money matters part 1 - budgeting · • mymoney.gov – sponsored by the federal government’s...
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MONEYMATTERSPART1-BUDGETING
AngelaMoore|FinancialAidCoordinator,UFCollegeofVeterinaryMedicine
BASICSO
FBUDGETIN
GWhyisbudge,ngimportant?
• MajorityofvetmedstudentstakeoutloansfortheireducaLon• AverageindebtednessofClassof2016UFCVMgrads-$170,043
• Na#onwide,1/5ofrecentgraduateshadover$200,000indebt!*• UnsubsidizedandGradPLUSloansaccrueinterestwhileyou’reinschool–
soyouwillulLmatelyberesponsibleforrepayingfarmorethanyouborrowed
But–Abudgetcanhelpreduceyourdebtload!
• NEVERborrowmorethanyoureallyneed–Behonestwithyourselfaboutneedsvs.wantsandexplorenon-loanopLons
• Ruleofthumb:AlwaysBorrowConservaLvely• Abudgetwillhelpyoudecidewhatexpensesyouneedtocover-and
thereforehowmuchyouneedtoborroweachacademicyear
*Reference:h[ps://www.avma.org/about/savma/studen]inancialresources/pages/default.aspx
BASICSO
FBUDGETIN
GWhyelseisbudge,ngimportant,besidesreduc,onofdebtload?
• Avoidbeingbroke–Aidisdisbursedonlyonceeachsemester• Remember–Somebillsmaybeduebeforeaidisdisbursed• Yourlandlord,Cox,GRU,etc.likelywon’tcarethatyou'reastudent!
• Knowwhereyourmoneyisgoing• Bepreparedfortheunexpected• Relievestress!
NOTE-Evenifyou’reasenior,it’snevertoolatetostartbudgeLng!BudgeLngskillsareimportantforlife,notjustschool.(Andareveryhelpfulwhenyourloansenterrepayment!)
BASICSO
FBUDGETIN
GS,llnotconvincedyouneedabudget?Askyourselfsomeques,ons…• Canyoumakeendsmeeteverymonth?Evenatthebeginningandendofthe
semester?• Doyoueverfindyourselflookingatyourbankaccountandwonderinghowit
gotthatlow?• Doyouoeenmakeimpulsiveorspontaneouspurchases?(Smallpurchases
count!)• Doyoufrequentlyhavetoforegobuyingthingsyouwant,ormaybeeven
need,becauseyoudon’thaveenoughmoney?• DoyousomeLmeshavetomakelatepaymentsonbills?• Ifyouhaveacreditcard,areyouunabletomaketheminimumpaymenteach
month?
• DoyousomeLmeshavetousecreditcardstocoverexpenses?Ifyouanswered“yes”tosomeorall–Youneedabudget!!
BASICSO
FBUDGETIN
G
But…Idon’thave,metobudget!I’mwaytoobusy.• Keepitsimple!Complicatedspreadsheetsaren’tnecessary.Norareexpertmath
skills
• There’snoone“right”waytobudget-Findamethodthat’seasilyadaptableandworksforyou
• Thehardestpartisseingupyourbudget–andeventhatdoesn’ttaketoolong
• Aeerset-up,maintenanceisgenerallyquickandeasyBudgeLngisveryimportant(notjustforschool,forlife)–somakeitapriorityandfindtheLme!
HOWTOC
REATEABUDGET
Ok,youconvincedme…Ineedabudget!HowdoImakeone?• Goodnews!TherearetonsofFREEresourcestohelpyouwithcreaLnga
budget!
• Startwithyourbankorcreditunion• ManyfinancialinsLtuLonsofferfreeonlinebankingaccounts,budgeLng
soeware,and/orphoneapps
• Figureoutawaytotrackyourspendingonaconsistentbasis
• Trackinwhateverwayworksforyou(anapp,spreadsheet,onpaper,etc.)
• Noneedtotrackdowntothepenny–butberealisLc!• Roundupinsteadofdown
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REATEABUDGET
h[p://www.sfa.ufl.edu/financial-tools/
Thereisalsoabudgetworksheetavailableonthe
SFA“Forms”page.
