The Lambo Problem: Financial Literacy at TVS
by Noel Welch
When creating a budget, you could start with your rent, health insurance prices, or even the cost of your groceries. But the real question we should all be asking ourselves is: how many Lambos can I afford?
This session, Adventure learners have been doing something much of the Guide team wishes they'd had a chance to do when they were younger: learning how to create a liveable, working budget. To start, pairs began brainstorming: What do I actually need to include in my budget? Many of them got the big ones: the rent, the health insurance, the groceries. But then there were the expenses that were completely new territory. "I have a car, but that needs insurance too?" "I'm renting and I need insurance for that??" "How many insurances even ARE there?!" At this point, everything was hypothetical, and their numbers were vague. Then came the day for them to draw their jobs and locations out of cups. “I’m a lawyer in Berkley, CA!” one group said with utmost excitement. “I’m a firefighter in Arlington,” another exclaimed with a tinge of fear. The energy was electric.
As learners began researching actual costs, the rooms filled with a mix of shock, laughter, and genuine concern. One learner looked up from their laptop, eyes wide: "Wait, health insurance doesn't even cover everything? What the scam?”, while another pair joyfully yelled out “We can afford three Lambos!!!” (Spoiler alert: they could not, in fact, afford the three Lambos and maintain a reasonable quality of life.)
Then came the initial financial advisor meetings, the heart of the project. Some sessions lasted 45 minutes, others closer to 20, but each was a deep dive into the learners' financial reality. The advisors asked the hard questions: "Do you really need to spend $500 a month on entertainment?" "What happens if your car breaks down and you don't have an emergency fund?" These weren't lectures; they were consultations. Learners discovered ways to better spread their money, learned the power of small adjustments, and began to see how every financial decision creates a ripple effect. Talking to the advisors turned this project into a reality, with some partners banding together to climb out of debt, while others exclaimed with true frustration, “I told you not to buy the Lambo!!”
Next came the decision to college or not to college, perhaps the most sobering moment of all. Learners researched their options: some found the more affordable state schools that would leave them with more manageable debt, others looked at the prestigious private universities with price tags and loans that made their eyes water. Would they choose the path of less debt and more financial freedom after graduation? Or would they take on significant loans for the dream school, knowing they'd be paying not just the principal, but years of compounding interest?
Suddenly, as it does in real life, Life Happened. Each group had a tragedy befall them: losing their job, roommates moving out, forgetting to brush their teeth and needing root canals. Learners scrambled to reorganise their spreadsheets with visible desperation. Some had emergency savings to cushion the blow. Others were looking at a ramen-only diet to survive the month. A week later, they drew again. This time, good fortune struck: grandma’s $500 birthday gift, bingo winnings, cheaper rent. The relief was substantial. That is, until the guides delivered the next bit of news: they were all now single parents! Learners now had to navigate not only their own expenses, but the staggering costs of raising a child. The Lambo? Long gone.
What began as a Studio project evolved into something deeper. Many learners continued their research outside of school, determined to find the best deals and tax breaks, or even calculating expenses for their own futures. When reflecting on the experience, one learner commented, “I used to think it would be easy, but now I think that all the random stuff really adds up.” Another said, “I used to think budgets were not that helpful, but now I think you need them when you’re older.” These learners will enter adulthood with a foundation many of us never had. They’ll better understand the trade-offs, consequences, and yes, the actual cost of a Lambo.