As a general population, most people living in America, and Kentucky, do not understand personal finance management. In fact, 78% of American report that they are living paycheck to paycheck. (According to an employment website- CareerBuilder) If we can teach our students important financial principles such as budgeting, saving, avoiding debt and preparing for a marketable career that they love they can experience financial peace and stability instead of knowing only the stress and anxiety of financial management.

To help students understand the importance of good financial management Menifee County Extension Office conducted the Reality Store with more than 200 sixth, seventh and eighth graders at Menifee Elementary School. We worked with the school system who assigned every student a career and a salary, and students drew for the number of children they would have. Students were able to visit booths to purchase housing, transportation, insurance, childcare, groceries, utilities, etc. Our extension office partnered with other community members such as representatives from the health department, youth services center, library, Clark Energy, as well as several extension volunteers and homemakers to work at booths and assist students with their purchases and budget.

After reviewing students’ surveys, the self-ratings of financial literacy improved on every question. Students improved their self-rating on a scale of 1 to 4 (1 being the least competent, 4 being the most competent) for “making wise financial choices” by 0.8 points. They also improved in “budgeting money” and “understanding what it costs to maintain a household” categories by 0.7 points each.

Students learned about basic, essential financial principles that many adults do not even put into practice. It also gave them a sense of the cost of living and how the choices they make (career, starting a family, etc.) will impact their financial reality.