What’s It Like in the Real World… A Taste of Reality Presented By: Fox Valley Workforce Development Board January 25, 2011 By: Kim Lemieux and Jill Valdez

Why Is Financial Education For Youth Needed? Research by Charles Schwab and Co. Inc. shows that teaching financial literacy isn’t a priority with parents. Research found that while 70% of parents taught their teens to do laundry only 34% had taught their teens to balance their checkbook. Teens spend 98% of what they earn. The average teenager spends approximately $5400 each year. 45% of college students are in credit card debt, the average credit card debt being more than $3,000.

Why Is Financial Education For Youth Needed? University administrators state that they lose more students to credit card debt than to academic failure. Three-quarters (75%) admit to having made mistakes with their money when they arrived on campus, and the biggest mistakes were overspending on food (21%), entertainment (19%) and putting too many purchases on their credit card (16%). The average student credit card balance is $2,347.

Lessons Learned From Students

What Students Liked

Student Comments “Don’t get suckered by pushy salespeople!” “Man, kids are so expensive!” “Decisions made now will really affect my future.” “You can’t always get everything you want.” “ The career you pick has a large impact on your life and how much money you can spend in the future” “What you choose really affects your family.”

Goals of the Reality Store: Find, evaluate, and apply financial information Set financial goals and plan to achieve them Develop income-earning potential and the ability to save Use financial services effectively Meet financial obligations Importance of getting what they need first, and what they want, second After attending the Reality Store, students may be more motivated to stay in school, earn their high school diploma, and continue on to post- secondary education.

Steps to Creating a Reality Store in Your School 1. Contact your area WDA to see if this service is offered 2. Secure your date, location and number of students 3. Recruit volunteers: staff, parents, community members and area businesses volunteers for a class size up to Preparation for students and staff 5. 4 weeks prior to the event send confirmation letter to all volunteers 6. Create a system of how you want students to enter the Reality Store 7. Setting up the Reality Store

How to Contact Your Local WDA

Volunteer Recruitment Recruit Letter

Preparing Students and Staff 3-4 weeks prior to the Reality Store event hold a staff meeting to inform staff of this event and how to prepare students Students will need to log onto Wiscareers and complete and interest assessment Students will need to write down their chosen occupation along with salary and then pick the number of children (0-3)

Preparing Students and Staff (cont.) Students will need to fill in the “What’s it like in the Real World” portion of the booklet predicting what life may be like when they are 28 years old. Staff need to instruct students that they must visit Uncle Sam and Bank first, then they must visit all other booths in any order and have volunteers initial each booth visited.

Confirmation Letter

Setting Up The Reality Store

“I ran out of money!” If students ran out of money before they visited all 18 booths, volunteers at the SOS booth offered help to get back on track. Most often, students bought too expensive of a car or house and had to downsize. Or, they could choose from one of three part-time jobs to receive additional income.

SOS Was Almost Always Busy

Students in Action…..

Students in Action...

Students in Action…

What Volunteers Had To Say…

Other Comments…. “ The Reality Store was far more realistic and educational than a similar model we previously had come to our school.” Principal, North HS “The results we’re seeing from students as they exit the Reality Store are immediate and positive. Students already have a better sense and understanding of what it takes to balance a budget.” Counselor, Little Wolf High School, Manawa “This is the best way to educate our students about the reality of making good choices in higher education and the impact post-secondary education has on your salary and lifestyle you will lead as an adult.” Staff, Appleton West High School

Now It’s Your Turn!!

Questions/Comments Thank you for participating! Kim Lemieux & Jill Valdez Fox Valley Workforce Development Board 1401 McMahon Dr. Neenah, WI