit score. Students calculate their NMI and their household total NMI. Volunteers lead a discussion on saving and students decide what they will set as a monthly savings goal. They then allocate that savings to three saving funds. (75 minutes) Research, Lunch, & Loans Volunteers move with the group of students to each business. Students visit each business to read and discuss information for that budget category. Utilizing discussion questions, volunteers initiate group discussion with students about their research discoveries and share personal experience and suggestions about budgeting. After all Research is completed, students will apply for loans in the middle of the room. (15 minutes) Budget Students build a monthly budget, informed by their research and volunteer discussion. Students must allocate 100% of their household NMI during this phase and record their budget plan in the software. (35 minutes) Shopping Students make all shopping selections on their tablets at their home base. Students discover how close they came to budgeting accurately, based on their wants and needs. They may spend more in a category than they budgeted, but overall they may NOT spend more than their income, nor may they dip into existing savings. (20 minutes) Payment Students pay for all their shopping selections. NOTE: Some items are paid for with a debit card (groceries, gas and maintenance for their car(s), entertainment, etc.) and other items are paid electronically by making an online payment from their banking account. (10 minutes) Debrief Students receive a final report that that details their life scenario and decisions. Volunteer debriefs the student, if time permits. JA Staff leads a group debrief prior to student dismissal. Page 4

5 Volunteer Checklist This list provides a high-level overview of the tasks you are responsible for during the simulation day. The subsequent pages give detail, including talking points. We encourage you to share your personal experience in budgeting with students to enrich the conversation and their experience! Opening & Student Orientation Watch and observe during the career presentation and student orientation. Set-Up Group introductions. Review model budget. Discussion prompt: What are some differences between the two budgets? Why? Pass out ipads students sign out the ipad they are assigned. Give each student their assigned account number and PIN; students log in. Group discussion; share personas. For discussion: Ensure some students point out their credit score, education debt, existing savings. Calculate NMI. Savings PAUSE FOR DISCUSSION ipad locks Discussion prompts: What do you want to save for? Is saving easy or hard? How much is enough in an emergency fund? (3-6 months income) After discussion, use unlock code in your volunteer guide. Students complete savings decision on tablet. Note: minimum of 2% NMI must be saved. Research/ Lunch/ Loans Wait for JA Staff announcement to begin Research Group research. Volunteer moves with students to businesses. Students will rotate each time JA Staff makes announcement. Complete research for all businesses in JA Finance Park. After discussion at each business, volunteer share business unlock code. JA Staff will announce lunches during the research time. Loan applications are completed after ALL other businesses have been unlocked. Budget Students set monthly budget based on research and volunteer discussion. Note: 100% of NMI must be allocated among business categories. As a whole group, work through major decisions: housing, transportation, child care, grocery. Shopping Wait for JA Staff announcement to begin Shopping Shopping is completed on tablet at their home base. JA Staff will share tablet unlock code. Support students as they work through shopping decisions. Payment Students will use the debit cards on the back of their ipads. Students remain in business to make the group online payment, then walk around and make debit card payments. Page 5

6 Closing Review budget and spending analysis reports with students and collect all tablets. Discussion / debrief prompts: How accurate was your budget, compared to actual spending? How would you have to adjust your spending if your family didn t have your spouse income (or added a child)? How much debt do you have? Did you add to your overall debt today? Did you add to your retirement and emergency fund savings? Volunteers stay in your assigned business to collect the ipads and debit cards. JA Staff will stop by your business to collect the student materials Page 6

