Credit Union Helps Youth Learn Money Management

Aliso Viejo, CA - A group of students from the Laguna Niguel Family YMCA after-school program at Don Juan Avila Middle School in Aliso Viejo, California got a "bite of reality" Feb. 28 when they attended an interactive financial education simulation, called Bite of Reality, designed to teach them how to manage money. The program was hosted by Lake Forest, CA-based Eagle Community Credit Union. The Bite of Reality program is offered by the Richard Myles Johnson (RMJ) Foundation, the state foundation for credit unions in California and Nevada.

The eventwhich 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 decisionswas run by employees from Eagle Community Credit Union, who volunteered their time. The 21 middle school 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 keep themselves in the black, and learn how to budget and make wise financial choices. Those staffing the "credit union" station provided much-needed assistance when some overspent. "I need a loan for child care," said Kaydin Stone, 13, was overheard saying as he made his way to the credit union table. Thirteen-year-old Neil Thompson was a teacher while his "wife" was truck driver. Together they took home $4,272 a month. Still, the cost of buying a home was eye-opening for him. "Food was not that bad, but getting a home was. It was so expensive. I got an apartment," he said. Neil ended up with $95 in savings as well as an important lesson: "You have to be wise with what you do with your money," he said. Some had a new appreciation for being a kid. "Being an adult is hard," said 12-year-old Jaden Gallardo. That taste of reality is exactly what the event coordinators hope young people take away from the program. "It was great seeing the kids learn real life money management skills while having fun doing it," said Eagle Community CU Business Development Officer and Bite of Reality facilitator David Ward. "Giving teens this hands-on opportunity to experience making financial decisions in a low-risk setting gives them a better understanding of the challenges of living on a budget before they have to make those decisions in the real world," said Tena Lozano, executive director of the RMJ Foundation. Eagle Community Credit Union is a not-for-profit financial cooperative committed to making a difference throughout Orange County. Eagle offers personalized service and value-oriented financial tools to more than 20,000 members. With strong roots as a postal and federal credit union, Eagle Community CU membership is now open to anyone who lives, works or worships in Orange County, CA. To learn more visit www.eaglecu.org. The Richard Myles Johnson Foundation, founded in 1958, is dedicated to supporting credit union efforts in spreading the financial literacy message to young people. The Foundation offers the Bite of Reality program, a hands-on simulation program that teaches the basics of finances to teenagers. It also provides scholarships for credit union volunteers and staff to attend seminars and conferences to further their educational and professional development. It is funded through donations from credit unions, League chapters, corporations providing credit union services, and individuals. More information about the Foundation is available at its website at www.rmjfoundation.org.��