Financial Literacy Assignment (Parts 1, 2,

and 3 = 100 points)

The first year in college is a perfect time to begin charting a course for a secure financial future. Budgeting,
applying for financial aid, establishing credit, managing debt, and saving and investing each play important
roles in providing you with a good start in financial planning—for now and for the future. Our financial literacy
assignment will provide you with the opportunity to examine your current and future financial situation and
make plans for meeting your financial goals.
NOTE: Fill in ALL blanks in project.

Part #1 – Payback Simulation and Worksheet (25 points)

Simulation Round 1

Participate in the simulation https://www.timeforpayback.com/ As you participate, make realistic

decisions to keep your debt manageable and maintain your focus, connections, and happiness. Record
your decisions in the Round #1 column below.

Round #1 Round #2

What type of school did In-State School Private School

you choose? Why?
Because there are a lot of good Because it has one private school I
schools in Texas, and I wanted to be want to go.
close to my parents.

Living arrangement: Living with roommate. Living in squad room.

Will you work? How Yes, 20-25 hours per week. Yes, 20 hours
many hours per week?

Major, including starting Nursing – $55,342 Nursing - $55,342

salary and
Unemployment rate: 13,3% Unemployment rate: 13,3%
unemployment rate:

Your final debt amount: $10,662 $37,835

Page 1 of 9
 Your starting salary: $55,342 $55,342

Your paycheck amount: Monthly Paycheck: $2,767 Monthly Paycheck: $ 2,767

Your estimated monthly $113 $401

student loan payment:

What percentage of your 4% 14%

paycheck is used to pay
your student loan debt?
https://
percentagecalculator.net/

Simulation Round 2
Go through the simulation a second time, choosing a different scenario (major, school, etc.)
https://www.timeforpayback.com/

Record your thoughts in round #2 on the same Payback Activity Worksheet (ABOVE).

Reflection
Complete the reflection questions in complete sentences.

1. What two lessons did you learn by playing this game that you could apply to your real life?
I learned about the needs and wants of each year. And I learned how to spend my money in the right places
through 4 years of learning based on my first salary.

2. What were the factors that you considered in choosing a college the first time you played the game?
Did that change the second time you played?
I chose an in-state public school, and I did not change my mind.

3. Did you find it difficult to balance the three factors: happiness, focus, and connections?
Describe a decision you made and how it impacted each of these factors.
I feel it would be difficult to balance the three factors because if I spend too much time on one or more
Page 2factors,
of 9 the other element will lack. So, I choose to focus more on studying the other factors, anyways I am
still available for my family and connections and not neglect them.
 4. What impact do you think GPA and extracurriculars might have on the college you attend and how
much you will have to pay?
I think GPA and extracurriculars activities might be a strong impact on my college. I might be pay a bit for coffee
shop for studying but I prefer study in library and extracurriculars activities will not expensive. So, the average
cost for this will be ~$700.

5. How did you feel as you saw your student debt grow during the game?
Did you make changes later in the game to try and keep your debt more manageable, and if so, what
were they?
First, I would feel a bit anxious. And then I must look back my money budget, what I spent and what I will pay
to balance my needs and wants.

6. What is your attitude about student loan debt after playing the game?
What do you think will have the biggest impact on your debt amount?
I think the biggest factors influencing debt amounts are the cost of tuition, the choice of school, and the type
of degree pursued. Additionally, decisions about working while studying and managing expenses can affect
how much debt I take on.

7. Do you think this game is reflective of the expenses you will have in college? Explain.
Yes, I think a game that simulates college expenses can be quite reflective of the actual costs students face. It
often highlights not just tuition, but also living expenses, textbooks, and other fees that can add up quickly.

8. Generally, your total student loan debt should be less than your starting salary after graduation.
a. In the first round, was your total debt amount more or less than your starting salary?
b. Does this worry you? Why or why not?
In my first round, my total debt amount less than my starting salary.

Yes, I did worry during play the game, I had to manage carefully based on my salary also my needs and wants
while studying.

9. How can you use the experience of this game to minimize debt in college?
I will consider the transportations, limit buying extra things while in the dorm or spend for parties can affect
studying.

Page 3 of 9
 Continue on next page.

Page 4 of 9
Part #2 – Wells Fargo Budgeting Toolkit (50 points)
Complete the budget worksheet below. This can be based upon your current situation or your
potential future situation with your new career. Please do not feel that you have to share private
information (which is why you can base it on your future instead of the present).

Your Financial Goals – What is important to you?

I plan to… By this date The amount of

money I will need
is…
1 Saving for Spring’s semester Dec 2024 $2000
2 Vacation with my parents May 2025 $1000
3 Help my parents pay off half a car Dec 2025 $3000
4 Transfer to university May 2026 $3000
5 Pay living expenses in university Dec 2026 $2000

Financial goals (Fill in the blanks in the sentence and the boxes.)
1. I plan to increase my assets (finances) by $11,000 (amount of money) by December 2026
(date).

Here is how I plan to increase my assets (finances): I will keep working 20-25 hours at the
restaurant per week. And every paycheck I will save $500-700 for my financial goal.

2. Here are my other financial goals:

My other financial goals would be scholarship or FAFSA. They will help reduce the amount of my financial goals.

