MSU Extension 4-H Smart Money Contests

Utilizing credit can be a helpful way to build for the future or, when necessary, support emergency needs. However, debt can also have day-to-day and long-term consequences for young people when not managed responsibly.

According to the Debt in America data dashboard with reporting from the Urban Institute:  

• One in six young adults (ages 18-24 in 2023) with a credit record have debt in collections from a creditor.
• 6% of young adults (or approximately one out of 16 young adults) are behind on their credit card bills.

While many factors contribute to the financial challenges facing our young people, Michigan State University Extension and Michigan 4-H recognize that financial education for youth can be one tool in helping them build a strong financial future. Partnering with Extra Credit Union, Michigan 4-H held the 2025 Cash Composition Contest focused on the topic of credit. The essay question asked youth: “How can borrowing money (or using credit such as taking a loan or having a credit card) end up being a good decision and when might it not? How and when will you decide if it is a good choice for you to borrow money? What are some tips you would give someone who needs to borrow money?”

Youth prepared for their essays by attending Michigan 4-H webinars on credit, taking a self-guided credit course online, reading MSU Extension articles on credit or through other self-generated learning opportunities.

Participants were from 27 of Michigan’s counties with a total of 60 essay entries. The essay contest includes two age brackets: 9-13 years-old and 14-19 years-old.

Some of the important tips on credit from youth included:

• Determine if credit is truly needed. “Borrowing for non-essential items or luxuries without a clear repayment plan can result in long-term financial struggles.” Instead, “consider alternatives like saving or reducing expenses before borrowing.”
• Know your financial situation before borrowing any money. “You should know firsthand whether or not you can repay it - including any interest or fees that can occur.” “When you research and make decisions based on facts and not emotions or impulses, you can use a credit card or loan appropriately to benefit the present and future you.”
• Know the terms of the loan. “Read the fine print and fully understand all of the terms and conditions to avoid unexpected penalties or fees.”
• Look for low interest rates when you can. “Avoid loans with high interest, such as payday loans or large credit card balances, as they can cause a lot of stress.”
• Having a plan for paying back the money owed is a crucial step in debt management. “Borrowing money might seem easy at first, but without a plan to pay it back, it can quickly become a problem.” “Paying your bills on time is important for keeping a good credit score and avoiding extra fees. Whenever possible, pay off your credit card each month to stop extra interest charges.”
• Check your credit report throughout your life. “A strong credit score doesn’t just help you qualify for loans; it shows lenders you’re financially responsible, which can be a big plus when applying for a mortgage, car loan or even renting a home.”
• Get assistance from professionals if needed. “Responsible credit use starts with understanding the true costs, including interest and fees, paying balances in full and seeking guidance from trusted individuals or financial advisors.”
• Keep learning about credit and strategies to be fiscally responsible. “Remember to be responsible when using credit and educate yourself on smart credit practices.” “Credit, itself, isn’t the problem- it’s how you use it.”

Thanks to the generous sponsorship from Extra Credit Union, each of the six winners won a $100 e-gift card. Congratulations to our 2025 winners!

• 9-13 years-old:
  • Liam L. (Ingham County)
  • William A. (Oakland County)
  • Julia G. (Livingston County)
• 14-19 years-old:
  • Duray M. (Alger County)
  • Lauren K. (Oakland County)
  • Aleah S. (Houghton County)

Youth demonstrated a strong grasp of the long-term effects of credit use and emphasized the need for financial responsibility. Education around credit can be one step in building financial stability and the future looks brighter for these young people.

To read the winning essays and learn more about the contest, visit Michigan 4-H Money Smart Kids Contest Winners.

MSU Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. To find out how to get involved as a Michigan 4-H youth participant or an adult volunteer, contact your county MSU Extension office.