1. Money Management For College Students Presented By: NOVA’s Financial Literacy Program

2. Topics Budgeting Saving Emergency Funds Credit Cards Compound Interest Credit Reports Credit Scores Responsible Borrowing Financial Aid Federal Student Loans Financial Coaching

3. Why Do You Need a Budget? Plan for short-term and long-term goals Enables you to review bad spending habits Stay on track and don’t spend money you don’t have Gain control of your finances

4. Creating a Budget Identify how you currently spend money. Evaluate current spending habits and set spending/saving goals based on long-term financial objectives. Monitor your spending to ensure you stay on track.

5. Budgeting Exercise Create a personal monthly budget. One example of a budget worksheet is available here.here Discuss needs vs. wants

6. Reduce Expenses Reviewing your personal budget, what are ways you can reduce your expenses? Eliminate small, but unnecessary costs… they add up. – Dining out – Unnecessary upgrades (movie channels, newest iPhone, etc.) Reduce larger expenses – Can you save by living in another place? – Can you reduce your transportation expenses?

7. Creating a Savings Plan Try to balance your budget and save the surplus. Aim to save at least 10% of your income. How much do you need to save and by when to cover large expenses? How much is that per month? Set up an emergency fund to cover at least 3-6 months of expenses.

8. Selecting a Savings Account Get a decent interest rate (currently around 1.0%) No fees No minimum balance FDIC Insured Compare banks on websites like www.bankrate.comwww.bankrate.com Then set up direct deposit to automatically save a portion of your pay check.

9. Pay Down Debts After establishing an emergency fund and setting aside enough funds for short-term expenses start paying down your debts. Usually you want to start paying off the debt with the highest interest rate first. May also want to consider: – Length of the loan term (longer terms mean more interest) – Impact on your budget/monthly cash flow Financial calculators can show how much interest you’re saving or paying.

10. Selecting a Credit Card Lowest APR A co-signer may lower your rate No annual fee Request a credit limit that meets your needs Compare Reward Programs Read the fine print! Search for cards at www.creditcards.comwww.creditcards.com

11. Managing Your Credit Card Live within your means! Pay off your balance in full each month. Avoid fees and finance charges – Compound interest – Late and returned payment fees – Over-limit fee – Cash advance and balance transfer fees Example of just paying the minimum balance: http://www.investopedia.com/articles/01/061301.asp

12. Factors that Affect Your Credit Score Having good credit can make it cheaper and easier to borrow when you need a loan.

13. Checking Your Credit Report Get your Free Annual Credit Report at: www.annualcreditreport.com 3 Credit Reporting Agencies: Equifax Experian TransUnion You can request a free credit report every four months if you alternate between the three credit reporting agencies.

14. Responsible Borrowing Only borrow what you truly need and can afford to repay! Try to keep total student loan debt below the salary you expect to have your first year after graduation. Contact your loan servicer if you have trouble making loan payments to discuss your options to avoid default. “Buy what you don’t need and before long you will sell your necessities.” - Benjamin Franklin

15. Consider Federal Student Loans Before Expensive Credit Cards and Alternative Loans 4.29% is the current fixed rate on Federal Direct Stafford Loans. Stafford loans typically offer better repayment plans with deferment and forbearance options.repayment plans Alternative loans often have variable rates or higher fixed rates. Source: www.bankrate.com 11-30-15

16. Apply for Financial Aid You may qualify for aid for your college & living expenses! Types of Financial Aid Grants Scholarships Work-Study Student Loans

17. How to Apply for Financial Aid 1)Students create a FSA ID.FSA ID Parents of dependent students create a FSA ID.dependent students 2) Complete the FAFSA at www.fafsa.govwww.fafsa.gov Reapply each year by NOVA’s priority filing date.priority filing date 3)Check your MyNOVA “To Do List” www.nvcc.eduwww.nvcc.edu > MyNOVA > VCCS SIS: Student Information System > Student Center

18. Loan Planning Form Use NOVA’s Loan Planning Form available at: www.nvcc.edu/forms/pdf/125-346.pdf Review loan history Determine the impact of additional borrowing Review career and income projections Start planning how to repay student loans

19. Financial Coaching Free financial coaching services are available! Financial coaching helps link behaviors to goals and values. Coaches can help you create a personalized financial action plan. Contact Diana Yacob, AFC® for details. dyacob@afsc.com W.703.228.7488 C.703.229.2225 Financial Coaching services are provided in partnership with: Consumer Financial Protection Bureau (CFPB) Armed Forces Services Corporation Virginia Cooperative Extension

20. CashCourse Contest Register as a student, provide your student email address (ending in @email.vccs.edu), your student ID#, and list NOVA as your school. After registering, click: Financial Tools > Coursework > Complete the modules with a post-test score of at least 80% to be entered in the $100 drawings. Eight $100 grants and bookstore gift cards will be awarded to current students who successfully complete the modules by their respective deadlines. CashCourse Contest Rules at: blogs.nvcc.edu/financial-literacyblogs.nvcc.edu/financial-literacy

21. Wrapping Up Write down a few things you learned today. What will you do based on what you learned? Questions?

22. Making Tough Financial Choices http://playspent.org/