Teens taught to use credit wisely
HOULTON — Americans spend $1.22 for every $1 they earn, according to the Myvesta Foundation. How are people spending more than they earn?
Often by overextending their credit cards. That’s why Katahdin Trust Company used the 9th Annual National Get Smart About Credit Day, celebrated Oct. 20, as an opportunity to stress the fundamentals of wise credit use.
“Teaching teens and young adults that credit is an important tool for the future may eventually help reverse this trend,” said Vicki Smith, Senior Vice President of Marketing and Communications.
The goal of the American Bankers Association Education Foundation’s Get Smart About Credit program is to raise awareness about the responsible use of credit so teens and young adults can learn how to use credit correctly. “We participate in the Get Smart About Credit program to educate young people on how to best use credit so it will help equip them to handle adult financial responsibilities,” said Smith.
The following Katahdin Trust Company employees will reach out to over 100 high school students across northern and central Maine throughout October: Ann Brewer, Hermon High School; Annette Beaton, Greater Houlton Christian Academy; Emily Hosford and Kathy Howes, Katahdin High School; and Tori Barber, Central Aroostook High School. Efforts will continue into the spring with Carrie Hull visiting the Easton Jr/Sr High School and Janet Jandreau, Ashland District High School.
Katahdin Trust Company has many tips for students and young adults. “It’s important to establish a budget and stick to it,” Smith said. “It’s also important to educate yourself on how credit works before you obtain a credit card and to select a card which fits your needs as interest rates, terms, fees and grace periods vary. Keep in mind that a credit application is a contract, so be sure to read it well. Above all, don’t spend more than you can afford. A credit card is not magic money. Be sure to pay your bills on time to protect your credit rating.”
