1. Welcome to ®

2. When is Reality Town? April 12, 2016 Main Gym Three Sessions

3. During the Reality Town simulation each of you will become a 30 year old with a family and career and the associated financial responsibilities of adulthood. You are to visit all of the businesses in Reality Town and make purchases such as a home, car, groceries, clothing, etc. You must stay within your budget, while establishing your lifestyle (your standard of living). You have randomly been assigned one of 4 different life scenarios. Click for next slide

4. Life Scenarios married, spouse works and goes to school no help for child care – contributes $500 to your monthly income married, spouse works add $2,000 to your monthly income single parent add $200.00 per child to your monthly income married, spouse stays home no additional monthly income You have randomly been assigned either 1, 2, or 3 children.

5. Click for next slide Your Pay Stub is found on page 1 of your handbook.

6. Your Name Your Job & Education Click for next slide Reality Town Life Scenario Reality Town Children

7. Reality Town Basics How did I get this job? Educational level was determined by GPA. Jobs were randomly assigned within each level. GPA Scale 3.8 or higher is Doctoral Degree 3.5 or higher is Masters Degree 3.0 or higher is Bachelors Degree 2.0 or higher is Technical or Associates Degree 1.7 or higher is High School Diploma

8. In order for you to understand the remaining information provided on your pay stub, it is necessary to explain some of the terminology associated with tax withholdings as well as your automatic loan payment. Reality Town Pay Stubs Click for next slide

9. Annual Gross Salary Exemptions Taxes Automatic Loans Spouse’s Income Monthly Gross Salary Household Monthly Income Instructions: To learn about your pay stub click on the underlined words. Click on the pay stub when you are ready to move to the next slide. Click on the underlined words to get back to this slide. Annual Net Salary Monthly Net Pay Click to skip the definitions

10. Look on the bottom of your pay stub to see if your employer provides health insurance.  Health Insurance This means that your employer pays for your Health Insurance, but not Dental Insurance. If the “Insured” stamp does not appear on your pay stub, you must decide whether or not to purchase Health Insurance. Everyone must decide whether or not to purchase Dental Insurance. Click for next slide

11. To Buy or Not Buy Health or Dental Insurance? That is the Question! Many people must make this decision. It may be less expensive to pay the full price for the few office visits you make every year rather than pay for insurance – which will cost you $450 every month. However if something major happens – such as your child breaks their arm or you need a tooth crowned - you may wish that you had Insurance. YOU MUST DECIDE! Click for next slide

12. Cost of Dental and Health Insurance in Reality Town: Medical Insurance is $550/month Doctor’s Office Visit: $80-90 without insurance, $25 with insurance Broken Leg: $779 without insurance, $155 with insurance Dental Insurance is $75/month Child’s Dental Exam: $45 without insurance, $10 with insurance Root canal : $571 without insurance, $285 with insurance Click for next slide

13. If “Professional Dress” is shown on the bottom of your pay stub, your job requires you to dress appropriately. Look at page 10 in your handbook to see your clothing options. Just remember you must also buy moderate or designer clothing for your family. TM Click for next slide

14. You will receive your Reality Town handbook on your way into the gym. Write your household income on the first line of your balance sheet. Begin visiting the other businesses in any order. Check the back cover of your handbook for exceptions to the above rule. Example: You must buy/rent a Home before paying for Utilities. Need help? Visit the Financial Counseling Office. What To Do In Reality Town: Click for next slide

15.  The Check Register is located in the center of the handbook.  Volunteers will help you complete this as you proceed through Reality Town. SAVINGS If you wish to put money in savings – it will be recorded here. Go back to the Check & Savings/Bank to put money in or take money out of savings. Many financial advisors recommend saving at least 10% of your monthly salary. Click for next slide

16.  At each business the volunteer will initial the back page of your handbook. Things to Know:  Supplemental Income and Financial Counseling are there to assist you if you need help, and are optional. The Pet Store and Military Recruitment Office are also optional businesses. Click for next slide JP

17. Click for next slide Try to make your choices while waiting in line or before you go to a particular business to make your purchase!!! Remember to make decisions that keep you within your budget. You cannot have a negative balance!!!

18. Things you will need: Pencil Calculator