your financial roadmap to success office of financial education sub 152 406.994.4388...
TRANSCRIPT
Your Financial Roadmap to
SuccessOffice of Financial Education
SUB 152406.994.4388
[email protected]/financialeducation
What the Office of Financial Education Can Do For You
One-on-One Financial Coaching to assist in loan repayment, credit, budgeting scholarship and other money management skills.
Fall 2014 Workshops9/11/14 Scholarships 101 SUB 177 5pm
9/25/14 What is in a Credit Score & More
SUB 177 5pm
10/14/14 Salary Negotiation SUB 177 5pm
10/30/14 Don’t be Scared of Your Loans
SUB 177 5pm
11/13/14 Your Financial Roadmap to Success
SUB 177 5pm
12/4/14 Survive the Holidays on a Budget
SUB 177 5pm
Your RoadmapKnow How Much You Owe
Start Career Planning Now
Find Alternatives for Paying for College Expenses
Start Saving For Retirement
Importance of Health Insurance
Start a Budget
Know What You Owe Do you have student loans?
How much are you borrowing?
Are you borrowing more than you need?
How else are you paying for school? Student employment?
Scholarships?
Grants?
Start listing all of the ways you are paying for school This will help you determine how much income
you will need to “survive” college
Cost of AttendanceCategory Semester Academic year
Tuition/Fees $3,400 $6,800
Room/Board $4,190 $8,380
Books/Supplies $625 $1,250
Personal/Transportation
$1,665 $3,330
Total $8,215 $16,430
Category Semester Academic year
Tuition/Fees $10,695 $21,390
Room/Board $4,190 $8,380
Books/Supplies $625 $1,250
Personal/Transportation
$1,665 $3,330
Total $15,510 $31,020
Undergraduate Resident Students
Undergraduate Non-Resident Students
Student Loans If you are taking out student loans
Login to NSLDS.ed.gov
Know who your servicer is
Budget loan refunds….pay back what you don’t need
Make payments now! Even small amounts can help reduce your debt after you graduate (pay off your interest first)
Now that you know how much it cost to
attend school…Make a budget to stay on
track!
Create a Monthly Budget
Create expense categories that best fit your lifestyle Include fixed and flexible expense
Categories can include rent, groceries, clothes, loans, utilities, etc.
Don’t forget to track the “small” and “impulse buys”
Creating categories are essential for ensuring that you are not over exceeding your income.
Put a percentage of you income into each category, then when you make purchase in that category track it with your budgeting tool (online resources, excel, apps, etc.)
Category PercentagesCategory Percentage
Savings 10%
Housing 35%
Utilities 10%
Transportation 10-15%
Food 5-15%
Medical/Health 5-10%
Personal/Impulse Buys 5%
Debt 5-10%
Please note: These percentages are just recommendations and it will vary for each individual.
Budgeting Resources GetMoneySmarts.org
Developed by the Commissioner of Higher Education office
Identifies all income sources, lists expenditures, sets up a estimated monthly budget, add transactions, review and modify spending plan on regular basis
Meet with a Financial Coach to create a budget and to stick to it Call 406.994.4388 to schedule an appointment
Don’t forget to review your budget and adjust accordingly
Still need extra income? Start scholarship searching
Check out MUS.edu
Ask your department for scholarships
Make an appointment with a Financial Coach for help navigating the process, call 406.994.4388
Start job searching Visit MyCatCareers.com to start searching for student
employment, internships, and full-time employment.
Need help navigating the job search, writing your resume or to prepare for the interview? Make an appointment with a Career Coach by calling 406.994.4353
MESA Program-MSU Matched Education Savings Account Program For every $1 saved, MESA matched it with $3. Save up to
$500 for the max match of $1,500
Check Out These Business That Offer Tuition Assistance
AT&T
Coca-Cola
FedEx
Gap
Home Depot
John Deere
Staples
UPS
Verizon
Wells Fargo
Start career planning now to save you time
and money
Career Planning Now
Complete a Self-Assessment Know your interests
What Motivates You
What are your Values
Know what your skills/abilities are
Personality
Accomplishments
Dreams
Lifestyle
Career Planning Now Discover the World of Work
Decide on a Major
Meet with a Career Coach
Complete the Strong/MBTI
Attend Student Employment Job Fair/Career Fairs
Attend What Can I Do With a Major In….Workshops
Graduating in four years or taking 15 or more credits per semester can save a resident students $6,560, non-residents $20,520.
