Managing Your MoneyManaging Your MoneyRegardless of your income,

being smart with your money will allow you

to achieve your goals in life. The key is to start now!!!!

Regardless of your income,being smart with your money will allow

you to achieve your goals in life. The key is to start now!!!!

Recognize the Incredible Value of School

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.

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.

Sources of Income:Get a Job

Sources of Income:Get a Job

Try to find work you like to do or is related to your academic Try to find work you like to do or is related to your academic work.work.

Work with caution. DonWork with caution. Don’’t necessarily go after the most t necessarily go after the most money! Working is an opportunity to explore your interests money! Working is an opportunity to explore your interests and make connections.and make connections.

Look for jobs with light work loads. It is also important to Look for jobs with light work loads. It is also important to find something on campus or close to it.find something on campus or close to it.

Your studies are your first priority. DonYour studies are your first priority. Don’’t waste the money t waste the money youyou’’re spending for school by focusing on a part-time job!re spending for school by focusing on a part-time job!

Ask about sudden schedule changes. Final exams will need Ask about sudden schedule changes. Final exams will need your undivided attention!your undivided attention!

Be assertive in seeking your ideal job.Be assertive in seeking your ideal job. Ask your counselor or adviser for help. Work study and Ask your counselor or adviser for help. Work study and

quick job programs are common on most campuses.quick job programs are common on most campuses. ItIt’’s good to work for experience and a little extra money. s good to work for experience and a little extra money.

ItIt’’s NOT okay to work to support an extravagant lifestyle!s NOT okay to work to support an extravagant lifestyle!

Try to find work you like to do or is related to your academic Try to find work you like to do or is related to your academic work.work.

Work with caution. DonWork with caution. Don’’t necessarily go after the most t necessarily go after the most money! Working is an opportunity to explore your interests money! Working is an opportunity to explore your interests and make connections.and make connections.

Look for jobs with light work loads. It is also important to Look for jobs with light work loads. It is also important to find something on campus or close to it.find something on campus or close to it.

Your studies are your first priority. DonYour studies are your first priority. Don’’t waste the money t waste the money youyou’’re spending for school by focusing on a part-time job!re spending for school by focusing on a part-time job!

Ask about sudden schedule changes. Final exams will need Ask about sudden schedule changes. Final exams will need your undivided attention!your undivided attention!

Be assertive in seeking your ideal job.Be assertive in seeking your ideal job. Ask your counselor or adviser for help. Work study and Ask your counselor or adviser for help. Work study and

quick job programs are common on most campuses.quick job programs are common on most campuses. ItIt’’s good to work for experience and a little extra money. s good to work for experience and a little extra money.

ItIt’’s NOT okay to work to support an extravagant lifestyle!s NOT okay to work to support an extravagant lifestyle!

Work With CautionWork With Caution It takes a lot of money to go to college, It takes a lot of money to go to college,

but it also takes a lot of studying and but it also takes a lot of studying and hard work.hard work.

The same effort to earn the required The same effort to earn the required fees may hinder onefees may hinder one’’s progress towards s progress towards actually earning the degree itself.actually earning the degree itself.

Students who work long hours are more Students who work long hours are more at risk for failing and dropping courses.at risk for failing and dropping courses.

Failing and dropping courses costs Failing and dropping courses costs moneymoney–– money you cannot get back. money you cannot get back.

It takes a lot of money to go to college, It takes a lot of money to go to college, but it also takes a lot of studying and but it also takes a lot of studying and hard work.hard work.

The same effort to earn the required The same effort to earn the required fees may hinder onefees may hinder one’’s progress towards s progress towards actually earning the degree itself.actually earning the degree itself.

Students who work long hours are more Students who work long hours are more at risk for failing and dropping courses.at risk for failing and dropping courses.

Failing and dropping courses costs Failing and dropping courses costs moneymoney–– money you cannot get back. money you cannot get back.

Investigate Work Study and Internships

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

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

Sources of Financial AidSources of Financial Aid

Grants Scholarships Loans

Grants Scholarships Loans

GrantsGrants 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 school’s financial aid office. Search the Internet

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 school’s financial aid office. Search the Internet

ScholarshipsScholarships 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

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

Student LoansStudent Loans Loans are a common and manageable way of financing Loans are a common and manageable way of financing

your education. Although you have to pay back your tuition your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible.with interest, your interest payments are tax deductible.

The Stafford Loan & Perkins Loan: federal loans for The Stafford Loan & Perkins Loan: federal loans for students at low rates and with deferred payment options.students at low rates and with deferred payment options.

PLUS program for parents; requires filling out the FAFSA.PLUS program for parents; requires filling out the FAFSA. Loans are available through other financial institutions.Loans are available through other financial institutions. BEWARE of student loan companies. Just because they are BEWARE of student loan companies. Just because they are

endorsed by your college does not mean youendorsed by your college does not mean you’’re getting the re getting the best deal. SHOP AROUND for the best rate.best deal. SHOP AROUND for the best rate.

