making money make $ense get a grip of your personal finances and track your everyday expenses using

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  • Making Money Make $ense


    Julie Anderson, Assistant Director of Financial Aid

  • Test Your Financial Knowledge,d.cGE&psig=AFQjCNEqciY8PZ1w4NhNiL3lWa9Zf4FsqQ&ust=1410973139314725

  • Agenda for Today:

     Most Common Mistakes College Students Make

    with Money

     Why Money Management is SUPER Important

     How to Make Thoughtful Financial Decisions

     What you Need to Know to Make Good Money

    Decisions While in College

     Free Resources for you!

  • Most Common Money Mistakes Students Make:  Spending Every Penny Instead of Saving

     Living Beyond your Means – Racking up Debt

     Average credit card debt for a graduating college student is $4100 – Sallie Mae

     Letting your Bills Slide - Not Paying on time

     The fastest growing group of bankruptcy filers are people 25 years of age or younger (19% of those are college graduates)

     Spending “Extra” Student Loan Money

     Not Researching to find the Best Deals

     Not Keeping Track of Account Transactions & Balances,d.cGE&psig=AFQjCNEaZtkrZy_pfYadU_HexWkjAiK8Cg&ust=1410974721061353

  • Example of Poor Spending

  • Why Good Money Management is Important

  • Credit Scores

     What is a Credit Score?

     Your credit score is a three-digit number generated by a mathematical algorithm using information in your credit report. It's designed to predict risk, specifically, the likelihood that you will become seriously delinquent on your credit obligations in the 24 months after scoring.

     Credit Score range from 300 to 850

  • Why Good Money Management is Important:

     Your Credit management habits affect your credit score & therefore,

    your financial future

     People with low credit scores – Pay MORE for:

    • Rent

    • Car Loans

    • Car Insurance

    • Mortgages

    • Health/dental/Vision Insurance

    • Purchasing a Cell Phone

     If your credit score is low, it can prevent you from:

     Getting an apartment

     Getting a Job,d.cGE&psig=AFQjCNFpoQmQzcHb7nIEceBHB3v7P-hIag&ust=1379544697054776

  • Who Can See your Credit Score?

     Any creditor or lender to whom you have applied for credit

     A prospective employer

     A mortgage lender

     A Property management firm

     Any current employer on a need-to-know basis

     Any person to whom you have given permission

     An insurance company

     You

  • Why Good Money Management is Important:

     When you graduate and start your first job, you’ll have new expenses:

     Moving Expenses

     Student Loans

     Transportation (Parking fees, car purchase, car insurance, etc.)

     Higher Living Expenses (food, rent, dry cleaning)

     New Clothes for Work

    The more debt you accumulate today, either through student loans, personal loans, or credit card debt, will impact the financial decisions you are able to make after you graduate.

  • What could help improve your credit score?

     Check your Credit Report Annually



     Set-up Automatic Payments or set up payment reminders

     Reduce the amount of debt you owe

     Pay off the highest interest cards first, while maintaining minimum payments on your other accounts.

     Pay off debt rather than moving it around

     Pay off balances each month

     Avoid applying for credit needlessly

  • What you Need to Know to Make Good Money Decisions While in College

  • What you Need to Know to Make Good Money Decisions While in College

    1. Develop a Monthly Budget and Track Expenses

    2. Build an Emergency Fund

    3. Manage Your Debt Effectively & Understand your Loans

    4. What you need to know about your Credit Report and Credit Score

    Budgeting, allows you: • Understand your spending habits • Control your excess spending • Reduce spending on non-essential things

    and Save More!

  • Ways to Reduce your Spending:

     Don’t buy unnecessary items

     Comparison shop

     Don’t buy name brand

     Stop buying on impulse

     Wait to buy something

     Break expensive habits (Expensive Coffee)

     Go out to eat less, use your meal plan

     Use Coupons (Student Discounts)

     Go to discount movies

     Go to campus sponsored events

     Keep your car maintained

     Rent or buy used text books

  • Step 2: Build an Emergency Fund

     Set up a Savings Account

     Shop around for a bank that offers least fees and highest interest on your savings

     Try to save 5-10% of your Monthly Income

    • Can’t Afford to Save??

    • Soda at $2/bottle everyday = $730/yr

    • Daily Coffee at $3.50/Cup = $910/yr

     Keep your savings separate from your daily living expenses, but accessible

     Rule of Thumb: If you can’t pay cash, then you can’t buy it

  • Step 3: Manage Your Debt Effectively & Understand your Loans

     Credit Cards

     Shop Around (

     Pay more than the minimum balance due

     Pay the most toward the higher Interest Rate Cards

     ALWAYS Pay on-time

     Once you pay off a credit card, don’t close them – It could hurt your ‘utilization ratio’

     Credit Cards: What to Watch Out For!

     Low introductory rates that increase dramatically over time

     Annual fees

     Late payment fees (Could be as high as $35 plus finance charges)

     Fraudulent Activity

  • Step 3: Manage Your Debt Effectively & Understand your Loans

     Student Loans

     Read the terms, conditions, and repayment options

     Be mindful of capitalized interest – make interest only payments

     Find out when your grace period ends and mark your calendar

    • Staffod Loan Payment: 6 Months after Graduation

     How to Repay


  • Step 3: Manage Your Debt Effectively & Understand your Loans

     Loan Consolidation

     Combine multiple debts into one monthly payment

     Private and federal loans cannot be combined, must be consolidated separately

     Any special repayment options with original loan agreement will be lost (i.e. grace period)

     Interest rate may be averaged (possibly increased)

     Refinancing

     When done properly, can increase chances of getting out of debt sooner

     Goal = Reduce your Interest Rate

     Interest Rates

     Your cost for borrowing money

     Can vary with current market rates, loan length, amount borrowed, and type

  • Step 4: What you Need to Know about your Credit Report and Score  Understanding your Credit Score

     Maintaining a high credit limit is good

     Credit scores are largely based on the amount you owe

     The lower your utilization rate, the better

     Review all 3 Credit Reports once a year (

     Check your credit score before applying for new credit (

     A mix of different credit types is good (Student loans, credit cards, mortgage)

  • College Life: Freedom & Independence, but also Responsibility for the Decisions you Make!

     Pay your bills on time

     Making sure you have more money than Month

     Living within your means, paying credit cards in full each month

     Researching big purchases

     If you get into trouble, ask for help!

     Don’t worry if it takes a couple tries to get a savings groove down!

  • Budgeting Tools and Resources