1. Financial Literacy

2. Budgeting  According to the National Center for Education Statistics (NCES), the research arm of the U.S. Department of Education, students who dropped out of postsecondary institutions cited financial reasons as the primary catalyst for leaving school. Learning to develop and manage a budget is a key skill set that will help you achieve both short- and long-term financial goals throughout life – skills that are especially handy during college when money is typically tight.  For pointers on developing a budget, or to get tips for keeping your budget on track, consider using the ECMC’s Budget worksheet.  And remember, keep your eyes on the prize. The time you put into your budget, and the choices you make to keep your budget on track, will pay off over the long run by providing you with greater financial independence and security.

3. Education Pays  While the cost of college may seem intimidating, keep in mind that people are willing to help you find the resources – scholarships, grants, and loans – you need to attend college. What's more, people are willing to help you for free. Talk to the financial aid office for tips on how to start your search.  Adults with advanced degrees earn four times more than those with just a high school diploma. (U.S. Census Bureau)  Not only do college graduates earn more, but your future employers expect some college education. Ninety percent of the fastest growing jobs in the new information and service economy will require some postsecondary education. (U.S. Department of Education)  There are more benefits! College graduates are less likely to be unemployed and are more likely to be in better health and active in their communities than those with only a high school diploma. (College Board)

4. Your rights and responsibilities Right to ask:  Costs and refund policies  Percentage of students who complete the program; percentage of students placed in jobs  What financial help is available  Them to explain the various elements in your financial aid package Responsibility to:  Research the colleges  Know and comply with all application deadlines  Respond promptly and provide all information  Read and keep copies of all forms  Complete loan entrance and exit counseling  Repay your student loans

5. Don’t Let College Costs Keep You From Earning a Degree!  If applied for Financial Aid, talk to the Financial Aid Office if you have a change in:  Dependency Status  Marital Status  Income and Assets  Child Support  Number in Household or College  Private elementary/secondary school tuition  Medical or dental expenses (not covered by insurance)  If you have exhausted scholarships and grants and still need additional money to pay your college costs, Federal education loans may be a good option for you. Unlike grants and scholarships, loans must be paid back with interest.Federal education loans  Before accepting a loan, however, consider the following:

6. Only Borrow What You Need  While loans are a critical way to help finance a postsecondary education, only borrow what you need and amounts you can pay back once your education is complete. Borrow wisely.  Learn more about your responsibilities first. Learn more about the repayment process so that you know what your obligations are.

7. Know the Terminology  Debit A purchase authorized by you in which a retailer uses money electronically withdrawn from your checking account as payment for goods and services. You initiate the purchase by using your debit card, generally tied to your checking account. Does not contribute to your credit rating.  Interest The periodic fee charged by the lender to borrow money. Interest charges are repaid in addition to the principal of the loan.  Buyer’s Remorse/Impulse Purchases Regretted purchases usually bought in the heat of an emotional moment.  Checking Account The most common way to pay your bills. You write a check, use a debit card or authorize a transfer of funds and that money is deducted from your checking account.  Overdraft Protection By opting in for overdraft protection, you authorize your bank to cover charges even if you don’t have money in your account. Fees for overdraft protection transactions can be very expensive.  Credit Report A visual summary of how you handle credit. It’s typically viewed by lenders, apartment rental managers, insurance companies and employers as a symbol of your reliability.  Credit Score A number assigned to your credit report to indicate your overall credit worthiness on a scale from 350 (poor rating) to 850 (excellent). Consider using the ECMC’s Financial Awareness Basics Glossary at: http://www.ecmc.org/details/financial-glossary.html http://www.ecmc.org/details/financial-glossary.html

8. Protect against identity theft  Keep your SSN, DOB, Driver’s license, passwords and PINs confidential  Never give out personal or financial information over the phone or via e-mail  Be careful sharing personal information  Make sure Web sites are secure before providing information  Get your free credit report annually  www.annualcreditreport.com www.annualcreditreport.com  Shred all documents  Learn more at: www.ftc.gov/idtheft www.ftc.gov/idtheft

9. Additional Resources ECMC- http://ecmc.org http://www.ecmc.org/overview/financial-awareness-basics.html Higher One- http://www.myonemoney.com/inside-edge Federal Trade Commission- http://www.consumer.ftc.gov/features/feature-0014-identity-theft Practical Money Skills- http://practicalmoneyskills.com/