I think it should definetely be a goal to have enough in savings that you COULD buy a car with cash, but I don't think it's necessarily a problem to finance a car anyway. Depending on what you assume for the time value of money, and what interest rates you qualify for, it can actually be cheaper to finance a car and invest the cash you would have used to buy it. Although personally I'd rather just buy a car with cash and then drop comprehensive coverage from insurance and just risk it.

jax4gb- I actually had a class on how to fill out job applications in 8th grade. I still think back to what I was taught when I have to fill one out.

You're nitpicking. This was a good exercise, confirmed by people actually involved. Believe it or not, people can earn $80k a year. Boo to lowering expectations.

ihavealife - Why don't you call one of the high schools and volunteer your time next year to get "realistic prices" for things? I am sure the teachers would love to have your expertise and input on things. My daughter went through this experience and said it was one of the most eye-opening things she has done in school. She will graduate this year and has realized that living on her own will take some financial finesse! Thanks to the teachers and business people who put this on.

Well, no doubt this isn't new, but we're certainly grateful for the grant funding that made it possible. It's unfortunate that there isn't room (or money) for this in the general curriculum. We live in a world of much greater financial complexity, especially if lifetime employment and a pension are not there for people.

It's interesting that this concept is "new" When I was in 8th grade- over 20 years ago. We spent 3-4 weeks doing a program like this. We were given mock check books, we had to go through the papers and select a job, place to live, car etc. And you were randomly selected out of hat if you were married had kids etc. This is where I learned to balance a check book and learned about general living expenses. You learned how to manage your money.
While this event was great experience, I don't know if one day is enough for the kids to take it all in on a long term basis. Shame it's not in the regular curriculum like it was for me.

Uh, yeah... a car payment is definitely avoidable and can make a huge impact on how much one can save (or spend).

There was a similar article recently in which I posted a longer comment but Milton Middle School had this back in the 1980s (does this program still exist?), without outside funding too, I believe. It was like a month long and involved several classes: math, social studies, economics, etc.

jax4gb: Or how about how to dress when you are asking for an application--let alone how to dress for an interview. I agree with you!

I had a car payment for 13 years, uclagirl. My husband and I both drive vehicles that are now paid for. One we financed and paid off, the other we wrote a check for (and, yes, taxed2much, you are right...we got a much better deal because we weren't financing...dealers get hit with percentages on financed vehicles). Depsite having the itch for a new car, it will be very tough to take that extra money we are use to now and put it towards a car payment again. I felt like you when I was your age. "What's the big deal??" I thought. I rushed out and FINANCED my "dream" car as soon as I could. It is much sweeter to drive a vehicle that you OWN :) Bills aren't fun, kids.

My daughter is "made" to save 20% of all of her money (ie $50 bill in a Christmas card...she gets $40--$10 goes in savings). She bellyaches about it. But, someday, she will be thankful--hopefully lol.

wish we would have had this when i was in school 6 years ago

It may be 30 years to late for some, but not for others. I think anytime is a good time to bring this out at school. What a great idea and to give the students a wake up call at a time like this is fantastic. Kudos

.........30 years too late NATIONWIDE

I really don't want to be critical, but I just have to say it..
..............
public schools and school boards are some very, very slow learners .........this is more than 30 years too late.

I participated in Reality Check yesterday and yes you had to either invest or save 5% of your income, which seemed a little low to me. Also I don’t see why it’s a bad thing to have a car payment. I do and I also put money into my savings account. This event was really eye opening and actually fun at the same time. I’m glad they decided to do this event before I graduate. Thanks Craig Business Department!!

I agree with havealife. Where is savings discussed? I did not see where it was advised to have 3 months of your income in savings. (not 401K or mutual fund either.)
Why are we teaching kids it is ok to have a car payment? We need to teach them to save money and live below thier means. This is why we are in the financial mess we are in to begin with. I dont care if you bring home $6K per month net of taxes. Save the $500 or $600 per month and pay cash for your car. Anyone ever walk into a dealer or buy from a private party with cash????? Money talks!

Great idea, I think this would have been helpful when I was in high school. I just have to ask, does a flight attendent really make over $100,000!? Yikes; no offense to any flight attendents but I would not expect that to pay so much.

ihavealife- why would you want to save when you could get the most out of your money, just buy buy buy. come on now. :)

It would also be beneficial if they would also teach them how to fill out a job application.
I just had an ad in the paper & had a lot to go through - maybe 70 or so, but based on their applications, only 6 are worth talking to.
I felt like calling all the people I wouldn't even consider hiring & doing an event with them on how to fill out an application.
Kids today need to start with basics. I took for granted that I was taught all of these things between my parents & school.
Kudos to the staff for putting this together - it needs to be required for all!

This would have been great to have when I graduated 5 years ago. We had nothing to prepare us for the "real world." Getting my own place was a big wake up call.

These reality-based lessons are wonderful! We did similar exercises when I was in school, and I know it always surprised us on how quickly the money would vanish.

this is a great idea that should be done from the 8th grade on up. teach the students early, and they will have the knowledge to succeed when they go off to college or work.

Great exercise! Should be mandatory.

That could be a weekly exercise I'm sure. $100/mo for a phone? I thought my $40/mo was too much, so I went prepay. I'm also not paying for any extra TV channels. Just enough to get Internet access. I don't have a flat screen TV, or a home theater, either. OK, I do have the home theater, but it was given to me, and I use the speakers as tables, not hooked up. I do own in a very nice house, though, and my vehicles work great. No debits except the house.

I have to say the person(s) who thought up this exercise desire commendation. This should of "game" should be required as part of the school district's curriculum

Good Job I am sure these kids will take something away form this experience

"Reality Check" sounds like a very appropriate title for this event! Maybe this should be required for all students, either as part of an already required course or as a "Mini-course" or special event. How about using advisory time for this???