1. Money Talk$ Lew DeLuca, Coordinator Student Financial Literacy & Advising Southern CT State University, WT 138 delucal2@southernct.edu 203-392-8862 www.southernct.edu/financial-advising

2. Financial Literacy & Advising

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 INCOMEEXPENSES GrantsTuition & Fees ScholarshipsBooks & Supplies EmploymentHousing College savingsFood Family assistanceTransportation LoansHealth and/or Child Care OtherEntertainment Loan Fees Other

5. Borrow $ = Pay >Worth Trust from Lender to repay (with interest) Loan = legal obligation (MPN) >$29,000 nationally vs. <$25,000 Southern NSLDS.ed.gov (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 (46% do not) ---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 Free @ www.annualcreditreport.com 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 Credit score > GPA

9. Videos Regular People: Cosby Show – https://www.youtube.com/watch?v=-1t9dg5dzQo https://www.youtube.com/watch?v=-1t9dg5dzQo Sesame Street’s Sunnier Financial Days – https://www.youtube.com/watch?v=Y0PjzgRY_fA https://www.youtube.com/watch?v=Y0PjzgRY_fA

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)