CASHC
OURSE
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REATEABUDGET
h[ps://studentloans.gov/myDirectLoan/counselingInstrucLons.acLon?counselingType=fa
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REATEABUDGET
AVMA.org/mybudgetAVMA.org/mybudget
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REATEABUDGET
Bankrate.comStudentBudgetCalculator*Relevantcategoriesforstudents*CanchangeLmeperiodstomonthly,startofschoolyear,etc.
h>p://www.bankrate.com/calculators/smart-spending/college-student-budget-calculator.aspx
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REATEABUDGET
h>p://www.mymoney.gov/spend/Pages/spend.aspx
MyMoney.gov*MoretradiLonalbudgetmodel–basedonmonthlyincome/expenses
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REATEABUDGET
SmartphoneApps–Trackyourmoneywhereveryouare!
Goodbudget–Basedonthe“envelope”budgeLngsystemh>ps://goodbudget.com/
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REATEABUDGET
SmartphoneApps–Trackyourmoneywhereveryouare!
Goodbudget–Basedonthe“envelope”budgeLngsystem
ProsperDaily–Syncsuptoyourbankaccountsandcreditcardsh>ps://www.billguard.com/
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REATEABUDGET
SmartphoneApps–Trackyourmoneywhereveryouare!
ProsperDaily–Syncsuptoyourbankaccountsandcreditcardsh>p://www.dollarbird.co/
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REATEABUDGET
I’vegotatrackingsystem–NowhowdoIactuallyCREATEmybudget?Timeframe:Canbemonthly,semester,academicyear,etc.–Whateverworksforyou!1. IdenLfyIncome
• RemembertoincludeALLsourcesofincome• Financialaid,familycontribuLons,employment,etc.
• UnderesLmateincome!Be[ertoendupwithasurplusthanashor]all2. IdenLfyExpenses
• Typesofexpenses• Fixed–Sameamounteachmonth• Variable–Changefrommonthtomonth• Periodic–Occurirregularly
• Maybehelpfultocategorize(yourbudgettrackingsystemcanhelpwiththis!)• Examples:ULliLes,Housing,Food,Entertainment
• Createanexpensecategorytopreparefortheunexpected• EssenLally–payyourselfeachmonthsoyou’rereadyintheeventyouhavean
unanLcipatedexpensearise• Ifitdoesn’t–great,youhavesomesavings!Don’tspendthat,keepitincase
youneeditlater• OveresLmateexpenses!Sameaswithincome–be[ertoendupwithasurplusthan
ashor]all
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REATEABUDGET
3. Evaluate&Adjust
ThemilliondollarequaLon!0=BalancedBudget
Onpoint.Butno“wiggleroom”–areyoureadyfortheunexpected?Posi,venumber=Great!You’vegotextramoney!
Hint,hint:Saveitand/oruseittopaytheinterestonyourstudentloansNega,venumber=Uh-oh.Timetocutback!
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REATEABUDGET
Ineedtoreducemyexpenses!WhatcanIdo?NeedsvsWants–Whatcanyoulivewithout?Theanswertothisisveryindividualized.Youdon’thavetogetridofenLrecategoriesofexpenses(e.g.,Entertainment)–BerealisLc!DecidewhatisimportanttoYOUandwhattakespriorityinyourlife.
• Categorizeby“Musthave”,“Reallywant”,“Wouldbenice”AreastoReduceCosts–
• DoyouhavecableorsatelliteTV?ConsiderdowngradingyourpackageoreliminaLngaltogether• Getanantennaforover-the-airchannels• Ne]lix,Hulu,AmazonPrime,etc.• UFlibrary–HaslotsofshowsandmoviesonDVDavailable
• Cellphone!EvaluateyourplanandinquireaboutcheaperopLons• TransportaLon
• RTS-FreetoallUFstudents!• Carpool(splitthecostofaparkingdecal)• Shoparoundforyourcarinsurance–makesureyou’regeingthebest
deal
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REATEABUDGET
Ineedtoreducemyexpenses!WhatcanIdo?cont.MoreIdeas-
• Entertainment–LotsoffreeorcheapthingstodoinGainesville• TakeadvantageofbeingaUFstudent!