Page 5 of 9
 My Budget Worksheet: Monthly income (after taxes)
Monthly Expenses Food
Mortgage/rent/HOA Groceries $200
Cleaning help/landscaping $30 Dining out $100
Laundry
Gas $43 Total food $300
Electricity $38 Auto/transportation
Water $45 Car loan/lease $500
Home phone (including long distance) Car insurance $100
Cell phone $50 Maintenance $50
Cable/satellite/Netflix/etc. $35 Public transit
Internet access $50 Parking
Security Gas $80

Total auto/transportation $730

Total home $261 Entertainment
Health Movies $20
Toiletries Vacation $200
Cosmetics $40 Parties/gifts $100
Pharmacy $30 Subscriptions
Health club

Total health $70

Personal Total entertainment/recreation $320
New clothes (and work clothes) $70 Other
Dry cleaning Child care
Barbershop/salon/hair care $60 Pets

Total personal $130

Total other

TOTAL monthly expenses : $1,811

Total monthly income : $ 3,000
- (minus) monthly expenses :
= $1,189

Page 6 of 9
Budget Tips
To make your monthly income last, consider using it in the following order:
1. Pay your monthly bills. There are many potential penalties if you pay late, such as late fees, losing
possession of things you’ve bought on credit, even being evicted from an apartment!
2. Set aside the money you’ll need for your weekly and day-to-day expenses, like groceries and bus fare.
3. Put money into savings. Try to build two months of take-home pay for an unexpected financial emergency.
4. Set aside money for larger expenses you know are coming, such as car repairs or appliances.
5. Set aside money for your major future goals whether it’s a home, college for your children, a new car, or
travel.
• If possible, try to stretch your bills out evenly over the month, so that you pay about the same
amount each week. For regular monthly bills, you may be able to request a change of a bill’s due date
to spread out your bills more evenly. Try to avoid having one week when all your cash-on-hand is
needed for bills.
• For large expenses that are not monthly (for example, insurance bills, car repairs, holiday gifts, etc.)
place an amount of money aside each week or pay period so that you have money to pay the bills
when they are due.
• Here are some guidelines to consider for how much of your take-home monthly income you might
budget for various expenses:
 Housing (rent or mortgage) 20 to 35%.
 Utilities (gas, electric, water, trash, telephone) 4 to 7%.
 Food (at home and away) 15 to 30%. º Family necessities (laundry, toiletries, hair care) 2 to 4%.
 Medical (insurance, prescriptions, bills) 2 to 8%.
 Clothing 3 to 10%. º Transportation (car payment, gas, insurance, repairs, or bus fare) 6 to 30%.
 Entertainment 2 to 6%.
 Savings 10 to 15%.
• Try to limit your debts (car loans, credit card bills, other loans) to 10–20% of your monthly budget.
• To decide whether a purchase is necessary, ask yourself these questions:
 Do I really need it? º Do I really need it today? What would happen if I don’t buy it now?
 Can I meet this need less expensively?
• Always review your bank and credit card statements. It will remind you where your money is going.
For questions or information specific to your financial situation contact your local banker.
Hands on Banking® • The Library • www.handsonbanking.org ©2019 Wells Fargo Bank, N.A. All rights reserved.
Page 7 of 9
Part #3 - PlaySpent Simulation and Reflection (25 points)
 Participate in the simulation on www.playspent.org

 Write a reflection on your PlaySpent experience in detail. Answer the following questions in complete
sentences.

1. Describe the types of outcomes that your decisions led to.

I chose to be a server at the restaurant, and I made it. I finished 30 days but the money I have left is $63.

2. Based on the definitions at the bottom of this page, is situational or generational poverty
connected to intelligence or ability? Why or Why not?

Situational and generational poverty are not connected to intelligence or ability. Situational poverty, such as
job loss and health issues or natural disasters. In these situations, may the same intelligence and skills as
those in stable financial conditions. Besides, generational poverty, lack of access to quality education,
resources, and opportunities. This may limit the development of skills and knowledge, but it does not reflect
a personal’s intelligence or ability. Overall, intelligence and ability are influenced by a wide range of factors.

3. With your phone or computer, quickly research ways a person could overcome both types
(situational and generational) of poverty. What did you find?

. Situational Poverty: Temporary financial aid can provide immediate relief, participating in skill development
can help individuals secure better, enrolling in online courses, and building connections through community
can lead job opportunities.

. Generational Poverty: Supporting children’s education through scholarship..., learning budgeting, saving, and
investing can empower families to manage resources more effectively.

4. In your own opinion, what are the realities versus the myths of poverty?

In my opinions, realities of poverty are mix issues, including economic, lack of access to education, health
care. They have diverse experiences, like race, gender, location play roles in shaping how poverty affects them
and families. And, myths of poverty, on the other hand. A myth of poverty is that people are lazy or not
working. Many work or long hours and still struggle.

5. What are some reasons you believe individuals and families find themselves in poverty or
homeless?

Page 8 of 9
 They are unemployment, and it can change financial stability. Also, low wages and prohibitive cost of living.
Or floods, hurricanes can displace families. Without affordable health care, individuals can struggle to
manage health issues that affect their ability to work.

6. In what ways has this financial literacy assignment helped your understanding of poverty AND
wealth?

It’s helping me about the budgeting, saving, and managing debt how issues affect those in poverty. And this
assignment covers strategies for building wealth, such as investing, saving.

Understanding Poverty Definitions

Situational poverty (short-term) is generally caused by a sudden crisis or loss and is often temporary. Events
causing situational poverty include environmental disasters, divorce, or severe health problems.

Generational poverty (long-term) occurs in families where at least two generations have been born into
poverty. Families living in this type of poverty are not equipped with the tools to move out of their situations.

Upload this entire completed document to the financial literacy drop box.

Page 9 of 9