Money Matters

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Money Matters
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Why should a student care about their finances?

• Its simple, life isnt cheap!

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Student Expense Budget 2005-2006
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Student Expense Budget 2005-2006
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LIVING OFF CAMPUS

• More bills to pay
• Electricity
• Cable
• Internet
• Water
• Garbage
• Gas
• Phone Bill

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LIVING OFF CAMPUS

• Commuting to and from class
• Necessities
• Food
• Go to grocery store, skip the fast food
  restaurants!!!

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Rules to improve your financial life

• Get a good education
• Work long, hard, and smart
• Learn money management skills
• Spend less than you could spend
• Save early and often
• Invest in common stocks for the long term
• Gather information before making decisions

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To live the high life now or later?
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Did you know?

• Saving 6 a day at 10 interest until you retire
  will equal more than a _______

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Did you know?

• Saving 6 a day at 10 interest until you retire
  will equal more than a 1,000,000

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Did you know?

• Average American family spends ______ to raise a
  child to age 18

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Did you know?

• Average American family spends 200,000 to raise
  a child to 18

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Did you know?

• Average US teen spends approximately ____ each
  year

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Did you know?

• Average US teen spends approximately 5400 each
  year

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Did you know?

• Poor credit rating prevents

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Did you know?

• Poor credit rating prevents
• continuing education
• buying a new car
• new home
• getting into graduate school

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Five criteria used to grant credit

• Character
• Capital
• Capacity
• Collateral
• Conditions

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Ways to establish good credit history

• Establish checking and savings accounts
• Phone in your own name
• Request, acquire, and use a bank credit card
• Ask bank for small short-term cash loan
• Pay bills on time
• Pay off student loans

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Every Student Must Fill Out a FAFSA
To qualify for Financial Aid!
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Financial Aidhttp//www.morehead-st.edu/units/fin
aid/
FAFSA

• Federal Perkins Loans
• Federal Direct Loans (Student Loans)
• Subsidized
• Unsubsidized
• Scholarships (www.fastweb.com)
• Grants

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Checking's Account

• Make sure to keep check book up-to-date
• Always keep receipts until written down and
  cleared on accounts
• Available online and through mail
• To save more money, open a free checkings
  account!

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Debit Card vs. Credit Card

• Debit cash transactions and payment
• Debit Card provides access to funds in your
  bank account.

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Debit Card vs. Credit Card

• Credit when you receive goods, for a promise to
  pay the money back
• Credit Card access to funds you must pay back

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Advantages of Credit

• Emergency Resources
• Hedge Against Inflation
• Convenience
• Increases Consumption

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Don't Get Burned!
Read the Fine Print!
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Disadvantages of Credit

• Temptation to Overspend
• Cant pay bill, dont charge!
• Credit is Costly
• Responsibility Liability
• Less Flexibility with Future Budgets

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Real Life credit card numbers
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The Financial Planning Process
Plan for Financial Success!

• Know current financial situation
• Develop financial goals
• Identify alternative courses of action
• Evaluate the alternatives
• Create and implement a financial action plan
  (budget)
• Reevaluate and revise the financial plan

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• Create a Budget!
• Know what you have coming in each week and how
  you spend it!

• Know Needs vs. Wants
• Be honest
• Manage weekly money -- compare income with
  expenses
• Keep consistent spending records
• Prepare for unexpected expenses
• Adjust your budget as needed

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Financially Well-Set

• Get a good education
• Work long, hard, and smart
• Learn money management skills
• Spend less than you could spend
• Save early and often
• Invest in stocks for a long term
• Gather info. before making decisions

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Citibank shows humorous but real situations

• Citibank Identity Theft Situation 1
• Citibank Identity Theft Situation 2

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Protect against ID Theft

• Shred credit applications, cancelled checks, bank
  records, or documents with personal information
  if not needed
• Memorize social security and passwords
• Don't use date of birth as a password or record
  passwords on papers you carry

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Protect against ID Theft

• Don't carry social security card or birth
  certificate--leave in secure location
• Don't disclose credit card information or account
  's on web sites unless the site offers secure
  transaction
• Check your monthly financial statements for
  accuracy

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IF YOU'VE BEEN A VICTIM OF IDENTITY THEFT

• Report ID Theft to police
• Close the account or change PIN codes and
  passwords immediately
• Contact your financial institution and request
  they flag your account and contact you if there
  is any unusual activity on your account

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• QUESTIONS
• ANSWERS