Posted on Wed, May. 07, 2008

Financial reality hits home for middle schoolers

Program shows them the link between good grades and good salaries

By Raviya H. Ismail

Herald-Leader Staff Writer

Pablo Alcala | Staff

Michael Unseld looked at his entertainment budget with volunteer Debbie Peregrin at Edythe J. Hayes Middle School's reality store. Photo by Pablo Alcala | Staff

It took only a few minutes for Kayla Barbour to decide that she needed a second job. That was after she paid for groceries and child care and had only $225 left to spend a month.

And it took only a few more minutes to decide she needed a third job. That was to afford the Ford Explorer, car insurance and health insurance she had to get. It took a little while longer, but she finally realized that if she worked harder at school, she'd land one job that could pay all the bills. And that was precisely the point.

Kayla, an eighth-grader at Southern Middle School, was one of several students who went through the ­reality store, organized by the school's Youth Service Center. The store teaches ­students the reality of adulthood and financial responsibilities. Based on their grade-point averages, students are ­assigned certain salaries; with that ”money“ (after taxes of course), they must pay for all the essentials: housing, insurance, groceries, entertainment, emergency situations and more.

Several other Fayette County schools have ­organized reality stores for their students, all with the goal of giving students some concrete financial reasons to shoot for good grades.

At a March reality store at Edythe J. Hayes Middle School, Emily Lain, 13, discovered the potential benefits of achievement in the classroom. Her 4.0 GPA qualified her for a job as a surgeon.

”I made $7,719 per month; I spent a good portion on my house and my car and insurance and child care,“ she said. Many of her friends had to get second jobs to cover their expenses, Emily said.

Hayes student Ivan Benitez, 13, with a 1.9 GPA, had to make some hard choices. He got a job as a fitness trainer, with three children to support on a paycheck of $1,424 a month.

”You gotta spend a lot of money,“ he said. ”You gotta spend money on clothing, food, child care, and if you don't got enough, you gotta go to supplemental income. I picked National Guard twice. Night shift and day shift, for $1,500 more.“

He said the experience made him want to raise his grades and work harder at school.

”It really gives the kids a valuable lesson in how education translates into earnings as an adult,“ said Southern principal Jane Dreidame.

For Kayla Barbour it was a sobering ­experience. Because she has a GPA of 2.0, she qualified to be a hairstylist, earning $19,074 a year. That money ran out quickly, and Kayla took two additional jobs, one as a computer free-lancer and another with the National Guard.

But additional jobs meant more child care for her two children, costing her $1,300 in that category alone. She almost wanted to raid her savings account, which had only $150. She decided against that.

”This is getting me ready for when I have kids and get older,“ she said.

Kayla's friend Cortney Carter, 13, was making just $20,000 as a paramedic. So she had to make some sacrifices after being left with $376 a month.

”I don't want furniture or clothes,“ she declared.

Another Southern student opted out of medical insurance for herself, buying it only for her kids. One student was advised that he should save his money, but he couldn't live without his plasma screen TV.

”You need to study harder so you can drop a job,“ PTA president Cindy Wysock told Kayla, after the student paid $139 for health insurance for herself and children.

At the end of the experience, Kayla was earning close to $4,000 but had spent $3,230 a month on necessities. And she wasn't enthused about having to work three jobs to make ends meet. Her plan now is to hit the books — hard.

”I'm looking at big things in life and I can't get that without achieving excellence,“ she said.