1. Money Talk$ Lew DeLuca, Coordinator
Student Financial Literacy & Advising
Southern CT State University, WT 138

2. Financial Literacy & Advising
Paying for College (SCHOLARSHIPS, etc.)
Saving for College (529s, etc.)
Resources (CashCourse.org)
Facts & Tips ($48, $68,779)
Financial Literacy News
Financial Planning Guide
Federal Loan Repayment
Customized Financial Plans

3. Life = Making Decisions
Spending habits begin at an early age
Needs (food, shelter, clothing, relationships, degree) vs. wants (most everything else)
Use a money management calendar & create a monthly spending diary
$4.00 coffee/day = $1,460/year
“Live like a college student in college, so that you don’t have to live like one after graduation”

4. Develop a Budget INCOME EXPENSES Grants Tuition & Fees Scholarships
Books & Supplies
Employment
Housing
College savings
Food
Family assistance
Transportation
Loans
Health and/or Child Care
Other
Entertainment
Loan Fees

5. Borrow $ = Pay >Worth
Trust from Lender to repay (with interest)
Loan = legal obligation (MPN)
>$29,000 nationally vs. <$25,000 Southern
NSLDS.org: national student loan data system
Student loans appreciate in value
If earn $25,000/ year more with a degree
X 40 years to work = $1 million more/lifetime
Invested $25,000 for ROI of $1 million

6. $ Saving Tips EARN MORE THAN YOU SPEND!!! Buy used or rent textbooks
Use college student discounts
Borrow for needs vs wants
Limit financial aid refunds
Pay unsub. Stafford loan interest quarterly
Continued contact with lender now & then

7. Credit Cards build Credit Ratings
Have one card, no annual fee, low interest rate and use sparingly
Pay bill in-full and on-time
---OR---
If $10 bill with 20% interest that goes unpaid then $2 interest + $35 finance charge + $40 late fee = $87
If $1,000 bill and pay the minimum monthly it will take 13 years to pay a total of $2,129

8. Credit Bureau Ratings
Credit = borrowed $ used to determine credit worthiness & repayment probability
Range 300 to 850 to approve or deny loan
Unpaid bills for >90 days go into collections then in default
Most information appears for 7-10 years
You are your credit report

9. Cosby Show Video

10. Pay Day Gross pay versus Net pay
$48,000 salary = $4,000/month ???
Less deductions for taxes, SS, medic-/dental, IRA, FICA, union dues, 529, etc.
Pay yourself first = save 10% of paycheck
Retirement: IRAs, 401/3 (i.e. 5% you & 8% co.), etc.
Rule of 72 (72/interest rate to double your $)
Compound interest ($75/month for 5 yrs = $4,500 earning 5% = $5,122)
Diverse portfolio (savings, money market, stocks, mutual funds, & bonds)