Teen Wins $100,000 Scholarship From the H&R Block Budget Challenge

Think back to your days as a high school graduate. Chances are, you didn’t know much about personal finance. Could you stick to a budget? Could you pay a bill on time? Did you even know what a 401(k) was? I’d wager that most of us learned about managing money the hard way, ending up making costly mistakes that followed us for years into our 20s — or possibly later.

And there lies the problem. Our teens are graduating high school and expected to enter young adulthood without a clue how real world finance works. With 57% of teenagers spending their own money on purchases, only 17% keep a budget. H&R Block is ready to change that.

What Is the Budget Challenge?

Quite simply, the H&R Block Budget Challenge is a brand new classroom tool designed to teach high schoolers personal finance. This isn’t done through textbooks or blase reading materials — this is done through real-life simulation, giving kids the reins to control their imaginary finances. In other words, it’s a game! Participating teachers are given lesson plans (in accordance with Common Core standards), learning videos, and other resources to help make this project a hit in their classroom.

Teens are asked to look at the life of a recent high school grad who’s been working for six months. They are given a “virtual salary,” and sent on a mission to pay their bills on time (rent, cable, cell phones, etc.), balance their paycheck, and contribute to a 401(k) plan. The game throws real life curveballs at the students, such as late fees, overdraft fees, and surprise expenses. At the end of the simulation, students are scored based on how much money is socked into savings or a 401(k), and if they’ve paid their bills in a timely manner.

The most important takeaway of the program? The Budget Challenge lets kids make mistakes, suffer financial losses, and understand penalties — virtually. They can see the consequences of costly missteps without actually suffering for it. Don’t you wish you had that option?

“The H&R Block Budget Challenge is unique because it allows students to learn by doing,” explains H&R Block president and CEO Bill Cobb. “But unlike the real world, all they have to lose is points — not their credit or hard-earned money.”

Are There Rewards?

There sure are! Throughout the Budget Challenge, H&R Block will dole out $3 million in grants, college scholarships, and cash prizes. The top five classrooms in each simulation are eligible for up to $5,000 in grants. The top 22 students in each simulation will each be awarded a $20,000 scholarship to put toward their college or higher education. With six simulations in a school year, that’s 132 scholarships total! At the end of the program, the highest performing student will score an additional $100,000 grand prize scholarship — on top of the $20,000 he or she already won.

Success Story

So who was the lucky grand prize winner of the 2014-2015 Budget Challenge? Enter Sean Lawrence, 17-year-old high school senior at St. Clair High School in St. Clair, Michigan. Sean scored among the top students of his simulation (earning him a $20,000 scholarship) before going on to rank highest in the challenge overall. His achievements deemed him the most “real world ready” of the 93,980 participants, and he took home an additional $100,000 for his success.

“The H&R Budget Challenge gave us a chance to experience paying bills and managing money in a similar way to being adults,” Lawrence explains. “The Budget Challenge made us realize that balancing a budget while saving for retirement is not always easy to accomplish — since unexpected expenses arise — but something we have to take on as adults.”

Sean plans on using his scholarship money to earn a degree in Chemical Engineering, given his love for science and math. He has his eye on studying two years at Macomb Community College before transferring to finish at Western Michigan University. And for his financial goals? Work hard, land a high-paying job, invest in retirement, and save for a house and car. Real world ready, indeed.

“Learning about money management before going into the real world allows for teens to make the right choices, or have the correct knowledge so they don’t end up as the typical American with mountains of debt,” Lawrence adds.

How Do I Sign Up?

The H&R Block Budget Challenge is available free to high school teachers and accredited homeschool educators. Parents, you can do your part too — be sure to share this information with your teen’s teacher! Head on over to the Dollars & Sense Blog to stay up to date with news on the program. Sign up for the newsletter to be notified when enrollment begins for the next challenge. 

This post is made possible by financial support from Dollar & Sense — a charitable program from H&R Block committed to increasing the financial fitness of America's teens.