In a proactive approach to financial literacy, students at Milwaukee’s South Division High School are receiving vital budgeting guidance from financial experts associated with SecureFutures. This initiative aims to equip young individuals with the skills necessary to manage their finances effectively as they prepare for their futures.
Personalized Financial Coaching
Senior Jamarri Burns is among the students taking part in this program, emphasizing the importance of wise spending habits. “Always spend money on the right things,” he advises. At South Division, Burns collaborates with financial coaches who serve as mentors, providing tailored advice twice a month.
Tino Arvanetes, the Growth and Client Engagement Director at Prescient Financial Solutions and a volunteer with SecureFutures, describes his role as fundamental to students’ financial education. “I refer to it as the blocking and tackling of finances,” he explains. His sessions consistently underline a crucial concept: the significance of maintaining a budget. “A budget essentially tells your money where to go before the end of the month, preventing the common lament of ‘where did it go?’” Arvanetes adds.
Understanding Needs vs. Wants
Lilyana Soto, a former student of Milwaukee Public Schools, reflects on her transformation over the past year. Once caught in a cycle of impulsive spending, she now understands the critical distinction between needs and wants. “A need is something essential for survival, while a want is merely a desire,” Soto clarifies. Her experience with SecureFutures has inspired her to volunteer, sharing her newfound financial wisdom with current students.
During a recent classroom session, FOX6’s Bret Lemoine prompted students to raise their hands if they had crafted personal budgets. Almost every student responded affirmatively. However, when asked how many consistently adhere to their budgets, only a few hands remained raised.
“You can’t just be a great saver and not enjoy the fruits of your labor,” Arvanetes remarks. “It’s about finding a balance.”
The 50/30/20 Budgeting Rule
To assist students in managing their finances more effectively, Arvanetes recommends the 50/30/20 budgeting rule. This strategy involves dividing monthly income into three categories:
- 50% for Needs: Essential expenses such as rent and groceries.
- 30% for Wants: Non-essential items or experiences, like dining out or entertainment subscriptions.
- 20% for Savings: Allocating funds for investments and establishing an emergency fund.
“Assess your financial landscape,” he advises. “Understand what’s entering your household and your bank account.” Arvanetes also emphasizes the importance of preparing for unexpected events, suggesting that individuals maintain three to six months’ worth of living expenses as a safety net.
Burns has adopted these principles, monitoring his budget daily. “I want to live a life that’s worth living,” he asserts, demonstrating a commitment to achieving financial stability and success.
Through programs like SecureFutures, students are gaining the tools they need to navigate their financial futures confidently, transforming their understanding of money management.
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