7 Set-Up This phase introduces the students to their life scenario; they will learn their Net Monthly Income and determine their monthly savings. Total time for this phase is 40 minutes. INTRODUCTIONS After dismissal from the student orientation, the group of students assigned to your table will join you. o Introduce yourself, sharing your name and the company you work for. o Ask each student to introduce themselves, sharing their name and grade. o Ensure each student is wearing a nametag that indicates his or her name and home business. DISCUSS MODEL BUDGET Point out the model budget samples. (Laminated) o Remind students they will be building a family budget today. o Let students know that average helps provide some guidelines but that personal budgets vary a lot depending on resources, personal preferences, and values. o Ask if there are things they or their family does or does not include their budget that others do (Example: Cable TV). DISTRIBUTE ipads Distribute a tablet to each student. o Each student/ipad will have a unique account number and PIN (personal identification #). o Have each student sign the check-out form, indicating which ipad they will use throughout the day. Time 5 minutes Time 2-3 minutes Time 3-4 minutes STUDENT LOG IN Students will now log in to the JA Finance Park software application on their ipad. Each student needs know his or her assigned account number and PIN for this activity. Time 5 minutes The software will guide them, step by step, through the following log in process: 1. Enter their account number. 2. Enter their first name and last name. 3. Using the drop-down boxes, students will indicate their gender, school name, teacher, and grade level. Page 7

8 4. After tapping Login, tablet will prompt them to enter four-digit PIN. 5. Answer the 6 lifestyle questions that pop up. All questions are multiple choice and have no right or wrong response. NOTE: Students should answer questions quickly. Students cannot go back to change answers. STUDENTS READ AND SHARE PERSONAS Have students read their individual Life Scenario and describe themselves to the group. Encourage them to highlight key information like education debt, credit card debt, family size, income, current savings, etc. NOTE: You may need to offer some assistance or support to reading challenged students. Time 5-8 minutes o After sharing Personas, students can select their personal avatar. Have students click the next button on the tablet and complete their NMI Worksheet. STOP: ipads will stop after NMI is calculated, requesting a 3-digit code to move on. The code will be given after the savings discussion detailed on the following page. Begin the savings discussion after all students in your group have reached the screen pictured above. If a student prematurely clicks next button, there is a cancel button that closes out of the lock screen to return them to the NMI screen. Page 8

9 Savings Tell students the first budget decision they are going to make is on savings and that you will be discussing a savings plan as a group before moving on. The JA Finance Park savings plan is called Pay yourself first. Begin this segment by asking questions the following questions: SAVINGS DISCUSSION Talking Points: Why do we save money? To buy things that we can t afford to buy today. Time minutes What kinds of things do we save money for? A home, car, vacation, emergency funds, children s education, retirement, etc. Why do we pay ourselves first? To ensure that we have set aside the necessary income for the important things we want down the road. Savings Strategy Talking Points o Many experts recommend that individuals save at least 10% each month. Saving paying yourself first helps keep your priorities in order and helps assure your financial security. Optional questions you might ask: Do you think it would be easy to set aside this amount? Do you think having a saving goal or goals would make it easier to save? Discussion Prompts: How much do you want to plan on saving this month? Whatever you save each month, the total is divided into multiple things you are saving for. Let s talk about how you may want to divide your savings into these categories. Review the talking points on the following page with them. Page 9

10 o Emergency Funds Talking Points Many financial experts recommend having 3 to 6 months of income in savings for emergencies. Emergency funds assist families in the event of income loss due to loss of employment, a major medical emergency, etc. What other reasons might a family need emergency funds for? Does anyone have 3 months of savings in their emergency fund in today s simulation? The answer is no students will not have this much in their savings. o Retirement Savings Talking Points Do you remember from your discussions in class what three things are key to growing savings in the long-term? The amount of money you save, the interest rate, and time. Share with students that time is on their side. Saving even a little each month will mean growth of their money 30, 40, or more years down the road. o Other Savings Talking Points Do you think you want to own a home someday? Do you know how much lenders typically want for a down payment, before approving a home loan? 20% down is the standard. Do you know how to estimate how much house you can afford? Many financial experts recommend spending no more than three (3) times your annual income on a home. To determine what price you can pay for a home multiply your NMI times 36 (3 years = 36 months). What are other things that you would like to save for? Vacation, boat, technology, etc. CODE TO UNLOCK TABLET At staggered times, JA Staff will give students the 3-digit code so that they can enter their savings: XXX Page 10

