Transcript Helping Students Handle Their Finances

FYE
• Helping Students Handle Their Finances 2-11
• Work Hard But Smart 11-31
• Credit 101 32-61
– Prioritize Your Wants and Needs
– $50
• Checking Accounts 101 62-66
• Live Like a Student- Managing Your Funds 67-78
• What Are You Learning From Your Job 79-110
1
Helping Students Handle Their
Finances
An Overview of Financial and Debt
Management FYE Success Series
Autumn, 2003 Programs
2
Financial Aid 101
• Learn about the factors that determine
eligibility for financial aid
• Hear descriptions of the various aid
programs
• Learn about the effects of enrollment
changes on maintaining aid eligibility
Frances Robbins
3
Financial Aid 102
• Financial planning for education is on on-going
process throughout a college career.
• This session will encourage students to consider
educational costs and to assess available resources.
• There will be a discussion about how financial aid
can be used to maximum benefit and how
planning can minimize educational loan debt.
Frances Robbins
4
Work Hard but Smart: How to be Successful in
School; Graduate on Time
• Communicate strategies for success while in
college.
• Show how effective planning can help students
more easily reach educational goals, and save
time and money.
• Show that budgeting one’s time and money can
minimize stress and maximize goal attainment.
Carla Mattmiller
5
Checking Accounts 101
• Acquaint students with checking account
terms and fees.
• Help students learn to keep their check
registers and balance their checkbooks.
• Give guidelines for use of ATM and debit
cards.
Deniesha Newby and Merilyn K Lee
6
Living Cheap!
• Get students thinking about how to spend less in
everyday life.
• Help students learn to set spending priorities by
differentiating between needs and wants.
• Promote long-term financial independence by
helping students spend within their means.
Merilyn K Lee
7
Financial Independence
• Define the differences between need and want.
• Develop skills in meeting and achieving goals.
• Develop insights to distinguish the difference
between spending freedom and financial freedom.
Larry Christopherson
8
Understanding Credit
• Introduce participants to the history of credit.
• Gain an understanding of the impact on purchases
that are made using credit.
• Introduce the student community to the program
so they know that if they are overextended in their
use of credit, there are plans that can help the
recovery process.
Larry Christopherson
9
On the Money (and Savings and
Investing)
• Learn the basics of financial record keeping and
when and when not to use a credit card.
• Basic financial concepts will be covered.
• The best investment opportunities will be
described, as will the basics of financial planning.
There will be an opportunity to evaluate the best
investment options.
Tally Hart
10
Work Hard but Smart: How to be
Successful in School and
Graduate on Time
Adapted from United Student Aid
Funds, Inc.
Presented by Carla Mattmiller
11
Acknowledgement
• USA Funds is a student loan guarantor. The
corporation has launched a multi-year
initiative to assist colleges and universities
to reduce their student loan default rates.
The resources used today are part of that
undertaking.
12
Our Goals Today
• To share strategies to succeed at Ohio State and to
complete your degree in a timely manner
• To show how effective planning can help you
more easily reach educational goals, and save time
and money
• To show that budgeting your time and money can
minimize stress and maximize goal attainment
• To get to know others and have some fun!
13
Congratulations—You’ve Made
It Here
• Now what?
• 46.1 % is the national graduation rate
(within 5 years) at 4-year public institutions
(ACT news release, 2003)
• Ohio State’s rate is higher (56.4 % for those
freshmen starting in 1998)
14
Why the Low Graduation Rates?
• Our culture encourages an affluent lifestyle
• Some students work longer hours and take
fewer classes
• Part-time enrollment delays graduation
• Selecting a major too early or too late
• Go to Page 1 in Student Skills book for
Module 3: Review Graph
15
How Can I Successfully Finish
My Education on Time?
• Develop a plan
• Identify a strategy or strategies to make
satisfactory progress
• Develop ways to cope with the demands of
being a student
16
Plan to Finish School on Time
• Set realistic goals:
How many years do I plan to be in school?
