Press Release

San Rafael students get a 'Bite of Reality' at financial workshop

April 24, 2013—Managing money and balancing a personal budget can be more difficult than most teenagers anticipate. But San Rafael students got a head start understanding the concepts during a financial workshop Wednesday.

About 90 seniors from San Rafael, Terra Linda and Madrone high schools converged at the San Rafael High School auditorium to participate in a "Bite Of Reality," a financial course sponsored by the Richard Myles Johnson Foundation, Redwood Credit Union and the San Rafael Chamber of Commerce.

Students take part a workshop at San Rafael High School on Wednesday, April 24, 2013, in San Rafael, Calif. The "Bite of Reality" program teaches students how to make sound choices with their money. Stations addressing money issues like transportation, housing, vacation and food teach students ways to allocate their money. (IJ photo/Frankie Frost Frankie Frost

Robert Friedman, a business development officer for Redwood Credit Union, said the workshop gave students the opportunity to attempt to "purchase" items from volunteers posing as vendors, while trying to stay within their monetary means.

"It's a full-on exercise in reality, and hopefully they walk away with an appreciation for their parents," Friedman said.

Students were given a handout that described their hypothetical profession, income, marital status and family information. It was up to the students to write checks for groceries, household needs, child care, shopping expenses, entertainment, housing, transportation and personal care. They had to decide whether they wanted to dine out every night, buy a new or used car and live in an apartment or large house.

Tena Lozano, executive director of the Richard Myles Johnson Foundation, said the workshop was a chance for youth to simulate life after high school. The event was the first held by the three groups and financially supported by the foundation, which aids financial education efforts by credit unions.

"It's so awesome to see the kids really take ownership of their new identity for a day," Lozano said.

Wednesday's workshop was not the only such financial awareness event this week. On Tuesday, Bank of Marin staffers went to 20 Marin schools to talk with students about basic financial skills as part of "Teach Children to Save" day. The program was sponsored in part by the American Bankers Association.

While some students opted Wednesday to purchase new sports cars and luxury vacation packages on their limited budgets, others chose to get bus passes and shop at thrift stores.

Terra Linda senior Kaic Lagares, 18, sat at a table in the auditorium trying to balance his budget and figure out how much money he had left to spend. He said the workshop is a good simulation to show how quickly one's money can run out.

"I didn't know it was this hard," Lagares said. "I'm already stressed out and this isn't even real life."

As part of his new assigned persona, Lagares had a child he had to support. He said he was shocked to learn how much child care costs.

San Rafael senior Angel Baten, 17, agreed. He said his desire not to have children will likely pay off in saved child care costs, including diapers and formula.

"I'm realizing I won't have to deal with that if I don't have kids," Baten said.

Lee Alderman, an assistant vice president with Redwood Credit Union, said most of the students quickly burned through their allotted money and had to visit the credit union table for advice.

"They launched right into it and they had to return stuff when they ran out of money," Alderman said.

The most popular purchases — and the most returned — were expensive vacation packages to Europe and Hawaii. Volunteers "selling" such items were told to push the products as if they worked on commission, and most of the students were easily convinced to buy vacations.

"At the end, I think they felt bamboozled," said Will Thorn, a training coordinator with Redwood Credit Union, who worked the entertainment table.

He said the students' budgets were unrealistic at first, but they returned to the table with a much better idea of what they could afford after talking with credit union representatives.

San Rafael Mayor Gary Phillips spoke at the end of the workshop, congratulating the students on taking the first step toward becoming financially literate.

"To take responsibility is critical at this stage," Phillips said.