© 2008 BALANCE FINANCIAL FITNESS PROGRAM

Personal Finance for College Students

Personal Finance for College Students

Use Money Wisely

• Become and remain organized• Be aware of spending• Prepare for upcoming expenses

Analyze Income

• Total all incoming funds:• Job, student loans, grants, scholarships,

financial support

• Determine monthly amount:• Divide periodic income by number of

months• Make cash last• Consider savings from seasonal work

Set Goals

• Three basic goal types: • Short-term – 1 year or less• Mid-term – 1-3 years• Long-term – 3+ years

• Multiple goals – all at once/one at a time• Know goal cost and achievement date

• Price/ time frame = $ to save each month

• Be prepared for setbacks

Develop a Savings and Spending Plan• Analyze the present/prepare for the future

• Track spending• Plan for spending and savings

• Expenses should never exceed income• Include savings• Decrease expenses/increase income• Understand difference between wants and

needs

Keep an Eye on Cash

• Avoid impulse purchases• Don’t gamble your money away• Track spending

Use Your CheckingAccount Wisely• Handle/monitor account:

• Read statements for accuracy• Keep track of deposits, withdrawals, checks,

purchases, fees

• Use ATM/debit card wisely• Write checks responsibly• Set up automatic bill pay• Balance account• Use overdraft protection

Open a Savings Account

• Make savings a habit• Save for emergencies – 2-3 months

worth of essential expenses • Use automatic transfer of funds

Establish Credit

• Use credit wisely:• Build history and score

• When shopping for credit, look for:• Low APR• Long grace period • No annual fee• Low penalty fees

• Get the right card type: • Secured • General purpose (unsecured) • Store and gas

Use Credit to Your Advantage

• Stay out of debt• Pay more than minimum payment due• Pay on time• Limit the number of cards you have• Build a good credit history:

• Credit bureaus report credit activity• Companies score activity

Treat Bills Responsibly

• Rent – establish good relationship with landlord

• Utilities – be careful with use• Telephone – be aware of minutes• Pay all of your bills on time:

• Late payment fees• Collection agency• Suspended service

Know Your Student Loans• Subsidized – government pays interest for a

period of time• Unsubsidized – interest accumulates

immediately• Loan Types:

• Stafford loans – subsidized and unsubsidized • Perkins loans – subsidized • PLUS loans – unsubsidized, made to parents• Private loans – no government involvement

Pay Your Student Loans

• Know your grace period – 6 to 9 months• Seek a deferment or forbearance, if

necessary • Avoid default • Make the right payment arrangements • Consider forgiveness programs

Summary

• Get into good personal finance habits now• Avoid over-borrowing• Live within your means• Save for emergencies and goals• Dedicate time to money management

BALANCE

BALANCE is a financial education and counseling service available as a benefit of credit union membership

• Money management counseling• Debt repayment options• Credit report review• 888-456-2227 / www.balancepro.net