Education Final Project
Manage Your Money Recognize Income and Acknowledge Expenses Count it all : current and summer job income, money from parents, gifts, and financial aid. Know where it goes : regular expenses and variable expenses Be honest with yourself Proactive and Reactive Budgeting Budget First, Spend Later – Anticipate upcoming expenses and make sure they don’t exceed your projected income. – Set limits on what you will spend in each expense category. – Set something aside for unexpected emergencies. Spend and Reflect – Look back at what you earned and spent. – Assess where your money went. – Make necessary adjustments (save or recover). Learn Ways to Save Large scale cutbacks. – Cheaper housing. – Additional Roommates – No car – make use of public transportation. Small scale saving methods . – Clip coupons – Shop at discount stores – Cook most meals Saving money is all about choices. Choose Checking or Savings? Checking accounts enable you to draw money regularly from your account funds through the use of checks. Savings accounts exist for the primary purpose of putting money in and rarely, if ever, taking it out. Money market accounts are a more sophisticated type of savings account. Check for bank fees associated with each type. Balance Your Checkbook Use your checkbook register . – Fill in all deposits and expenditures. – Record information immediately. – Include ATM withdrawals and check card use. Reconcile monthly statement with register. – Recognize outstanding checks. – Note closing date on statement for deposits and checks not included. Be aware: Banks make mistakes! – Follow up discrepancies. Invest for the Future Numerous investment options exist. You should only consider investing if you have substantial savings. Mutual funds require only a small regular investment, yet can yield dramatic results over time. Investments are designed for long -term financial gain. Get a Job Work with caution Investigate work study and internships Look for jobs with light work loads Be your own boss Be assertive in seeking your ideal job Visit the college Job Placement office Work With Caution It takes a lot of money to go to college, but it also takes a lot of studying and hard work. The effort to earn the required fees may hinder one’s progress towards actually earning the degree itself. Students who work long hours are more at risk for failing and dropping courses. Failing and dropping courses costs money – money you cannot get back. Investigate Work Study and Internships Work study programs are funded by the federal government Enable you to work on campus or in the community Awarded based on financial need Check for internships in your chosen field of study Get experience and be respected by future employers Credit: Know the Basics Work to establish good credit . – Handle your accounts successfully. – Remain stable in your residence and job if possible. – Make timely payments for rent, utilities, loans, insurance, and credit cards. – Co -signing a loan with anyone means you are responsible should they default. – Pay credit card bills in full. – Consider what your credit report will communicate to those who view it – such as future employers, mortgage lenders, etc. Avoid Problems with Credit Cards Calculate the costs of credit – Shop around for the best interest rates and waived annual fees. – Read the small print regarding fee and rate increases. Pay the balance every month – Paying interest adds up quickly. – You will pay significantly more and take substantially longer to pay your balance off if you only make the minimum payment. Use credit only in emergencies Recognize the Incredible Value of School The majority of students who drop out of college have a GPA of 2.5 or above! Being a great money manager frees you up to focus on your education. Earning a degree is one of the most valuable things you can do for yourself. Money is often a necessary sacrifice during your college experience. Your education will pay off tremendously and make it entirely worth it. Your Income and Expenses To determine a budget, ask yourself questions about your financial needs: your past and current earning your debt your expenses your plans for the future Be honest with yourself Developing a Budget Sample Monthly Budget What’s wrong with this? Income Expenses Campus job - $240/week Clothes - $40 Entertainment - $60 Babysitting - $60/week Phone/Utilities - $20 Laundry - $20 Parents (allowance) - $50/month Personal expenses - $20 Transportation - $100 Food - $20 Total monthly income - $350 Total monthl y expenses - $320 Credit Cards and College Students They can be used effectively, credit cards can be beneficial, but they can also be deadly: – With a credit card, you are likely to spend one third more. – More than $400 billion is owed on more than 500 active credit cards. – Credit card debt has grown in recent years by more than 10 percent per year. “Zeroing Out” After College Be true to your budget. Know if you qualify for financial aid. Never overestimate your earning power. Getting and Staying Out of Trouble Protect your financial information. Understand the power of interest rates on credit cards. Deal with debt collectors sooner rather than later. Don’t work too many hours to pay off debt.
