• Helping Students Handle Their Finances 2-11 • Work Hard But Smart 11-31 • Credit 101 32-61 – Prioritize Your Wants and Needs – $50 • Checking Accounts 101 62-66 • Live Like a Student- Managing Your Funds 67-78 • What Are You Learning From Your Job 79-110
Helping Students Handle Their Finances
An Overview of Financial and Debt Management FYE Success Series Autumn, 2003 Programs
Financial Aid 101
• Learn about the factors that determine eligibility for financial aid • Hear descriptions of the various aid programs • Learn about the effects of enrollment changes on maintaining aid eligibility
Financial Aid 102
• Financial planning for education is on on-going process throughout a college career. • This session will encourage students to consider educational costs and to assess available resources. • There will be a discussion about how financial aid can be used to maximum benefit and how planning can minimize educational loan debt.
Work Hard but Smart: How to be Successful in School; Graduate on Time
• Communicate strategies for success while in college. • Show how effective planning can help students more easily reach educational goals, and save time and money. • Show that budgeting one’s time and money can minimize stress and maximize goal attainment.
Checking Accounts 101
• Acquaint students with checking account terms and fees. • Help students learn to keep their check registers and balance their checkbooks. • Give guidelines for use of ATM and debit cards.
Deniesha Newby and Merilyn K Lee
• Get students thinking about how to spend less in everyday life. • Help students learn to set spending priorities by differentiating between needs and wants. • Promote long-term financial independence by helping students spend within their means.
Merilyn K Lee
• Define the differences between need and want. • Develop skills in meeting and achieving goals. • Develop insights to distinguish the difference between spending freedom and financial freedom.
• Introduce participants to the history of credit. • Gain an understanding of the impact on purchases that are made using credit. • Introduce the student community to the program so they know that if they are overextended in their use of credit, there are plans that can help the recovery process.
On the Money (and Savings and Investing)
• Learn the basics of financial record keeping and when and when not to use a credit card. • Basic financial concepts will be covered. • The best investment opportunities will be described, as will the basics of financial planning. There will be an opportunity to evaluate the best investment options.
Work Hard but Smart: How to be Successful in School and Graduate on Time
Adapted from United Student Aid Funds, Inc. Presented by Carla Mattmiller
• USA Funds is a student loan guarantor. The corporation has launched a multi-year initiative to assist colleges and universities to reduce their student loan default rates. The resources used today are part of that undertaking.
Our Goals Today
• To share strategies to succeed at Ohio State and to complete your degree in a timely manner • To show how effective planning can help you more easily reach educational goals, and save time and money • To show that budgeting your time and money can minimize stress and maximize goal attainment • To get to know others and have some fun!
Congratulations—You‘ve Made It Here
• Now what? • 46.1 % is the national graduation rate (within 5 years) at 4-year public institutions (ACT news release, 2003) • Ohio State‘s rate is higher (56.4 % for those freshmen starting in 1998)
Why the Low Graduation Rates?
• Our culture encourages an affluent lifestyle • Some students work longer hours and take fewer classes • Part-time enrollment delays graduation • Selecting a major too early or too late • Go to Page 1 in Student Skills book for Module 3: Review Graph
How Can I Successfully Finish My Education on Time?
• Develop a plan • Identify a strategy or strategies to make satisfactory progress • Develop ways to cope with the demands of being a student
Plan to Finish School on Time
• Set realistic goals: How many years do I plan to be in school? How many credit hours are required to graduate? What is full-time status at Ohio State? How many classes do I need to complete each quarter?
Understand Your Curriculum
• Work with your adviser to understand your General Education Curriculum requirements as well as your major course requirements • Schedule what you can realistically handle • Balance more demanding courses with those that are less demanding • Allow at least twice as many homework hours as hours in class
Ask Your Adviser!
• Look for the ―Friendly Advice‖ on Page 4 of your Life Skills book. See if you agree; better yet—see if your adviser agrees! • Your relationship with your adviser could be one of the most important ones you‘ll have at Ohio State. And remember, it‘s a two-way street!
Keep Your Life Simple
• There are many wonderful opportunities here! Participate in them! But not all of them! • Take care not to over-extend your self socially or financially. What you borrow, you must pay back. • If you‘ve not yet done so, learn to say ―no‖ and to be comfortable with it! Don‘t charge what you cannot pay off each month. If you delay gratification now, you can avoid serious debt down the road.
Stay Focused on Your Educational Goals
• Resist temptations that can distract you. • Do not join every organization that appeals to you. • There will always be other students who have more money than you do. Do not try to keep up with them. • Be extremely cautious with credit card use; do not abuse them.
Suggestions to Make Satisfactory Progress
• Learn how to be a skilled learner. This could include actively participating in class and demonstrating interest. • Demonstrate commitment. Be motivated. • Join in discussions. Ask questions. Be willing to learn. • Consider the Classroom Success Skills on Page 6 of the Life Skills book.