11 RECORD SAVINGS o Students must click on the calculator button to calculate 5%, 10%, and 15% of NMI. This gives them a guide about how much they could be saving each month. Students may choose their own amount; they do NOT have to pick one of these numbers. Time 10 minutes o Students MUST save at least 2% of NMI in JA Finance Park. Encourage them to save more than the minimum. o If students want to save a very large amount (example 50% of NMI), let them know it might be difficult to do, but they can try. Students have the ability to change savings amount during the budget phase and again during shopping, if necessary. o They will divide their total savings into each savings bucket at the bottom of the page. NOTE: They must record their total monthly savings before recording the amount to be distributed to retirement, emergency, and other saving. o Share with students that tracking savings and investments are easier today than ever. There are several apps that can be downloaded to your mobile phone that help you track your progress. What options are available to people who want to earn interest on their savings and make their money work for them? Savings accounts, CDs, money market accounts, bonds, stocks, mutual funds. Let students know that when they record their savings, they have the ability to select what type of account they will put their savings in later when they visit the Investment business. Please wait for JA Staff announcement before moving forward. STOP: ipads will stop after savings is calculated, requesting a 3-digit code to move on. The code will be given after research is introduced on the following page. If a student prematurely clicks next button, there is a cancel button that closes out of the lock screen to return them to the Savings screen. Page 11

12 Research In this phase of the day, the students will be moving from business to business in the Park and learning more about each budget category, the spending choices they have, and be given guidelines for average family spending. Total time for this phase is minutes. INTRODUCE RESEARCH Explain that during the next part of the day, they are going to be doing budget research so that they can build a budget that allows them to live within their means. Time 5 minutes What does living within your means mean? Simply stated it means spending no more than you earn. o Before students can build a budget they need to do some research and be sure they understand the basics of each spending choice. o During research all students are required to visit each business with their volunteer. o Later, when building a budget, some categories will be required, others are not. Example: Child care - those who have children will have a child care expense; families without children will not have this expense in their budget. NEEDED FOR RESEARCH IN THE PARK Volunteer: Go to your assigned business and look for the Research Path and Discussion Questions page. o Your group of students starts at your assigned business. o Students will stay together in their groups and visit each business in the Park, rotating clockwise with JA Staff announcements with their volunteer. At staggered times, JA Staff will give the three-digit code for students to unlock tablets: XXX Students will: o Take their ipad with them as they complete their research. o Upon entering a business with the volunteer, they will share some information found on the Research Path and Discussion Questions laminated paper inside each business. Page 12

13 o After group discussion, students will tap on the associated icon on the ipad. Volunteers will give the 3-digit code (displayed on the kiosk computer in the business) for students to enter on their ipad. o Students should read the introduction and research information provided. Some budget categories have an explore more button when this button is clicked students will see samples of items that can be purchased later in the shopping phase. Time 45 minutes o Students and volunteers will move to each business together, discuss, and research on the ipad. RESEARCH ALL BUSINESSES Students will not be able to select items during research. They are only looking at future options. Page 13

14 Research Path and Discussion Questions The following detail provides insight into the decisions students will be making during the budget and shopping process. During discussion with students it would be helpful to share some of the insights with them. Volunteers will be assigned to a specific business and rotate with the students from their home business, clockwise, around the Park visiting each business in turn. JA Staff announces when student groups rotate the next business to interact with the volunteer. Approximate time for each budget line item is 2 2 ½ minutes (or 4-5 minutes per business/storefront grouping that may contain 2-3 budget items). Alaska Airlines Travel & Entertainment Students may choose any number of activities for the month. At least one choice should include all family members. If they choose an activity that is adults only but have children, then they need to include babysitting expense in their budget plan. Expenses for pet ownership is also considered entertainment. This includes pet food, vet bills, etc. If time permits, ask: How much do pet owners spend each month, on average, on their pet? More than $100 per month Allstate Auto Insurance Students will choose between legal minimum coverage and full coverage. Discuss some of the high-level differences and risks associated with minimum coverages. Ask students what they think is the risk of not having insurance. Do they think minimum legal requirements are enough? If time permits, ask: What is the average monthly insurance premium for basic transportation? Cost will vary depending on the age and type of car/truck you own. Page 14

