MM

					Money Matters
Why should a student care about their
             finances?




        It’s simple, life isn’t cheap!
Student Expense Budget                2005-2006

                               Kentucky          Non-Kentucky
                               Residents          Residents

           Students living
                               Undergrad          Undergrad
             on campus

      Tuition and Fees                  4,320             11,480

      Books and Supplies                   700              700

      Room and Board              3,300-4,300        3,300-4,300
      Miscellaneous Expenses            1,200              1,200

      Transportation                       400              400

               TOTAL           $9,920-$10,920    $17,080-$18,080
Student Expense Budget                   2005-2006

                                 Kentucky      Non-Kentucky
                                 Residents      Residents

             Commuters         Undergraduate   Undergraduate

      Tuition and Fees
                                       4,320            11,480
      Books and Supplies                 700              700
      Room and Board                   4,000             4,000
      Miscellaneous Expenses           1,200             1,200
      Transportation                   1,500             1,500

                Total                $11,720           $18,880
LIVING OFF CAMPUS
• More bills to pay
  – Electricity
  – Cable
  – Internet
  – Water
  – Garbage
  – Gas
  – Phone Bill
LIVING OFF CAMPUS
• Commuting to and from class
• Necessities
• Food
  – Go to grocery store, skip the fast
    food restaurants!!!
Rules to improve your financial life
       • Get a good education
       • Work long, hard, and smart
       • Learn money management skills
       • Spend less than you could spend
       • Save early and often
       • Invest in common stocks for the
         long term
       • Gather information before making
         decisions
   Did you know?


•Saving $6 a day at 10% interest until
you retire will equal more than a
$_______
   Did you know?


•Saving $6 a day at 10% interest until
you retire will equal more than a
$1,000,000
   Did you know?


•Average American family spends
$______ to raise a child to age 18
   Did you know?


•Average American family spends
$200,000 to raise a child to 18
   Did you know?

•Average US teen spends
approximately $____ each year
   Did you know?

•Average US teen spends
approximately $5400 each year
    Did you know?

•Poor credit rating prevents:
    Did you know?

•Poor credit rating prevents:
  •continuing education
  •buying a new car
  •new home
  •getting into graduate school
Five criteria used to grant credit

      •   Character
      •   Capital
      •   Capacity
      •   Collateral
      •   Conditions
Ways to establish good credit history

       • Establish checking and savings
         accounts
       • Phone in your own name
       • Request, acquire, and use a bank
         credit card
       • Ask bank for small short-term cash
         loan
       • Pay bills on time
       • Pay off student loans
To qualify for Financial Aid!
              FAFSA

  •Federal Perkins Loans
  •Federal Direct Loans (Student Loans)
     •Subsidized
     •Unsubsidized
  •Scholarships (www.fastweb.com)
  •Grants

         Financial Aid
http://www.morehead-st.edu/units/finaid/
Checking's Account
• Make sure to keep check book
  up-to-date
• Always keep receipts until
  written down and cleared on
  accounts
• Available online and through
  mail
• To save more money, open a
  free checking’s account!
Debit Card vs. Credit Card


   • Debit – cash transactions and
     payment

   • Debit Card – provides access
     to funds in your bank account.
Debit Card vs. Credit Card


   • Credit – when you receive
     goods, for a promise to pay
     the money back

   • Credit Card – access to funds
     you must pay back
Advantages of Credit


•   Emergency Resources
•   Hedge Against Inflation
•   Convenience
•   Increases Consumption
Read the Fine Print!
Disadvantages of Credit


  • Temptation to Overspend
    – Can’t pay bill, don’t charge!
  • Credit is Costly
  • Responsibility & Liability
  • Less Flexibility with Future
    Budgets
Real Life credit card numbers


       $2,000   18%    $6,931   27.1 yrs

       $3,000   16%    $8,329   29.2 yrs

       $6,000   14%   $13,954   31.0 yrs

      $10,000   12%   $19,696   30.6 yrs
       The Financial Planning Process
         Plan for Financial Success!
1. Know current financial situation

2. Develop financial goals

3. Identify alternative courses of action

4. Evaluate the alternatives

5. Create and implement a financial action plan
   (budget)

6. Reevaluate and revise the financial plan
              Create a Budget!
Know what you have coming in each week and how you
                     spend it!
         •Know Needs vs. Wants
         •Be honest
         •Manage weekly money -- compare
         income with expenses
         •Keep consistent spending records
         •Prepare for unexpected expenses
         •Adjust your budget as needed
Financially Well-Set
•   Get a good education
•   Work long, hard, and smart
•   Learn money management skills
•   Spend less than you could spend
•   Save early and often
•   Invest in stocks for a long term
•   Gather info. before making
    decisions
Citibank shows humorous but real
            situations


     Citibank Identity Theft Situation 1

     Citibank Identity Theft Situation 2
Protect against ID Theft
 •Shred credit applications, cancelled
 checks, bank records, or documents with
 personal information if not needed

 •Memorize social security # and
 passwords

 •Don't use date of birth as a password or
 record passwords on papers you carry
Protect against ID Theft
 • Don't carry social security card or
   birth certificate--leave in secure
   location

 • Don't disclose credit card
   information or account #'s on web
   sites unless the site offers secure
   transaction

 • Check your monthly financial
   statements for accuracy
IF YOU'VE BEEN A VICTIM OF
      IDENTITY THEFT
   • Report ID Theft to police
   • Close the account or change PIN
     codes and passwords
     immediately
   • Contact your financial institution
     and request they flag your
     account and contact you if there
     is any unusual activity on your
     account
QUESTIONS
    &
ANSWERS

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:7/26/2012
language:English
pages:35