Sharpen Your Study Skills
• Look at Pages 7-8 in the Life Skills book. • Do your reading; take good notes; ask questions; get assistance;* actively participate in class; schedule a time to study each day; eliminate distractions; find ―study buddies;‖ study harder subjects first; find a library and use it!
Younkin Success Center:
1640 Neil Avenue, 292-4400
– Walter E. Dennis Learning Center, 688-4011 – Counseling and Consultation Services, 292-5766 – Career Connection 688-3898 ALSO: Larry Christopherson, PhD., Financial Specialist; 247-7218;email@example.com
Seek Help from Your Instructors
• Learn your instructors‘ names. • Find out where and when they hold office hours. • Meet with your instructors early on. • Participate in study sessions. • Show respect. • Ask questions.
Budget Your Time Wisely
• Check out Page 14 of your Life Skills book. Consider the items listed and estimate how much time you spend on each in a day. Add up the time. • Are you over-scheduled? • Are you under-scheduled? • What consumes a lot of your time? • What activities support your college goals?
• Life Skills refers to events or people who cause us stress as ―Crazy-Makers‖ and encourages us to identify them and to also identify those strategies which reduce them. • Let‘s try to identify some things which stress you out:
• Have you found ways—or can you think of any— to reduce your stress and anxiety? • Ohio State has many resources available to you: Student Health Center; Counseling and Consultation Service; offices, services and organizations under the auspices of Student Affairs: http://studentaffairs.osu.edu/resourceguide.asp
• Many of us haven‘t had to work on making new friends for a long time. Here are some things to consider as we surround ourselves with new faces: Be friendly. Initiate contact. Make eye contact. Smile! Say ―hello.‖ Hang out at community meeting places. Ask questions. Encourage others to talk. Be helpful. Share food! Be fun.
What is Your ‗College-Q?‘
• On pages 25-26 of the Life Skills book, there are 10 questions. Some time when you have a few minutes—but don‘t wait too long—please look at those questions, respond to them and see where they lead you in terms of success and satisfaction here at Ohio State.
• Finally, in the back of the Life Skills book, there are two pages listing recommended resources and web sites. Check it out! • The book you‘re using today is one of five. If you would like to have the other four, let me know (firstname.lastname@example.org.) • Consider attending other FYE courses offered by the Office of Student Financial Aid!
Credit 101: Having and Using the Power of Plastic
FYE Success Series Carla Mattmiller and Vern McNeill October 7 and 10, 2002
• A great deal of debt can be acquired while you are in school • …unless you learn very early how to manage your money!
It is not Easy to Manage Your Money!
• Among other things, managing your money takes: • Time • Organization • Sound judgment • Doing Without
Our Goal is to Help You Control Your Finances
• Take the time to review the descriptions of all of the Office of Student Financial Aid‘s offerings to the FYE Success Series. You might find other sessions useful! • Financial Aid 101, Financial Aid 102, Checking Accounts 101, What are You Learning from YOUR job?, On the Money, Savings and Investing, etc. • Check them out!
To Take Control of Your Finances:
• • • • Set Your Goals Realistically decide what you need Create a budget and stick to it If you use credit: manage it and don‘t let it manage you • Think of ways to increase your income
Your Future: What You Charge Now Will Shape It!
• While you are in college, keep your debt as low as it can possibly be. • Student Loan Debt • Credit Card Debt
Be Ever-Aware of the Difference between a Necessity and a Desire
• ―Wants‖ v. ―Needs‖ • Let‘s brainstorm: What kinds of things do you want to buy?
What kinds of things do you need to buy? What did you come up with?
Prioritize Your Wants and Needs Priority Levels 1: Absolutely essential for survival! 2: Pretty darn important! 3: More of a need than a want 4: Great to have, but not a need 5: Pie-in-the-sky!
Item Double-mocha cinnamon latte every morning Basic clothing Transportation to work or school Big-screen TV Textbooks for your classes Telephone service
Want or Need?
Apartment or dorm to live in
Automobile Weekly appointment at hair and nail salon
Cable TV service (if you live off-campus) Personal computer
Pets (include food, veterinary care, rental deposit!) Spring break in Cancun! Christmas and birthday gifts for family Gas, oil, maintenance, and insurance for auto Health insurance Cell phone Tuition Microwave oven Food Weekend pizza party for 20 friends (you’re buying!) High-speed internet access Ski trip to the French Alps!
“Wow—I’ve got $50.00 to spend!”
