Learn More about Budget Challenge - Financial Literacy and Capability + Investing (2024)

FAQs

What does the budget challenge teach you? ›

The H&R Block Budget Challenge is a free teen financial literacy program in the form of an online game that simulates real life as an adult: paying bills, managing expenses, saving money, investing in retirement, paying taxes and more.

In theory, once the simulation begins, playing Budget Challenge is simple. Pay your bills on time and complete the tasks that earn you trophies. Doing so in the game means a high score, success, the envy of your friends and classmates and probably a good grade.

Students earn a point per dollar saved in their 401(k) or earned in interest, while losing a point per dollar in fees incurred – including an extra 150-point penalty for every late fee incurred.

The main purpose of a budget is to accomplish certain goals, whether a financial goal or a personal goal confronting to the saving and spending of the individual. It helps to live within provided income by considering all the household expenses, investment amount, financial emergencies, and buying decisions.

Not only does keeping a budget help you understand where your money is really going, it also helps you align your spending with your priorities. Without a budget, your money just flows out of your accounts without direction. When you make a budget, you can ensure that how you spend your money matches your priorities.

Budget Challenge teaches financial capability, not just knowledge. During our patented 10-week simulation, students are able to practice money management skills and receive real-time feedback that impacts their behaviors and attitudes.

Answer. The Budget Challenge simulation teaches the principles of budgeting by having players manage limited financial resources and make decisions on spending, highlighting the realities of opportunity costs and the importance of tracking expenses to achieve financial goals.

Determine your budget

One popular budgeting method is the 50/30/20 rule, which suggests allocating 50% of your income toward needs, 30% toward wants, and 20% toward savings and debt repayment. Following this budgeting method could help you plan a more balanced budget.

Trophies and Updated Scoring

We wanted a way to help students prioritize among competing financial goals. With that in mind, there are now six trophies that students can earn during the simulation. Each trophy is worth 1,000 points and represents an essential financial skill.

Why is it important to complete and use the cash flow budgeting tool? ›

The primary purpose of using a cash flow budget is to predict your business's ability to take in more cash than it pays out. This will give you some indication of your business's ability to create the resources necessary for expansion, or its ability to support you, the business owner.

Budgeting helps you achieve academic and financial goals.

Writing down your goals is the first step in creating a plan to make them realities. A budget will also help you prepare for unexpected expenses and obstacles.

A budget can often help build financial independence and freedom. A budget can also set you on the right path to achieving your financial goals, spending within your means, saving for retirement, building an emergency fund, and analyzing your spending habits.

A training budget secures the longevity of your organization by making employees equipped to adapt to future developments and changes by providing the necessary resources for their upskilling.