Transcript Personal Finance for College Students Use Money Wisely

Personal Finance for
College Students
© 2008 BALANCE FINANCIAL FITNESS PROGRAM
Use Money Wisely
• Become and remain organized
• Be aware of spending
• Prepare for upcoming expenses
Analyze Income
• Total all incoming funds:
• Job, student loans, grants, scholarships,
financial support
• Determine monthly amount:
• Divide periodic income by number of
months
• Make cash last
• Consider savings from seasonal work
Set Goals
• Three basic goal types:
• Short-term – 1 year or less
• Mid-term – 1-3 years
• Long-term – 3+ years
• Multiple goals – all at once/one at a time
• Know goal cost and achievement date
• Price/ time frame = $ to save each month
• Be prepared for setbacks
Develop a Savings and
Spending Plan
• Analyze the present/prepare for the future
• Track spending
• Plan for spending and savings
• Expenses should never exceed income
• Include savings
• Decrease expenses/increase income
• Understand difference between wants and
needs
Keep an Eye on Cash
• Avoid impulse purchases
• Don’t gamble your money away
• Track spending
Use Your Checking
Account Wisely
• Handle/monitor account:
• Read statements for accuracy
• Keep track of deposits, withdrawals, checks,
purchases, fees
• Use ATM/debit card wisely
• Write checks responsibly
• Set up automatic bill pay
• Balance account
• Use overdraft protection
Open a Savings Account
• Make savings a habit
• Save for emergencies – 2-3 months
worth of essential expenses
• Use automatic transfer of funds
Establish Credit
• Use credit wisely:
• Build history and score
• When shopping for credit, look for:
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Low APR
Long grace period
No annual fee
Low penalty fees
• Get the right card type:
• Secured
• General purpose (unsecured)
• Store and gas
Use Credit to Your Advantage
• Stay out of debt
• Pay more than minimum payment due
• Pay on time
• Limit the number of cards you have
• Build a good credit history:
• Credit bureaus report credit activity
• Companies score activity
Treat Bills Responsibly
• Rent – establish good relationship with
landlord
• Utilities – be careful with use
• Telephone – be aware of minutes
• Pay all of your bills on time:
• Late payment fees
• Collection agency
• Suspended service
Know Your Student Loans
• Subsidized – government pays interest for a
period of time
• Unsubsidized – interest accumulates
immediately
• Loan Types:
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Stafford loans – subsidized and unsubsidized
Perkins loans – subsidized
PLUS loans – unsubsidized, made to parents
Private loans – no government involvement
Pay Your Student Loans
• Know your grace period – 6 to 9 months
• Seek a deferment or forbearance, if
necessary
• Avoid default
• Make the right payment arrangements
• Consider forgiveness programs
Summary
• Get into good personal finance
habits now
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Avoid over-borrowing
Live within your means
Save for emergencies and goals
Dedicate time to money management
BALANCE
BALANCE is a financial education and
counseling service available as a benefit
of credit union membership
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Money management counseling
Debt repayment options
Credit report review
888-456-2227 / www.balancepro.net