tips to manage your money
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College is a great time to start creating a savings habit.TRANSCRIPT
Tips to Manage Your Money
DID YOU KNOW? The average debt for undergraduate
students when they leave college is $25,000.
Undergraduates are caring record-high credit card balances. The average balance is $3,173.
As a nation, we are spending more and saving less each year.
THREE RULES ABOUT MONEY
Don’t spend what you don’t have.
Pay yourself first. Get in the habit of putting money aside and saving it for short and long-term savings.
Develop a plan both for spending (budget and savings).
Things You Can Do To
Better Manage Your Money
SET UP A BUDGET
Know how much money is coming in (pay checks, financial aid, family contributions, gifts).
Know how much money is going out and track it.
Are you spending more money on want than needs? It is okay to spend some money on wants but be sure you can cover needs and
can save some dollars too.
Look at how you are spending your money
Are you spending more then you are taking in?
Are you using credit cards or borrowing money to make ends meet?
Do you have places where your money is just disappearing such as on coffee or eating out?
Are you spending more money on wants than needs? It is okay to spend some money on wants
but be sure you can cover needs and can save some dollars too.
Are you spending more than you are taking in?
Are you using credit cards or borrowing money to make ends meet?
Do you have places where your money is just disappearing, such as on coffee or eating out?
WHERE IS ALL YOUR MONEY?
Needs are expenses required for living: Fixed expenses (rent, car payment, school loans) and variable expenses (gas, food, phone).
Wants are things we buy but don’t necessarily need, such as clothing, movies,
eating out, coffee.
Are you spending more money on want than needs? It is okay to spend some money
on wants but be sure you can cover needs and can save some dollars too.
Expenses can be NEEDS or WANTS
Look at how you are spending your money
Are you spending more then you are taking in?
Are you using credit cards or borrowing money to make ends meet?
Do you have places where your money is just disappearing such as on coffee or eating out?
BE CAREFUL WITH CREDIT CARDS
Advantages
Buy goods as needed and pay gradually
Creates a record of purchases
Emergencies
Level out ‘peaks’ and ‘valleys’ in income and expenses
Convenience
Less to carry around
Consolidates bills into one payment
Disadvantages Buy what you can’t afford
Increased impulse buying
Interest charges mean higher cost of items
Can be thought of as increased income
May require additional fees.
If you lose track of how much bought on credit, financial trouble could occur.
BE CAREFUL WITH CREDIT CARDSYour responsibility Borrow only what you can repay
Know your credit limit and your Annual Percentage Rate (APR)
Read and understand the credit contract
Pay debts promptly
Notify creditor if you cannot meet payments
Report lost or stolen credit cards immediately
Watch out for billing errors
Never give your card number over the phone unless you initiated the call or are certain of the caller’s identity
Check your FREE credit report at AnnualCreditReport.com
Look for a credit company that offers… Low interest rates or finance charges (combined, they are called APR)
Low or no annual fees
A grace period (time during which no payments are due) before finance charges are posted
Other benefits including purchase warranties, free gas, airline miles, etc.
CREDIT CARD HELPFUL TIPS Don’t have more then one or two credit cards.
Watch out for carrying balances. Some cards charge 20% or more in interest/finance charges.
Try to pay off your credit card each month. If you can’t always pay more than the minimum balance, pay as much as you can.
Think about your purchases. If you are not able to afford the purchase now, chances are you won't be able to afford it in a month when the credit card bill comes in!
SAVE SOME CASH
Always pay yourself first, that means put even a little money away into savings. Even a little bit of money will grow over time.
If you spend 2-3 dollars/day on “snacks” (coffee, soda, candy, bagels), and instead start saving $2.30 a day in an account that pays 5.3% interest you will have over $9,000 in 10 years.
Look for ways to save money.
Examples: Skip the latte, avoid the mall, look for recreation instead of entertainment, buy used textbooks, carpool or use public transportation, take advantage of students rates, be careful with credit, eat cheap, use coupons.
What are ways you save $$$?
What are your saving goals, both short and
long-term?
Short-term goals include such things as covering down payment on a car or going on spring break.
Medium-term goals require greater sums of money such as paying off student loans.
Long-term goals including saving for retirement.
For more information on money management:
Office of Health Education and Promotion, Health Services
(603) 862-3823http://www.unh.edu/health-services
www.cashcourse.org/unh
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