Managing Your Money

1
Managing Your Money

• Regardless of your income,
• being smart with your money will allow you
• to achieve your goals in life.
• The key is to start now!!!!

Manage your money, don't let it manage you!
2
Recognize the Incredible Value of School

• The majority of students who drop out of college
  have a GPA of 2.5 or above!
• Being a great money manager frees you up to focus
  on your education.
• Earning a degree is one of the most valuable
  things you can do for yourself.
• Money is often a necessary sacrifice during your
  college experience.
• Over time, your degree will help you earn more
  money and give you better work opportunities.

3
Sources of IncomeGet a Job

• Try to find work you like to do or is related to
  your academic work.
• Work with caution. Dont necessarily go after
  the most money! Working is an opportunity to
  explore your interests and make connections.
• Look for jobs with light work loads. It is also
  important to find something on campus or close to
  it.
• Your studies are your first priority. Dont
  waste the money youre spending for school by
  focusing on a part-time job!
• Ask about sudden schedule changes. Final exams
  will need your undivided attention!
• Be assertive in seeking your ideal job.
• Ask your counselor or adviser for help. Work
  study and quick job programs are common on most
  campuses.
• Its good to work for experience and a little
  extra money. Its NOT okay to work to support an
  extravagant lifestyle!

4
Work With Caution

• It takes a lot of money to go to college, but it
  also takes a lot of studying and hard work.
• The same effort to earn the required fees may
  hinder ones progress towards actually earning
  the degree itself.
• Students who work long hours are more at risk for
  failing and dropping courses.
• Failing and dropping courses costs money money
  you cannot get back.

5
Investigate Work Study and Internships

• Work study programs are funded by the federal
  government
• They enable you to work on campus or in the
  community
• Awarded based on financial need
• Check for internships in your chosen field of
  study
• Good experience and respected by future employers

Earn while you learn...
6
Sources of Financial Aid

• Grants
• Scholarships
• Loans

There is money out there, but you must look for
it!
7
Grants

• Gift Aid
• Federal Pell Grant
• Based on financial need
• No academic requirements or GPA minimums
• Requires filling out the Free Application for
  Federal Student Aid (FAFSA)
• Forms and information are available in your
  schools financial aid office.
• Search the Internet

8
Scholarships

• Gift Aid monetary award that is not paid back.
• Rewarded on the basis of
• -Academic merit - A talent or skill
• -Group membership -Religious affiliation
• Putting together scholarship applications can pay
  off substantially
• Be wary of scholarship scams
• Check with your financial aid office
• Check the Internet

9
Student Loans

• Loans are a common and manageable way of
  financing your education. Although you have to
  pay back your tuition with interest, your
  interest payments are tax deductible.
• The Stafford Loan Perkins Loan federal loans
  for students at low rates and with deferred
  payment options.
• PLUS program for parents requires filling out
  the FAFSA.
• Loans are available through other financial
  institutions.
• BEWARE of student loan companies. Just because
  they are endorsed by your college does not mean
  youre getting the best deal. SHOP AROUND for
  the best rate.
• Good student loan companies will offer a low
  interest rate and flexibility in deferring
  payments for at least your first year out of
  school.

Remember student loan debt is not the end of
the world!
10
Recognize Income and Acknowledge Expenses

• Count it all current and summer job income,
  money from parents, gifts, and financial aid.
• Know where it goes regular expenses and variable
  expenses.
• Be honest with yourself.
• Programs such as Moneydance
• and Quicken can help you track
• where your money goes.

11
Learn Ways to Save

• Large scale cutbacks.
• Cheaper housing.
• Additional Roommates
• No carmake use of public transportation.
• Small scale saving methods.
• Clip coupons
• Shop at discount stores
• Cook most meals
• If you dont have it, dont spend it.

Saving money is all about making smart choices.
12
Balancing Your Income and Expenses

• To determine a budget, ask yourself questions
  about your financial needs
• your past and current earnings
• your debt
• your expenses
• What do you need vs. what do you want?
• your plans for the future

13
Proactive and Reactive Budgeting

• Budget First, Spend Later
• Anticipate upcoming expenses and make sure they
  dont exceed your projected income.
• Set limits on what you will spend in each expense
  category.
• Set something aside for unexpected emergencies.
• Spend and Reflect
• Look back at what you earned and spent.
• Assess where your money went.
• Make necessary adjustments (save or recover).

14
Where to put your hard-earned money

• Checking accounts enable you to draw money
  regularly from your account funds via checks and
  a debit card however, many banks charge a
  monthly rate for checking.
• Savings accounts are normally for money you dont
  want to touch. You can withdraw money at any
  time, but let it alone to earn interest.
• Money market accounts are a more sophisticated
  type of savings account which may limit how often
  you make withdrawals.
• Check for bank fees and policies associated with
  each type of account. Shopping around will help
  you find free checking and high yield savings.

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15
Balance Your Checkbook

• Use your checkbook register.
• Fill in all deposits and expenditures.
• Record information immediately.
• Include ATM withdrawals and check card use.
• Reconcile monthly statement with register.
• Recognize outstanding checks.
• Note closing date on statement for deposits and
  checks not included.
• Be aware Banks make mistakes!
• Follow up discrepancies.
• Online Banking is a good way to keep track of
  your spending.

Keep it balanced NO BOUNCING!
16
Credit Know the Basics

• Work to establish good credit.
• Remain stable in your residence and job if
  possible.
• Make timely payments for rent, utilities, loans,
  insurance, and credit cards.
• Co-signing a loan with anyone means you are
  responsible should they default.
• Pay credit card bills in full.
• Consider what your credit report will communicate
  to those who view itsuch as future employers,
  mortgage lenders, etc.
• Learn about your Credit Report and FICO score and
  why they are important.

17
Credit Cards and College Students

• Credit cards can help bridge expenses from month
  to month, but they can cause major trouble, too
• With a credit card, you are likely to spend one
  third more.
• A late payment to your credit company or to any
  other lender can result in a huge increase in
  your interest rate.
• Using your credit card can be a very hard habit
  to break!

Before you lay down the plastic, THINK IT
THROUGH!!!
18
Avoid Problems with Credit Cards

• Shop around for the best interest rates and
  waived annual fees. Bankrate.com is one website
  that rates credit cards. In general, an Annual
  Percentage Rate (APR) of 13 or less is
  considered good.
• Read the Schumer box with basic information
  about the terms of the card.
• Pay the balance every month.
• You will pay significantly more and take
  substantially longer to pay your balance off if
  you only make the minimum payment.
• If you have to carry a balance, dont exceed an
  amount you can pay off in two months.
• If youre in debt, STOP using your cards, keep up
  the minimum payments, and concentrate on paying
  down the one with the highest rate first.
• If youve been a good customer for years, call
  your company and ask for a lower rate. It works!

19
Getting and Staying Out of Financial Trouble

• Protect your financial information.
• Do not give out your social security numbereven
  the last four digits!
• Destroy unwanted credit card offers you receive
  in the mail. These are major sources of identity
  theft!
• Deal with debt collectors and identity theft
  sooner rather than later.
• Every year request your credit report for free
  from the three credit bureaus at
  www.annualcreditreport.com. This is the
  information that lenders will be looking at, so
  make sure its correct!

20
Invest for the Future

• Everyone needs to save for retirement.
• When you start work, learn about your companys
  401(k) and participate in any matching plan.
• A Roth IRA is an excellent way to start saving
  for retirement. Consult a financial guide or
  visit a brokerage for more information.
• Investments are designed for long-term financial
  gain. Consider more conservative investments for
  shorter term goals like buying a house.