More than 600 seniors from Porterville Unified School District high school seniors attended the 3rd annual Tulare County Federal Credit Union - Porterville High School Branch presentation of "Bite of Reality" at Porterville Church of the Nazarene on Friday morning.
Using the "Bite of Reality" application on their cell phone students were given different scenarios each with a monthly income and a credit score.
The seniors had to balance their monthly earnings to see what they could afford. And some students were going to have to return things like fast cars and homes, said Ruben Alvarez, from PUSD Pathways, to realize a "real budget with children." The whole exercise was trying to give students a reality check on what their parents go through on a monthly basis.
PUSD Pathways advisors, teachers, directors, administrators, Credit Union members, and others worked at the booths where students found out about child care, shopping, transportation, utilities, groceries, restaurants, and working with the credit union, as well as other necessities.
"We want the students to fail in a safe space - so when they are adults, they don't make those same financial mistakes in the real world," said Brenda Diaz, TCFCU PHS Branch Manager. "This application Bite of Reality shows students how expensive adult life is in the real world."
Aileen Ceballos, from Harmony Magnet Academy, said in her Bite of Reality, she was a paralegal, married and with a six-month old child. She found out day to day living was expensive, and she needed to find a job that makes a lot of money.
Her friend, Ruhani Deswal from HMA, enjoyed the simulation because it provided an insight into real life finances and she learned the importance of financial literacy and having an income that supports her lifestyle.
Sianna Prum enjoyed seeing what life would be like outside of high school. Having the insight of the real world has been a great experience, she said
PHS Academy of Health Science (PAHS) student Cindy Aldaco said the experience was good, and it showed her what she'd actually need to earn if she had a family.
Alexa Cruz also from PHS PAHS said the app really helped her realize what the future is going to look like financially, and it gave her an insight into what her parents have to deal with.
Diego Lemus from PHS Academy of Energy and Resource Occupations said, "The Bite of Reality shows you everything you don't think about until you have to pay. And I realized some things aren't as expensive as I thought, and other things are more expensive. So I learned to buy whatever I was comfortable with, but I got lucky. With Bite of Reality I'm a pilot, and my wife is an architect. We are both well paid professionals. And we have one child."
In real life, personally, Lemus said he worked with his parents in the fields, and they taught him about managing money, but he said, "I hope I know enough about it when I go out after graduation."
TCFCU Board member Vivian Hamilton was at the food and restaurant booth and said the financial literacy exercise was so important for the students. There was a line of students at the Credit Union booth because they were out of money, and they had to make difficult choices, like trading in the car, selling the house and renting, or getting help cost cutting.
At the end of the financial literacy exercise with the application students gathered back in the sanctuary area and listened to students on the stage with Brenda Diaz talk about their experiences and answer Diaz's questions.
She said many students bought new vehicles, for instance, like new trucks at $61,000 with payments and interest, at $900 a month. "You really want to think about that," she said.
One student said they really enjoyed the exercise and never realized the expenses everyday living incurred.
One students said he made a lot of wise choices and he had $1000 left over in his budget, and he learned a lot of things.
Another student said your goals and lifestyle impact your budget. "I spent the most money on my house. And I regret spending the most money on my house." Glad this is only with an app, the student said.
Diaz suggested students save money, and make smart decisions now, "and talk to your parents, grandparents, Tia, and Tio and thank them for what they've done for you."
Amanda Driver, from the Tulare County Office of Education and Circle J-Norris Ranch, at the Transportation booth, said kids were selling luxury cars at their booth and doing really well, while she was trying to be more practical selling used cars. And the people who bought the new SUV had to return it and buy a used car.
"This is a great event. And a dose of reality at a young age," said Pete Lara, Jr. PUSD board member. "Reality is harsh, and it can be unforgiving and cruel. Here the students can make mistakes using an app. And begin to understand that we are all faced with financial reality and our decisions will either positively or negatively affect our bank balances for the rest of our lives."