Managing Your MoneyManaging Your Money

Your TurnYour Turn

So far, how well or poorly are you managing your money in college? Why is it easy or difficult?

Living on a BudgetLiving on a Budget• Creating a budget• Step 1: Gather basic information

• Step 2: Build a plan

• Step 3: Do a test run

• Step 4: Make adjustments

• Cutting costs• Recognize the differences between your needs and

wants

• Share expenses

• Consider the pros and cons of living on campus

• Use low-cost transportation

• Seek out discount entertainment options

• Embrace secondhand goods

• Avoid unnecessary fees

Getting Financial AidGetting Financial Aid• Types of aid• Need-based scholarships

• Merit scholarships

• Grants

• Work-study

• Co-op education

• Qualifying for aid• Free Application for Federal Student Aid

• How to avoid losing your funding• File for financial aid every year

• Meet all filing deadlines

• Inquire every year about criteria-based aid

• Inquire about campus jobs

• Consider asking for a reassessment of your eligibility for

aid

Achieving a Balance between Achieving a Balance between Working and BorrowingWorking and Borrowing

• Advantages and disadvantages of working

• Research possible occupations

• Build on your strengths and develop weaker

skills

• Prepare a marketing strategy that sells you

• Write a convincing resume and cover letter

• Student loans

• Subsidized federal student loans

• Unsubsidized federal student loans

• Parent Loan for Undergraduate Students (PLUS)

• Private loans

Managing Credit WiselyManaging Credit Wisely• Credit score• Derived from a credit report that contains information

about accounts in your name

• Understanding credit• Beware of making only a minimum payment

• Avoid making late payments

• Credit cards should not be used to fund a lifestyle you

cannot afford

• Debit cards• You don’t always have to carry cash

• The amount of purchases will be limited to the funds in

your bank

• Commit your PIN to memory

Your TurnYour Turn

Do you have your own credit card or one that you own jointly with your parents? If not, what are your reasons for not getting one? If you do have a credit card, do you feel you’re in control of the way you use it? Why or why not? If you don’t have a card, do you think you are ready for one? Why or why not?

Planning for the FuturePlanning for the Future

Financing life after graduation

• Plan now for your next step

• Keep your address current with the

registrar even when you have finished

your degree or program

• Make a point of establishing a savings

account and adding to it regularly

Tech Tip: Create Wealth and Tech Tip: Create Wealth and SecuritySecurity

How to make money work for you

• Savings account

• Offers a secure place to grow your money

• IRA (Individual Retirement Account)

• Gives you a tax-deferred way to save for

retirement

• 401(k)

• Employer-sponsored savings plan that lets you

place a certain percentage of your earnings into a

tax-deferred account