Warren Buffett How To Stay Out Of Debt Summary

Two Important Concepts About Debt And Future Financial Situation After watching the video of Warren Buffett’s speech, How to Stay Out of Debt, I realized how important for American youth to learn the tips to manage their money. According to Warren Buffett, debt is very common to see in daily life, since lending loan or borrowing loan is essential to most of the American families. In the address, Warren Buffett talked about his opinions of debt, and he indicated that people should be caution of their financial status before they get into financial shortage. He believed that in order to improve the future financial situation, it is important for people to stop getting increasing loans. However, he also agreed that there are debts that cannot be avoided, such as student loan correspond to the high tuition fee. Therefore, he concluded that borrowing loan has risk, and it is important for future youth to avoid debt as much as they can.
For instance, the college tuition fee is getting higher and higher each year. The University of California has just agreed to increase 5% tuition fee to its students, which bring a lot of financial problems to many families. One of my friends was anger and lost after the UC system announced the news, because her family is also paying tuition for her twin sister and her brother at the same time. In this situation, her family has to borrow more loans to pay for the tuition; otherwise, the three children will not be able to get education. However, Warren Buffet suggested that students should try to minimize the loans they borrow. For example, I think they should try to do work-study or do part-time jobs as long as they can help their parents from getting more debts without paying back much. Also, people should try their best to find the best banks to borrow loans, which would offer them the lowest interest rates and the most