Released July 31, 2009
COLUMBUS, Ohio -- New evidence shows that participation in Ohio State University Extension's "Real Money, Real World" youth financial literacy program spurs young people to make significant changes in their spending, saving and educational habits.
The 2009 study surveyed 332 students from five counties who participated in the program, designed for students in grades 6 through 12, three months earlier. It found that 98 percent of the students made at least some changes in their spending habits; 96 percent changed their savings habits; and 94 percent changed educational behaviors, such as working harder in school and discussing career interests with friends and family.
The survey combined multiple-choice and open-ended questions -- a strategy that yielded in-depth information for the researchers.
"I was surprised at the specificity of the behaviors that students mentioned," said Lisa Sotak Bateson, a program assistant in OSU Extension's 4-H Workforce Preparation Initiative, who conducted the study as her Master's thesis.
"One student said he saves money in a Pringles can on his nightstand. Another one said she uses a Tootsie Roll can to save money. One student now uses three piggy banks -- one for college, which has to be broken open to get the money out; one for long-term savings, which has a lock and key; and another one for short-term savings that can be accessed any time. To me, that says they're really doing these behaviors -- not just giving us the answers they think we want."
Real Money, Real World (http://realmoneyrealworld.osu.edu) is a six-lesson curriculum developed by OSU Extension to help middle and high school students become aware of the money-management skills they'll need for the rest of their lives. During the program, students assume the role of a 25-year-old adult. They choose or are assigned one of 108 occupations with a corresponding salary, and find out how many children they're raising. The lessons focus on basic finance principles, including how education and occupation affect income; how expenses and paycheck deductions add up; and how to be smart in using checking accounts, savings and credit.
The program's highlight is a real-life hour-long simulation: The students start with their monthly income and visit various booths staffed by community volunteers and spend their income on housing, utilities, child care, transportation costs, insurance, phone and internet access, groceries, and other items typical in a family budget.
A 2007 evaluation of 3,500 Real Money, Real World participants revealed that the program raised students' awareness about financial matters, but until the current follow-up study, it was unclear if students actually adopted new behaviors as a result of the program. The current study provides that evidence, said Bateson and her adviser, Theresa Ferrari, an associate professor of Extension education in the Department of Human and Community Resource Development and an OSU Extension 4-H youth development specialist.
The survey, which was administered by OSU Extension educators who collaborated with classroom teachers in the program, asked students about 28 behaviors related to spending, saving or education. Specifically, 80 percent of students reported changes in the extent to which they set aside money for the future; compare prices; and repay money owed on time (such as repaying borrowed money or paying their parents for a portion of their cell phone bill).
Additionally, results include:
- Spending behavior. Nearly one-third of the respondents reported changes in all nine spending-related behaviors the survey asked about, such as "I think more carefully about spending money," and "I compare prices when shopping." One student commented in the open-ended part of the survey, "When I spend money, I usually think more carefully if I need it or if I really have enough money to buy it and it's not too expensive."
- Savings behavior. Over one-third reported changes in all nine savings-related behaviors, such as "I save for specific purchases" and "I try to only buy items I need." More than three-fourths of the students reported that they now understand the importance of saving money, and two-thirds indicated that they now save more money than they did before the program.
- Educational behavior. Over one-third indicated changes in all 10 educational practice behaviors, such as "I have looked into colleges or other training options for after high school," and "I do better in school." Students reported the largest increases in discussing their career interests with their family, researching different types of careers, and making changes to their study habits.
An executive summary of the report has additional details of the findings and is available at http://realmoneyrealworld.osu.edu, under "Documented Impact Resources."
"What struck me was how strongly the students made the connection between education and income," Ferrari said. "That's not something the program focuses on overtly, but as students looked at their 'Real Money, Real World' occupation and income, and saw the jobs and incomes of other students, the connection became very apparent."
Bateson added, "The program really helps get students thinking about what kind of income they might actually expect to make. I remember one student who said he wanted to be a roofer, and saw that this job required just a high-school education and that he would make only $30,000 a year. He was surprised he couldn't expect to make more, but, really, how do kids know what workers make in a year? A lot of them don't even know what their parents make. This spurs them to go home and have those kinds of conversations."
Real Money, Real World is a collaborative effort between OSU Extension's Family and Consumer Sciences program and its 4-H Youth Development program's Workforce Preparation Initiative. It is one of six "Signature Programs" offered by OSU Extension, and is currently offered in 73 of Ohio's 88 counties. For more information on Real Money, Real World, see the program's Web site at http://realmoneyrealworld.osu.edu.
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http://www.ag.ohio-state.edu/~news/story.php?id=5310
Sources: Theresa Ferrari, 614-247-8164, ferrari.8@cfaes.osu.edu
Lisa Sotak Bateson, 614-292-4444, sotak.5@cfaes.osu.edu
Writer: Martha Filipic, 614-292-9833, filipic.3@cfaes.osu.edu
