Students at Wisconsin Lutheran High School went shopping for an expensive lesson Tuesday: Adult life costs a lot of money.
About 170 juniors and seniors from the school's business and family and consumer education classes spent two hours at the fourth annual Reality Store, a simulated month-in-the-life of genuine bill-paying, grocery-buying adulthood.
Life's price tags surprise many students, said Jason Goede, business and economics teacher and an organizer of the Reality Store.
"For a lot of these kids, it's learning that life is a lot more expensive than they realize," he said.
That was certainly the case for senior Kasey Flanagan, a senior and Wauwatosa resident who said she was surprised by the cost of raising two kids, even with a household income of nearly $51,000 after taxes.
"I don't like real life," she joked. "I'm not going to grow up - it costs too much."
Assigned a future
Each student was assigned an occupation, income, marital status and maybe a few kids. They then visited 24 stations in the school gym to get a paycheck, pay taxes and procure goods including clothing, groceries, a car, gas, insurance and housing. There also were "chance cards" doled out by a police officer and nurse, representing unexpected expenses or windfalls. The end goal is to break even.
Flanagan, who was assigned a position in management and a toy inventor for a spouse, said she was particularly shocked by the prices of child care and groceries.
"You need a lot of money in order to meet your basic needs. … I barely had enough money to meet my basic needs and pay off loans."
Flanagan finished the simulation with about $150 left, but only after she and her hypothetical husband each took a part-time job.
Thrift breeds appreciation
Tosa resident Zach Knuth, a junior, also walked out of the Reality Store with 150 fake dollars remaining, even though he and his oncologist wife pull down a cool $95,500. Knuth, a faux research chemist, said he ran into trouble with child care costs, requiring a downgrade from new to used cars.
Even with a large salary, thrift is required, Knuth said. The realization gave him more respect for his parents.
"I give my parents a lot more credit after doing this, to see how much it costs to have four children," he said.
Flanagan said her experience will make her a more conscientious consumer and more aware of the importance of good health benefits.
All about choices
Goede said organizers work to make costs as realistic as possible. For example, gas prices fluctuate throughout the simulated month.
The realism is helped by the many real-world professionals on hand. Mark Meyer, a financial consultant with Thrivent Financial, was manning the life insurance table. Meyer said he ran through insurance options with each student, taking a look at their income level and family size before helping them choose.
The Reality Store is full of choices: insurance is optional and things like clothing, groceries and cars range in price. There are credit cards available, but students are encouraged to stay out of debt.
"We really try to teach them to live within their means," Goede said.
Many students budget well, Goede said, but fail to account for financial surprises.
"They're ready for the expected things," he said, "but a lot of the unexpected things sink them financially."
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