How many credit hours are required to
graduate?
What is full-time status at Ohio State?
How many classes do I need to complete
each quarter?
17
Understand Your Curriculum
• Work with your adviser to understand your
General Education Curriculum requirements
as well as your major course requirements
• Schedule what you can realistically handle
• Balance more demanding courses with
those that are less demanding
• Allow at least twice as many homework
hours as hours in class
18
Ask Your Adviser!
• Look for the “Friendly Advice” on Page 4
of your Life Skills book. See if you agree;
better yet—see if your adviser agrees!
• Your relationship with your adviser could
be one of the most important ones you’ll
have at Ohio State. And remember, it’s a
two-way street!
19
Keep Your Life Simple
• There are many wonderful opportunities here!
Participate in them! But not all of them!
• Take care not to over-extend your self socially or
financially. What you borrow, you must pay back.
• If you’ve not yet done so, learn to say “no” and to
be comfortable with it! Don’t charge what you
cannot pay off each month. If you delay
gratification now, you can avoid serious debt
down the road.
20
Stay Focused on Your
Educational Goals
• Resist temptations that can distract you.
• Do not join every organization that appeals
to you.
• There will always be other students who
have more money than you do. Do not try
to keep up with them.
• Be extremely cautious with credit card use;
do not abuse them.
21
Suggestions to Make Satisfactory
Progress
• Learn how to be a skilled learner. This
could include actively participating in class
and demonstrating interest.
• Demonstrate commitment. Be motivated.
• Join in discussions. Ask questions. Be
willing to learn.
• Consider the Classroom Success Skills on
Page 6 of the Life Skills book.
22
Sharpen Your Study Skills
• Look at Pages 7-8 in the Life Skills book.
• Do your reading; take good notes; ask
questions; get assistance;* actively
participate in class; schedule a time to study
each day; eliminate distractions; find “study
buddies;” study harder subjects first; find a
library and use it!
23
*Getting Assistance
Younkin Success Center:
1640 Neil Avenue, 292-4400
– Walter E. Dennis Learning Center, 688-4011
– Counseling and Consultation Services, 292-5766
– Career Connection 688-3898
ALSO: Larry Christopherson, PhD., Financial
Specialist; 247-7218;[email protected]
24
Seek Help from Your Instructors
• Learn your instructors’ names.
• Find out where and when they hold office
hours.
• Meet with your instructors early on.
• Participate in study sessions.
• Show respect.
• Ask questions.
25
Budget Your Time Wisely
• Check out Page 14 of your Life Skills book.
Consider the items listed and estimate how
much time you spend on each in a day. Add
up the time.
• Are you over-scheduled?
• Are you under-scheduled?
• What consumes a lot of your time?
• What activities support your college goals?
26
Student Stress
• Life Skills refers to events or people who
cause us stress as “Crazy-Makers” and
encourages us to identify them and to also
identify those strategies which reduce them.
• Let’s try to identify some things which
stress you out:
27
Coping Strategies
• Have you found ways—or can you think of any—
to reduce your stress and anxiety?
• Ohio State has many resources available to you:
Student Health Center; Counseling and
Consultation Service; offices, services and
organizations under the auspices of Student
Affairs:
http://studentaffairs.osu.edu/resourceguide.asp
28
Get Connected!
• Many of us haven’t had to work on making new
friends for a long time. Here are some things to
consider as we surround ourselves with new faces:
Be friendly. Initiate contact. Make eye contact.
Smile! Say “hello.” Hang out at community
meeting places. Ask questions. Encourage others
to talk. Be helpful. Share food! Be fun.
29
What is Your ‘College-Q?’
• On pages 25-26 of the Life Skills book,
there are 10 questions. Some time when
you have a few minutes—but don’t wait too
long—please look at those questions,
respond to them and see where they lead
you in terms of success and satisfaction here
at Ohio State.
30
Resources
• Finally, in the back of the Life Skills book, there
are two pages listing recommended resources and
web sites. Check it out!