Good student loan companies will offer a low interest rate Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first and flexibility in deferring payments for at least your first year out of school.year out of school.

Loans are a common and manageable way of financing Loans are a common and manageable way of financing your education. Although you have to pay back your tuition your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible.with interest, your interest payments are tax deductible.

The Stafford Loan & Perkins Loan: federal loans for The Stafford Loan & Perkins Loan: federal loans for students at low rates and with deferred payment options.students at low rates and with deferred payment options.

PLUS program for parents; requires filling out the FAFSA.PLUS program for parents; requires filling out the FAFSA. Loans are available through other financial institutions.Loans are available through other financial institutions. BEWARE of student loan companies. Just because they are BEWARE of student loan companies. Just because they are

endorsed by your college does not mean youendorsed by your college does not mean you’’re getting the re getting the best deal. SHOP AROUND for the best rate.best deal. SHOP AROUND for the best rate.

Good student loan companies will offer a low interest rate Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first and flexibility in deferring payments for at least your first year out of school.year out of school.

Recognize Income and Acknowledge ExpensesRecognize 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.

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.

Learn Ways to SaveLearn Ways to Save Large scale cutbacks.

Cheaper housing. Additional Roommates No car–make use of public transportation.

Small scale saving methods. Clip coupons Shop at discount stores Cook most meals

If you don’t have it, don’t spend it.

Large scale cutbacks. Cheaper housing. Additional Roommates No car–make use of public transportation.

Small scale saving methods. Clip coupons Shop at discount stores Cook most meals

If you don’t have it, don’t spend it.

Balancing Your Income and Expenses

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

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

Proactive and Reactive Budgeting

Proactive and Reactive Budgeting Budget First, Spend LaterBudget First, Spend Later

Anticipate upcoming expenses and make sure Anticipate upcoming expenses and make sure they donthey don’’t exceed your projected income.t exceed your projected income.

Set limits on what you will spend in each Set limits on what you will spend in each expense category.expense category.

Set something aside for unexpected Set something aside for unexpected emergencies.emergencies.

Spend and ReflectSpend and Reflect Look back at what you earned and spent.Look back at what you earned and spent. Assess where your money went.Assess where your money went. Make necessary adjustments (save or Make necessary adjustments (save or

recover).recover).

Budget First, Spend LaterBudget First, Spend Later Anticipate upcoming expenses and make sure Anticipate upcoming expenses and make sure

they donthey don’’t exceed your projected income.t exceed your projected income. Set limits on what you will spend in each Set limits on what you will spend in each

expense category.expense category. Set something aside for unexpected Set something aside for unexpected

emergencies.emergencies.

Spend and ReflectSpend and Reflect Look back at what you earned and spent.Look back at what you earned and spent. Assess where your money went.Assess where your money went. Make necessary adjustments (save or Make necessary adjustments (save or

recover).recover).

Where to put your hard-earned money…

Where to put your hard-earned money…

Checking accountsChecking accounts enable you to draw enable you to draw money regularly from your account funds money regularly from your account funds via checks and a debit card; however, many via checks and a debit card; however, many banks charge a monthly rate for checking.banks charge a monthly rate for checking.

Savings accountsSavings accounts are normally for money are normally for money you donyou don’’t want to touch. You can withdraw t want to touch. You can withdraw money at any time, but let it alone to earn money at any time, but let it alone to earn interest.interest.

Money market accountsMoney market accounts are a more are a more sophisticated type of savings account which sophisticated type of savings account which may limit how often you make withdrawals.may limit how often you make withdrawals.

Check forCheck for bank fees and policiesbank fees and policies associated associated with each type of account. Shopping around with each type of account. Shopping around will help you find free checking and high will help you find free checking and high yield savings.yield savings.

Checking accountsChecking accounts enable you to draw enable you to draw money regularly from your account funds money regularly from your account funds via checks and a debit card; however, many via checks and a debit card; however, many banks charge a monthly rate for checking.banks charge a monthly rate for checking.

Savings accountsSavings accounts are normally for money are normally for money you donyou don’’t want to touch. You can withdraw t want to touch. You can withdraw money at any time, but let it alone to earn money at any time, but let it alone to earn interest.interest.

Money market accountsMoney market accounts are a more are a more sophisticated type of savings account which sophisticated type of savings account which may limit how often you make withdrawals.may limit how often you make withdrawals.

Check forCheck for bank fees and policiesbank fees and policies associated associated with each type of account. Shopping around with each type of account. Shopping around will help you find free checking and high will help you find free checking and high yield savings.yield savings.

Balance Your Checkbook

Balance Your Checkbook Use your checkbook registerUse your checkbook register..

