Students told of bad credit dangers
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That’s why AmSouth financial specialist Michael Griffith made a trip to Warren County High School yesterday to talk to students in all six of Jimmy Haley’s economics classes. Griffith said it’s vital to instill a sense of financial responsibility at an early age.
When asked if they had car payments, about half the students raised their hands. When asked how many had cell phones, almost all the students raised their hands.
Griffith stressed how those monthly payments are already working to determine each student’s credit score. He said the students who go off to college will immediately face another financial nemesis.
“Every credit card company will be on campus and they will probably make contact with you in the first week,” said Griffith. “A credit card isn’t necessarily bad, but it’s a double-edged sword. It can help you, but it can also hurt you.”
The ability to buy now and pay later is a credit card temptation that’s difficult to refuse. It’s also one of the easiest ways for young adults to dig themselves into a deep financial hole.
Falling behind on monthly payments, whether it’s for a car, cell phone or credit card, can badly damage a person’s credit score. A poor credit score can mean higher payments in anything from car insurance to a home mortgage.
“I’m doing this to try and make them more responsible financial consumers,” said Griffith. “Tennessee is one of the leading states in the nation as far as bankruptcy filings are concerned, and bankruptcy filings hurt the whole community. Even some big industries look at the number of bankruptcy filings in an area before deciding whether to locate there.”
Griffith also talked about saving for the future, a topic that’s not always on the mind of a typical teenager. Griffith told students they don’t have to be a doctor or a lawyer to accumulate significant wealth. He said saving as much as $1 million can be obtained by teens if they are disciplined enough to save $25 a week.