Managing Your Money Regardless 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 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 Try to find work you like to do or is related to your academic work. Try to find work you like to do or is related to your academic work. Work with caution. Don t necessarily go after the most money! Working is an opportunity to explore your interests and make connections. Work with caution. Don t necessarily go after the most money! Working is an opportunity to explore your interests and make connections. Look for jobs with light work loads. It is also important to find something on campus or close to it. Look for jobs with light work loads. It is also important to find something on campus or close to it. Your studies are your first priority. Don t waste the money you re spending for school by focusing on a part-time job! Your studies are your first priority. Don t waste the money you re spending for school by focusing on a part-time job! Ask about sudden schedule changes. Final exams will need your undivided attention! Ask about sudden schedule changes. Final exams will need 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 quick job programs are common on most campuses. Ask your counselor or adviser for help. Work study and quick job programs are common on most campuses. It s good to work for experience and a little extra money. It s NOT okay to work to support an extravagant lifestyle! It s good to work for experience and a little extra money. It s NOT okay to work to support an extravagant lifestyle! Try to find work you like to do or is related to your academic work. Try to find work you like to do or is related to your academic work. Work with caution. Don t necessarily go after the most money! Working is an opportunity to explore your interests and make connections. Work with caution. Don t necessarily go after the most money! Working is an opportunity to explore your interests and make connections. Look for jobs with light work loads. It is also important to find something on campus or close to it. Look for jobs with light work loads. It is also important to find something on campus or close to it. Your studies are your first priority. Don t waste the money you re spending for school by focusing on a part-time job! Your studies are your first priority. Don t waste the money you re spending for school by focusing on a part-time job! Ask about sudden schedule changes. Final exams will need your undivided attention! Ask about sudden schedule changes. Final exams will need 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 quick job programs are common on most campuses. Ask your counselor or adviser for help. Work study and quick job programs are common on most campuses. It s good to work for experience and a little extra money. It s NOT okay to work to support an extravagant lifestyle! It s good to work for experience and a little extra money. It s NOT okay to work to support an extravagant lifestyle!

Work With Caution It takes a lot of money to go to college, but it also takes a lot of studying and hard work. It takes a lot of money to go to college, but it also takes a lot of studying and hard work. The same effort to earn the required fees may hinder one s progress towards actually earning the degree itself. The same effort to earn the required fees may hinder one s progress towards actually earning the degree itself. Students who work long hours are more at risk for failing and dropping courses. Students who work long hours are more at risk for failing and dropping courses. Failing and dropping courses costs money – money you cannot get back. Failing and dropping courses costs money – money you cannot get back. It takes a lot of money to go to college, but it also takes a lot of studying and hard work. It takes a lot of money to go to college, but it also takes a lot of studying and hard work. The same effort to earn the required fees may hinder one s progress towards actually earning the degree itself. The same effort to earn the required fees may hinder one s progress towards actually earning the degree itself. Students who work long hours are more at risk for failing and dropping courses. Students who work long hours are more at risk for failing and dropping courses. Failing and dropping courses costs money – money you cannot get back. Failing and dropping courses costs money – money you cannot get back.

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 Aid Grants Scholarships Loans Grants Scholarships Loans

Grants 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

Scholarships 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 Loans Loans are a common and manageable way of financing your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible. Loans are a common and manageable way of financing your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible. The Stafford Loan & Perkins Loan: federal loans for students at low rates and with deferred payment options. The Stafford Loan & Perkins Loan: federal loans for 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 endorsed by your college does not mean you re getting the best deal. SHOP AROUND for the best rate. BEWARE of student loan companies. Just because they are endorsed by your college does not mean you re getting the best deal. SHOP AROUND for the best rate. Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first year out of school. Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first year out of school. Loans are a common and manageable way of financing your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible. Loans are a common and manageable way of financing your education. Although you have to pay back your tuition with interest, your interest payments are tax deductible. The Stafford Loan & Perkins Loan: federal loans for students at low rates and with deferred payment options. The Stafford Loan & Perkins Loan: federal loans for 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 endorsed by your college does not mean you re getting the best deal. SHOP AROUND for the best rate. BEWARE of student loan companies. Just because they are endorsed by your college does not mean you re getting the best deal. SHOP AROUND for the best rate. Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first year out of school. Good student loan companies will offer a low interest rate and flexibility in deferring payments for at least your first year out of school.

Recognize 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 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 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 Budget First, Spend Later Budget First, Spend Later Anticipate upcoming expenses and make sure they don t exceed your projected income. Anticipate upcoming expenses and make sure they don t exceed your projected income. Set limits on what you will spend in each expense category. Set limits on what you will spend in each expense category. Set something aside for unexpected emergencies. Set something aside for unexpected emergencies. Spend and Reflect Spend 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 recover). Make necessary adjustments (save or recover). Budget First, Spend Later Budget First, Spend Later Anticipate upcoming expenses and make sure they don t exceed your projected income. Anticipate upcoming expenses and make sure they don t exceed your projected income. Set limits on what you will spend in each expense category. Set limits on what you will spend in each expense category. Set something aside for unexpected emergencies. Set something aside for unexpected emergencies. Spend and Reflect Spend 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 recover). Make necessary adjustments (save or recover).

