Money Talk$ Lew DeLuca, Coordinator Student Financial Literacy & Advising Southern CT State University, WT 138 delucal2@southernct.edu 203-392-8862 www.southernct.edu/financial-advising

Financial Literacy & Advising Paying for College (SCHOLARSHIPS, etc.) Saving for College (529s, etc.) Resources (CashCourse.org) Facts & Tips ($48, $68,779) Financial Literacy News Financial Planning Guide Federal Loan Repayment Customized Financial Plans

Life = Making Decisions Spending habits begin at an early age Needs (food, shelter, clothing, relationships, degree) vs. wants (most everything else) Use a money management calendar & create a monthly spending diary $4.00 coffee/day = $1,460/year “Live like a college student in college, so that you don’t have to live like one after graduation”

Develop a Budget INCOME EXPENSES Grants Tuition & Fees Scholarships Books & Supplies Employment Housing College savings Food Family assistance Transportation Loans Health and/or Child Care Other Entertainment Loan Fees

Borrow $ = Pay >Worth Trust from Lender to repay (with interest) Loan = legal obligation (MPN) >$29,000 nationally vs. <$25,000 Southern NSLDS.org: national student loan data system Student loans appreciate in value If earn $25,000/ year more with a degree X 40 years to work = $1 million more/lifetime Invested $25,000 for ROI of $1 million

$ Saving Tips EARN MORE THAN YOU SPEND!!! Buy used or rent textbooks Use college student discounts Borrow for needs vs wants Limit financial aid refunds Pay unsub. Stafford loan interest quarterly Continued contact with lender now & then

Credit Cards build Credit Ratings Have one card, no annual fee, low interest rate and use sparingly Pay bill in-full and on-time ---OR--- If $10 bill with 20% interest that goes unpaid then $2 interest + $35 finance charge + $40 late fee = $87 If $1,000 bill and pay the minimum monthly it will take 13 years to pay a total of $2,129

Credit Bureau Ratings Credit = borrowed $ used to determine credit worthiness & repayment probability Free @ www.annualcreditreport.com Range 300 to 850 to approve or deny loan Unpaid bills for >90 days go into collections then in default Most information appears for 7-10 years You are your credit report

Cosby Show Video https://www.youtube.com/watch?v=-1t9dg5dzQo

Pay Day Gross pay versus Net pay $48,000 salary = $4,000/month ??? Less deductions for taxes, SS, medic-/dental, IRA, FICA, union dues, 529, etc. Pay yourself first = save 10% of paycheck Retirement: IRAs, 401/3 (i.e. 5% you & 8% co.), etc. Rule of 72 (72/interest rate to double your $) Compound interest ($75/month for 5 yrs = $4,500 earning 5% = $5,122) Diverse portfolio (savings, money market, stocks, mutual funds, & bonds)