By Michael Bernasch Staff Writer
Students concerned about budgeting their expenses post-graduation got a feel for what that would be like at the Financial Reality Fair held in Mellon Lounge on April 4.
The fair, which was sponsored by the Pennsylvania State Employees Credit Union and hosted by the Center for Academic Achievement, ran from 10:30 a.m. to 1 p.m. and was designed to give students the opportunity to experience what managing their personal budget would be like once they have graduated.
“The main purpose is to give people a reality check and show them how hard it is to live on the salary they’re given,” said Tara Trupp, business advisor for PSECU.
At the fair, students were given a starting salary of $40,000. After factoring in federal and state income taxes, social security, local taxes, the Medicare tax, their health insurance premium and their employment retirement plan, they were left with $2,347.67 as their take-home pay.
The first table that students went to after getting their budget was housing, where students looked at various housing options and have to consider factors such as pets and the number of roommates they might have in the place of their choosing.
According to Shawn Baile, the public relations coordinator for PSECU and one of the two people managing the table, housing is typically the largest expense students are faced with.
“You have in mind what you want,” he said. “You want to own your own house, and then you realize that’s a more long-term reality.”
After housing came the transportation table, where students had to choose the type of car they wanted, taking into consideration factors like the condition, whether they wanted a new car or a used one and the expenses necessary for gas and maintenance.
At the insurance table, students had to factor in auto insurance and choose between renters and home insurance. They had the option of choosing between a one-bedroom, two-bedroom and three-bedroom house.
According to Dave Dentler, the senior director of membership development and sales at PSECU, and Brenda Balonis, the associate director of human resources, the large majority of students who visited the table didn’t buy a house, instead choosing a one-bedroom apartment.
Another important factor students took into consideration was that car insurance changed based on age.
“The younger you are, the more expensive it is,” Dentler said. “As you get older, you become less of a risk.”
Students then moved on to the furniture and appliances table, where they factored items like a bed, television and microwave into their budget. The number of items varied based on where they had chosen to live.
“This is a table where people have to think about wants versus needs,” said Katie Burr, director of first year experience at the Center for Academic Achievement.
After this, students proceeded to the cell phones table, where they had to factor in the expenses of owning a cell phone, including the type of phone and the monthly plan. Then, at the student loans table, students learned how to manage their student loans as they factored them into their budget.
Following student loans, students stopped at the TV and internet table, followed by food, hair/nails/spa and clothing, the gym and entertainment and lastly the donations and pets table.
“People don’t have much money by the time they get here,” said Kristie Schaffer, business advisor at the Bloomsburg University PSECU, who managed the pets area of the table.
Once students were finished at each table, they proceeded to the “Wheel of Reality,” where students were given something random to factor into their budget to simulate something similar happening in real life.
Trupp said, “It hits you with a bit of reality.”
Potential events included a tax refund of $200, a $30 gift from your grandmother, cell phone repairs that cost $100 and laptop repairs that cost $75, among others. Whichever ones students landed on, they had to factor it into their budget to see if it stayed within their budget or not.
A big concern was how engaged the students would be, according to Virginia Larson, associate director of academic success and junior and senior experience at the Center of Academic Achievement.
“We didn’t want to make something tedious and too time-consuming, but we wanted to make sure they were getting something out of it,” Larson said.
Ultimately, she felt the Financial Reality Fair was a success and hopes to see another one take place in the future.
“I think the turnout was wonderful,” she said. “I think we might have had the most attendance PSECU has had when they do this.”
