By Khalida Sarwari
At 14 years old, Rithvik Panchapakesan may not have a whole lot of life experience, but he does know a thing or two about being an adult. One of those things is balancing a budget, a task he did so well that it was good for a $20,000 prize.
Displaying a knack for handling his personal finances paid off handsomely for the Harker School student and Saratoga resident, who was one of 66 students nationwide to win the H&R Block Budget Challenge. The game is an online 10-week simulation program that rewards students for mastering real-world budgeting and personal finance decision-making.
“I was very, very excited when I found out I was in the top 22,” he said.
As Rithvik explained the game, “You have to pay all your bills on time while also putting a percentage of your income into a 401(K).” The bills, he said, were for the run-of-the mill rent and utilities, student loans and car and renter’s insurance, among others. Participants of the game were given a virtual job that initially paid a bimonthly wage of $1,600 that was eventually bumped up to $2,200, said Rithvik.
The budget challenge, which is now in its second year, works by replicating an adult’s financial life, requiring students to pay virtual bills, save for retirement and repay student loans. Rithvik said he learned about it through an elective course he’s taking at Harker.
“I think the most important lesson you learn is that you just have to be calm and collected and be very mathematical and make sure you take account of all your bills,” he said. “And if something happens you plan for that so you don’t have any bad situations.”
Rithvik was one of nearly 155,000 students who participated in the program this year and one of only 22 who received a $20,000 scholarship. He said he’ll use his scholarship money toward his college expenses in three years.
In a statement, Juston Glass, director of business and entrepreneurial programs at Harker, applauded Rithvik’s efforts.
“We’re very proud of Rithvik for being among the top performers in the country in the H&R Block Budget Challenge,” he said. “Financial management skills are so crucial, especially for teens right after graduation who are entering the ‘real world.’ We’re thankful for resources like the H&R Block Budget Challenge that help teach our students to take control of their financial future.”
Rithvik’s advice for future participants is not to fear overdraft fees.
“My advice would be to plan for all the bills, which is something I didn’t do,” he said. “Sometimes it’s better to put more money than you have into your 401(K) and go a little bit into overdraft if you have enough available credit.”
When he’s not being a financial whiz, Rithvik also enjoys participating in robotics and science and engineering fairs.
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