1. Financial Know-How for College Students Presented by Noel Brock

2. What You'll Learn Setting a budget Establishing and maintaining good credit Understanding your student loans Protecting yourself against identity theft Becoming financially responsible 2

3. Setting A Budget 3 Source: www.financialeducatorscouncil.org Did you know that 54% of college students have overdrawn their bank account? ? ?

4. Budgeting — A Powerful Financial Tool 4 An important building block to future financial success is understanding and balancing what you earn and spend. Spend Earn

5. It's All About Decisions 5 Setting up a monthly budget to identify what you EARN and what you SPEND will help you recognize where you can make smarter spending decisions. Money coming in Money going out Saving money for an emergency savings fund is key to building a sound financial foundation.

6. Separating Needs Versus Wants 6 To stay within your monthly budget, it helps to understand the difference between a NEED and a WANT. For example: NEED WANT Cell phone Special ringtones and apps Food Dinner out multiple times a week If you find you have a surplus after meeting your monthly needs, make sure some money is placed in a savings account before you spend money on your wants.

7. Establishing & Maintaining Good Credit 7 Source: www.financialeducatorscouncil.org Did you know 81% of college students underestimate how long it will take to pay off a credit card balance? ? ?

8. Understanding Credit First of all… what is credit ? Credit is an arrangement to receive products or services NOW and pay for them LATER. And with this arrangement, there is generally an additional cost added on to the original amount (i.e., interest). 8 Source: www.smartaboutmoney.org.

9. Establishing Credit Tips to help you establish a good credit history. 9 Pay off your charges in full at the end of the month. Pay on time. Keep your total charges well within your credit limit. Check your credit report for free every year. Equifax Experian TransUnion Source: discoverfinancial.com

10. Understanding Your Credit Score? A credit score is calculated using information such as how much you've borrowed, how you've repaid your debts and your general borrowing behavior. 10 Source: www.smartaboutmoney.org.

11. Why Is This Score So Important? Your credit score is what is used to determine your creditworthiness. It is used any time you apply for a loan, for insurance, to purchase a cell phone or can even be used for employment. 11 If your credit score is low, you may be denied for credit, insurance, etc. If your credit score is high, you may receive a higher credit line (on a credit card or for a loan) and may also receive a lower interest rate.

12. The Cost Of Using Credit Current Credit Card Balance Interest Rate Monthly Payment Amount Years to Repay What You’ll Pay in Interest Current Balance + Future Interest $2,000 18%$3511$2,575$4,575 8%$356$526$2,526 18%$604$793$2,793 8%$603$269$2,269 12 Here are some examples of what you might pay on a $2,000 credit card balance if you’re not able to pay it off in full each month.

13. Understanding Your Student Loans 13 Source: www.wallstreetjournal.com. Did you know approximately two-thirds of all students graduate with student loans? ? ?

14. Understanding Your Student Loan Responsibilities Notify your lender if you: Change your name, address, phone number or Social Security number. Leave school, re-enroll or transfer to another school. Change your graduation date. Enrollment status is less than half-time. 14 Maintain communication with your lender Make your loan payments on time It’s important to make payments on time to build your credit history. Delinquency and default can negatively affect your access to future credit.

15. The Option to Pay Now or Later 15 If payments are not made while in school, the outstanding unpaid interest amount is capitalized at the start of repayment. The interest is added to the principal balance of the loan. This increases the principal balance, payment amount and total amount paid. Students who borrow $40,000 and make interest payments while in school and during their grace period can save $4,848 versus making no payments during the same time period. Those who are able to make interest and principal payments can save even more.

16. Protecting Yourself Against Identity Theft 16 Source: www.transunion.com Did you know that 50% of identity theft cases involve phone, utility, bank and employment fraud? ? ?

17. Protecting Your Identity Tips to keep your personal information safe: Never give out personal or financial information on the phone unless you initiated the call and know the company. Use a different PIN or password for each account. Always type in a URL yourself. Some email scams ask you to click a link to verify your information. Install firewalls and anti-spyware on your computer. When making purchases online, use sites with the prefix "https," which means they are secure. 17 Source: www.smartaboutmoney.org

18. Becoming Financially Responsible 18 Source: www.jumpstart.org. Did you know 41% of students learned their personal finance skills from their parents or at home? ? ?

19. Establishing Financial Success To learn more about budgeting and credit, visit pathwaytofinancialsuccess.org. pathwaytofinancialsuccess.org To learn more about Discover Student Loans, visit DiscoverStudentLoans.com. DiscoverStudentLoans.com 19 Source: www.finrafoundation.org.www.finrafoundation.org ? ? Did you know that only 34% of students report they "never" or "only when necessary" talk to their parents about money?

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