Career Planning Now Goal Setting
Discover different careers by:
Volunteering
Student Employment
Study Abroad
Internships
Finding the Perfect Career Write Cover Letter/Resume
Interview Techniques
Negotiation Salary/Benefits
Job Searching Techniques
Important Facts Find student employment!
Develop soft skill that will give you a competitive edge in the workforce
Attend the Student Employment Job Fair
Tuesday, September 9th SUB Ballrooms 11:00am – 1:30pm
Participate in at least one internship Internships are the #1 reason why new college graduates are hired by
employers
Provides a way for you to connect your academic experience with the professional world and give you a competitive edge in your job search
Check out the exc.e.ed Grant Will facilitate internship opportunities that will advance students’ career
development through meaningful exposure to career fields of interest.
The goal is to alleviate some of the financial burden associated with unpaid internships or internships where the student is asked to pay to participate.
Importance of Graduating
Now that we’ve talked about making smart
decisions for the now, lets talk about your
future
What you need to know about the Affordable Care
Act The Affordable Care Act includes an individual mandate, which means you have to buy insurance or pay a penalty
If you are still on your parents’ insurance, you are covered until your 26th birthday. After that, if your employer does not offer a healthcare plan, check out https://www.healthcare.gov and navigate to the Montana page to see the options you have to get coverage in Montana or whatever state you plan to live in
Why is Health Insurance Important?
For emergencies… No one plans on getting sick or hurt but most people will need
medical care at some point in their lives
Health insurance helps cover those cost
Did you know? Average 3-day hospital stay is $30,000
Broken leg can cost up to $7,500
Protects you by: Out-of-pocket maximum: the total amount you will have to pay if
you get sick (eg. $3,000 OFP maximum, once you pay that amount, your insurance plan will pay the rest)
Without insurance, you would have to pay the whole amount out-of-pocket, this can lead to large amounts of debt or bankruptcy
MSU Student Insurance & Health Fee
Health Fee: When the fee is paid, visits to health care providers (physicians, physician assistants, nurse practitioners) are free. Students and their spouses/domestic partners may use the Health Services as often as they like.
Charges may apply for prescriptions, minor surgeries, lab work, xrays, and the dental clinic.
Insurance: mandatory whenever you are enrolled for six or more academic credits. This will cover 100% of labs, xrays, minor surgeries and most procedures. MSU insurance costs:
FALL SPRING SUMMER (ONLY)
Waiver deadline End of 15th day of class
End of 15th day of class
End of 5th day of class
Dates covered 9/1/14-1/13/15 1/14/15-8/31/15 5/11/15-8/31/15
Student rate $1,474 $1,474 $987
Don’t Forget About Retirement
Set a goal for the amount you need to retire
This is just a starting goal, you can always adjust later on
How much of your income will come from investments? How much will come from your salary?
Look into your retirement plan options, which include:
401(k): free account you can only get through your employer. Some employers match the amount you put in your 401(k). Take advantage of this great opportunity, it’s free money!
Traditional IRA: This account is set up so that your yearly contribution is tax deductible (under certain income limit). It is only taxed when you start withdrawing for retirement.
Roth IRA: different from traditional IRA; you pay taxes upfront. In return you never pay taxes on investment earnings.
Select the option that works best for you and your goals
Save as much as you can early on. The sooner you start saving, the more time your money has to grow.
Want to know how much you will need save? Check out a retirement calculator for an estimate.
Example Assume $30,000 year salary & 3% raises in
income each year
Assume—3% of your salary deferred to 401K & a 3% company match
Assume tax rate of 20%-Fed, 6%-State
Assume you ARE looking for 70% of pre-retirement income
Aggressive portfolio
Example Cont. You will have $270,587 (assume an annual return of
10.4%) at age 65 & income of $13,230 from Social Security & you can draw down the 401K for $7,770 each year till 85 & still have the retirement plan be worth $313,000+! There’s a 50% chance your cash flow will equal or exceed the $270,587!
You get a 100% return on your investment the day you put into your retirement plan because your employer matches what you put in with THEIR Money
Bottom Line: Start into your company sponsored retirement plan as soon as you are eligible (by 25 years of age is ideal) & make sure you put enough of your own $ to get a 100% match from your employer!
Thank You!Questions/Comments?