15 Coverage for older models may run $50/month and newer, high-end autos may cost $200/month. Allstate Disability and Life Insurance They can purchase only disability or only life, or both insurance types. Ask students what if the unexpected happens? What if you can't provide the income your family has come to expect? That's where insurance comes in. This expense is recommended but optional. Allstate Home and Renters Insurance Tell students they will purchase this insurance whether they end up buying a home or renting an apartment. Explain the difference between a cash-value and replacement value policy. Example: during an electric storm, you have a power surge that fries your large screen TV and your computer. A cash value policy pays you what the TV and computer are worth today say $400 for the TV and $0 for the computer because you ve had them for a while. A replacement value policy actually pays you replace your TV and computer with an equivalent item perhaps $1000 for the TV and $700 for the computer. NOTE: We do not include deductibles in the Park but students may want to know that deductibles also affect insurance premiums. If time permits, ask: What is the average monthly cost of homeowner s insurance? $25-$85, depending on location and size of home; renter s insurance may be in the $12- $16/month range. BECU: Auto Loan This is a second application for purchasing a car. Even if students want to take public transportation they must apply for a car loan. Page 15

16 NOTE: The interest rate at the bank will be different from the dealer financed loan at the transportation business. Remind students to tap the green APPLY FOR LOAN button on the research screen, tap to fill and then tap SUBMIT! BECU: Savings Students have already made their savings decision today BUT the amount they have saved can be changed. If they decide to increase or decrease their total savings amount, they will be required to re-allocate the total amount between the three categories retirement, emergency fund, and other savings. BECU: Home Loan All students must complete a mortgage application. Point out that renting a home or apartment often requires a credit check for approval, so even if a student says they know they want to rent, they must complete the application. Factors that determine if your mortgage application is approved include your credit score and the amount you have in savings. (A person with a great score could be denied a mortgage because they can t make a down payment on the house they want to buy). NOTE: Students cannot use retirement dollars for a down payment. Remind students to tap the green APPLY FOR LOAN button on the research screen, tap to fill and then tap SUBMIT! Page 16

17 Capital One Investment Students will decide how they will invest their savings. There are two kinds of investment decisions for students: Retirement and Emergency & Other Savings. The allocations under each fund should add up to 100%. By using the slider bar to adjust one account option, the other option will adjust automatically so they add up to 100%. Students can put everything into one type of account, or divide their investments among different account types it s their choice. For Retirement, students will decide how much they will allocate to mutual funds and/or the stock market. If students want to invest in the stock market, they will select up to 3 specific stocks they want to own. For Emergency & Other Savings, they can choose between savings bonds and a high yield savings account. If time permits, ask: What is the rate of return advisers anticipate on long-term investments? 10-12% over the long-haul (many years this is not a typical annual return). Chevrolet Transportation Everyone must make a choice for transportation. If student persona is married they will need to budget for and shop for two cars (or two public transportation options). If they buy an auto they will have choices between sedans, trucks, sports cars, mini-vans, etc. and need to consider their family size when selecting autos. Even if they plan to take public transportation instead of buying a car everyone MUST apply for a loan. (NOTE: This is a dealer-financed loan.) Remind students to tap the green APPLY FOR LOAN button on the research screen, tap to fill and then tap SUBMIT! If time permits, ask: What is the average cost of a new car? $28,400 Page 17

18 Chick-fil-A Dining Out Students will decide if they will eat lunch out during the work week or brown bag it. They do not have to purchase lunch. They may also choose to take the family out to eat during the month or perhaps a date night. They can choose to eat out as much or as little they like. If single, they pay for two adults on date night. Dining out is an optional expense. If time permits, ask: How much does the average American spend each month on eating out? More than $200 Gas and Maintenance Everyone who buys a car will have gas and maintenance expenses each month. The cost will be based on the car or cars they purchase. Help students to recognize that older cars are generally more expensive to maintain. Maintenance costs include oil changes, new tires, tune-ups and expected repairs. Gasoline cost is based on driving 1,000 miles per month and the MPG of the car(s) students select during shopping. If time permits, ask: What is the average monthly maintenance cost for most vehicles? Experts say an average car will cost you $.05 in maintenance for every mile you drive. (This does not include gasoline.) Holland America Vacations Purchases are made to a credit card and the first month s payment will be due during shopping. Vacations are an extra expense that can be added to your budget. Ask students where they might want to go on a cruise to. Page 18