• The book you’re using today is one of five. If you
would like to have the other four, let me know
([email protected].)
• Consider attending other FYE courses offered by
the Office of Student Financial Aid!
31
Credit 101: Having and Using
the Power of Plastic
FYE Success Series
Carla Mattmiller and Vern McNeill
October 7 and 10, 2002
32
Debt Accumulation
• A great deal of debt can be acquired while
you are in school
• …unless you learn very early how to
manage your money!
33
It is not Easy to Manage Your
Money!
• Among other things, managing your money
takes:
• Time
• Organization
• Sound judgment
• Doing Without
34
Our Goal is to Help You Control
Your Finances
• Take the time to review the descriptions of all of
the Office of Student Financial Aid’s offerings to
the FYE Success Series. You might find other
sessions useful!
• Financial Aid 101, Financial Aid 102, Checking
Accounts 101, What are You Learning from
YOUR job?, On the Money, Savings and
Investing, etc.
• Check them out!
35
To Take Control of Your
Finances:
•
•
•
•
Set Your Goals
Realistically decide what you need
Create a budget and stick to it
If you use credit: manage it and don’t let it
manage you
• Think of ways to increase your income
36
Your Future: What You Charge
Now Will Shape It!
• While you are in college, keep your debt as
low as it can possibly be.
• Student Loan Debt
• Credit Card Debt
37
Be Ever-Aware of the Difference
between a Necessity and a Desire
• “Wants” v. “Needs”
• Let’s brainstorm:
What kinds of things do you want to buy?
What kinds of things do you need to buy?
What did you come up with?
38
Prioritize Your Wants and Needs
Priority Levels
1: Absolutely essential for survival!
2: Pretty darn important!
3: More of a need than a want
4: Great to have, but not a need
5: Pie-in-the-sky!
39
Item
Want or Need?
Priority?
Double-mocha cinnamon latte every morning
Basic clothing
Transportation to work or school
Big-screen TV
Textbooks for your classes
Telephone service
Apartment or dorm to live in
Automobile
Weekly appointment at hair and nail salon
Designer clothing
Cable TV service (if you live off-campus)
Personal computer
40
Pets (include food, veterinary care, rental deposit!)
Spring break in Cancun!
Christmas and birthday gifts for family
Gas, oil, maintenance, and insurance for auto
Health insurance
Cell phone
Tuition
Microwave oven
Food
Weekend pizza party for 20 friends (you’re buying!)
High-speed internet access
Ski trip to the French Alps!
41
“Wow—I’ve got $50.00 to spend!”
ITEM
Lunch at home or dining commons
COST
YOU SPEND:
$0
Lunch at Wendy’s
$4.50
Lunch at Johnny Rockets
$7.50
Lunch at Champs
Used jeans at Volunteers of America
$12.00
$3.50
Cherokee jeans at Target
$20.00
Old Navy jeans
$30.00
Designer jeans at Lazarus
$45.00
42
Used shirt at Volunteers of America
$2.00
Merona shirt at Target
$12.00
Old Navy shirt
$20.00
Designer shirt at Lazarus
$37.00
Watch TV at home or dorm
$0
Split video rental from Blockbuster with 3 friends
$1.00
Movie at 5:00 p.m. bargain show
$5.50
Movie at 6:30 p.m. regular price show
$7.50
Split half-gallon of ice cream with 3 friends
$1.00
Ice cream sundae at Dairy Queen
$2.50
Ice cream sundae at Graeter’s
$4.00
TOTAL FOR THE DAY
43
Rules: You have no credit cards. You cannot borrow
money from friends to spend over your $50.00.
Assumptions: Lunch at dining commons has already
been paid for and will not come out of today’s $50.00;
sales tax is included in listed costs; transportation is
provided at no cost to you.
Bonus Question: If you have money left over, how
much is it, and what would you spend it on?
