Palmer High School seniors get a reality check

PALMER — Palmer High School students got a taste of reality on Wednesday.

For the past three years, the Matanuska Valley Federal Credit Union has taken its “Get REAL Financial Reality Fair” on the road, tutoring high school seniors across the Valley and the as many schools as they can across the state. Their goal this year is to reach 100 percent of the class of 2018 seniors in all of Alaska. MVFCU partnered with numerous businesses and other credit unions like Alaska USA and Federal Credit Union 1, gaining growing support for the program. Once Palmer High School seniors were finished going through this simulated gantlet of life — trying to stay afloat financially, after a rollercoaster of excitement, panic, number crunching, and advice — they walked away a little wiser.

“I think it’s really cool actually. It teaches us how it’s gonna’ to be in real life. It’s kind of scary; I’m not gonna’ lie,” said one senior, James Nelson.

The fair was designed to be a life-simulation workshop. Students picked their career and were given a budget worksheet. They began their journey with pre-determined factors. Some were given a spouse and children while others started out single. All of them began at the age of 25, after high school and college. It’s essentially a living, breathing version of the “Life” board game of old. Students went to various tables with different themes like the car dealership, entertainment calculator, realty area, and the bank. Their income varied based on their career choices and their expenses were subject to change after going from table to table. They made choices like what types of homes to live in and whether to buy a new or used car. Several volunteers manned the tables.

“They’re not there to help them, they are there to sell them — like in normal life,” said Bryan Headdings, project coordinator for the Financial Reality Foundation.

Headdings said that the object was to give students a grasp on what it takes each month to keep a firm budget without sinking into debt or going hungry. There was even a Wheel of Reality that each student had to spin, yielding a surprise life event.

“Something will happen to you that you didn’t plan for,” Headdings said.

Some had a baby added to their family, donning a sticker that said, “Congratulations It’s a baby!” Others got promotions and some got car trouble and had to see a mechanic. At the final stop were financial advisers. They assessed the senior’s worksheets. They went over the results and let them know if they accurately kept their budget in the black or if they broke the bank. Students who fell short received consultation on what to do differently.

According to Headdings, the fair began by renting space at venues like the MTA Sports Center. They decided it would be more effective to go to the schools directly. Burchell High School was the first school to host. Schools have since taken a keen interest in the program and support the movement fervently. He said it’s easy for them because he and his team do all the set up and clean up. All they need are tables and chairs.

“What I like is the high level of engagement, some smiles and some frustration. I think it’s something very valuable,” said Palmer High School Principal Paul Reid.

Reid said that Palmer High has a personal finance class as an elective and the workshop pairs well with it. The personal finance class is open for all students, from freshman to seniors. He said it was good to see the students take the event seriously. One student even cried because it got too real for her. Headdings said that was actually a good sign; that she was putting real thought into this. It was meant to be a little fun at times but mostly meant to be a cold splash of water on the face.

“It prepares them for the real world,” Reid said. “They hate when we use that word; but now I think it has more gravity to them.”

As Nelson was completing his journey, he balanced his budget before taking it to the advisers. He said it was “going to be close.” Nelson chose to be a musician because music is the path he wants to pursue after high school. He said that he plans to double major in performance and education so he can fall back on the latter to support himself.

“That’s the dream,” Nelson said.

When he began, he initially thought he had “plenty of money.” As he ran through the gantlet, he found out things like families and health care were more expensive than he thought they would be. He was surprised how much children cost. After he completed his budget, he found out he was in the clear. He had about $1,000 to spare. That was also because he took on a second, part time job and a loan. He said the experience was “eye-opening.” He doesn’t have a girlfriend at the moment, but he said when he does, he thinks he will be more careful now that he has a better understanding of the cost of rearing a child. He said he will probably want children one day, but certainly doesn’t want any before he gets his affairs in order.

“Kids are great, but financially, not so great,” Nelson laughed.

At the end of the workshop, there was a drawing for gift cards. Three students walked away with a combined total of $500. Every student that got a surprise baby got a $10 Walmart gift card, with a total of $160 given away. Each student also got a Financial Reality budget book to apply to their “real life.” For more information about the Financial Reality Foundation, visit: www.financialreality.org