In 2009 the credit union introduced a four-day “academy” that was held biannually during spring and summer breaks for five years, but reach was limited due to competition from family vacations and other scheduling issues. Since 2013 Redwood Credit Union has provided high school and college students with “Bite of Reality” financial workshops, where more than 16,000 youth have spent up to 2½ hours managing money as if they were an adult, said senior vice president Matt Martin.
The students get a fictional identity, with a job, salary, family, credit cards and a checking account. They visit tables manned by volunteers where they buy life needs, such as housing, transportation and child care, and try to resist temptations. Woe to those who are suddenly handed an unexpected tragedy, like a car wreck or illness. If they overdraw their checkbook, “financial wellness counseling” is available.
In October 2019 the “Bite of Reality” event was the largest ever. The credit union closed its offices so all of its 700 employees could volunteer at 15 high schools in Sonoma, Marin and Napa counties and show 3,100 students what it takes to navigate the financial side of life.
In another effort, Redwood Credit Union and 100 Black Men of Sonoma County teamed up in February to offer online financial literacy training to up to 25 Napa and Sonoma County youth ages 12-20 on a first come, first serve basis.
“It’s all about giving people the important tools they need to achieve their goals and dreams,” said Martin.
Foundation spearheads training
The local nonprofit Career Technical Education Foundation, which makes grants to high schools to enhance vocational education classes, began in 2013 and with the urging of Redwood Credit Union requires CTE teachers to include financial literacy lessons. Redwood has donated $70,000 to the effort, and more than 4,000 students have benefited, said foundation CEO Kathy Goodacre.
The curriculum includes six topics: money management, borrowing, earning power, investing, financial services and insurance. Borrowing is “a really important one,” said Goodacre. The foundation asks teachers to cover at least four topics, or two topics and a “Bite of Reality,” unless their school already requires personal finance education, as Healdsburg High School does, for example. Healdsburg High School requires financial literacy units in the 11th and 12th grades, including developing post-high school personal financial plans.
The CTE financial literacy curriculum is available online, making it accessible for teachers and students during distance learning, and also aligns with academic lessons in English, Math and Social Sciences, Goodacre said.
“It is core to what we do that students leave high school with some understanding of how life works in the real world and how to apply what they’ve learned to be successful community members,” said Goodacre.
After teaching two of the modules in Money Management, one high school math teacher assigned students to create a personal budget which included researching options for buying a car. One student expressed, “I can’t afford the car I really want, so I am going to buy a small car that gets good gas mileage and has less than 100,000 miles on it. That way I can actually save enough money.” This student shared that by graduation he not only had enough for the car, but had a little leftover he might invest for the future.
Another high school teacher said in a report to the foundation, “I think the curriculum should be taught in a semester-long course that is required for graduation. I know if students signed up to take this course they would love it and learn a great deal.”
Finance experts head to classrooms
Community First Credit Union: When teachers invite them, Community First sends employees into high schools in person or by Zoom with financial literacy presentations. For example, earlier this year lead trainer Rebecca Nystrom presented to the Healdsburg High School junior class in four back-to-back 70-minute sessions and to the senior class at Anderson Valley High in Boonville.
“We want this generation of students NOT to repeat the financial mistakes made by adults, elected officials and captains of industry during the past decades,” says the website. The syllabus for the class includes the ease of saving loose change, smart spending and budgeting, an introduction to credit scores and why they are so important and what it all means for college and jobs.
“We were founded by school teachers in 1959, and we continue to teach,” said David Williams, chief marketing and human resources officer for Community First Credit Union in Santa Rosa.
Campus revives financial ed courses
Santa Rosa Junior College has brought back two free and bilingual financial literacy classes it introduced in adult education in 2017 but did not offer in 2019 for lack of student interest.
The 2020-2021 school year was different. Fall and spring classes were full, and the course will be offered again in the upcoming fall semester which begins August 16. Classes are currently online because of COVID-19.
“We’re hoping everyone across Sonoma County will be able to take advantage of this,” said Nancy Miller, who recently retired as director of the school’s Regional Adult Education Programs. To enroll, email [email protected] or call 707-521-7962.
The first class is about personal money management. The second is about investing and planning for retirement. That’s a chance to teach a favorite concept of financial experts: compound interest and the big gains that can come from reinvesting earnings on top of earnings over time.
“The most important thing every kid should learn is the earlier you start saving the more likely you can benefit from compounding,” said David Lawrence, an investment adviser with Willow Creek Wealth Management in Sebastopol. “Let the markets do the work for you over time. It’s free money basically. I love to talk to kids about that, getting them to think more about the longer term.”
“When my kids and my nieces and nephews graduated from college and took their first job, I literally sat down and talked to them about saving, particularly about 401(k)s, pretax contributions and the value of compounding. ‘This can be over $1 million one day,’ I tell them,” said Michael Sullivan, chief credit officer at Exchange Bank in Santa Rosa.
Planning for your financial future is crucial, retired educator Miller agrees. “My twin children are 33. I started talking to them about this when they were 16. They rolled their eyes. Now they thank me.”