44
This Session Doesn’t Cover the
Construction of Student Budgets
• A useful tool:
http://sfa.osu.edu/calculators/budget.asp
• A commercial: The Office of Student
Financial Aid’s website contains a great
deal of information about aid programs as
well as debt management, student rights and
responsibilities and consumer information.
(http://sfa.osu.edu)
45
By Using a Budget, You’ll be
able to Identify any Shortfalls
• Then you can ask yourself: What can I do
without?
• Think of at least five ways to reduce your
expenditures.
• Think of three more.
• Think of one more.
• What did you come up with?
46
What did you Choose to Cut out
of Your Budget?
-Don’t buy unnecessary items -Go thrifting
-Comparison Shop
-Keep your car maintained
-Don’t shop often
-Do free or cheap things for
-Stop buying on impulse
entertainment (on campus
-Wait to buy something
all the better)
-Break expensive habits
-Don’t try to keep up with
-Go out to eat less
someone who has more
-Use coupons
than you have
-Go to discount movies
-Cut out fancy coffee drinks
47
How about Not Using Your
Credit Card as a Way to Save?
• You are a student! If you need to borrow
money, borrow it for educationally related
expenses.
• Remember, when you are using a credit
card, you are borrowing money.
48
True or False?
• Credit Cards are a better deal than are
student loans.
• More than half of Ohio State students take
an extra job or work extra hours as a result
of their debt.
49
True and False
• 1. FALSE. This year’s interest rate on
Stafford Loans=4.06%; PLUS
Loans=4.86%; Perkins Loans=5.0%
• 2. TRUE. More than ½ of Ohio State
students take an extra job or work extra
hours as a result of their debt.
50
Point of No Return
• Your credit history lasts a very long time!
• What you borrow, you are obliged to pay
back.
• If you want to begin to think about your
future earning power now, a resource is
www.salary.com
51
Good News/Bad News
• You have access to your credit report. (Vern
will tell you how.)
• So do:
Prospective employers
Insurance Companies
Potential Landlords
Lenders
52
(More) Good News/Bad News
• If your credit is bad, you still might be
eligible for more credit!
• But it is likely that you will be charged very
high rates of interest!
(Think of an analogy to a bad grade—it stays
on your record!)
53
It could Happen to You!
• According to a recent Nellie Mae Study:
83% of undergraduates have at least 1 card
$2,327=Average debt on card balance
$20, 402=Average debt of graduating students
(both student loan and credit card balances
combined)
From first year to graduation-debt doubles and
the number of credit cards triples
54
We Know that Passing by
Tempting Offers is Hard to Do!
• Be strong!
• Think about it—most of you have come to
campus with little or no financial
independence, or much experience
managing all of your expenditures.
55
What Makes it So Difficult…
• …is that as most students progress through
school (with additional credit card debt)
They are also accumulating additional
student loan debt.
56
A Transitional Thought
• Even as they are marketed so powerfully to
students without income—or limited
income, credit cards are designed for people
with income!
57
Resources
• Credit Matters—
http://www.citibank.com/us/cards/cm
• Dowhower, Andrea. Spending Habits of
OSU Undergraduates: Discretionary Funds
and debt accumulation, credit card use and
student employment 2000. Student Affairs
Assessment, Columbus: The Ohio State
University, 2000.
58
Additional Resources
• Dunn, Lucia. The Ohio Consumer Debt
Index: June, 2001. Columbus: The Ohio
State University Center for Survey
Research, 2001.
• Eastern Michigan University Extended
Programs-NICE
59
Additional Resources
• Heady, Robert. Facts of Life about Kids, Credit
Cards. Columbus: The Columbus Dispatch,
2001.
• Life Skills. 2001 United Student Aid Funds, Inc.
• Nellie Mae. Summary Statistics (Credit Card
Wage Analysis)
http://www.nelliemae.com/shared/ccstate.htm,
2000.
60
Additional Resources
• News from NASFAA August 6, 2002.
“Eighty-three Percent of Undergrads Now
Possess at least One Credit Card, According
to Nellie Mae Study”
• Quinn, Jane Bryant. Misuse of Credit often
Starts in College. Columbus: The
Columbus Dispatch, 2001.
