The money part of ‘adulting’

CEDAR RAPIDS — Can you afford to buy new shoes after you pay your rent? Will it be a steak or hamburger week? Or maybe ramen noodles?

Students in a personal financial planning class at Mount Mercy University faced those questions last week as they christened the Busse Foundation Junior Achievement’s Finance Park Mobile.

The 25 students entered the “mobile city,” with lifelike storefronts, armed with computer tablets, an assigned persona and a budget.

Each randomly generated “life persona” contained the details of their “adult life,” including job title, annual salary, age, marital status, debt, savings and credit score.

The students then had to figure out up how to pay up to 22 expenses — for groceries, transportation, rent or mortgage, loans, insurance savings, investments and charity — without exceeding the monthly budget they’d been given.

By the end of the simulation, students “recognize that the decisions they make about education and their career will have an impact on their potential income and quality of life,” Junior Achievement said in a news release.

Because the Finance Park simulation is mobile, it can be moved to other schools and venues where young people are learning how to manage their money — and their life.

The setup costs for the Finance Park’s first year were around $250,000, with the Busse Foundation partnering with Junior Achievement, according to Katie Langrehr, experiential learning director for Junior Achievement of Eastern Iowa.

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“Many other Junior Achievement area offices use a fixed capstone facility for this experience,” Langrehr said. “We wanted to ensure this project was sustainable for us to serve students and community partners throughout our footprint for years to come with these hands-on learning experiences.”

That footprint covers Eastern Iowa, from Waterloo to Iowa City.

The Finance Park project aims to “inspire, guide and teach students how to be financially capable and ready to take on their futures,” a Junior Achievement spokeswoman said.

What they learned

Seth Pennock, assistant professor of business at Mount Mercy, taught the monthlong personal financial planning course, using Junior Achievement curriculum.

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The simulation — held Wednesday and Thursday at the university — was effective, he said.

“There are things you can tell them in a classroom,” Pennock said. “But it’s another thing to have simulation money and discover you have to spend $600 a month on health insurance.”

The “aha” moments, he said, were “the realization of how your income changes through your different life phases and then just how expensive life is, in general.”

In the simulations, students were able to pick their career path, which then provided them with a net monthly income. They also were able to choose if they would get married, have kids and pets — all things that cost money.

Then they had to make decisions about what they would theoretically spend on housing, groceries, clothing, utilities, entertainment and so on. They also had scenarios when they had to make decisions as young adults, as adults, and then as adults nearing retirement age.

“It was very personal, based on your values and your relationship with money,” Pennock said. “Students start to understand that while they’re now thinking about having money to go out and eat or go to a bar, but when they’re 35, with a kid and a spouse, they will value money in a different way.”

This month was the third time Pennock has taught the personal financial planning course but the first time for the budget simulation.

“This Junior Achievement simulation offered some of the best hands-on experiences the student could get,” he said, adding he hopes to repeat the exercise next year.

What’s next?

Junior Achievement is exploring several school and community partnerships to take the new mobile city — and accompanying financial training — on the road.

Langrehr said the experience is adaptable for students from seventh-grade and up. Those interested in discussing partnerships and curriculum can email her at klangrehr@jaeasterniowa.org

Junior Achievement of Eastern Iowa has a staff of 19 with nearly 1,400 volunteers appearing in one-day student events or in-classroom programming. It served 39,644 students in the 2022-23 school year.

“For nearly 60 years, Junior Achievement of Eastern Iowa has been focused on inspiring students through financial literacy, work readiness and entrepreneurship education in the K-12 setting,” said Nate Klein, the nonprofit’s vice president of education.

“For the first time in our history locally, as well as the first time in the nation, we are thrilled to partner with Mount Mercy University to provide postsecondary students with the JA Finance Park capstone curriculum and an experience that engages them in hands-on learning to shape their financial future.

“We believe this unique opportunity will connect their college education, career aspirations and financial future in a way that will be memorable and inspire their choice-filled lives.”