VAN NUYS, Calif.–A group of teens here recently got a “bite of reality” when they attended an interactive financial education simulation designed to teach them how to manage money.
The event at the Airtel Plaza Hotel was run by staff from Los Angeles Police Federal Credit Union, all of whom volunteered their time. The Bite of Reality program is offered by the Richard Myles Johnson (RMJ) Foundation, the state foundation for credit unions in California and Nevada. It aims to teach young people the basics of finance by having them take a “real world” test drive complete with a job, money and the freedom to make their own financial decisions.
About 55 students were given a fictional occupation, salary, spouse and family, student loan debt, credit card debt, and medical insurance payments. They then visited various stations to "purchase" items such as housing, transportation, food, clothing, household necessities, and daycare. They battled their way past pushy salesmen, unexpected expenses and windfalls, and expensive tastes to learn how to budget and make wise financial choices. Those staffing the "credit union" station provided assistance when some overspent.
It was quite an eye-opening experience for many of the teens, according to the event’s sponsors. All of the teens have shown an interest in pursuing a career in law enforcement and are being mentored by Los Angeles Police Department staff.
"Giving students this opportunity to experience making financial decisions in a low-risk setting gives them a better understanding of the challenges of adulthood,” said Tena Lozano, executive director of the RMJ Foundation. “The hope is they walk away with lessons now that often takes adults years to learn—the hard way.”
Sponsoring the Bite of Reality program was in keeping with LAPFCU’s financial literacy efforts, which it began 2008 to help members make the best financial decisions.
“As so many schools have done away with any sort of financial literacy education, creating educational programs for our young members is especially important to LAPFCU,” explained LA Police FCU Vice President of Marketing and Business Development Manny Padilla Jr. “We understand that our youth members are LAPFCU’s future, and the sooner we can engage them, the greater opportunity we have for making them members for life.”
Above right, Los Angeles Police Federal Credit Union Senior Collector Cathy Etcher gives 16-year-old Brian Brass the groceries and dining options he has during an interactive financial education simulation held recently in Van Nuys, CA. The Bite of Reality program was hosted by Van Nuys-based LAPFCU, and is offered by the Richard Myles Johnson Foundation, the state foundation for credit unions in California and Nevada. It is designed to teach the basics of finance and budgeting to young people.