MSU Extension 4-H Youth Money Management

The life skill of money management can have short- and long-term effects on the success of young people.

According to the Ramsey Education research, The Financial Literacy Crisis in America: 2023 Report:

• 88% of U.S. adults said high school did not leave them “fully prepared” for how to handle money in the real world.
• Three in four U.S. adults said in the years after high school, they “often” (32%) or “sometimes” (42%) felt stress because of money.

Michigan State University Extension and Michigan 4-H provide a variety of methods to support financial education for youth, supplementing existing school education or providing a first-time experience with personal finance.

One method used to reinforce this topic is through the Michigan 4-H Cash Composition Contest. In 2024, the essay topic was budgeting. The essay question asked youth to consider the types of income and expenses in a budget, and how a budget helps with managing money.

Youth participated from 34 of Michigan’s counties, with a total of 75 essay entries. This was the first year for the essay contest to include two age brackets: 9-13 years-old and 14-19 years-old.

From those who self-proclaimed they were “Starbucks obsessed” to those planning a trip to Disney World, youth shared the benefits of budgeting for financial stability and to build savings goals. Some of the other messages on budgeting from youth include:

• Many youth recommended starting with the 50-30-20 rule: 50% of net income for needs, 30% for wants, and 20% for savings/debt repayment.
• Budgeting isn’t always about limitations. Youth shared that “it allows individuals to prioritize spending” and “create a map for where you need to go to get to your goal” in life.
• Young people shared the importance of setting aside a portion of income for savings and trimming non-essential expenses to build a “financial safety net” or emergency fund.
• Some essay writers mentioned debt, loans or borrowing, and the considerations you should take into effect when budgeting. “Responsible borrowing means taking only what is necessary to avoid accumulating unnecessary debt in the long run.”
• Fixed expenses and variable expenses should both be considered in your budget. “Recognizing these distinctions [in expenses] helps in creating a realistic budget that accommodates both regular bills and occasional expenditures.”
• Youth often shared that writing down goals and keeping track of a budget on paper or in an app is helpful for success.
• All of the youth shared that budgeting does take work but is worth it. “Budgeting might seem difficult at first but, with practice, you will become better at it.”

Thanks to the generous sponsorship from Extra Credit Union, each of the six winners won a $100 e-gift card. Congratulations to the 2024 winners!

9-13 years-old division:

• Aubrey D. (Eaton County)
• Reagan M. (Van Buren County)
• Olive F. (Oakland County)

14-19 years old division:

• Paige D. (Wayne County)
• Anna H. (Clinton County)
• Amy S. (Washtenaw County)

To read the winning essays and learn more about the contest, visit the Michigan 4-H Cash Composition Contest webpage.

Michigan State University Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. To find out how to get involved as a Michigan 4-H youth participant or an adult volunteer, contact your county MSU Extension office.