Fill in all deposits and expenditures.Fill in all deposits and expenditures. Record information immediately.Record information immediately. Include ATM withdrawals and check card Include ATM withdrawals and check card

use.use.

Reconcile monthly statement with Reconcile monthly statement with registerregister.. Recognize outstanding checks.Recognize outstanding checks. Note closing date on statement for deposits Note closing date on statement for deposits

and checks not included.and checks not included.

Be aware: Banks make mistakes!Be aware: Banks make mistakes! Follow up discrepancies.Follow up discrepancies.

Online Banking is a good way to keep Online Banking is a good way to keep track of your spending.track of your spending.

Use your checkbook registerUse your checkbook register.. Fill in all deposits and expenditures.Fill in all deposits and expenditures. Record information immediately.Record information immediately. Include ATM withdrawals and check card Include ATM withdrawals and check card

use.use.

Reconcile monthly statement with Reconcile monthly statement with registerregister.. Recognize outstanding checks.Recognize outstanding checks. Note closing date on statement for deposits Note closing date on statement for deposits

and checks not included.and checks not included.

Be aware: Banks make mistakes!Be aware: Banks make mistakes! Follow up discrepancies.Follow up discrepancies.

Online Banking is a good way to keep Online Banking is a good way to keep track of your spending.track of your spending.

Credit: Know the BasicsCredit: 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 it–such as future employers, mortgage lenders, etc.

Learn about your Credit Report and FICO score and why they are important.

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 it–such as future employers, mortgage lenders, etc.

Learn about your Credit Report and FICO score and why they are important.

Credit Cards and College Students

Credit Cards and College Students

Credit cards can help bridge expenses from Credit cards can help bridge expenses from month to month, but they can cause major month to month, but they can cause major trouble, too:trouble, too: With a credit card, you are likely to spend With a credit card, you are likely to spend

one third more. one third more. A late payment to your credit company or A late payment to your credit company or

to any other lender can result in a huge to any other lender can result in a huge increase in your interest rate.increase in your interest rate.

Using your credit card can be a very hard Using your credit card can be a very hard habit to break!habit to break!

Credit cards can help bridge expenses from Credit cards can help bridge expenses from month to month, but they can cause major month to month, but they can cause major trouble, too:trouble, too: With a credit card, you are likely to spend With a credit card, you are likely to spend

one third more. one third more. A late payment to your credit company or A late payment to your credit company or

to any other lender can result in a huge to any other lender can result in a huge increase in your interest rate.increase in your interest rate.

Using your credit card can be a very hard Using your credit card can be a very hard habit to break!habit to break!

Avoid Problems with

Credit Cards

Avoid Problems with

Credit Cards Shop around for the best interest rates and waived Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good.(APR) of 13% or less is considered good.

Read the Read the ““Schumer boxSchumer box”” with basic information about with basic information about the terms of the card.the terms of the card.

Pay the balance every month.Pay the balance every month. You will pay significantly more and take substantially You will pay significantly more and take substantially

longer to pay your balance off if you only make the longer to pay your balance off if you only make the minimum payment.minimum payment.

If you have to carry a balance, donIf you have to carry a balance, don’’t exceed an amount t exceed an amount you can pay off in two months.you can pay off in two months.

If youIf you’’re in debt, STOP using your cards, keep up the re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the minimum payments, and concentrate on paying down the one with the highest rate first.one with the highest rate first.

If youIf you’’ve been a good customer for years, call your ve been a good customer for years, call your company and ask for a lower rate. It works!company and ask for a lower rate. It works!

Shop around for the best interest rates and waived Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good.(APR) of 13% or less is considered good.

Read the Read the ““Schumer boxSchumer box”” with basic information about with basic information about the terms of the card.the terms of the card.

Pay the balance every month.Pay the balance every month. You will pay significantly more and take substantially You will pay significantly more and take substantially

longer to pay your balance off if you only make the longer to pay your balance off if you only make the minimum payment.minimum payment.

If you have to carry a balance, donIf you have to carry a balance, don’’t exceed an amount t exceed an amount you can pay off in two months.you can pay off in two months.

If youIf you’’re in debt, STOP using your cards, keep up the re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the minimum payments, and concentrate on paying down the one with the highest rate first.one with the highest rate first.

If youIf you’’ve been a good customer for years, call your ve been a good customer for years, call your company and ask for a lower rate. It works!company and ask for a lower rate. It works!

Getting and Staying Out of Financial

Trouble

Getting and Staying Out of Financial

Trouble Protect your financial information. Do not give out your social security number—even

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 it’s correct!

Protect your financial information. Do not give out your social security number—even

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 it’s correct!

Invest for the FutureInvest for the Future Everyone needs to save for retirement. When you start work, learn about your

company’s 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.

Everyone needs to save for retirement. When you start work, learn about your

company’s 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.