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Coco Warner ReportingThe average debt among college seniors is just more than 20-thousand dollars. So in a pre-emptive strike, Governor Huntsman's office and Zions Bank teamed up today at West High School for "Get Smart About Credit Day."
"They were bought at the same store, they're exactly the same brand, they have all the same features-- but this computer cost 1000 dollars and this computer cost almost three times as much."
Is that a trick question? Kind of; the more expensive computer was bought on a credit at 18 percent interest and paid off using minimum payments. And as these students at West High School see it all adds up.
Soyoung Kim, 7th grade: "I don't think I could understand the fact that the credit card is kind of dangerous to use it on expensive products or anything."
So in conjunction with Governor Huntsman's office, Zions Bank sponsored this "Get Smart About Credit Day", hoping the information students learn today will stay with them.
Miriam Clayton, 7th grade: "My dad told me that he didn't get a credit card until he was 40 because he knew it could be really bad for income."
Utah historically ranks high for credit card default and organizers today hope to bring those numbers down by catching students early.
Rob Brough, Zions Bank: "Because mom and dad don't understand credit they find themselves in bankruptcy, the kids aren't being taught as well, so a program like this is an opportunity for hopefully ending that cycle."
Today's lecture covered interest rates, annual fees, finance charges and why it's important to establish a good credit history.
Rob Brough: "I think one of the biggest misconceptions about credit cards is that it's easy, free money that you have this little piece of plastic that you can buy whatever you want right now."
A misconception that for these future credit card holders has hopefully been corrected.
This year's sophomore class will be the first class in Utah required to take a mandatory semester course in personal finance prior to graduation in 2008. The class is a result of Senate Bill 154 from 2003.
