1. NOVA’s Financial Literacy Program
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.
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
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

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:

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:
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. Source: www.bankrate.com 11-30-15
Consider Federal Student Loans Before Expensive Credit Cards and Alternative Loans
3.76% is the current fixed rate on Federal Direct Stafford Loans.
Stafford loans typically offer better repayment plans with deferment and forbearance options.
Alternative loans often have variable rates or higher fixed rates.
Source:

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
Students create a FSA ID.
Parents of dependent students create a FSA ID.
2) Complete the FAFSA at
Reapply each year by NOVA’s priority filing date.
Check your MyNOVA “To Do List”
> MyNOVA > VCCS SIS: Student Information System > Student Center

18. Loan Planning Form Use NOVA’s Loan Planning Form available at:
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.

20. CashContest
Sign Up for Financial Avenue at  entering NOVA’s access code: FinLit
Provide your NOVA student address (ending during the registration process and provide your 7-digit NOVA student ID# when creating your new student account.
Log in to Financial Avenue as a student at  the username and password you created in the step above.
Under “Courses” on the left side of the webpage select the course you would like to complete.  
Complete the modules with a post-test score of at least 70% 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.
CashContest Rules at: blogs.nvcc.edu/financial-literacy

21. Wrapping Up Write down a few things you learned today
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