Evelyne Peterson Andrea Pellegrini
Transcript of Evelyne Peterson Andrea Pellegrini
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Evelyne PetersonCareer Programs Manager
Career Development & Internships Office
North Park University
Andrea PellegriniAssistant Director, USFSCO
Student Money Management Center
University of Illinois System
In what state and/or
county are you
logging in from today?
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Learning Objectives
• Define & create a spending plan
• Understand resources & income
• Identify methods of tracking expenses
• Recognize how to prioritize spending
• Recognize when to modify your spending plan to better suit your needs
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What is your earliest
money memory?
SPENDING PLAN
Picturing Your
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Spending Plan vs Budget
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budget perspective shift spending plan
Chat Discussion
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What makes a spending plan scary?
What about budgets freaks you out?
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Income
Expenses
• Fixed
• Flexible
• Occasional
Savings Goals
Income & Resources
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Income
Wages
Scholarships
Investments
Child Support/ Alimony
Community Resources
Library
Public Transportation
Food Pantries & Shelters
Gifts
Family
Friends
Etc.
Government Assistance
Healthcare
SNAP
FAFSA
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Tricky Income
Student Loans are
considered a source
of income now, but
keep in mind you will
need to repay them.
go.uillinois.edu/loveyourloan
Set S.M.A.R.T. Goals
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S = Specific
M = Measurable
A = Agreed Upon
R = Realistic
T = Timely
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Investments & Home Ownership
Emergency Savings
Insurance – Protection against Risk
Healthy Finances
Good Credit Budget Bills Paid On Time
Need Money Now
Timing of Savings Goals
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Immediate Short-Term Mid-Term Long-Term
Within a Few Weeks Within Next 5 years Within 5 - 10 Years More Than 10 Years
Rent Money Vacation Buy a Car Retirement
YOUR EXPENSES
Understanding
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Expenses
• Rent / Mortgage
• Savings Goals
• Utilities
• Transportation
• Healthcare
• Dependent care
• Groceries / Food
• Cable / Netflix / Hulu
• Personal items
• Entertainment
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Expense Tracking Tools
goodbudget.com goo.gl/kHhL92 check register
Envelope
BudgetingSpreadsheets Paper & Pencil
App Example Making it on a College Budget Old School Example
There’s an App for That
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Link your financial accounts.
Set budgets. Get alerts.
Check with your financial institutions.
Mint LearnvestExamples:
Polling Question
Is pizza a need or a want?
IT DEPENDS!
There are healthier, cheaper things toeat than pizza so it is oftenconsidered a want.
But let’s say you’re a diabetic and it’syour only option and your sugar isdropping… the pizza has now turnedinto a need.
Needs > Wants
A need is something that if you went without
it, it could jeopardize your health, safety or
livelihood.
Define the Expense
Expenses that are consistent, often associated with a contract
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Fixed
FlexibleExpenses that vary over time, helpful to know when cutting spending
OccasionalExpenses that show up irregularly over time; may be bi-monthly, quarterly, etc.
Rent or Mortgage
Fixed? Flexible? Occasional?
Groceries
Fixed? Flexible? Occasional?
Water
Fixed? Flexible? Occasional?
Pet Care
Fixed? Flexible? Occasional?
Music Subscription
Fixed? Flexible? Occasional?
Spending Secrets
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Many surveys have shown that
people hide purchases or how
much they spend from those
they love.
Source: http://www.businessinsider.com/love-and-money-what-statistics-say-2012-2
Money Personalities
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Hoarder SpenderAmasser Avoider Monk
Chat Discussion
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What is your biggest spending secret?
Have you ever had buyer’s remorse?
SPENDING PLAN
Creating Your
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Spending Plan Puzzle
Identify priorities
Recognize resources
Set S.M.A.R.T.
goals
Track progress
Analyze & re-prioritize
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Evaluate and Brainstorm
• Identify
– Income & Resources
– Fixed, Flexible & Occasional Expenses
• Compare Income & Expenses
• Set S.M.A.R.T. Goals
• Prioritize Spending
• Make Changes as Needed
• Income– Job
– Fellowship Stipend
– Parental / Guardian Support
• Expenses– Savings Goals – Emergency Fund
– Rent
– Utilities
– Cable / Netflix / Hulu
– Transportation (Car, Bus, Uber)
– Food (Groceries & Eating Out)
– Entertainment (Hobbies, Events, Etc.)
– Healthcare / Hygiene / Personal Items
– Clothing
– Etc.
Tools to Use
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Notebooks
Excel Sheets
Apps & Software
Chat Discussion
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Are there ways to save money by spending less?
Can you think of ways to diversify your income?
Ways to cut spending:
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small purchases? cash or credit? Time to earn?
Red Flags to Watch For
• Your spending plan results in a negative number
• Forgetting to include categories in your spending plan
• Underestimating costs or overestimating income & resources
• Variations in spending & income from life transitions
• Too much money accumulating in “other” category.
Re-Prioritizing A Spending Plan
Goals change based on
your life situation &
circumstances
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Identify priorities
Recognize resources
Set S.M.A.R.T.
goals
Track progress
Analyze & re-prioritize
Reminders
• Spend less than you earn
• Prioritize saving to accomplish goals
• Student loans turn into debt later
• Change your plan to match your needs
• Track your spending how you choose
Financial Literacy Badges Program
Take a step towards the
Spending Badge.
Spooked by Spending Plans? Quiz:
go.uillinois.edu/spookyspendingq
uiz
More information about the Financial Literacy Badges Program can be found here:
GO.UILLINOIS.EDU/FLBADGES
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Wednesday
November 7
12:00 PM CST
Stay in Contact with Us!