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
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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