1. Financial Leadership Bootcamp: Bring It!

2. 2 Today's Workout Set 1: Budgeting Set 2: Savings Set 3: Credit Set 4: Resources Set 5: Bring It! SALT CREATED BY AMERICAN STUDENT ASSISTANCE

3. 3 Bootcamp Rules 1.YOU MUST SET AT LEAST 3 GOALS. You can learn stuff, but change only occurs when you take action. 2.YOU MUST CHALLENGE YOURSELF. You might have to step outside your comfort zone…its OK, we are here to help! 3.YOU MUST BRING IT! You can play an essential role in being a financial leader on campus – helping yourself and others become financially savvy. SALT CREATED BY AMERICAN STUDENT ASSISTANCE

4. 4 Warmup: Career Pay Check out the Bureau of Labor Statistics  www.bls.gov Annual Mean Wage, May 2013  National: $46,440  New York: $54,580  Arkansas: $37,340

5. 5 Warmup: Money Home Age 25-34 EarningsEarnings - Taxes HS Graduate$30,888$23,166 Associate$37,393$28,045 Bachelor’s$46,415$34,811 Master’s$52,467$39,350 Professional$63,244$47,433 Doctorate$67,470$50,603 SOURCE: U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic Supplement

6. 6 Set Students up for Success with Realistic Expectations!  Are students aware of average earnings in their field of study?  Do they understand tax implications?  Where are there opportunities to have these conversations?  How does this impact borrowing conversations?

7. Set 1: Budgeting

8. 8 A Budget Is… Budgeting Spending Plan Torture?

9. 9 Track Your Spending  Identify your monthly “fixed expenses” (e.g. Rent, utility bills, phone bill, etc.)  Identify your monthly “flexible expenses” (e.g. Groceries, transportation Estimate if needed)  Use: Bills, CC statements, Online Banking, Receipts, Spending Tracker Identify all sources of Income.  Paycheck, Gifts, Financial Aid Refunds, other money Subtract all Expenses from Income  Surplus? Increase expense OR add to savings  “In the Red”? Time to reevaluate Review on a monthly basis Budgeting Basics

10. 10 Other Options? Try it!! The Envelope Method Secret Savings Account Paying Ahead Large Expenses

11. 11 But I “Need" It Needs vs. Wants  Do we “blur the lines” between the two?  Spending plan implications?  Savings Challenge Big purchase philosophy  $50, $100, $500  Buying motive  Opportunity cost  Lots of small things = big purchase

12. 12 Spending Tactics  Wait overnight  Accountability partner  Put it on ice – literally!  Get creative in cost cutting  Get creative in reaching your goals

13. 13 Start with the Spending Plan Conversation Easily Digestible Concept  Plenty of Tools to help When & How?  Financial Aid Process  Provide Worksheets  FYE/College 101 Course  Priority from Day one  Financial Literacy Program? Before the Holidays!  Right place/right time

14. Set 2: Savings

15. 15 EarnSpendSavings Savings Approach Earn Savings Spend

16. 16 Millionaire At 65 25 Starting Age $500/mo $240,000 total $1,000,724 At age 65 40 Starting Age $1,400/mo $420,000 total $975,043 At age 65

17. 17 Or Get to $0 $ 25,000 $288/mo $9,524 interest 10 Years $338/mo $7,504 interest 8 Years, 1 Month

18. 18 Paying Down Debt Philosophy 1 Organize according to interest rate Pay off highest interest rate first Saves the most money in the long run Philosophy 2 Organize according to amount owed Pay off smallest debt first Provides positive reinforcement

19. 19 Make Savings a Priority Establishing good habits  For college students, amount saved is less important than the habit being formed When & How?  Peer to peer  Tactics/best practices  Upperclassmen  Financial Literacy Program? Post pay checks/refund checks  Soft reminders following FWS/WS paychecks  Right place/right time

20. Set 3: Credit

21. 21 Credit Matters!  Future Credit approval  Interest rates  Benefits  Insurance rates  Job opportunities

22. 22 Credit Reports Tell All  Personal information  Credit history  Amount borrowed  Credit limit  Payment history  Delinquencies  Public records  Inquiries

23. 23 Get Your Reports

24. 24 Your FICO ® Score

25. 25 What’s Your Score?

26. 26 Mortgage 2014: {www.myfico.com}

27. 27 Good Vs. Bad Credit $505,827 620-639 $85,492 $475,577 640-659 $55,242 $452,388 660-679 $32,052 $441,061 680-699 $20,726 $431,804 700-759 $11,468 $420,336 760-860 SCORE! Save $85,492!

28. 28 Quick Credit Tips  Opt out of pre-approved offers  www.optoutprescreen.com  Stop {most} telemarketer calls  www.donotcall.gov  Evaluate credit card offers  www.bankrate.com

29. 29 Long Term Affects of Understanding and Establishing Credit Think about relevant purchases  First car, apartment, home, etc. When & How?  Workshops  Credit can be overwhelming…break into small chunks  Financial Aid Process  Discuss long term borrowing considerations  Outside Professionals

30. Set 4: Resources

31. 31 Sites With {mostly} Free Resources  www.annualcreditreport.com  www.myfico.com  www.creditkarma.com  www.bankrate.com  www.mint.com  www.finaid.org

32. 32 Social SALT  www.facebook.com/saltmoney  www.twitter.com/salt_money  blog.saltmoney.org SALT CREATED BY AMERICAN STUDENT ASSISTANCE

33. Set 5: Bring It!

34. 34 Lead your own Financial Literacy Bootcamp  Is everyone on the same page?  Have you conveyed the “WIIFM” to each group? Common mission

35. 35 Taking Action Short Term  Identify three actions you would like to take that will have an immediate positive impact Long Term  Consider the ideal state  What resources do you need to make this happen?  Who do you need to partner with?  Expertise on Campus (e.g. CPAs)

36. 36 Financial Leadership…An Example You! Post financial tips of the day/week/month Recruit students to serve as FL ambassadors Share/Re-tweet SALT FB and Twitter posts Lunch and Learn series Create a group committed to setting a financial goal—do monthly check-ins with the group

37. 37 Thank You SALT: A Responsible Borrower Program CONTACT SALT 617.728.4559 jdashiell@asa.org asa.org