1. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 1 By Mona J Casady Chapter Sixteen Managing Money By Mona J Casady Chapter Sixteen Managing Money

2. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 2 This chapter is designed to help you to: Compare your resources with expenses Develop a personal budget plan Understand credit principles and terms Apply for financial assistance

3. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 3 If you share income and expenses with another person, you should discuss and do functions of personal business management together. Decisions about contributing to income and spending money need to be made jointly. Tips for sharing expenses

4. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 4 Maximize Your Resources Keep only a small amount of cash on hand. Deposit into a savings or an investment account a set amount each month. File your income tax forms by February 15 if you will be getting a refund. Pay all Bills before the due date to avoid extra charges.

5. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 5 Minimize Expenses 1.Register on time or early; avoid late registration fees. 2.Shop for the most reasonably priced but quality textbooks. 3.Use the campus computer lab to save computer costs. 4.Purchase clothes on sale or from used-clothing stores.

6. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 6 Minimize Expenses (cont’d) 5.Take advantage of student discounts. 6.Use e-mail in place of long-distance telephone calls. 7.Shop for auto insurance coverage that lowers the rate for good grades and a good driving record.

7. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 7 Costs outweigh funds? You might have to: Borrow money Work more hours or take fewer course hours Adjust your standard of living by reducing the cost of: –Housing –Transportation –Computer equipment –Entertainment –Telephone usage –Food

8. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 8 Building a Sound Credit History Pay bills promptly and in full. Maintain a savings account and a checking account without overdrafts. Be a dependable employee at a steady job. Apply for only one credit card at a local store or bank.

9. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 9 Use of a credit card will not cost anything if you: Choose a company that does not charge an annual membership fee. Pay your balance in full by the due date (saving interest or finance charges).

10. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 10 Types of Financial Assistance Need-Based Aid (Most federal aid and state aid programs are offered on the basis of financial need.) –Pell Grant –Perkins Loan –Stafford Loan –Federal Supplementary Educational Opportunity Grant (SEOG) –Work-Study

11. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 11 Types of Financial Assistance (cont’d) Merit-Based Aid –Scholarships (awarded on basis of merit and/or need) are offered through departments and organizations of a college or university. –Service-Based Assistance (money/other funding received for performing a task or job, usually associated with the college or university): Resident Assistant Orientation Student Leader University Ambassador Peer Leadership

12. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 12 Get Your Degree! The sooner you graduate, the sooner you can start earning a better salary!

13. Chapter 16Copyright 2002 Houghton Mifflin Company - All Rights Reserved 13 Note these comparisons: If you earn $7 per hour at a job, you would earn $14,000 per year working full-time College graduates entering the job market earn at least $26,000 a year (depending on the type of position). This equates to approximately $13 per hour!