Be Wi$e with Money Financial Literacy & Advising Lew DeLuca DeLucaL2@southernct.edu, 203-392-8862 Wintergreen Building 108E

Time Is Money “Money is something you trade your everyday life energy for.” “You sell your time for money.” “Your time is your only real asset.” Joe Dominguez Example: You earn $10/hour and your cell phone costs $100/month. Therefore, it takes you 10 hours of work to pay for your monthly cell phone bill.

Life = Making Decisions We make 6-10 Money Decisions Daily $5 coffee/day = $1,825/year https://www.youtube.com/watch?v=8jkri0AeZWQ Alexa von Tobel in One Life-Changing Class You Never Took http://www2.southernct.edu/financialaid/scholarships.html Scholarships Go To Class! $62

$ Saving Tips Track Expenses (LearnVest, Mint, YNAB) Rent textbooks or buy used (Loan from Multicultural Center: ASC 234) Use student discounts (UNiDAYS, U-Pass) Pay Unsub. loan interest now Limit financial aid refunds

Spending Plan 50% Essentials/Needs 30% Housing, 10% Groceries, 5% Utilities, 5% Transportation 20% Future Emergency Fund (6 mons.), Debt, Retirement, 529 College Savings 30% Lifestyle/Wants Play, Vacation, Charity https://www.youtube.com/watch?v=6Ib-bdko5cE Budgeting

Student Loans Borrow money now, repay with interest later https://www.igrad.com/videos/how-to-nslds-video NSLDS Nearly $27,000 SCSU UG debt (vs. ~$40,000 nationwide) Repay ~$300/month x 10 years including $7,500 interest ($34,500) Student Loan Rule of Thumb: EARN>BORROW https://www.youtube.com/watch?v=tu1bGgOuyww&feature=youtu.be Student loans = Investment in Yourself College graduates earn $1M more lifetime earnings than high school graduates

Credit Cards Use 1 card sparingly (<30% of limit): no annual fee, rewards program (Bankrate.com & nerdwallet.com) Pay bill in-full and on-time (46% do not) ---OR--- $1,000 bill @ 25% interest rate and pay $40 minimum for 7 yrs. & 2 mo. = $1,840 https://www.youtube.com/watch?v=qKHCOdH64Vo How to use

CREDIT: Reports & Scores Use CREDIT for: car loan, mortgage, insurance and when applying for a job, private loan or credit card Reports are FREE @ www.annualcreditreport.com From Experian, Equifax & TransUnion Credit score > GPA

FICO Credit Score

10% Compounding Interest Pay Yourself First $42,000 Gross pay ($3,500/month) $34,227 Net pay ($2,852/month) Automate it to save 20% earnings ($570/month) Investing: Roth IRA, 401k/403b (co. match), pension $1,000,000 = $10/day at 10% for 54 years or $20/day for 27 years https://www.reisupllc.com/your401k/compound-interest Reis Up $5/Day or $150/Month @ 10% Compounding Interest 1 Year $1,885 5 Years $11,616 10 Years $30,727 40 Years $948,611

The Index Card, by Helaine Olen and Harold Pollack