American Student Files For Bancrupcy

Americans are notorious for their reckless borrowing habits. Credit cards abound as you keep up an un-affordable lifestyle, just to show off to the Joneses. Especially young people find themselves in deep debt, even before they walk out of college.

A 34-year old college graduate in New York filed for bancrupcy, for the $80 000 debt he owes for his college degree and for the credit cards he used to support his studies.

In the last few years I’ve spent a lot of time talking with students about their future plans. Many have very limited options because they are $20 000, $30 000, $40 000 in debt for college. The most shocking aspect of these conversations is, that most seem to think they never had an option! How can it be that no one educates these 18-year-olds on how to make smart decisions about their finances and their futures?

Borrower is always a slave to the lender. It’s easy to say, don’t borrow, but a lot harder in the midst of real life pressures to follow through with it. Much of the debt  students have though, has to do with living expenses. You are used to getting your i-Pod, Dave Matthews concerts, Macs, fancy dinners etc. when mom and dad paid the bills. Now as students many keep up with lifestyles they just can’t afford.

I think we should somehow cultivate a different kind of culture, where your spending wouldn’t define who you are. A culture, where you earn the money you spend, instead of  spending what you yet haven’t earned. A culture, where authenticity trumps fake smiles and “Oh-I’m-Doing-Greats”.

Revolution always starts with one. So does this one.

Watch the full story here.