Mitch Kramer - Financial Strategist, CEO of Fluent Financial Joins Houston Morning News

Episode Transcript

Speaker 1 (00:00):
The student loan borrowers that had their loans forgiven by
the Biden administration, at least according to a July study
by a guy by the name of Constantine janellis as
Social Professor of finance at the University of Chicago who
studies household finances, found that borrows maanks. You go out
there and make up for the not having any student
loans anymore by borrowing on cars that went way up,

(00:22):
credit card borrowing that went up, home loans that went up.
So at the end of the day, very few, if any,
of their credit ratings improved, and they owe just as much,
if not more, than they did before. Join us to
talk about is Mitch Kramer, financial strategists and CEO Fluent Financial.
I guess we shouldn't be surprised by this, should be.

Speaker 2 (00:41):
No, Jimmy, we should not. One of the biggest problems
these kids have is lack of financial education or education
system is done a poor job at teaching financial planning basics.
And you think credit is one of them.

Speaker 3 (00:55):
Well, student loans used to be given out through banks
the traditional way, right, and so then under the Obama administration,
suddenly we decided the government was going to take over
school loans. Isn't the government basically just training a whole
group of young people to be this way?

Speaker 2 (01:11):
Yeah, I would say it's part of the indoctrination program.

Speaker 1 (01:14):
Share.

Speaker 2 (01:15):
I think what you see happening is that colleges have
so many degree programs that really don't have a good
return on investment ROI. And one of the things I
would like to see colleges do has have an ROI
for every degree program they have, So your seming business
degrees would probably have the highest ROI. I guess med
school and nursing would do a good job. But the

(01:37):
colleges are very complicit and part of this problem because
I'm not educating the kids how to use credit appropriately.

Speaker 1 (01:45):
And that's purposeful.

Speaker 3 (01:46):
Don't you think they're getting the money, aren't they?

Speaker 1 (01:48):
Yeah, they really don't. They really don't want young people
to eat the financial strategies. They want to be able
to just go ahead keep milking them.

Speaker 2 (01:55):
Yeah, it's part of the indoctrination program. And you also
feeding into a lot of these kids to have a
high sense of entitlement, so they feel like I have
x amoum amount of money coming in, x amount of
money going out, and some of the money going out
has been suspended on the student loans. They say, I
want to get a new car, I want to go
on this trip, I want to buy this handbag. So
they fill that void. It's the saving money and putting

(02:17):
it away. They just spend and curve more debt. They
don't really learn their they don't really learn the lesson
how to use credit appropriately.

Speaker 3 (02:26):
How do you stop it? At this point?

Speaker 2 (02:30):
I think what you need to do is get rid
of maybe some of the classes in high school and
college that teach, you know, political science, and teach financial
planning one on one and give people life skills that
they could utilize because the majority of kids still don't
go to college after they graduate from high school.

Speaker 1 (02:48):
I think that's a great idea, But the devil's in
the details. Who would teach those courses? You'd need to
bring people in who actually know something about it, right,
I mean you don't. You'll want to depend on the
on the education theociation to provide you with somebody who's
going to teach you about finances. You want somebody for
the business world exactly.

Speaker 2 (03:06):
And I would recommend the certified financial planner. A big
part of what we do it it's Fluent Financial is education.
A lot of people in the industry do the same thing.
A lot of us like the volunteering new pro bono work.
I go back to my university, Texas Tech once this
semester and teach a class in financial planning one on one.
So a lot of us out there want to help

(03:26):
and give back.

Speaker 3 (03:27):
You ought to give back to some of these government
economists too, that might help.

Speaker 2 (03:32):
Yes, I think one of the biggest solutions in the government.
And know this is a little bit off track. If
Trump gets re elected, which I hope he does, break
up d C. You have defense bases and contractors in
many of the states. Break up the swamp by moving
the EPA to say like Bismarck, North Dakota, you know,
moving the Department of Interior to Midland, Texas. Get the

(03:54):
swamp out of d C, and you may be able
to make some significant reforms they go.

Speaker 1 (03:58):
Good idea. Thanks Mitch, appreciate you of time financial strategists
and CEO Affluent Financial. That's Mitch Kramer