19 This budget item is optional. Home Depot Home Improvement Home improvement includes everything from putting a new roof on a home to painting a room. Purchases are made to a store credit card and the first month s payment will be due during shopping. This budget item is optional. If time permits, ask: What kind(s) of home improvement projects are things you might want to do? JA Child Care All students research child care, even if their persona has no children. This category is often a surprise to students. Discuss advantages and disadvantages of a professional childcare setting versus a home daycare and how those differences might influence the cost. NOTE: All personas with children will need childcare. When persona is single, full time child care is needed. For married households, full-time care is needed when spouse works full-time (Full-time care means 5 days a week). Part-time care means 2 or 3 days a week and is needed when spouse works part-time. If time permits, ask: What are ways in which families can control child care costs? JA Grocery Students will choose the kinds of foods they want to plan on cooking and eating each month. Page 19

20 They must select the same type of food for all members of the family. (They cannot choose to eat gourmet but their spouse and children eat generic choices.) Cost per person is based on government reported national averages. If time permits, ask: Are brand name or organic choice worth paying extra for? Why? JA Health Insurance Students will select a health care option based on their family size single, couple, or family. Single parents with one child must select the family option. Ask students what the risk is of not having health insurance. Talk with students about high level differences between a basic policy and majormedical. Example: Basic may limit the doctors or medical facilities you can choose from. Basic may limit the events or conditions they will pay for. If time permits, ask: An affordable health care premium is less than what percent of income? Experts define the cost as 9.5% of income or less as affordable. JA Housing Students have the choice of renting or buying (assuming their mortgage is approved). Mortgage loan is applied for at the bank, not at housing. Some students with a high credit score will not be approved for a home loan because their existing savings is too low. Students should recognize that credit history and current financial situation steady income, savings, and other debt affects their ability to be approved for a home mortgage. The prices of homes in the Park are national averages. Point out that homes in New York would be higher priced than what students will see. Cost of living in various parts of the country can vary greatly. Page 20

21 NOTE: If students are approved for a mortgage they are not required to buy a house, they may rent if they prefer. If time permits, ask: How much down payment is usually required to purchase a home? 20% of the purchase price. Nonprofit/Philanthropy Point out to students the importance of philanthropy in our communities. Some students may not understand that philanthropy is charitable giving. Give some local examples of philanthropists and philanthropic organizations. Encourage students to give; if not financially then through their time and talent. If time permits, ask: How have you, your family, or your community received a benefit from philanthropy? Answers will vary but could include: Junior Achievement and student participation in JA Finance Park. Nordstrom Clothing Students are expected to purchase at least one item for each family member. Point out to students that purchases may not be made every month, but should be budgeted for since some clothing will need to be replaced each year. Children outgrow clothing quickly so family budgets should reflect this need. If time permits, ask: How much does the average person spend each month on clothing? $57 Page 21

22 Puget Sound Energy Electricity Monthly electric bills are tied to each home or apartment and are based on the size of the living space. In JA Finance Park we are assuming your heat is electric. If you have gas heat you would receive both a gas and an electric bill each month. If time permits, ask: When you start paying for electricity what are some things you can do to help reduce costs? Rainier Connect Internet/Cable/TV Students will have the chance to purchase internet service individually or bundle with other services. There are many choices for internet service. The higher the internet speed, the higher the bill will be. Students can opt out of an internet purchase if they choose to. Students will have the chance to purchase a cell phone and bundles of phone service, texting and data. They should remember to include their spouse in their decision-making. Students also have the option to purchase a land-line for their phone service in their home or apartment. Students will have the chance to purchase cable TV service individually or bundle these services. They can choose add-on services that include movies and HD. Students can opt out of a cable purchase if they choose to. Page 22

