Student loan debt, health insurance, housing payments and child care costs — Kolton Xie on Thursday was weighing how to pay those bills and still have enough left over for entertainment and hobbies.
“I was kind of surprised at how expensive family life is and just daily living in general,” Xie said.
Xie, 17, was one of 78 Waiakea High School students who participated in the Get Real Financial Reality Fair, sponsored by CU Hawaii Federal Credit Union.
The program began in 2015 and Thursday’s fair at Waiakea was the first on Hawaii Island.
The goal was to teach students in a hands-on way how to manage their personal finances and make decisions about everyday expenses.
“They are right on the cusp of graduating, and whether they go to college or straight to the workforce, the premise is we want to give them a leg up,” said Kathy Morris, member education officer for the Financial Reality Foundation. “We want them to understand no matter which choice they make, budgeting is going to be a part of their life.
“But this process keeps them engaged, they’re having fun, and at the end of the day, we hope they come with a better knowledge of needs versus wants.”
Students were assigned a simulated “life scenario” which included an occupation, a net monthly income and other variables, such as a spouse’s income and children. Then they were tasked to work their way through various stations to buy a home, finance a car and manage other life expenses in their assigned role.
The idea was to finish with a balanced budget — or even have money left over for savings.
Alexis Cabalce, 17, was assigned to be a single parent working as a hotel manager. During the activity, she was surprised with another child — considered a “random life event” — which she learned would cost her an additional $12,000.
“It was out of nowhere,” Cabalce said. “I had to get another job because I went over budget. … (The fair) is showing me how to manage my money and make decisions about what’s best for my family.”
Senior Hannah Mates was assigned to be a hairstylist with two children age 3 and younger. She said she had to forgo a Toyota Tundra for a less expensive vehicle and switch from an expensive home to a condo in order to budget for family groceries, gas and child care expenses.
“It’s really helpful doing this exercise because it gives us a look at what the real world is like when we leave high school,” Mates said.
Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.