61
Checking Accounts
101
Deniesha L. Newby
Counselor, Student Financial Aid
Merilyn K. Lee
Assistant Director, Student Financial Aid
62
Checking Accounts 101 Goals:
1. How to select the best checking account
for you.
2. How to keep your checking account
records.
3. How to balance your checkbook.
4. Hints, tips, and words of wisdom!
63
Picking the right checking
account for you:
• How do you want to do most of your
banking business: in person, by ATM, on the
web?
• Which bank is most conveniently located?
• Which bank has the most ATM’s near you?
• What does it all cost?
64
Fees, fees & more fees:
• Get a disclosure statement for prices and
fees for checking accounts—they HAVE to
give it to you!
• Compare the fees for various kinds of
accounts and services.
• Don’t forget the bank probably charges
“punitive” fees for certain actions on your
part!
65
Balancing Your Check
Book
66
Live Like a Student—Managing
Your Funds
Adapted from Life Skills
USA Funds
Presented by Carla Mattmiller, Office of Student Financial
Aid
67
Today’s Goals
• Become aware of where each and every
dime is spent
• Learn how to manage your funds
• Better ensure your financial position when
you graduate
68
•
•
•
•
•
•
What Influences Your Return on
Investment Here?
Annual Cost of Attendance
Deferred/lost wages from employment
How long it takes to complete your degree
Your life-style as a student
Amount of student loan debt
Anticipated Salary
69
Discussion Points
• Pressures you face because family/friends
have more money/enjoy a better lifestyle
than you do
• Sacrifices you make now will have a great
payoff for you later
• Your future will be shaped by how you
handle your money from here on in
70
Action Items
• Keep track of your student loan debt, beginning
now. (www.nslds.ed.gov) Know what your
monthly loan payments will be. Recalculate your
payments with each new loan.
(https:/www.dlssonline.com/tools/pin-anyonenew.asp)
• Know how much money you will need to
complete your education.
• Develop a timeline and stick to it.
71
Not All Debt is Alike
• Consumer debt is different than educational
loan debt
• Subsidized loans are different than
unsubsidized loans
• Know how much debt you have and how
much debt you can afford
• Financial Education and Counseling,
Student Wellness Center, B130G RPAC
swc.osu.edu/financial.asp
72
Managing Your Money
• What does “living like a student” mean to
you?
• What might you do to stretch your funds
over the length of a quarter?
• “Small changes add up to big savings”
73
Making Each Dollar Count
• Take control of your money by living
simply
• Three things to consider when making a
purchase:
-What happens if I don’t buy it?
-What happens if I don’t buy it now?
-Is there something less expensive I can
buy?
74
Investment Values
• High investment value: potential exists to
receive more than the original investment
• Low investment value: likelihood exists
that there will be depreciation on the
investment
• Negative investment value: there will be no
financial return on the investment
75
Importance of Planning and Saving
• For planned expenses
• For unanticipated expenses
• What is spent now will influence how you
live later
76
Wrap-Up
• Begin to manage your funds now
• Always borrow conservatively
• Consider additional ways to fund your
education
• Budget your daily expenses
• Save for unexpected expenses
• Consider your return on investment prior to
deciding to spend—or borrow
77
Thank You!
• If you have any questions or would like to
discuss this further, please contact me!
Carla Mattmiller
Senior Assistant Director, Student Financial
Aid
[email protected]
614-292-8564
78
What are you learning
from your job?
Brought to you by the
Office of Student Financial Aid & First Year Experience
Presented by:
Jaime Deafenbaugh
Tom Taranto
Amber Zuber
79
GOALS
To become aware of the importance of workstudy and other part-time jobs
To recognize transferable job skills
To learn how to transfer skills to a resume
To learn attributes and skills of a strong
employee
80
QUIZ!!!!
81
Question #1
Employers hiring part-time workers
expect to hire people with no prior
experience or skills.