23 Unexpected Expense (That s Life) This line item represents those expenses that may not fall easily into another budget category. It is the surprise that people didn t think about. All students will have a scenario that will involve an expense. This is different from the emergency fund. Savings in the emergency should be reserved for real, major emergencies, like loss of job, major health expense, etc. If time permits, ask: What are three examples of unexpected purchases that that fit neatly in one of the standard budget categories? Answers will vary but may include kids field trips, appliance repairs, losing your cell phone, prescription or doctor visit copay, your child is invited to a friend s birthday party and needs to buy a gift, etc. US Bank Education Center All students who have education beyond high school will be making a student loan payment. Students have the opportunity to increase their education as well and can make additional payments to earn another degree or take a personal interest class. Before unlocking the Education research, encourage students to look at the advancement opportunities section of their persona. (Click the Life Scenario button at the top of the tablet screen.) Do they need to consider taking a continuing education class? Is another degree required for promotion? If yes, they should budget for the additional class they need to take. If time permits, ask: Does your job require continuing education credits? Water/Sewer/Trash Water bills will be based on the number of people in the household. A household of 4 people uses more water than a single person. Trash removal is a flat rate per household everyone pays the same amount. Page 23

24 Students have the option of recycling if they pay for the service. If time permits, ask: What is the average monthly water bill cost in the US? $51 Wells Fargo Credit Cards Each student has an existing credit card balance. They will discover what their minimum monthly payment is. Students can choose to pay more and should be encouraged to do so, if possible. Discuss the consequences of making only minimum required payments each month. If time permits, ask: Is credit good or bad? Neither, it s a tool. Using credit wisely is what is important. Please wait for JA Staff announcement before moving forward. STOP: ipads will stop after Research is completed, requesting a 3-digit code to move on. The code will be given after research is introduced on the following page. Page 24

25 Budget In this phase of the day, students allocate their household NMI to each budget category. Following the conclusion of Research, the student tablet will display a monthly budget. Their allocations will be based on the research they just conducted, and the guidelines on the budget guidelines sheet. Total time for this phase is 20 minutes. Savings, minimum credit card payment and minimum education debt payments appear on the budget. Students can adjust the amounts if desired. Though savings cannot be less than 2% of NMI and credit payments can be less than the minimum required. Time 20 minutes 100% of their income must be allocated. Hints and reminders to share with students as they plan their budget: o The budget guidelines provided are national averages students may choose to budget more or less than the guidelines indicate. Use the model budgets provided to demonstrate how budgets vary for families with and without children. o As students enter a budget amount, they can refer back to the information shared during research, by clicking the Research button at the top of the application page or clicking the budget category name. o For more information on individual businesses, refer to pages STOP ipads will stop here and request a 3-digit code to move on. The code is given by JA staff before shopping begins. The code is provided on the following page. If a student prematurely clicks next button, there is a cancel button that closes out of the lock screen to return them to the Budget screen. Page 25

26 Shopping In this phase of the day students will go shopping and discover how easy, or difficult, it may be to make spending choices that stay within their budget. Total time for this phase is 35 minutes. WHAT STUDENTS NEED FOR SHOPPING Students will: o Shop on their tablet at their home base table. Time 35 minutes o NOTE: Housing must be shopped BEFORE home insurance and utilities. Transportation must be shopped BEFORE auto insurance and gas/maintenance. o The tablet will display their shopping options and pricing. Selections can be made by tapping the choice or choices desired. To unselect, tap on the choice again. o The graphic near the top of the application page will indicate the shopping amount compared to the amount budgeted. o As students enter a budget amount, they can refer back to the information shared during research, by clicking the Research button at the top of the application page. CODE TO UNLOCK TABLET AND MOVE TO SHOPPING At staggered times, JA Staff will give students the 3-digit code so that they can begin shopping: XXX Hints and reminders for Shopping are found on the next page. Page 26

