16 months ago
VACAVILLE, CA - Bad home loans, foreclosures and job losses are plaguing communities everywhere as the U.S. struggles with a sagging economy.
For years, financial experts have warned Americans to have at least six months of funds on hand for hard times. Teenagers learned how to reduce free-wheeling spending and start saving at Mad City Money, a special boot camp in Vacaville.
"Travis Credit Union has a priority to teach financial literacy," said Marlene Myers of Travis Credit Union. "This is a brand new program for credit unions across the country."
Boot camp participants are given mythical spouses, jobs, $2,000 to $4,000 per month and options. The have to visit a make-believe mall, furniture store and a car salesman. "They go about shopping and setting up a real home without counseling or financial advice," Myers said.
They make decisions at every stop, such as whether they'll eat steak every week or chow down on pizza. Marcus Wion, 15, tells one sales person, "I'm a teacher and my wife is a truck driver." He decides to buy new clothes for himself and used clothes for his wife. When asked about his choices, he said, "Mine are going to be the best and hers are going to be the worse."
The students also learn to write checks. Colin Johnson, 14, of Fairfield paid $485 for expenses for a toddler. "I'm surprised how much it cost. The most expensive thing is child care. It cost about as much as a car," Johnson said.
"I'm probably the oldest one here," said Angela Taylor of Roseville. "My mom made me come because I'm about to graduate from college." But she admitted, "I'm glad I came."
The workshop gave Taylor $4,700 a month and a college loan. She smiled and said, "I paid it off all at one time and I saved $293 dollars a month for an IRA account ,which will come to about $3,500 a year," Taylor said.
Myers said it's critical that teens learn how to budget before they leave home. "We see what happens when they don't," said Myers. "They fall prey to credit card companies. They'll have five (cards) before they know it they have balances of $20,000 to $25,000. They buy cars on a whim instead of looking at what they can afford and what their family needs."
It's a lesson that some teens admitted they learned by participated in the workshop. "Everything cost a lot," said Johnson. The next time he asks his parents for something costly, he'll feel differently. "I'll try to do something to earn it and maybe even pay them back."
News10/KXTV