Where to put your hard- earned money… Checking accounts enable you to draw money regularly from your account funds via checks and a debit card; however, many banks charge a monthly rate for checking. Checking accounts enable you to draw money regularly from your account funds via checks and a debit card; however, many banks charge a monthly rate for checking. Savings accounts are normally for money you don t want to touch. You can withdraw money at any time, but let it alone to earn interest. Savings accounts are normally for money you don t want to touch. You can withdraw money at any time, but let it alone to earn interest. Money market accounts are a more sophisticated type of savings account which may limit how often you make withdrawals. Money market accounts are a more sophisticated type of savings account which may limit how often you make withdrawals. Check for bank fees and policies associated with each type of account. Shopping around will help you find free checking and high yield savings. Check for bank fees and policies associated with each type of account. Shopping around will help you find free checking and high yield savings. Checking accounts enable you to draw money regularly from your account funds via checks and a debit card; however, many banks charge a monthly rate for checking. Checking accounts enable you to draw money regularly from your account funds via checks and a debit card; however, many banks charge a monthly rate for checking. Savings accounts are normally for money you don t want to touch. You can withdraw money at any time, but let it alone to earn interest. Savings accounts are normally for money you don t want to touch. You can withdraw money at any time, but let it alone to earn interest. Money market accounts are a more sophisticated type of savings account which may limit how often you make withdrawals. Money market accounts are a more sophisticated type of savings account which may limit how often you make withdrawals. Check for bank fees and policies associated with each type of account. Shopping around will help you find free checking and high yield savings. Check for bank fees and policies associated with each type of account. Shopping around will help you find free checking and high yield savings.

Balance Your Checkbook Use your checkbook register. Use 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 use. Include ATM withdrawals and check card use. Reconcile monthly statement with register. Reconcile monthly statement with register. Recognize outstanding checks. Recognize outstanding checks. Note closing date on statement for deposits and checks not included. Note closing date on statement for deposits 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 track of your spending. Online Banking is a good way to keep track of your spending. Use your checkbook register. Use 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 use. Include ATM withdrawals and check card use. Reconcile monthly statement with register. Reconcile monthly statement with register. Recognize outstanding checks. Recognize outstanding checks. Note closing date on statement for deposits and checks not included. Note closing date on statement for deposits 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 track of your spending. Online Banking is a good way to keep track of your spending.

Credit: 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 can help bridge expenses from month to month, but they can cause major trouble, too: Credit cards can help bridge expenses from month to month, but they can cause major trouble, too: With a credit card, you are likely to spend one third more. With a credit card, you are likely to spend one third more. A late payment to your credit company or to any other lender can result in a huge increase in your interest rate. A late payment to your credit company or to any other lender can result in a huge increase in your interest rate. Using your credit card can be a very hard habit to break! Using your credit card can be a very hard habit to break! Credit cards can help bridge expenses from month to month, but they can cause major trouble, too: Credit cards can help bridge expenses from month to month, but they can cause major trouble, too: With a credit card, you are likely to spend one third more. With a credit card, you are likely to spend one third more. A late payment to your credit company or to any other lender can result in a huge increase in your interest rate. A late payment to your credit company or to any other lender can result in a huge increase in your interest rate. Using your credit card can be a very hard habit to break! Using your credit card can be a very hard habit to break!

Avoid Problems with Credit Cards Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good. Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good. Read the Schumer box with basic information about the terms of the card. Read the Schumer box with basic information about the terms of the card. Pay the balance every month. Pay the balance every month. You will pay significantly more and take substantially longer to pay your balance off if you only make the minimum payment. You will pay significantly more and take substantially longer to pay your balance off if you only make the minimum payment. If you have to carry a balance, don t exceed an amount you can pay off in two months. If you have to carry a balance, don t exceed an amount you can pay off in two months. If you re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the one with the highest rate first. If you re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the one with the highest rate first. If you ve been a good customer for years, call your company and ask for a lower rate. It works! If you ve been a good customer for years, call your company and ask for a lower rate. It works! Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good. Shop around for the best interest rates and waived annual fees. Bankrate.com is one website that rates credit cards. In general, an Annual Percentage Rate (APR) of 13% or less is considered good. Read the Schumer box with basic information about the terms of the card. Read the Schumer box with basic information about the terms of the card. Pay the balance every month. Pay the balance every month. You will pay significantly more and take substantially longer to pay your balance off if you only make the minimum payment. You will pay significantly more and take substantially longer to pay your balance off if you only make the minimum payment. If you have to carry a balance, don t exceed an amount you can pay off in two months. If you have to carry a balance, don t exceed an amount you can pay off in two months. If you re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the one with the highest rate first. If you re in debt, STOP using your cards, keep up the minimum payments, and concentrate on paying down the one with the highest rate first. If you ve been a good customer for years, call your company and ask for a lower rate. It works! If you ve been a good customer for years, call your company and ask for a lower rate. It works!

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 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 This is the information that lenders will be looking at, so make sure it s correct!

Invest 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.