Everything you ever wanted to know about…
Student Finances
Presented by the Tomas Rivera Center for Student Success
A scary statistic…
A government report states the personal savings rate for the nation in 2005 was negative 0.5%. That means consumers not only spent what they earned— they also spent money they didn't have.
Warning Signs of Debt Problems
No savings Minimum payments on credit cards Use credit cards for things you used to buy with cash More than 2 major credit cards Unsure of total amount you owe At or near your limit on credit cards
Are you in over your head?
Do you bounce checks? Have you been denied credit? Do you get calls from collectors? Do you lie about your spending or debt? Do you take out cash advances on your credit cards to pay other bills?
Top 5 Money Mistakes College Students Make
Getting into credit card debt Squandering your student loan money Ruining your credit score Choosing a college that is too expensive Not budgeting
A budget will help you…
So why budget?
Stay in control of your money Live within your means Meet your savings goal Keep track of spare cash Prepare for emergencies Keep out of debt Sleep better at night
Features of a Successful Budget
Categories that fit your personal situation Accurate income projections Enough categories to give you a meaningful picture, but not too many A line item for savings – treat as a bill Cash tracking and recording Realistic written goals
Understanding your credit report
Your credit report is a record of your entire credit history, including late and/or delinquent payments and maxed-out accounts There are 3 credit companies that report credit information – it is recommended to compare data from all three to ensure accuracy. Your credit report is evaluated anytime you apply for a loan (i.e. car or home purchases, credit cards, bank loans, etc.)
How to read your credit report
Personal Information: used to verify your identity; not included in credit score calculation Summary: categorized list of all accounts Account History: detailed information about all accounts in your name Public Information: legal matters that affect your credit Inquiries: lists businesses that have checked your credit in the last 2 years Creditor Contacts: lists contact information for each creditor in your report
Credit Reporting Companies
Experian: (888) 397 3742 Equifax: (800)-685-1111 TransUnion: (800) 888-4213 Reports are usually about $5-$10 each.
You can also order a free copy of all three reports once a year by law at http://www.annualcreditreport.com
Do you impulse spend?
Surprised by your credit card statement? Own lots of things you never wear/use? Buy things you didn’t even know you needed until you saw them on display? Come home with items you had no intention of purchasing when you went out? Buy things just because they are on sale?
Curbing impulse spending
Index card trick – wait two weeks Leave credit cards at home when you go shopping – bring cash only Learn to recognize wants from needs
Activity and Questions