Staff Writer
A few hundred Aroostook County high school students found out last week that working for a living means more than paying for massages and cell phones.
Aroostook Republican photo/Debra WalshTaylor Jepson, a Caribou High School student, receives instruction from Pat Troicke on selecting home furnishings Thursday during a financial literacy exercise in Limestone. The activity was sponsored by federal credit unions in Aroostook County and was designed to help students learn how to handle money.
During a financial literacy exercise, they were offered a chance to learn what it costs to pay rent, buy groceries and obtain reliable transportation. Some of them were able to squeak by with a little extra money at the end of the month. Others claimed they were bankrupt.
“Get a second job,” was the lesson learned by Dana Morrell, a Caribou High School student who went through the half-day exercise held in Limestone last week.
The first Financial Fitness Money Management Experience in Aroostook County was held at the Loring Job Corps Center. Created by Maine’s credit unions in 2004, the exercise has been held several times around the state.
“I don’t think kids really realize just what it takes to run the household,” said Dan Bagley, president of the Aroostook County chapter of Credit Unions.
More than a dozen schools, including LJCC students, participated in the exercise designed to help teens understand how to handle their personal finances.
Students, who volunteered to participate, selected the career in which they would like to work during their adult years. That information was translated into a financial scenario where they were told their monthly income and credit history.
The students had to create a spending plan based on their income and living expenses.
Several booths were set up in the LJCC gym, attended by credit union employees who helped the students select a car, find housing or determine a budget for groceries and home furnishings. Included in the activity are mock emergencies, such as a blown transmission in the 1995 Honda, or a broken furnace in a recently purchased house, with which students also have to consider.
At times during the activity, the booth dealing with credit seemed to be most busy.
CHS student Sam Robertson said he wanted to work in the auto body industry. In his financial scenario, he expected to make $1,357 a month based on a national survey of what auto body workers earn.
Robertson and Morrell, who wants to be a farmer with a monthly income of $1,672, planned to be roommates.
After selecting housing, transportation and allowing for entertainment in their budget, they found they were spending $500 more than they were earning during the month. Morrell said they cut their expenses for rent by going from a two-bedroom apartment to a one-bedroom and getting a futon for the living room.
Cut from the budget was a camping vacation, the least expensive option offered, and a cell phone, according to Morrell. Robertson decided to drive a used Honda instead of a pickup truck.
“Be good with your money,” said Robertson after the exercise. “I never knew how fast it went.”
Samantha Cross and Tonya Poisson, also Caribou students, wanted to pursue career in graphic design. They would each earn about $1,200 a month in entry-level positions. In their exercise, they said they selected the cheapest living accommodations, furnishings and transportation and they still came out $100 in the red at the end of the month.
To balance the budget, they eliminated their vacation, massages and decided to do their laundry at home.
“If you want to live pampered, then you have a get into a higher-paying field,” said Cross.
As a result of the exercise, Poisson said that she is rethinking her choice of occupation and her education level in order to produce more revenue.
“We were very pleased with the turnout, especially with it being the first one in the county,” said Bagley, adding that the credit unions plan to make the exercise an annual activity.
County credit unions sponsoring the event were the County Federal Credit Union, Norstate Federal Credit Union, Acadia Federal Credit Union and St. Agatha Federal Credit Union. Additional financial support came from the Maine Credit Union League, the Universities of Maine at Presque isle and Fort Kent and Husson College.
Bagley also offered his appreciation to LJCC officials who provided the space for the activity, meals for the students and staff help.
Aroostook Republican photo/Debra Walsh
Caribou High School Guidance Councilor Martin Gallant enjoys a chuckle with CHS students Dana Morrell, middle, and Sam Robertson regarding their budgeting exercise Thursday at a financial literacy activity at the Loring Job Corps Center. The students built their budget on the premise that they would be roommates. They found they had to cut out several items in order to end the month in the black.
Aroostook Republican photo/Debra WalshCHS students, Samantha Cross, left, Tonya Poisson, middle, and Zach Foster, work on their monthly budgets at a financial literacy exercise held Thursday at the Loring Job Corps Center in Limestone. Each student had to formulate a budget based on his or her occupation and expected income.
