In Debt Free 101, students could learn about money management and investments for their future. However, this fictional class is not offered at The University of Memphis, in spite of how badly it may be needed. So Zeta Phi Beta hosted "All About the Benjamins," a financial consultation workshop for students Monday in The University Center.
Tiffany Gaines, chairperson of the event, said the sorority wanted to do something out of the norm and they felt a number of students often face financial struggles.
There was never a quiet moment during the two-hour session as students asked back-to-back questions. LaRhonda Thomas, an AmSouth Branch Manager and U of M alumnae, answered their questions and dispelled some of the myths that college students may have heard.
Thomas said that the biggest mistake students make when trying to build credit is obtaining credit cards.
"Credit cards can actually worsen your credit report more than they can help," she said. Thomas suggested students might want to purchase furniture or apply for a loan in a bank before getting into trouble with too many "maxed out" credit cards.
Thomas also used the time to talk about savings and investments especially for African-American students. She said there are a lot of negative vibes and lack of education in the African-American community about banks and other financial products.
"Why do you think non-blacks have so much money?" Thomas asked. "It is because they invest in their future."
Thomas believes students do not look at certain bank products like mutual funds and financial CDs because of cost and their age. But there are some mutual funds that require someone to set aside as little as $50 a month. Thomas said because mutual funds gain more interest than savings accounts, investors could have a better financial return in a shorter period of time.
"If you are letting banks and credit unions use your money, you want to make sure you are getting as much out of it as you can," Thomas said.LaKeisha Pearson, senior social work major and Zeta Phi Beta member, said she hopes observers learned a lot from the seminar. She said she knows from experience that freshman can get into debt quickly and easily.
"There is nothing you can do or get once you have $20,000 worth of debt in credit cards," Pearson said.
Mostly upperclassmen attended the program. Ben Wells, a senior majoring in advanced math and structural engineering, said the workshop had lessons for all students no matter where they were in their degrees. He said workshops like these could help anyone plan for a better future.
"All About the Benjamins" is a part of Zeta Phi Beta's interest week that continues through Saturday. For more information, contact The Office of Greek Affairs at 678-2093 or go to the second floor of the UC.
