Managing Your Money and Debts Wisely

Learning how to manage your finances and debts is one of the most important lessons you learn. YOUR MONEY, YOUR FUTURE, YOUR LIFE

Preparing for the Future now: Practice delayed gratification Take a personal finance course ASAP If you plan on operating a business, take accounting and tax law courses Save your change every day Write down everything you spend Apply for every type of financial aid DISCIPLINE AT THE RIGHT TIME

Federal and State Loans- Must be repaid with interest usually 6 months after graduation. Federal and State Grants- Need based awards given on a 1 st come, 1 st serve basis. DO NOT HAVE TO BE REPAID! Scholarships- merit based. DO NOT HAVE TO BE REPAID! Work Study Programs: Money earned while working on campus. DO NOT HAVE TO BE REPAID! FINANCIAL AID

Complete FAFSA or TASFA Dont miss deadlines Read all instructions Submit documentation, if required Never lie about your financial status Begin applications ASAP Talk to financial aid counselors at your school Take fliers & brochures Apply for admissions Find out if you can file electronically Keep copies of tax returns for each year Apply for everything possible! TIPS FOR APPLYING FOR FINANCIAL AID

Money that you HAVE to pay back! If you borrow money, borrow only enough for books, tuition and supplies. …dont borrow any money you dont absolutely need. STUDENTS LOANS

Apply for financial aid & scholarships before thinking of getting a loan HELPFUL TIP

Determines if you get approved for a mortgage, insurance, credit card, etc. If approved: your credit score determines what rate of interest you will have to pay 1 free credit score a year – YOUR CREDIT HISTORY

Fair Issac Corporation – Company that created the widely used credit model Your credit score is referred to as a FCIO score FCIO score – 300 to 850 A good score can be consider 720 or above WHAT IS FCIO?

Equifax: www.equifax.com Experian: TransUnion: www.transunion.com 3 MAJOR CREDIT REPORTING AGENCIES

A step forward for financial security is knowing how much money you have and exactly how you spend it. Budgeting is good to determine the exact amount of money you need to borrow Deciding how much to borrow will affect your lifelong after you have completed your degree BUDGETING

Credit card debt is the most common among college students. 76% of undergraduate college students have at least 1 credit card and an average balance of $2, 500 (Nelly Mae study 2010) You lose track of how much youre spending CREDIT CARDS: LIVING ON BORROWED MONEY

Over the top credit card marketing Terrible credit card terms & conditions Economy that no longer provides well paying jobs Interest adds up! CREDIT CARD DEBT IS DUE TO:

Unsuspecting customers have been duped into signing car title loans, pay day loans, and rent-to-own contracts Worse than credit card debt THE PITFALLS OF PAYDAY LOANS, CAR TITLE LOANS, & RENT-TO-OWN CONTRACTS

When someone is on a tight budget, they give up some conveniences to save more money Little things, such as daily coffee for S3.50 or fast food, can add up! Ten year plan: causes of money drain are gum, bottled water, eating out daily, ending machine snacks, unused memberships, salon visits, cigarettes SMALL COSTS ADD UP!