MOUNT VERNON — Mount Vernon High School seniors and Knox County Career Center juniors recently learned about reality in dealing with living expenses and saving money.
Students took part Wednesday in an exercise called Reality Store/America Saves. They were given a monthly check in the amount of $1,950. After $652 was subtracted for taxes, the students visited 20 tables in the gymnasium; the tables represent all the money realties they will encounter in life. The students learned what their cost for living is for such items as food, utilities, transportation, housing and health insurance — and how much to pay on the credit card balance.
The America Saves program is a nationwide program that encourages and assists individuals to save and build wealth. America Saves Week runs today through March 2.
Locally, the program was planned by LuAnn Duncan with the Ohio State University Extension Service in Knox County. Extension offers a program called Money 2000, which explains that people should reduce their debt by $2,000 or increase their savings by $2,000.
Duncan explained that people lack investing and savings, and have very high debt. Currently, the national savings rate is 0 percent. In addition, a recent study by the Consumer Credit Counseling Service showed that overall consumer debt has increased by 38 percent for households at all income levels over the last year. The study showed that most Americans don’t have adequate savings to meet major emergencies.
Duncan added that Baby Boomers are coming to retirement age with very little savings and increased debt, neither of which is improving.
“Basically,” she said, “very few people are saving and that’s why we need to teach them it is important.”
Duncan said that in the 1980s “we became a public that wants it and wants it now”; spending wasn’t an issue.
The Reality Store fits in with the America Saves program because it teaches the importance of saving, creating an emergency fund, and using debt wisely. Duncan said it doesn’t say one cannot have debt, but that it must be used wisely. Through the program, the youth of Knox County are asked to sign up to become Knox County savers.
A Knox County Saver is anyone who agrees to a savings goal, such as money for emergencies, for a home, education, investments or to improve his or her standard of living. Members get free advice from financial professionals, personal accounability for savings goals, a newsletter four times a year by e-mail and a fact sheet on different types of local savings accounts.
Anyone can become a Knox County saver by filling in a form in the Knox County Saver brochure and mailing it to OSU Extension Knox County, 1025 Harcourt Road, P.O. Box 1268, Mount Vernon OH, 43050. Knox County Saves is locally managed, but advised by America Saves, a consumer federation of 50 national nonprofit business and goverment groups. Knox County Saves partners are CES Credit Union, First-Knox National Bank, Killbuck Savings Bank, National City Bank and Peoples Bank of Gambier.
Mount Vernon Mayor Richard Mavis, as well as the Knox County Commissioners, recognized America Saves Week via proclamations.