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With a shaky economy, it's easy to feel overwhelmed, even powerless. But there's one thing you can do: Teach kids about what's going on and how to successfully manage their money and credit.
It's a topic that was touched on even in the presidential campaign: living within your means. It's something arguably more important than ever in this economy. Today, West High School kids got a lesson in credit.
Nine. That's the number of credit cards the average adult has. In those credit cards, $2,700 in debt.
It's tempting because I'm young. I want to do a lot of things, so when I see them I'm like, ‘This is free money!'" said West High School senior Lucio Salamanca.
But there's no such thing as free money, and that's what today's class at West High focused on.
Using giant credit cards, the class worked through different scenarios. For example, a college student wanting to build credit, or a young married couple starting their life together, needing to furnish a home.
Students also learned how interest rates and credit card fees can work against a person and heard tips on how to choose the best credit card and how to manage accounts.
"I think the smart choice is to try to pay it off. But if you can't, instead of paying the minimum, pay a larger amount," West High School senior Van Ngyen said.
Similar classes are being taught by Zions Bank all over Utah and Idaho this week. The company's aim is to give students the knowledge to build good credit, which is critical in today's economy.
"The real crisis is not a credit crisis or a liquidity crisis, it's a confidence crisis. People are just acting out of fear and uncertainty," said Scott Anderson, president of CEO of Zions Bank.
A recent survey by Charles Schwab found only 4 percent of people think they're experts at managing money; 49 percent said they know a little; the rest said they didn't know enough.
When it comes to money, it seems knowledge is power. These students are already banking in the black.
"I don't want to be in debt. I want to live a good life. I don't want to owe $50,000 when I want to retire," Salamanca said.
If you think high school seems early to worry about credit cards, keep this in mind one in every three high school seniors has a credit card. That jumps to eight out of every 10 college students.
E-mail: sdallof@ksl.com
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