1. Managing Your Money Student Success Fall 2007

2. Friend or Foe? Do you resemble the guy on the top or the guy on the bottom? Do you resemble the guy on the top or the guy on the bottom? The key is managing your money correctly. The key is managing your money correctly. How you manage your money can be the difference between anxiety and freedom. How you manage your money can be the difference between anxiety and freedom.

3. Budget The first step is to plan. The first step is to plan. A good way to do this is with a budget or spending plan. A good way to do this is with a budget or spending plan. Shows how much money you have to work with, where your money is going, and how wisely you are spending it. Shows how much money you have to work with, where your money is going, and how wisely you are spending it. Helps avoid uncertainty, eliminates living hand to mouth (or paycheck to paycheck), allows for wise decisions and long-term planning, and alleviates stress. Helps avoid uncertainty, eliminates living hand to mouth (or paycheck to paycheck), allows for wise decisions and long-term planning, and alleviates stress.

4. Sample Budgets Budget 1 Budget 1 Budget 1 Budget 1 Budget 2 Budget 2 Budget 2 Budget 2 Budget 3 Budget 3 Budget 3 Budget 3 Budget 4 Budget 4 Budget 4 Budget 4

5. Monitoring Compare budgeted or estimated amounts with actual amounts. Compare budgeted or estimated amounts with actual amounts. Adjust budget if necessary but don’t adjust just because of a variance. Adjust budget if necessary but don’t adjust just because of a variance. You might need to adjust your spending patterns rather than your budget. You might need to adjust your spending patterns rather than your budget.

6. Monitoring Tips Don’t buy on impulse. Don’t buy on impulse. Will you still want it in 2 weeks? Will you still want it in 2 weeks? Can you wait and buy it later? Can you wait and buy it later? What will happen if you don’t buy it? What will happen if you don’t buy it? Don’t spend money you don’t have. Don’t spend money you don’t have. Shop with a list. Shop with a list. Research purchases. Research purchases.

7. Saving Always wise to save more than you spend. Always wise to save more than you spend. Open a savings account. Open a savings account. If possible, save 5-10% of your income. If possible, save 5-10% of your income. If not, something is better than nothing. If not, something is better than nothing. See how much spare change you can collect. See how much spare change you can collect.

8. Checking Accounts Helps track your money. Helps track your money. Research what bank will best suit you. Research what bank will best suit you. Location Location Services Services Fees Fees Prepare a bank reconciliation each month. Prepare a bank reconciliation each month.

9. Bank Reconciliation The bank’s balance is not necessarily the true balance. The bank’s balance is not necessarily the true balance. Time lag Time lag Errors Errors Unrecorded transactions Unrecorded transactions Compare the bank statement and your check register to determine differences and reconcile your records to the bank’s. Compare the bank statement and your check register to determine differences and reconcile your records to the bank’s.

10. Bank Reconciliation Bank Statement Bank Statement Bank Statement Bank Statement Check Register and Bank Reconciliation Check Register and Bank Reconciliation Check Register and Bank Reconciliation Check Register and Bank Reconciliation

11. Plastic Money ATM card ATM card Debit card Debit card Credit card Credit card

12. Debt Positive vs. negative debt Positive vs. negative debt Positive = worthwhile Positive = worthwhile Example: Student loan Example: Student loan Negative = overspending Negative = overspending Example: Maxing out a credit card for clothes Example: Maxing out a credit card for clothes Delayed gratification is best Delayed gratification is best

13. Road to Debt Recovery Pay your bills regularly and on time. Pay your bills regularly and on time. Pay at least the minimum amount due. Pay at least the minimum amount due. Discontinue and discard all credit cards. Discontinue and discard all credit cards. Contact a consumer/credit counselor and start a debt recovery plan. Contact a consumer/credit counselor and start a debt recovery plan.

14. Ways to Stretch a Dollar Coupons Coupons Shop at discount stores or when on sale Shop at discount stores or when on sale Limit eating meals out Limit eating meals out Carpool Carpool Don’t always buy new Don’t always buy new Use your college’s resources (library, exercise, computers) Use your college’s resources (library, exercise, computers)