1. Hands on Banking ® Financial Education Budgeting & Paying for College

2. Budgets…what a word!  Doesn’t it send chills down your spine? Somewhat like the words “test-exam” or “homework”!! 11

3. Budget?  What do you think a budget is? 2

4. How can a personal budget help you?  A budget can help you:  Identify how you spend your $  Identify items that cost too much  Help you save for college 3 Creating a budget is easy!

5. Budget basics  Know your income and expenses  Income = allowance, $ from odd jobs i.e., mowing your neighbor’s yard, baby sitting, pet sitting, etc.  Expenses = school supplies, snack $, movies, cell phone, clothing, etc. 4

6. Needs and wants  Needs are items or activities you must have in order to live  Wants are things you would like to have or do but that you could live without 5

7. Making tradeoffs  Making tradeoffs is about choosing not to buy one thing in order to buy another…making tradeoffs isn’t always easy 6

8. Practice  Let’s practice a budget activity for Angie… 7 DescriptionIncome (+)Expense (-)$ Available Earnings – babysitting and running errands $80.00 College fund$15.00$65.00 Snack money$20.00$45.00 Savings for CD player and computer $15.00$30.00 Entertainment/Clothes$20.00$10.00 Angie’s 4-week budget

9. Wrap up on Budgeting  The difference between needs and wants  Create a budget that makes sense for you  Budgeting will help you save for other things you really want  Learn to make tradeoffs! 8

10. That’s all there is to it!  Budgets are simple to make…and a little harder to follow  Remember a budget is like a report card…you will never reach your goals unless you apply yourself 9

11. Paying for College © 2010-2012 Wells Fargo Bank, N.A. All rights reserved. For public use.

12. What are my family’s options? There are many options that families use to pay for college expenses. 11 *Typically offered through the institution  Income  Savings  Financial aid  Tuition payment plan*  529 Plans  Federal student loans  Private student loans  Investments  Home equity  Lines of credit

13. What’s the best option?  The best choice is different for every family and individual situation.  What’s right for you doesn’t have to be just one option— a combination of aid, savings, loans and income might be the right choice. 12

14. How does financial aid fit in?  Many times, financial aid is a lower-cost option for families.  Start with a visit to the school’s financial aid office in your Junior year. They’re the first source for information on grants, scholarships and aid.  It’s the focus of their office to ensure that your family can pay for school. 13

15. Financial aid myths  Only students with a perfect grade point average get aid.  If your family has a decent income, you won’t qualify for anything.  Only great athletes get grants and scholarships.  There’s so much paperwork involved, it’s not worth the time and effort. 14

16. Financial aid facts Financial aid is money that:  Can come in the form of grants or scholarships that don’t have to be paid back  Could include a Work Study program  Is offered as loans. 15

17. Getting started 16

18. First things first Complete the Free Application for Federal Student Aid (FAFSA). Most undergraduates need their parents’ information to complete the form.  Required in order to qualify for federal aid  Complete this as early as possible after your taxes are complete in January of your Senior year.  The results are automatically sent to the schools that you indicate.  Find the form at fafsa.ed.gov.fafsa.ed.gov. 17 Note: Check with the financial aid office for additional forms or applications that you and/or your child may need to complete.

19. The FAFSA online 18

20. Types of aid 19  Don’t have to be repaid  Beware of scams— you should never have to pay to do a scholarship search. Find details on finaid.org and fastweb.comfinaid.orgfastweb.com  Awarded based on financial need and/ or academic achievement  Don’t have to be repaid  Some are federally funded and others are state programs  Some institutions have their own private grant programs  Based on financial need  Allows students to earn income working part-time  Can work either on or off-campus ScholarshipsGrantsThe Federal Work- Study Program

21. What federal loans are available? 20  Need-based  Low interest rates  Fixed interest rates  Government guaranteed  Qualify for unsubsidized regardless of family income  Fixed interest rates  Cover the cost of education  Not need-based Federal Perkins Loans Federal subsidized and unsubsidized loans Direct PLUS Loan for parents and graduate students Federal Direct Loans

22. How much will college cost?  When planning how much to borrow, consider the following costs:  Tuition & fees: varies by school  Housing: dorm room or rent  Meals: cafeteria or groceries  Books and supplies: buy used textbooks to save  Transportation: the bus or parking pass and gas (Student loans cannot be used for the purchase of a car)  Personal expenses: laundry, toiletries, cell bills, etc. 21

23. Senior Year Timeline  As soon as possible after January 1, file the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov (don’t forget to get a PIN).  Register for advanced placement tests.  Complete scholarship applications.  Watch for the Student Aid Report (the response from the FAFSA application). JanuaryFebruaryMarch 22

24. Senior Year Timeline  Compare financial aid awards  Look for additional funding if aid doesn’t cover the cost  Make sure your final transcripts are sent to the school you will attend  If you have a summer job, save money! AprilMaySummer 23

25. Easy Steps to Money Success in College  Create a budget  A budget, also called a spending plan, can help you see where you’re going with money so you don’t spend it recklessly.  Reward yourself: save, save, save  Think of saving as giving a gift, or paying a reward, to you! Whenever you receive money, put some of it into your savings right away.  Keep your money safe…and growing  You can keep your money safe by opening savings and checking accounts at a bank or other financial institution.  Shop Wisely  Is it something you need or something you want?  Use credit to your advantage  Showing you can pay back your loans is important in order to build a good credit history and credit score—which is important when you’re ready to buy a car, rent an apartment, find a job, or eventually buy a house. 24

26. More information for students and parents 25  Covers the basics of good money management and the skills you need to create a brighter financial future handsonbanking.org Hands on Banking ®

27. Any questions? Thanks for your time today. More information: studentaid.ed.gov fafsa.ed.gov anycollege.com collegenet.com fastweb.com studentaid.ed.gov fafsa.ed.gov anycollege.com collegenet.com fastweb.com 26