MoneyCounts: A Financial Literacy Series After Graduation 11-A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

Description Graduation marks the passage from college student to a wide open world of possibilities You will make decisions that impact your future in all aspects of your life, socially, professionally, and financially. Financial literacy will help your transition to a working life that is full of hopes and dreams in reaching financial freedom and security.

Learning Outcome Learn how to tie loose ends as you prepare for life Learn how to search and accept employment Explore must-know 10 principles in financial literary Learn how to factor your financial future in your present plans Explore strategies for reaching financial freedom and security in life

Defining moment in life!

Stages of transition Assessment Planning Testing Evaluation Re-assessment

Tie loose ends! Check all requirements for graduation Update forwarding information Get recommendation letters Update information with lenders

Items to watch before accepting a job offer Health & Medical Insurance Retirement Plans Potential Achievement Vacation & Sick Leave

What’s the plan?

10 must-know principles! Assess your relationship with money 6 List your needs and wants 2 Map your financial future and destination 7 Apply appropriate rules for financial decisions 3 Know your take-home net pay 8 Only borrow the amount you can pay back 4 Budget your money 9 Protect and manage your credit history 5 Pay yourself first 10 Stay insured

Assess your relationship with money 1 Assess your relationship with money Identify YOUR relationship with MONEY!  What does money mean to you?

Map your financial future and destination 2 Map your financial future and destination

Know your take-home net pay 3 Know your take-home net pay Gross paycheck Taxes Deductions Know your take-home net pay and analyze your gross paycheck, taxes, and deductions. Make decisions to optimize your financial earnings, payments, and investment in retirement. Take-home net pay

4 Budget your money Income Expenses

5 Pay yourself first

List your needs and wants 6 List your needs and wants Needs Wants

(not including mortgage) 7 Apply appropriate rules for financial decisions Rule of 20/10 Yearly net income Total Outstanding Debt 20% Monthly net income Monthly Debt Payment (not including mortgage) 10%

72 Apply appropriate rules for financial decisions Rule of 72 Years to double Interest Rate (How long it takes for your invested money to double in value)

Only borrow the amount you can pay back 8 Only borrow the amount you can pay back

Protect and manage your credit history 9 Protect and manage your credit history Payment History Credit Utilization Account Mix FICO Credit Inquiries Credit Age

Stay insured Insurance 10 Health & Medical Disability & Long-term Care Life Mortgage & Asset/Liability Business

Factor future into present decisions!

What to factor? Hopes and Dreams Career Investment Goals Family Location Goals Hopes and Dreams Career Investment Purchases

Elements of financial literacy! Present Future Security Control over day-to-day, month-to-month finances Capacity to absorb financial shock Freedom of choice Financial freedom to make choices to enjoy life On track to meet financial goals

Starting tips! Invest in your skills and knowledge Budget for present and future decisions Maintain an emergency fund Eliminate consumer debts Know that credit cards are not source of income Include a few treats in your budget Make a well-diversified portfolio for investment Factor future goals in present planning Protect your financial reputation Make decisions based on researched data Financial Freedom & Security

MoneyCounts: A Financial Literacy Series Comments and questions 11A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214