Everything you ever wanted to know about… Student Finances Presented by the Tomas Rivera Center for Student Success

A scary statistic… A government report states the personal savings rate for the nation in 2005 was negative 0.5%. That means consumers not only spent what they earned— A government report states the personal savings rate for the nation in 2005 was negative 0.5%. That means consumers not only spent what they earned— they also spent money they didn't have.

Warning Signs of Debt Problems No savings No savings Minimum payments on credit cards Minimum payments on credit cards Use credit cards for things you used to buy with cash Use credit cards for things you used to buy with cash More than 2 major credit cards More than 2 major credit cards Unsure of total amount you owe Unsure of total amount you owe At or near your limit on credit cards At or near your limit on credit cards

Are you in over your head? Do you bounce checks? Do you bounce checks? Have you been denied credit? Have you been denied credit? Do you get calls from collectors? Do you get calls from collectors? Do you lie about your spending or debt? Do you lie about your spending or debt? Do you take out cash advances on your credit cards to pay other bills? Do you take out cash advances on your credit cards to pay other bills?

Top 5 Money Mistakes College Students Make Getting into credit card debt Getting into credit card debt Squandering your student loan money Squandering your student loan money Ruining your credit score Ruining your credit score Choosing a college that is too expensive Choosing a college that is too expensive Not budgeting Not budgeting

So why budget? A budget will help you… Stay in control of your money Stay in control of your money Live within your means Live within your means Meet your savings goal Meet your savings goal Keep track of spare cash Keep track of spare cash Prepare for emergencies Prepare for emergencies Keep out of debt Keep out of debt Sleep better at night Sleep better at night

Features of a Successful Budget Categories that fit your personal situation Categories that fit your personal situation Accurate income projections Accurate income projections Enough categories to give you a meaningful picture, but not too many Enough categories to give you a meaningful picture, but not too many A line item for savings – treat as a bill A line item for savings – treat as a bill Cash tracking and recording Cash tracking and recording Realistic written goals Realistic written goals

Understanding your credit report Your credit report is a record of your entire credit history, including late and/or delinquent payments and maxed-out accounts Your credit report is a record of your entire credit history, including late and/or delinquent payments and maxed-out accounts There are 3 credit companies that report credit information – it is recommended to compare data from all three to ensure accuracy. There are 3 credit companies that report credit information – it is recommended to compare data from all three to ensure accuracy. Your credit report is evaluated anytime you apply for a loan (i.e. car or home purchases, credit cards, bank loans, etc.) Your credit report is evaluated anytime you apply for a loan (i.e. car or home purchases, credit cards, bank loans, etc.)

How to read your credit report Personal Information: used to verify your identity; not included in credit score calculation Personal Information: used to verify your identity; not included in credit score calculation Summary: categorized list of all accounts Summary: categorized list of all accounts Account History: detailed information about all accounts in your name Account History: detailed information about all accounts in your name Public Information: legal matters that affect your credit Public Information: legal matters that affect your credit Inquiries: lists businesses that have checked your credit in the last 2 years Inquiries: lists businesses that have checked your credit in the last 2 years Creditor Contacts: lists contact information for each creditor in your report Creditor Contacts: lists contact information for each creditor in your report

Credit Reporting Companies Experian: (888) Experian: (888) Equifax: (800) Equifax: (800) TransUnion: (800) TransUnion: (800) Reports are usually about $5-$10 each. Reports are usually about $5-$10 each. You can also order a free copy of all three reports once a year by law at You can also order a free copy of all three reports once a year by law at

Do you impulse spend? Surprised by your credit card statement? Surprised by your credit card statement? Own lots of things you never wear/use? Own lots of things you never wear/use? Buy things you didn’t even know you needed until you saw them on display? Buy things you didn’t even know you needed until you saw them on display? Come home with items you had no intention of purchasing when you went out? Come home with items you had no intention of purchasing when you went out? Buy things just because they are on sale? Buy things just because they are on sale?

Curbing impulse spending Index card trick – wait two weeks Index card trick – wait two weeks Leave credit cards at home when you go shopping – bring cash only Leave credit cards at home when you go shopping – bring cash only Learn to recognize wants from needs Learn to recognize wants from needs

Activity and Questions