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Budget Challenge Simulation Prep

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Trophies

In this simulation you will have the opportunity to earn 6 Trophies! Each trophy has a task or goal associated with it.

On the next slide, provide details on how to earn each trophy.

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Trophy

Description

(How do you earn this trophy?)

Emergency Fund

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Key Components

Use this Google Slide to better prepare for Budget Challenge Simulation. Students will work at their own pace and utilize the Budget Challenge Website or additional links!

Budget Challenge Website

  • Quick Tips
  • Knowledge Base
  • Student Home / Getting Started Unit Material
    • Under Written Test Details
  • Vendor Selections

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Cycle Day vs. Due Date

Cycle Day

  • Definition

Due Date

  • Definition

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Based on previous slide, complete the following chart.

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Account

Which day of the month will you get your bill or statement?

Which day of the month will your bill be due? (This is NOT how many days later but the actual date)

Apartment / Rent

1st

8th

Auto Insurance

Auto Loan

(assume the month has 30 days)

22

30

Cable

25

5

Cell Phone

Credit Card

Energy (aka Utilities)

Renter’s Insurance

Student Loan

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What is a grace period?

Which of your accounts does NOT have a grace period?

How long are most of your grace periods?

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What is your annual salary?

How often do you get paid?

Explain why you don’t know how much each paycheck will be:

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Student Loan Debt...

Read the following article and write six statements on the next slide that explains what you learned and how it might impact your future.

Student Loans Article

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Six Statements on Student Loans

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Employee Benefits:

What is a 401(k)?

What is ‘Match %’?

What does your benefits package include?

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$_,___.__

What is your starting bank balance?

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Overdraft Protection

Overdraft protection (ODP) is a feature offered by banks to keep your checking account from overdrafting and incurring an overdraft fee. An overdraft occurs when you write a check or swipe your debit card but don't have enough money in your checking account to completely fund the transaction.

What Does Overdraft Protection Mean for Your Credit?

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Overdraft Protection:

Which one of your accounts is the money for your ODP going to come from?

When would you use ODP?

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Non-Sufficient Funds

Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a check or transaction cannot be honored because insufficient funds are available in the account on which the instrument was drawn.

How can you successfully avoid NSF Fees?

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Non-Sufficient Funds:

Why do you think the NSF charge is such a high amount compared to other fees?

What might be a challenge of choosing a bank with a “minimum balance”?

What is the NSF charge?

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Housing

What do you think the danger might be in choosing the 2-bedroom apartment with a roommate even though the rent is cheaper?

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Banking

On the following slide, provide a brief outline of the different banking options. Indicate which option you are considering.

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Banking Options

Option:

Option:

Option:

Option:

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Credit

Credit is borrowed money that you can use to purchase goods and services when you need them. You get credit from a credit grantor, whom you agree to pay back the amount you spent, plus applicable finance charges, at an agreed-upon time.

What is Credit?

Why do you need credit?

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Credit:

What is the finance rate on your credit card?

This finance rate is actually an “Annual” percent so how much would your daily finance rate be?

How much will typically be charged on your credit card each month?

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Energy Bill

What is the difference between level billing and standard-meter billing on your energy bill?

Why might you choose level billing even though it is more expensive?

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Renters Insurance

Why is having renters insurance important?

How much is your deductible on your renters insurance?

What is liability coverage on your renters insurance?

What is a deductible?

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Congratulations!

You are ready for the Budget Challenge! Before you begin making Vendor Selections check out Mr. Yoho’s Budget Challenge Tips below..

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Budget Challenge Tips

The following slides will help prepare you for Budget Challenge. Pay attention and complete any necessary information using the Budget Challenge Website.

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Budgeting

In this simulation we will be using a Cash Flow Sheet via Google Sheets. Here is a screenshot of the Cash Flow Sheet.

Use the Shape tool to circle all expenses listed in this Google Sheet.

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Budgeting

How you utilize your Cash Flow Sheet will have a direct connection to your success in Budget Challenge, just like budgeting in real-life.

You will have several grades relating to the Cash Flow Sheet over the next ten weeks!

  • Cash Flow Sheet Set-up
  • Cash Flow Sheet Checkpoints
  • Cash Flow Sheet Post-Assessment

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Bills

Paying bills will be a necessary element in Budget Challenge. Provide a detailed, step-by-step list of directions for how to pay your bills in Budget Challenge. Be thorough!

Step 1:

Step 2:

Step 3:

Step 4:

Step 5:

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Quizzes

Budget Challenge has built in quizzes each week. Most of these quizzes will be taken during class and students will be able to use the Unit Material during each quiz.

The more time you spend looking through the Unit Material, the better your quiz grades will be. With each quiz, you also have the opportunity to score points for Budget Challenge.

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Engagement

Student engagement in Budget Challenge is critical to learning about personal finances and success in the Budget Challenge simulation. You will also earn a Budget Challenge Engagement Grade based on the following:

  • Budget Challenge Logins
  • Quizzes Outstanding
  • Bill Payments

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Student Priorities

  • Pay bills on-time.
  • Minimize fees.
  • Prepare for unexpected events.
  • Manage a credit card balance
  • Maximize retirement savings into 401(k).
  • Maintain a Budget and Cash Flow Spreadsheet, or comparable tool to track income and expenses. Reconcile the tracking tool regularly.
  • Research quiz topics independently.
  • Ask questions when they do not understand or need help.

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Reflection

The last element of Budget Challenge will be your personal reflection.

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Congratulations!

You are ready for the Budget Challenge!

You can begin making your Vendor Selections!