MONEY MANAGEMENT

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MONEY MANAGEMENT

• Money Matters

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Things to think about

• Education costs time and money
• The cost of education is increasing over time
• Consider your spending habits
• Different methods of financing your education
  have different total costs

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Less time, less money

• Ask yourself
• How long will it take to complete my degree?

1531 X 8 12,248
1531 X 10 15,310
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Paying for Education

• Determine education costs
• Apply for financial aid
• Build a budget
• Loan use
• Avoid credit cards

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Cal State San Marcos Fees

• 6.0 units or less, 1,003.00
• 6.1 units or more, 1,531.00

These are fees for California residents.
Non-residents pay an additional 339.00/unit
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Apply for Financial Aid

• Complete 2005-2006 FAFSA at www.fafsa.ed.gov
• Scholarships
• Grants
• Employment Opportunities
• Loans

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Students using Financial Aid

• Apply for Direct Deposit
• You will avoid long check pick-up lines in
  University Cashiers
• You will have quick safe access to your money
• Whats required?
• Checking/savings account number
• Bank routing number
• APPLICATION ONLINE
• WWW.CSUSM.EDU/SFS

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Paying for Education

• Build a budget
• Income vs. Expense
• Track your expenses for 1 month
• Write down all expenses
• Include average for expenses that do not happen
  monthly
• KEEP IT REAL!

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Paying for Education

• Estimated Cost of Attendance (Annual)

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SAMPLE BUDGET
Leftoversavings
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Paying for Education

• Determine whether you need a loan
• Who can contribute to your education?
• Financial Aid
• Family
• Employment
• Savings
• Loans???

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Paying for Education

• Do you really need a loan?
• TuitionPay Installment Plan
• For Non-financial aid recipients
• 4-5 Monthly Payments
• Interest Free
• One time enrollment fee cost per semester or
  annual plan
• www.tuitionpayenroll.com
• [phone]

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Paying for Education

• Do you really need a loan?
• Emergency Loans for financial aid recipients
• Works like an advance until your Financial Aid is
  disbursed
• Borrow up to 500, interest free
• 2 Processing fee
• www.csusm.edu/sfs
• [phone]

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Loan Use
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Loan Use

• Parent Loan for Undergraduate Students
• Unsubsidized
• Dependent students ONLY
• Credit check is required
• Limits
• College cost Fin. Aid PLUS Loan
• FAFSA is required

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WHY NOT CREDIT CARDS?
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Why not credit cards?

• High interest rates
• Annual fees
• Late fees
• Over-credit limit fees
• Penalty rates
• Lost card replacement fees
• Currency conversion fees
• Low credit scores

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GAO Report to Congress
Interest savings between lowest/highest payment
1,570 time saved 75 months or 6.25 years!
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Why not Credit Cards?
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Why not Credit Cards?

• If you absolutely have to
• Limit the number of cards you have
• Keep only for emergencies
• Needs vs. wants
• Use LOW interest rates
• Always pay more than minimum

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Why not Credit Cards?

• College student statistics
• 83 of students have 1 Credit Cards
• 3,000 average credit card/s balance
• 11 make minimum payment
• 17 feel debt burden
• SECOND Highest Rate of Bankruptcy Filing.
• Young Americans Age 25-34

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Think Wise

• Apply for financial aid
• Plan ahead, make a budget
• Evaluate needs vs. wants
• Borrow only when absolutely necessary
• Use loans before credit cards

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Student Loans vs. Credit Cards

• No credit check required
• Interest paid tax deductible
• Zero due if attending school at least ½ time
• Subsidized loans 0 interest
• No interest accrued while attending school
• Unsubsidized loans low interest

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Student Loans vs. Credit Cards

• Credit Cards
• High interest rates
• Annual fees
• Credit check lower credit scores
• Late payment fees
• Consequences

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Cutting Expenses

• Changes that WONT cramp your lifestyle
• Use a grocery list
• Dont shop when hungry
• Clip coupons and buy bulk foods
• Combine errands
• Bring lunch to work/school a few times a week
• Leave credit cards at home
• Estimated monthly savings 75.00

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Cutting Expenses

• Changes that might cramp your lifestyle
• Shop at thrift stores
• Use public transportation
• Eat out once a week
• Cancel cable/cell service
• Rent videos vs. going to the movies
• Estimated monthly savings 250.00

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Cutting Expenses

• Changes that will cramp your lifestyle
• Eat out once per month
• Use public transportation often
• Cancel cable TV, cell, Internet
• Visit the library vs. bookstore
• Share living costs with roommate or two
• Read books on ways to be thrifty
• Estimated monthly savings 500.00

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Savings Plan

• Todays habits pay off tomorrow
• Include savings in your budget
• Save for major purchases
• Save for emergencies
• Pay down student loans
• Save for retirement

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How to Succeed- Recap

• Identify financial goals
• Track your expenses/list your debts
• Create a financial plan/budget
• Save in ways that fit your lifestyle
• Start a savings plan- STICK TO IT
• Pay off debt
• Spend less!

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Resources

• Financial Planning
• www.edwise.org
• www.studentdebthelp.org
• Credit Report Agencies
• Equifax [phone]
• Experian [phone]
• Trans Union [phone]

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QUESTIONS?