“Life In The United States” is a family finance spending plan simulation experience designed to be utilized as an applied assessment following financial literacy instruction. The simulation is designed to emulate the constraints households and individuals encounter when managing their finances.
The complete “Life In The United States” set includes 27 individuals in 19 households. Extensive research was conducted utilizing the U.S. Census Bureau, the Bureau of Labor Statistics, the United States Department of Agriculture, and other professional sources. The set of households is designed to accurately resemble the demographics of individuals in the United States, and when used together, creates a diverse community. During the simulation, participants not only make spending plan decisions but are also exposed to a variety of household situations and financial conditions.
To begin the simulation, participants are given a “new identity” or profile. They will use the career and income information from the profile(s) to develop a spending plan for that household. The profile includes background information on an individual or couple and a paycheck for their household member(s). The paycheck amount(s) represents the national average for the chosen profession(s) with taxes deducted. Participants will use a spending plan spreadsheet to guide them through the decision-making process when choosing housing, utilities, transportation, insurance, food, and flexible expenses such as personal care and entertainment for their household member(s). The simulation is complete when they have developed a spending plan with a zero balance that allows their household to meet both personal and financial goals. During and following the simulation experience, participants are given the opportunity to reflect on their experience and their learning.
The simulation experience also presents real life obstacles to the participants. Each household will receive a randomly selected credit card statement. The statement shows the household’s current credit card debt and the minimum monthly payment that must be paid. Participants will also draw a random chance card which represents life’s surprises and obstacles. The credit card debt and expenses experienced on a chance card may be difficult to include in the household’s spending plan, but they must be accounted for, even if that means revisiting and revising previous decisions.
Note: The numbers used in this simulation come from government and other reliable sources which are updated periodically. You may feel it necessary to allow students to adjust costs based on what is being experienced in your local area.
The files for this simulation can be downloaded below or used in Google Drive.
