CARE teaches students consequences of debt

Amanda Harris
aharris@theadvertiser.com

Financial mistakes made during high school and college can haunt consumers even after they pay the bills, and one group is trying to educate students about the consequences of living beyond their means.

John Ninfo, a New York bankruptcy court judge, spoke to Lafayette High School students Tuesday as part of a new financial education program for students called CARE. Ninfo, who founded the group, and others are traveling the country educating students about the dangers of spending more than they make.

"I saw a half dozen to a dozen young people in my court every week buried in student-loan debt and credit-card debt," Ninfo said.

Watching young people in court each day propelled Ninfo to hit schools in a movement to educate students about what he said is the most important lesson of all.

"We (schools) teach math. We teach history. And we have kids dropping out of college because of credit-card debt," Ninfo said. "Then, what good are all of those other lessons?"

Ninfo said about 10 percent of students drop out of college because of debt.  According to the Nellie Mae loan service, more than 83 percent of undergraduate students have at least one credit card. The average student's credit card balance is $2,347.

Lafayette senior Andrew Best, who turned 18 a few weeks ago, said he's been solicited for credit cards for months.

"This (program from CARE) is good because you're learning about something that will really matter," he said. "Once you mess up, you can't go back."

Best said his parents have talked to him about credit cards, which Ninfo said is essential for parents to do. Ninfo said some parents may not realize how accessible credit cards are, may not know that students often view them as "free" money or that students also are part of the more than 40 percent of Americans that spend more than they make.

"We have a national epidemic of financial illiteracy," Ninfo said.

The CARE program has reached 38 states, and Ninfo hopes more are on the way with an initiative backed by a Louisiana bankruptcy trustee, Dwayne M. Murray, called GLAD. GLAD stands for "Greeks Learning to Avoid Debt" and will hit the UL campus at 6:30 p.m. today. Ninfo also is slated to give the presentation to Northside High School students today.