KENOSHA, Wis. (AP) - Tyler Raymundo is a senior at Tremper High School, but for a few hours on a recent Wednesday, he was a lawyer and a divorced father of an 11-month old child.
In a little over an hour, Raymundo soon found that even on a salary of $3,900 per month it was hard to make ends meet.
Chris Burgess, a junior, did a bit better. He too was a divorced father with an 11-month-old child, but he managed to make his $4,900-per-month salary as an industrial designer cover his needs with some cash to spare.
Making savvy financial choices was the lesson of the day for Raymundo, Burgess and other Tremper students that day as they went through Reality Check, a crash course on life choices and budgeting.
“Reality Check is a financial simulation that fits into our curriculum,” according to Sue Pacetti, business education teacher and department chairwoman.
Reality Check sessions were presented that Wednesday to 194 students taking Tremper’s personal finance class. With resources provided by Educators Credit Union, this was the 37th time that Reality Check had been offered to students, Pacetti told the Kenosha News.
Before the exercise began, Brian Gonzales, community outreach coordinator for the credit union, introduced students to using Bite of Reality2, a new mobile app for the exercise and dispensed a bit of financial advice.
“I recommend you make larger purchases first, like housing,” he said.
“We talk about the importance of making credit card payments on time, and if they run out of money, they have to take something back,” said Victor Frasher, director of community engagement for the credit union.
Income and expenses
After choosing a fictional occupation with a specific salary (income), the students visited 10 stations to select items to support their new life (expenses). The stations included food, clothing, transportation, housing, insurance and for some, child care.
The goal of - and grade for - the hour-and-a-half assignment was to not go over budget, Pacetti said.
At each station, teachers and volunteers dispensed advice for selecting items from a menu of options ranging from pricey to thrifty.
About midway through the exercise, Raymundo and Burgess were waiting in line to budget their groceries and dining-out expenses.
“We both started with child care expenses because we both happen to have an 11-month-old child and wanted to take care of them first,” Burgess said.
“I see you’re a lawyer,” said Tremper teacher Jennie Krass to Raymundo. “If you’re a lawyer, it might look sort of bad if you’re eating all that frozen food.” Referring to his dining out budget, she said, “You might have to wine-and-dine your clients and not take them to McDonald’s.”
“When they explain the sheets, it gives you a perspective of the choices,” Burgess said.
“They reminded me that if I’m a lawyer I have to make choices that make me look nice,” Raymundo said.
Eye-opening
Although both students said they’ve had some real-world jobs and budgeting experience, both said the Reality Check event was enlightening.
“It opens our eyes to what life really is and what things cost,” Raymundo said.
Both were surprised by the Wheel of Chance - a wheel each student had to spin for life events that either provided a windfall or took money out of their wallets.
“I made $240 from a rummage sale but then had a traffic violation because I didn’t stop for a stop sign and that cost me $160,” Raymundo said.
“I lost my wallet on the way to the hospital and then found out I had strep throat,” Burgess said. “It’s just stuff you can’t plan for.”
“It’s ironic and cool to see,” Burgess said. “It’s good preparation for how things could be.”
Making smart choices
Those who went over budget were sent to Educators Credit Union volunteers who advised them on how to rectify the issue. Often they suggested the student sell a luxury item or choose a more economical selection.
“Housing didn’t go so well for me,” Raymundo admitted at the end of the session. “I dipped into minus $13 so decided to take the bus instead of having a car.”
Burgess fared a bit better. “I had $500 remaining at the end of the month - a good chunk of change,” he said.
Pacetti noted that students are graded on the assignment for their ability to stay within the budget and making it to all stations.
“It’s not realistic to eat cheap and buy the most expensive car,” Pacetti said. “Their grade shows they are making smart choices.”
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