Debt Rises Among Young Population

Debt Rises Among Young Population
Mary Alice Holley
The University Echo
02/28/08

Saturday marked the last Men's UTC Basketball Team home game of the 2008 season, as well as "Tennessee Saves," an initiative to raise debt awareness among students.

Tennessee has had the highest number of citizens declaring bankruptcy for a number of years, according to June Puett, an employee of the Hamilton County Agricultural Center.

Puett is among those who coordinated the event that included activities, prizes and giveaways.

"['Tennessee Saves' is] a way to motivate young people to save money now, rather than later," Puett said.

Puett said one of the main reasons for student debt crises is that young people aren't being educated.

"Students take out loans for school they won't be able to pay back later," Puett said. "The first step to financial awareness for a college student is to know the difference between wants and needs," she said.

A pamphlet given to Mocs fans included easy ways to cut back wants on a weekly basis: drink one less soft drink per day, buy one less pack of cigarettes per week and eat out two fewer times per month.

Megan Hollenbeck, a Chattanooga junior, said she thought it was a great idea to incorporate "Tennessee Saves" with a Mocs basketball game.

"Using the game appealed to a wide range of people and got the message out there," Hollenbeck said. "If an organization had set up a table in the UC, it would not have gotten near the attention or numbers that the game brought," she said.

Hollenbeck said she has seen the reasons why many students get stuck in debt.

"It is too easy to spend more money than you make by using a credit card or not keeping a budget," she said.

Raven Smith, a Chattanooga native, decided to attend school out-of-state, accepting the significant tuition spike, which forced her to take out loans.

"I knew not to take out more than I needed because as easy as it seems right now, I will eventually have to pay back that amount and more," Smith said.

Puett said she knows the financial shock that can come with leaving home for the first time. An accumulation of debt can start at an early age and progressively get worse.

She said it is never too early for young people to educate themselves on financial issues such as credit, savings and investing.