Transcript Document
Financial Leadership
Bootcamp: Bring It!
Today's Workout
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Set 1: Budgeting
Set 2: Savings
Set 3: Credit
Set 4: Resources
Set 5: Bring It!
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
Bootcamp Rules
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1. YOU MUST SET AT LEAST 3 GOALS.
You can learn stuff, but change only occurs when you take action.
2. YOU MUST CHALLENGE YOURSELF.
You might have to step outside your comfort zone…its OK, we are here to
help!
3. YOU MUST BRING IT!
You can play an essential role in being a financial leader on campus –
helping yourself and others become financially savvy.
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
Warmup: Career Pay
Check out the Bureau of Labor Statistics
www.bls.gov
Annual Mean Wage, May 2013
National: $46,440
New York: $54,580
Arkansas: $37,340
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Warmup: Money Home
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Age 25-34 Earnings
Earnings - Taxes
HS Graduate
$30,888
$23,166
Associate
$37,393
$28,045
Bachelor’s
$46,415
$34,811
Master’s
$52,467
$39,350
Professional
$63,244
$47,433
Doctorate
$67,470
$50,603
SOURCE: U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic Supplement
Set Students up for Success with Realistic Expectations!
Are students aware of average earnings in their field
of study?
Do they understand tax implications?
Where are there opportunities to have these
conversations?
How does this impact borrowing conversations?
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Set 1: Budgeting
A Budget Is…
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Spending
Plan
Budgeting
Torture?
Budgeting Basics
Track Your Spending
Identify your monthly “fixed expenses” (e.g. Rent, utility bills, phone
bill, etc.)
Identify your monthly “flexible expenses” (e.g. Groceries,
transportation Estimate if needed)
Use: Bills, CC statements, Online Banking, Receipts, Spending
Tracker
Identify all sources of Income.
Paycheck, Gifts, Financial Aid Refunds, other money
Subtract all Expenses from Income
Surplus? Increase expense OR add to savings
“In the Red”? Time to reevaluate
Review on a monthly basis
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Other Options?
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The Envelope
Method
Try it!!
Secret Savings
Account
Paying Ahead
Large Expenses
But I “Need" It
Needs vs. Wants
Do we “blur the lines” between the two?
Spending plan implications?
Savings Challenge
Big purchase philosophy
$50, $100, $500
Buying motive
Opportunity cost
Lots of small things = big purchase
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Spending Tactics
Wait overnight
Accountability partner
Put it on ice – literally!
Get creative in cost cutting
Get creative in reaching your goals
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Start with the Spending Plan Conversation
Easily Digestible Concept
Plenty of Tools to help
When & How?
Financial Aid Process
Provide Worksheets
FYE/College 101 Course
Priority from Day one
Financial Literacy Program? Before the Holidays!
Right place/right time
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Set 2: Savings
Savings Approach
Earn
Earn
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Spend
Savings
Savings
Spend
Millionaire At 65
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• Starting Age
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40
• Starting Age
$500/mo
$1,400/mo
• $240,000 total
• $420,000 total
$1,000,724
$975,043
• At age 65
• At age 65
Or Get to $0
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$25,000
$9,524 interest
$288/mo
10 Years
$7,504 interest
$338/mo
8 Years, 1
Month
Paying Down Debt
Philosophy 1
• Organize according to interest rate
• Pay off highest interest rate first
• Saves the most money in the long run
Philosophy 2
• Organize according to amount owed
• Pay off smallest debt first
• Provides positive reinforcement
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Make Savings a Priority
Establishing good habits
For college students, amount saved is less important than the habit
being formed
When & How?
Peer to peer
Tactics/best practices
Upperclassmen
Financial Literacy Program? Post pay
checks/refund checks
Soft reminders following FWS/WS paychecks
Right place/right time
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Set 3: Credit
Credit Matters!
Future Credit approval
Interest rates
Benefits
Insurance rates
Job opportunities
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Credit Reports Tell All
Personal information
Credit history
Amount borrowed
Credit limit
Payment history
Delinquencies
Public records
Inquiries
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Get Your Reports
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Your FICO® Score
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What’s Your Score?
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Mortgage 2014: {www.myfico.com}
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Good Vs. Bad Credit
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Save
$85,492!
$505,827
$475,577
$452,388
$441,061
$431,804
$420,336
• 620-639
• $85,492
• 640-659
• $55,242
• 660-679
• $32,052
• 680-699
• $20,726
• 700-759
• $11,468
• 760-860
• SCORE!
Quick Credit Tips
Opt out of pre-approved offers
www.optoutprescreen.com
Stop {most} telemarketer calls
www.donotcall.gov
Evaluate credit card offers
www.bankrate.com
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Long Term Affects of Understanding and Establishing Credit
Think about relevant purchases
First car, apartment, home, etc.
When & How?
Workshops
Credit can be overwhelming…break into small chunks
Financial Aid Process
Discuss long term borrowing considerations
Outside Professionals
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Set 4: Resources
Sites With {mostly} Free Resources
www.annualcreditreport.com
www.myfico.com
www.creditkarma.com
www.bankrate.com
www.mint.com
www.finaid.org
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Social SALT
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www.facebook.com/saltmoney
www.twitter.com/salt_money
blog.saltmoney.org
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
Set 5: Bring It!
Lead your own Financial Literacy Bootcamp
Common mission
Is everyone on the same page?
Have you conveyed the “WIIFM” to each group?
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Taking Action
Short Term
Identify three actions you would like to take that will have
an immediate positive impact
Long Term
Consider the ideal state
What resources do you need to make this happen?
Who do you need to partner with?
Expertise on Campus (e.g. CPAs)
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Financial Leadership…An Example
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Share/Re-tweet
SALT FB and
Twitter posts
Recruit students
to serve as FL
ambassadors
Post financial tips
of the
day/week/month
Lunch and Learn
series
You!
Create a group
committed to
setting a financial
goal—do monthly
check-ins with the
group
Thank You
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SALT: A Responsible Borrower Program
CONTACT SALT
617.728.4559
[email protected]
asa.org