• UFDept.ofRecreaLonalSports-2fitnesscenters,classes,equipmentrental• EaLngoutisVERYexpensive–packalunch,bringyourowncoffee,etc.
• Stayawayfromvendingmachines!• Goingoutwithfriends–Drinks,movies,etc.addupfast!
• Again,takeadvantageofthosefree/cheapopportuniLes• Hangoutatsomeone’shouseinsteadofgoingout
• ULliLes• TurnupyourA/Cthermostatacoupleofdegrees• Bemindfulofhowmuchwateryou’reusing
• Groceries• Buygenericinsteadofnamebrand• Besavvyaboutsalesandcoupons!Justbecauseit’sonsaleorhasa
coupondoesn’tmeanit’sthebestdeal• Knowyourself–Ifyouendupthrowingoutfreshfoodbecauseitgoes
badbeforeyoueatit,buyfrozenorcanned• Lotsofwebsitestohelpyoubudgetandmealplan
MAIN
TAININGYO
URB
UDGET
Ok,mybudgetisready!WhatdoIdogoingforward?• Yourbudgetisalivingdocument–Itshouldn’tberigidandunchanging
• Regularlyreviewandupdateyourbudget
• Ifyoumakeamistakeandoverspend,don’twasteLmefreingaboutit!Forgiveyourselfandgetbackontrack.
• Ifyou’reabouttoimpulsivelybuysomething,stopandaskyourself:• DoIreallyneedthis?(notwant!)• CanIaffordthis?• IfIbuythisnow,willIbehappyIboughtitamonthfromnow?• DoIneedtosavethismoneytomeetagoal?• ShouldIwaittobuythisitemwhenitgoesonsale?• CanIbuythisingenericinsteadofname-brand?
FINAN
CIALRESO
URCES
• AnnualCreditReport.com–Officialsitetoobtainyouryearlycreditreportfromall3creditagencies(FREE!Donotpayforyourreport)
• MyMoney.gov–Sponsoredbythefederalgovernment’sFinancialLiteracyandEducaLonCommission• Covers5areasofmoneymanagement–Earn,Borrow,Save&Invest,
Spend,Protect• Easytounderstand
• Mint.com–Verythoroughmoneymanagementtool(includingbudgeLng)
• SponsoredbyIntuit• YoumayreceivesolicitaLons/ads,butthetoolitselfisfree
• Yourpersonalbankorcreditunion
• Yourloanservicer(GotoNSLDS.govtolookup)
• YouCanDealWithIt.com–SponsoredbyFedLoanServicing• Simple,pracLcalinformaLononbudgeLng,saving,creditcards,student
loans,andmore
• StudentAid.govandStudentLoans.gov
REFEREN
CES
AmericanVeterinaryMedicalAssociaLon-h[ps://www.avma.org/about/savma/studen]inancialresources/pages/default.aspxFederalStudentAid–h[ps://studentaid.ed.gov/sa/prepare-for-college/budgeLng/creaLng-your-budgeth[ps://studentaid.ed.gov/sa/prepare-for-college/budgeLng/budgeLng-LpsGreatLakesSmartSessionswebinar:“ChecksandBalances:HelpStudentsBudgetMoreandBorrowLess”(originallypresented12/15/2016)GreatLakesSmartSessionswebinar:“WhatIfICan’tPay:OpLonsforFinanciallyChallengedBorrowers”(originallypresented1/17/2017)UFOfficeforStudentFinancialAffairs-h[p://www.sfa.ufl.edu/resources/financial-literacy/
QUESTIO
NS?
AngelaMooreFinancialAidCoordinatorCollegeofVeterinaryMedicine352-273-5999AMoore@dental.ufl.edu
Ques,ons?
Pleasefeelfreetocontactmeany,me!I’mhereforyou!
OfficeHours:8:00-4:30Monday-Friday