College Financial Planning Workshop I Intro to Glow, IDA, College Benefits and Budgeting Fall 2010 Online Version for Program Course Credit

Page 2 Goals for This Meeting  Group Agreements  Orientation - Glow Foundation Program and Timeline  IDA Overview  Benefits/Costs of College  Budgeting – Expenses  Closing/Questions

Page 3 Group Agreements  Commitment to Glow Foundation’s program  Be prompt and prepared for all Glow sessions (including Homework items)  Reach out for help when needed  Respond promptly to s or phone calls  Share the information learned with family and peers  Be respectful (one mic)/confidentiality  Accountable for myself and the group success

Page 4 What is Glow Foundation? Glow Foundation aims at providing all dedicated high school students with the opportunity to afford, attend, and graduate from college, regardless of their income level. To do this, we provide: 1.Financial Education Workshops 2.Mentoring/College Planning Support 3.“Unmet need” scholarships

Page 5 Financial Education Workshops Budget Analysis Budget Support and Review College Financial Planning -Benefits and costs of college, financial aid, scholarships, student loans, award letters, and budgeting College Financial Planning -Benefits and costs of college, financial aid, scholarships, student loans, award letters, and budgeting Creation of individual college budgets including: -Detailed expenses -Income sources including parent contributions, scholarships, grants, jobs, and loans -Determine funding gap and identify ways to close or reduce it Creation of individual college budgets including: -Detailed expenses -Income sources including parent contributions, scholarships, grants, jobs, and loans -Determine funding gap and identify ways to close or reduce it Budget support sessions -Students meet with Glow Foundation volunteers to work on and refine their individual budgets Budget review and submission -Individual budgets are assessed by volunteer reviewers Budget support sessions -Students meet with Glow Foundation volunteers to work on and refine their individual budgets Budget review and submission -Individual budgets are assessed by volunteer reviewers September~ FebruaryFebruary ~ March Financial Education Program

Page 6 Program Dates/Timeline Session NumberDateTimeSession Topic 1(Orientation)Orientation 2 (CFPW-I)Understanding the Costs of College/Budgeting 3 (CFPW-IV) Funding Your Education – Award Letters and Financial Aid Overview 4 (Budget Support)Budget Support Session 5 (Budget Review)Budget Review Session (Dates/Times will be posted at the end of the session)

Page 7 “Unmet Need” Scholarship Upon COMPLETING our financial education program, eligible students are given the opportunity to apply for our Glow Foundation Scholarship:  Priority is given to low-income students who are first in family/first generation to attend college  Amount varies depending on the “unmet need” in funding  Requires the submission of a personal budget and additional scholarship materials

Page 8 Individual Development Account What it is: A 2:1 matched savings account for your college education - for every $1 you save, receive $2 in matched funds up to $6,000!! How it can be used: Tuition, books, or a computer Basic Requirements:  Fall below specified income ceilings  Parents must file a tax return and be working  Save a minimum of $20 a month  Complete Glow Foundation’s Financial Education Program

Page 9 How Do I Participate in IDA? Complete the following:  Online student application (11/1)  Media Waiver  Engage in the program!

Page 10 Benefits of College  More money!!  More/better job security  More opportunities  Personal growth  FUN!! Level of education completed Mean earnings in 2006 Unemployment rate (August 2006) Didn't finish High School $30, % High School Graduate $38, % Some College/ Associate’s Degree $45,232/ $47, % College Graduate $67, % Master’s Degree 82, % Doctorate 115, % Earnings and Unemployment Rates for People 25 and Older with Different Education Levels College graduates earn almost $1,000,000 MORE than high school graduates on average over a life time

Page 11 How Much Does College Cost?

Page 12 College Costs HOW MUCH??! SAN FRANCISCO STATE UNIVERSITY:  California State University  Less intense application process  Moderate class sizes  Practice-based learning  Gets you ready to work after you graduate  More affordable than UCs and private colleges Actual Cost of Attendance: $23,476

Page 13 College Costs HOW MUCH??! UNIVERSITY OF CALIFORNIA, BERKELEY:  Part of the UC system  High reputation  High student-to-teacher ratio  Research-based learning  Gears you toward graduate school  Expensive tuition Actual Cost of Attendance: $29,259

Page 14 College Costs HOW MUCH??! Type of SchoolTuition and Fees Room and Board Books/ Supplies Health Insurance/ Fee Personal/ Transportation Total Cost of Attendance Two-Year Community College (De Anza*) 85510,8721,728-3,996$17,451 Four-Year Public In-State Resident (SF State) 5,01412,4141,704-4,344$23,476 Four-Year Public Out-of- State Resident (SF State) 16,91812,4141,704-4, 344$35,380 Four-Year Public In-State Resident (UC Davis) 12,03412,4981,6011,0482,078$29,259 Four-Year Public Out-of- State Resident (UC Davis) 34,05512,4981,6011,0482,078$51,280 Four-Year Private (Stanford)39,13811,8761, ,385$55,385 Cost of Attendance by Type of School ( Academic Year) But, this is before Financial Aid!

Page 15 College Website Navigation-SFSU

Page 16 What Do I Do with These Costs? How can you plug this cost of attendance info into a meaningful tool that will help you think about how to finance and afford college?

Page 17 Budgeting Spend a few minutes thinking about about the following (see page 2 in student packet):  What is a budget?  What is the purpose of a budget?  What does a budget tell you about your financial situation/what decisions can it help you make?  What should be included on a budget?

Page 18 Creating a College Financial Budget Expenses: Cost of Attendance  Fixed Expenses (E.g., tuition, rent, car payments, insurance)  Flexible Expenses (E.g., books & supplies, food, utilities/bills, transportation, personal care)  Discretionary Expenses (E.g., entertainment, going-out, gifts) Income: Sources of Funding  Parents or Savings / Investment  Job / Work Study  Grants (Pell Grants, ACG, Cal Grant etc.)  Loans (Stafford, Perkins, Plus, Private)  Others?? Funding Gap minus equals

Page 19 Tradeoffs What happens when you don’t have the enough money to cover your expenses? How can a budget help you in this situation?

Page 20 Budgeting with Microsoft Excel What is Microsoft Excel?  A Program that stores, sorts, and analyzes data.  Excel allow you to make calculations, graphs, and perform other data analysis  Excel allows you to keep versions and update We will use Microsoft Excel to create our budgets – Excel will allow us to calculate these numbers quickly with the use of basic math formulas

Page 21 Microsoft Excel 101 Excel Basics:  Review the Budget Directions  Test how to do simple tasks (“How To”) in Excel  Use “Shortcuts/Tips,” especially related to basic math functions  Review any other “Important Information” related to the budget you will create

Page 22 Create a Draft Budget for Understanding

Page 23 Homework  Continue researching college costs and inputting this information into your budget  Complete the online student application  Sign and return the media waiver

Page 24 Recap  Group Agreements  Orientation - Glow Foundation Program and Timeline  IDA Overview  Benefits/Costs of College  Budgeting – Expenses  Closing/Questions

Page 25 Contact Info Jason Hong Program Associate Veronica Flores Program Associate/Volunteer Coordinator Alana Okamoto Program Director