Welcome to the first

1
Welcome to the first seminar
MONEY TALKS
BUDGETING
presented by the Financial Aid Office and the
Medical Alumni Association
2
Resources
First, make a list of all of your resources for
medical school.

• Help from family parents, grandparents, aunts,
  uncles, siblings
• Personal or spouse income
• Personal savings
• Scholarships
• Need-based school scholarship (must qualify each
  year)
• Non-need-based scholarships (school and
  outside)
• www.finaid.org
• www.fastweb.com
• Soros
• Norfolk foundation
• Beware of scholarship search sites that make
  you pay!
• Service-based scholarships
• School loan (must qualify each year)
• Federal Stafford loans

3
Federal Loans

• Subsidized Stafford Loans
• 6.8 fixed interest rate
• No interest while in school or grace period
• 8500 maximum every year
• Unsubsidized Stafford Loans
• 6.8 fixed interest rate
• Interest starts accruing immediately after
  disbursement
• Maximum listed in your financial aid award
  letter
• Graduate PLUS Loan Loan of last resort
• Requires separate in-person entrance interview
• Can make up difference between aid and Cost of
  Attendance

4
Expenses
Fill in the budgeting worksheet in your goody
bag. Not sure about your expenses? Keep track
for a few months keep all of your receipts,
credit/bank card statements, ATM receipts, etc.
Find a way that works for you take out a fixed
amount of cash each week to spend, use your debit
or credit card for all purchases (be careful!),
keep all your receipts in your wallet, or keep
track in your PDA as you spend money. Make sure
you dont forget expenses that only come up once
or twice a year taxes, car insurance, Christmas
and birthday gifts, health insurance, books,
board fees, security deposits, etc.
5
Your Cost of Attendance Budget includes

• Tuition fees 31,305 for in-state, 41,305
  for out-of-state for 07/08
• Health insurance 2,125
• Books and supplies 985
• Instruments 800
• Living expenses 1482/month for 10 months
  (August 9 June 9)
• For example 639 rent utilities (including
  internet)
• 256 transportation
• 277 food and household supplies
• 40 savings
• 270 personal miscellaneous (clothes,
  recreation, copays, haircuts, gifts,
  pets, alcohol, etc)

6
Budgeting on financial aid
If your personal expenses are less than the Cost
of Attendance Great! Only borrow what you
really need. If you need more loan money later,
you can always request more (up to the cost of
attendance maximum). View your unsubsidized
loans as a line of credit, and only borrow when
you need it! If your personal expenses are more
than the Cost of Attendance You can look for
creative resources money from your parents, a
part-time job, or family loans. But the best
solution is to find a way to reduce your
expenses. Reducing your debt now will allow you
more income later Spending an extra 200/month
now could increase your student loan payment by
116/month for 10 years after you graduate, and
cost you almost 14,000 to repay. If you stretch
your payments out to 30 years, that 200/month
could cost you over 23,000.
7
How to build your budget

• Make a list of all of your resources
• Make a list of all of your expenses
• Software may help MS Money, Quicken, Excel
• Build non-monthly expenses into your monthly
  plan
• If your budget is tight, monitor your spending
  closely during the month, at least until being
  frugal is a habit!

8
Building your budget
If you are not on financial aid and have a fixed
amount of income, you should take the sum of your
resources, subtract your fixed costs, and whats
left is discretionary recreation,
personal/miscellaneous, etc. Example Spouses
take-home 2300/month (after taxes, health
insurance, etc) Fixed expenses 100
savings 850 rent 300 utilities (90
electric, 30 water/sewer, 130 Sprint, 50
cable) 250 car payment 90 car
insurance 150 gas/maintenance 200
groceries 75 household supplies 50
clothes/laundry 100 non-monthly
expenses/misc 2165
This leaves 135/month for discretionary spending
is that enough?
9
If you are borrowing, your budget will determine
how much loan money you need to request. Add up
all of your necessary expenses, then compare that
to your resources. For example
Expenses 41,305 tuition fees 2125 health
insurance 1500 books/supplies/instruments
Monthly costs (for 10 months) 400
rent 165 utilities (half of 80
electricity, 70 phone/DSL, 50 cable, 30
water and 50 cell phone) 150 groceries 50
household supplies 75 car insurance 50
gas 100 eating out 30 gifts 150 misc
(recreation, clothes, copays, etc) 1,170
total/month x 10 months 11,700 Total Expenses
for the year 56,630
Resources 5000 from parents 1000 from
savings 3000 outside scholarship 8500
subsidized loan 16,500 school scholarship 12,000
school loan 46,000 total resources so far
This student can borrow up to 20,035 in
unsubsidized loans. Should she?
10
Okay, I have a budget. Now what?