82
FALSE
While many employers hiring part-time
workers are willing to train employees
with little or no prior experience,
employers still seek workers with certain
characteristics that will make them
successful on the job.
83
Question #2
Poor job evaluations at a part-time
job will have no effect on a future
employer’s hiring decision.
84
FALSE
Poor job evaluations, even in jobs
that you consider to be
dispensable, may impact your
ability to secure future employment.
85
Question #3
A menial part-time job provides
no opportunity to learn
transferable job skills.
86
FALSE
Even with a menial position, you have
the opportunity to learn transferable
job skills. Your employer can attest to
your dependability, your ability to
follow directions, to take initiative, and
to assume leadership roles, just to
name a few.
87
Question #4
In some companies, part-time
employment may lead to fulltime employment in the future.
88
TRUE
It is not uncommon for employers
to utilize part-time positions or
temporary positions as a proving
ground for potential full-time
employees.
89
Question #5
Working at an off-campus job
can provide better reference
than an on-campus job.
90
FALSE
While you may be able to find offcampus positions more closely
related to your career goals, many
on-campus positions may provide
the opportunity to develop similar
transferable work characteristics.
91
Examples of Jobs
92
Part-time Package Handler
Part-time package handlers
keep packages moving. Must
be able to lift 50 lbs., load,
unload, and sort packages.
93
After-School Program Group
Leader
Assist group leaders in the planning and
implementation of age-appropriate
activities for youth ages 6-12. Assisting
with supervision of youth in program.
Responsible for assisting with tutoring in
math, reading and writing. Also some
light clerical work. Must pass criminal
background check.
94
Ticket Seller
Sell tickets for the Department of
Theatre. Take phone orders and
messages. Perform various box
office duties. Must be able to work
extremely well with the public and be
able to handle money. Will be trained
on TicketMaster System.
95
Let’s brainstorm some
transferable skills one might gain
from the following jobs:
Part-time Package Handler
After-School Program Group
Leader
Ticket Seller
96
Check Out Our Sample Resume!
Use this as a guide or a model for your
own resume (Don’t Copy It!!!)
Career Services at OSU
• http://www.careers.ohio-state.edu/
97
Ways to Excel at Work
98
Be Reliable and Dependable
Come to work on time
Do what you say you’ll do
Stay organized
Do your Best!
99
Be Proactive
Learn all you can about the company
and what you can contribute
Find out what else needs to be done
and do it
Take responsibility for what you do
Learn how to do a task if you don’t
already know
Learn a skill that will help you stand out
100
Be a Team Player
If you are asked to help a coworker, jump at the chance
Be willing to share information
Support and encourage your coworkers
101
Be Flexible
Remember that you cannot control
everything
Be willing to compromise
Be prepared for the unexpected
102
Ask!!!
If you don’t know, ask someone
who does
103
Dress Appropriately
Ask your employer what is
acceptable
Use your judgment based on the
environment
It is better to be overdressed than
underdressed
104
Arrive on Time
Your employer expects you to work
the hours you are scheduled
Remember that they may have to
make adjustments to your schedule
each quarter
105
Keep Your Employer Updated
If you’re sick, notify your supervisor as
soon as possible
When asking for time off, consider your
employer’s needs as well as your own
Make any changes to your schedule
with as much notice as possible
106
Talk to Your Supervisor about
Problems
If you have a problem with
some aspect of your job, speak
to your supervisor first
107
Learn About Safety Procedures
Check with your supervisor about the
area in which your job is located and
what you should know about safety
If at any time you do not feel safe,
please let your supervisor know
108
Resources
http://sfa.osu.edu/Jobs/
• Federal Work-Study Program Information
• On-line Job Board
The Lantern Classifieds
The Columbus Dispatch Classifieds
Check with your College or Department
109
Review of Goals
To become aware of the importance of
work-study and other part-time jobs
To recognize transferable job skills
To learn how to transfer skills to a
resume
To learn good employee skills
110