27 Hints and reminders during Shopping: Students must consider their assigned family situation when making shopping decisions. Shopping decisions may fall above or below their budget plan, depending on what information they discover during shopping. Students may reduce savings if necessary but total savings cannot fall below 2% of NMI. (Do not share this with students unless or until they don t have other options that require them to spend more than their NMI.) Housing Consider their family size when looking for housing. o They may buy a home if they are approved for a mortgage. If not, they must rent. If approved, they may buy a home or rent. o Other expenses associated with housing that must be included in shopping: home and renters insurance, utilities (gas, electric, water/sewer/trash). Transportation If married, they must budget for two vehicles or plan to use public transportation. o If they have children, and purchase a vehicle, at least one of them must be large enough to accommodate their entire family. o Other expenses associated with BUYING a car include gas/maintenance and auto insurance. o If using public transportation, there are no additional, related transportation expenses. Child Care If there are two children in the family they must budget for child care expenses for both children. Entertainment Students must plan to include all family members in their entertainment outings during the month. Education If they have an education loan, a minimum monthly payment is required (amount is noted on the option sheet). If their career requires continuing education or certification, they should budget for that. If career advancement requires additional education, they could consider including that in their budget. Credit Card Students can choose the amount they pay toward balance, but must pay at least the minimum required. Students may NOT spend more than their household NMI this month. They may have cash left over. Page 27

28 Payments In this phase of the day students will go record their shopping choices and make payments. Total time for this phase is 20 minutes. When students complete the shopping phase, review the budget tab to ensure that they have made all their shopping decisions. This is an important step prior to the payment phase. Students may move into payment once their shopping completion is verified; they do not need to wait for everyone to complete shopping. DEBIT CARDS Each student the debit card associated with his or her account number found on the back of their ipad. o Students may pay for their purchases as they shop or may choose to make all their shopping choices and then revisit each business to pay. o Remind students that they can find their PIN number on the back of the debit card. MAKING PAYMENTS Students will make two types of payments: a Group Online payment and Debit Card payments. o Group Online Payments: All businesses that students will make an online payment will show up on the ipad to pay. Students will tap every business icon and confirm the total to be paid. o Students must make the group online payment first before they can make debit card payments. Time 20 minutes o Debit Card Payments: Students will click on the icon on the ipad first AND the icon on the kiosk computer in each business they make debit card payments in. o When prompted, students will swipe the debit card in the reader and enter the PIN on the kiosk computer. LIFESTYLE GOALS AND VERIFYING PAYMENTS Once students have completed all payments, they will answer the 6 lifestyle goal questions again. Students view the Budget Review and Spending Analysis reports, and verify that all payments have been made. Page 28

29 CHECK OUT Students then proceed to check out. The Check Out area is designated in the Park. A JA Staff member or a volunteer will review the Budget Review reports with them. o Students Budget Review reports will be ed to their classroom teacher for review and follow up at school. o Students will return ipads to their volunteer and JA Staff will collect all ipads and debit cards at the end of the simulation. IF STUDENT FINISHES EARLY A JA Staff member will advise when there is ten minutes remaining. If student(s) in your group finish early ask the following questions for further discussion: Was the cost of daycare surprising to you? What additional options or solutions might families consider for child care? Possible answers may include: Parents could change shift so that one of them is home with children while the other one works. Live near grandparents or other family members who might be able to help with child care sometimes. Consider having one parents quit working to stay home full-time, especially if one parent is only working part-time. Did you budget for additional education over and above your existing loan? Did you pay the minimum monthly payment on your credit card or make a larger payment? Did you increase your debt load by making a purchase in furniture or home improvement? Why or why not? Did your credit score make it difficult to buy a home or car? What causes a credit score to be low? Possible answers may include: Too many credit cards, too much debt, being late on payments, not having enough income compared to debt. Compliment students on their work.and close with Remember you owe it to yourself to PAY YOURSELF FIRST! Page 29

30 Closing Procedures When students have completed their check out, they should return to their home base. At that time, please: Check in the student ipad and debit cards. Follow JA Staff directions about accounting for and returning all tablets. Remind students to clean up their home base. o The table should be returned to its original condition. o Pick up trash; straighten chairs. o Gather all personal belongings. Students, teachers and volunteers gather for a final wrap-up and debrief when announced by JA Staff. Thank you for volunteering today! Page 30