(VIDEO) Ellison Warns Students About Perils of Bad Financial Decisions

Rep. Keith Ellison (D-MN) didn’t mince words when speaking to students Monday about their financial futures. People will lie to them in order to take their money, he said. The students must educate themselves and respect their own limits in order to remain financially healthy.

“The mistakes we make when dealing with money can put you in a world of hurt,” Ellison warned.

The speech was the brainchild of students Seth Gellman and Chandler Luhowskyj—founders of the Hopkins DECA financial literacy promotion project, “Your Money Your Life.” Ellison was joined by Dorothy Bridges, senior vice president for community development and outreach at The Federal Reserve Bank of Minneapolis.

Your Money Your Life is a financial literacy competition in which students compete with projects around the world in educating their DECA chapter and outside audiences about financial literacy.

“We knew that Ms. Dorothy Bridges and also Congressman Keith Ellison are key figures in Minnesota around financial literacy, and we thought the students would be very happy to see two leaders that really could tell them why financial literacy is important to understand,” Gellman said.

Said Luhowskyj: “I think what’s really critical is teaching students about what they can accomplish right now, at this time.”

Despite the ongoing economic turmoil and increasing difficulties shrinking the federal government’s deficit, Ellison steered clear of politics and focused instead on practical advice for students. He warned the students about credit cards and high-interest borrowing such as payday loans and tax-refund loans.

He spent much of his speech on basics useful whatever financial products happen to be in vogue—namely, creating a budget, setting aside savings and a willingness to tell friends, “I can’t afford that.”

“This is about your money to be built, not theirs,” Ellison said. “So much of the financial cost we run ourselves into is trying to impress other people. You want that stuff for your friends, not for you.”

Meanwhile, Bridges emphasized the need for financial knowledge and warned the students to beware of impulse purchases.

“Today’s topic of financial literacy is very, very important to us at The Federal Reserve Bank,” she said. “It’s not only the ability to understand how to manage money effectively, but practicing that on a daily basis is necessary.”