Unfortunately, basic money skills often have to be learned the hard way. Many young adults discover the “magic” of credit and rack up a huge bills before they understand the true penalties. Even just the ordinary incidents like new car tires combined with late fees can start a credit card snowball that becomes a painful life lesson.
This year, Chamberlain’s Children Center in Hollister decided to take a hands-on approach to educating students in personal finance. The non-profit facility helps at-risk children in a homey environment. Chamberlain’s mission is to assist youth in healing from past trauma, discovering their strengths, and developing the skills they need to achieve life-long success.
Gracie Lucatero, program coordinator for Chamberlain’s, said she felt financial knowledge was one of the keys to success and arranged for Wells Fargo bank employees to come. The bank has developed a no-pressure, low-key educational series of courses that make the subject interesting, providing real-life money tips to its students.
Several years ago, the bank decided to remove marketing from its educational programs. Chamberlain’s first class, held in February, focused on budgeting without mentioning any commercial products. So refreshing. Students were introduced to the concept of “wants versus needs” then were run through the process of how to do their own budget.
Alicia Llanes, branch manager for the downtown Hollister Wells Fargo bank, has a knack for translating business ideas into everyday situations. When the young students might not recognize the term “expenses,” Llanes helped them translate the word to familiar situations like buying food or paying for their phone.
In the second session, held March 28, the classroom had a variety of students from fourth-graders to high school sophomores. Llanes walked the small group through a review of the budget concepts they had previously covered.
“Why do we budget?” Llanes asked.
One student raised her hand, “Goals?” she said, a little unsure.
“That’s right. It helps you reach your goals. Budgets help you stay focused on what you are trying to achieve and you can use goals to remind yourself to watch expenses,” Llanes explained.
Next, Alma Aguilar, also with Well Fargo, briefly reviewed the topic of credit cards. She explained how late fees can destroy your budget goals, how fees and interest can multiply and how to avoid them. Aquilar is learning how to teach the “Hands on Banking” program.
“What is a credit score?” asked one of the students. “I’ve seen them talk about it about on TV.”
“I’ve heard of debit cards, credit cards but what the heck is a Mastercard?” an older student asked Aquilar.
Llanes then asked students how much they think the average student owes after going to college. The range of answers was huge. “One thousand?” asked one of the younger students. There were other guesses from around the room of $15,000, $50,000 and even a million dollars.
Llanes’ answer: “$30,000.”
“Ouch!” said a student.
The class was given a chance to ask questions and was provided ideas on how to keep college costs down. Wells Fargo instructors avoided promotional opportunities and stuck with the facts. Llanes explained that the bank shifted its approach and created a package of online training courses for all ages, from youth to seniors.
What were Llanes’ closing lessons on credit and college? “Look for scholarships and grants. You don’t have to pay them back. Try not to borrow money or borrow as little as you can,” she said.
After the class, Alma Aguilar said, “It was exciting. When you ask students ‘What is credit and debit?’ they usually don’t know. The Chamberlain’s students really understood it.” Aguilar, who speaks Spanish fluently started training in the program about six months ago and said she enjoys the work. “I am always happy to share info that will benefit them,” she said.
The Hands-on Banking lessons are available in English and in Spanish without commercial content. The program is a free public service and covers a wide range of financial topics. To learn more about lessons for students, seniors or other nonprofit organizations, contact Alicia Llanes at Wells Fargo Bank on San Benito Street in Hollister.
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