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Personal Finances for the Christian College Student

by Corey A. Pfaffe, PhD, CPA

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Business Officer magazine “84% of undergraduates arrived on campus

last fall with at least one credit card.” “One in three students graduates with $10,000

or more in credit-card debt.” “National average undergraduate debt --

$18,000 to $25,000.”

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“Karen King owes more than she's ever earned in a year.”

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To graduate with honors in credit-card management:

Don't be lured in by free T-shirts Know your (credit) limits Remember, promotional rates are

temporary Watch out for penalties and unnecessary

fees SWITCH to 100% Debit cards!!

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“11 Dumb Ways to Get in Debt” (college student style)

Purse and Shoes obsessions Financing latest gadgets Giving family and friends a loan or co-

signing for a loan Upgrading stuff Playing the lottery or gambling Rent-to-own furniture and appliances

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Three requirements for a personal budget

a technique to plan for monthly expenses a pattern to manage disbursement of each

paycheck a device to stay “on track” between paychecks

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Effective Credit Management How Do You Get Money from a Lender? The Five Cs of Credit

Character Capacity Capital Collateral Conditions

GETTING A REPORT Log on to www.annualcreditreport.com

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Proverbs 22:7 -- “the borrower is servant to the lender”

-- a fact of life!

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How are you going to avoid becoming an

unemployment statistic?

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Payday Loans

Source: State of Wisconsin, Department of Financial Institutions

“Secure, Confidential, Instant Cash Loans. Only $9.31 per $100. Act Now” (www.MyCashNow.com). “You simply write a post-dated check to get the cash you need on the spot”(www.cashstore.com).

The Cash Store and EZ Money have 70 WI locations. The closest Check ‘N Go store to Maranatha is 1.6 miles away where you’ll be charged 573.57% for a 14-day loan.

Source: www.checkngo.com/statedisclosures/Wisconsin

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Retirement savings Start saving $50 per month at age 25. Retire at

age 65 and withdraw over $34,000 per year for 20 years.

Start saving at age 45 -- it will require $381 per month to retire at age 65!

However, the “early worm” only deposited $24,600 versus $96,042 by the “late starter”

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How should you invest your retirement savings?

For most people—mutual funds Principles of Investment

Growth Income Liquidity Safety

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Insurance

Auto Liability Collision Comprehensive

Renter’s Life Health

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Visit us at www.ministrycpa.com for more presentations or to connect with a tax professional.

Visit our Q&A blog at www.ministrycpa.blogspot.com

611 O’Connell StreetWatertown, WI 53094

(920) 261-7012

Member: American and Wisconsin Institutes of Certified Public Accountants