• Stick to it! Especially when you first start
  living on a budget, keep track of your expenses
  carefully. Check weekly to see how youre doing.
• Tell your friends! Its very hard to live on a
  budget without help from friends and family.
• Organize low-cost activities with your friends
• Participate in meal-sharing with your roommates
• Dont panic! If you overspend one month, look
  for ways to save money and get back on track the
  next month.

11
Saving

• Pay yourself first! It never works to just save
  whats left.
• Students should have either a small emergency
  fund, or financial aid available, in case
  unexpected expenses come up.
• In the real world, try to build up an emergency
  fund that is equal to 3-6 months of living
  expenses.
• Dont settle for the poor interest rates offered
  by your local bank!
• Sample interest rates, as of 10/1/07, for savings
  accounts (no/low minimum balance)
• SunTrust local branch 0.20
• Bank of America local branch 0.20
• Wachovia local branch 0.15
• ING Direct 4.3
• HSBC Direct 4.5
• Emigrant Direct 4.75
• Capital One 5.0 (money market account)

12
Local grocery tips

• Harris Teeter
• 5 student discount must show student ID every
  time
• Double coupons up to 99 cents
• Circular in store, Wed. Daily Progress, or
  www.harristeeter.com
• Kroger
• 5 student discount show student ID when
  registering for the Kroger card
• Double coupons up to 50 cents
• Circular in store, Sunday paper, or
  www.kroger.com
• Giant
• Circular in store, Wed. paper (effective Friday),
  or www.giantfood.com
• Double coupons up to 50 cents
• Food Lion
• Circular in store, Wed. paper, or
  www.foodlion.com
• Coupons redeemed at face value

13
Local household expense tips

• K-Mart
• Circular in store and in the Sunday paper
• Wal-Mart
• Sams Club
• 40 annual membership fee
• Target
• Bed Bath Beyond
• Accepts their coupons past the expiration date!
  Sign up at www.bedbathandbeyond.com
• Big Lots
• Circular in Wednesday or Thursday paper

14
Local food deals
This is just a few of the deals! Ask your
favorite restaurant check www.cavdeals.com.
15
Local drink deals

• Happy Hour M-F Wild Wings 4-7, Orbit 5-9,
  Chilis 3-7,
• McGradys 430-7, South Street 430-630, West
  Main 4-6, Baja 4-9

16
Other tips

• 10 student discount at J. Crew
• Free entertainment in Charlottesville
• Fridays after 500 free concerts
• Hiking trails/parks
• West Main Restaurant Free pool on Tuesdays after
  6pm
• Make use of your resources as a student
• 3 movies at Cinematheque (Newcomb Hall basement)
• Free recreational facilities, football games
• Cheap/free entertainment Rotunda Sing, Tom
  Deluca, speakers, art shows www.virginia.edu/thin
  gstodo and the UVA Student calendar
• Free movie rentals at Clemons library
• Student Health
• Use Cavalier Advantage at the Newcomb parking
  garage, 25 discount - www.virginia.edu/cavalierad
  vantage
• Any others?

17
The Financial Aid Office

• We have an open-door policy feel free to drop
  by anytime with questions or concerns. We can
  help with
• making a budget
• comparing loan offers
• figuring out how much loan money to take out
• financial decisions (for example, using savings
  vs. taking out loans)
• financial emergencies

Dennis (A-H)
Margaret (I-R)
Nancy (S-Z)