Transcript Slide 1

Managing Your Money as a College
Student: Top 22 Tips
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After this workshop, you will be able to:
• Create a plan to reach your
financial goals
• Maximize financial aid
• Cut expenses without pain
• Build good credit
• Make savings a habit
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Why Take Charge?
“He who fails to plan, plans to fail.” —Proverb
“Planning is bringing the future into the present so
that you can do something about it now.” —Alan
Lakein
“Let our advance worrying become advance thinking
and planning.” —Winston Churchill
“Organizing is what you do before you do
something, so that when you do it, it is not all
mixed up.” —Winnie the Pooh
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Financial Planning
Step 1: Define your financial goals.
Step 2: Make a plan to reach your
goals.
Step 3: Take action until your goals
become reality.
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Your Financial Plan
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Maximizing Financial Aid
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Read the fine print
Keep looking for aid dollars
Watch out for scholarship scams
Use private loans as a last resort
Understand your student loan obligations
Submit a new FAFSA every year
Talk to a financial aid officer about any
changes in your situation
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Are We Having Fun Yet?
• Snack attacks
• The combo: roommates
& money
• Peer pre$$ure
• Student discounts
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Reality Check
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Needs and Wants
Stuff I
want
Stuff I
need
Stuff I have
the money for
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Ways to Stretch a Dollar
 Cut out/cut back costly habits
 Shop thrift stores, garage sales
 Avoid money traps (rent-to-own,
pawnshops, check-cashing outlets)
 Make and stick with a shopping list,
clip coupons
 Use bike or public transportation vs. car
 Limit downloads
 Go to free on-campus events
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Working the Plan
Step 1: Identify Income
Step 2: List Expenses
Step 3: Compare Income and
Expenses
Step 4: Set Priorities and Make
Changes
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5 Steps to Building Good Credit
1. Pay basic expenses and utilities on time
2. Make loan payments on time
3. Pay loans BEFORE you spend money on
other things
4. Apply only for the credit you
need and can afford to repay
5. Do not bounce checks or
overdraw your account
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Taking Control of Your Credit Card
• Use only one credit card
• Shop for the best credit card
• Consider a secured card
• Don’t charge anything you
can’t pay for
• Pay your monthly bill on time
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Taking Control
• Pay balance in full; if not
possible, pay more than the
minimum
• Think of your credit card as
a loan
• Subtract credit card purchases
from checking account
• Do not get a cash advance
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Signs of Debt Trouble
 You don’t know how much you owe
 You use credit cards to pay bills
 You borrow from one credit card to
pay another
 You make only the minimum
payment
 You miss payments or pay late
 Creditors have you on speed dial
 You get a job just to pay off your credit cards
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How to PYF
$ Make savings a line item on your budget
$ Payroll deduction
$ Automatic electronic funds transfer
$ Put “extra” money in savings
vs. spending
$ Put $1 + loose change in a
jar daily
$ Set a goal
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Saving and Investing, Oh My!
Low Risk Options
 Savings accounts
 Money market
accounts
 U.S. savings bonds
 Certificates of
deposit
Medium Risk Options
 Stocks
 Bonds
 Mutual funds
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Protecting Your Identity
• Do not carry your Social Security card
• Do not carry your PINs
• Buy a shredder and use it
• Check your credit card statements,
bank statements, and phone bills for
unauthorized activity
• Keep credit card, debit card, and ATM receipts
in a safe place
• Use secure sites for e-commerce
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Recap
• Create a plan to reach your
financial goals
• Maximize financial aid
• Cut expenses without pain
• Build good credit
• Make savings a habit
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What Are You Going To Do?
 Set financial goals
 Review financial aid package
Create a budget and track your spending
 Use credit wisely
 Pay yourself first
 Protect your personal information
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These materials are for non-commercial
educational use only.
Portions of the content © 2010 National Endowment
for Financial Education. All rights reserved.
CashCourse is a trademark of the
National Endowment for Financial Education
www.nefe.org
www.CashCourse.org
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