ITEM Lunch at home or dining commons Lunch at Wendy’s Lunch at Johnny Rockets Lunch at Champs Used jeans at Volunteers of America COST $0 $4.50 $7.50 $12.00 $3.50 YOU SPEND:
Cherokee jeans at Target Old Navy jeans Designer jeans at Lazarus
$20.00 $30.00 $45.00
Used shirt at Volunteers of America Merona shirt at Target Old Navy shirt Designer shirt at Lazarus Watch TV at home or dorm Split video rental from Blockbuster with 3 friends Movie at 5:00 p.m. bargain show Movie at 6:30 p.m. regular price show Split half-gallon of ice cream with 3 friends
$2.00 $12.00 $20.00 $37.00 $0 $1.00 $5.50 $7.50 $1.00
Ice cream sundae at Dairy Queen
Ice cream sundae at Graeter’s
TOTAL FOR THE DAY
Rules: You have no credit cards. You cannot borrow money from friends to spend over your $50.00. Assumptions: Lunch at dining commons has already been paid for and will not come out of today‘s $50.00; sales tax is included in listed costs; transportation is provided at no cost to you. Bonus Question: If you have money left over, how much is it, and what would you spend it on?
This Session Doesn‘t Cover the Construction of Student Budgets
• A useful tool: http://sfa.osu.edu/calculators/budget.asp • A commercial: The Office of Student Financial Aid‘s website contains a great deal of information about aid programs as well as debt management, student rights and responsibilities and consumer information. (http://sfa.osu.edu)
By Using a Budget, You‘ll be able to Identify any Shortfalls
• Then you can ask yourself: What can I do without? • Think of at least five ways to reduce your expenditures. • Think of three more. • Think of one more. • What did you come up with?
What did you Choose to Cut out of Your Budget?
-Don‘t buy unnecessary items -Go thrifting -Comparison Shop -Keep your car maintained -Don‘t shop often -Do free or cheap things for -Stop buying on impulse entertainment (on campus -Wait to buy something all the better) -Break expensive habits -Don‘t try to keep up with -Go out to eat less someone who has more -Use coupons than you have -Go to discount movies -Cut out fancy coffee drinks
How about Not Using Your Credit Card as a Way to Save?
• You are a student! If you need to borrow money, borrow it for educationally related expenses. • Remember, when you are using a credit card, you are borrowing money.
True or False?
• Credit Cards are a better deal than are student loans. • More than half of Ohio State students take an extra job or work extra hours as a result of their debt.
True and False
• 1. FALSE. This year‘s interest rate on Stafford Loans=4.06%; PLUS Loans=4.86%; Perkins Loans=5.0% • 2. TRUE. More than ½ of Ohio State students take an extra job or work extra hours as a result of their debt.
Point of No Return
• Your credit history lasts a very long time! • What you borrow, you are obliged to pay back. • If you want to begin to think about your future earning power now, a resource is www.salary.com
Good News/Bad News
• You have access to your credit report. (Vern will tell you how.) • So do: Prospective employers Insurance Companies Potential Landlords Lenders
(More) Good News/Bad News
• If your credit is bad, you still might be eligible for more credit! • But it is likely that you will be charged very high rates of interest! (Think of an analogy to a bad grade—it stays on your record!)
It could Happen to You!
• According to a recent Nellie Mae Study: 83% of undergraduates have at least 1 card $2,327=Average debt on card balance $20, 402=Average debt of graduating students (both student loan and credit card balances combined) From first year to graduation-debt doubles and the number of credit cards triples
We Know that Passing by Tempting Offers is Hard to Do!
• Be strong! • Think about it—most of you have come to campus with little or no financial independence, or much experience managing all of your expenditures.
What Makes it So Difficult…
• …is that as most students progress through school (with additional credit card debt) They are also accumulating additional student loan debt.
A Transitional Thought
• Even as they are marketed so powerfully to students without income—or limited income, credit cards are designed for people with income!
• Credit Matters— http://www.citibank.com/us/cards/cm • Dowhower, Andrea. Spending Habits of OSU Undergraduates: Discretionary Funds and debt accumulation, credit card use and student employment 2000. Student Affairs Assessment, Columbus: The Ohio State University, 2000.
• Dunn, Lucia. The Ohio Consumer Debt Index: June, 2001. Columbus: The Ohio State University Center for Survey Research, 2001. • Eastern Michigan University Extended Programs-NICE
• Heady, Robert. Facts of Life about Kids, Credit Cards. Columbus: The Columbus Dispatch, 2001. • Life Skills. 2001 United Student Aid Funds, Inc. • Nellie Mae. Summary Statistics (Credit Card Wage Analysis) http://www.nelliemae.com/shared/ccstate.htm, 2000.
• News from NASFAA August 6, 2002. ―Eighty-three Percent of Undergrads Now Possess at least One Credit Card, According to Nellie Mae Study‖ • Quinn, Jane Bryant. Misuse of Credit often Starts in College. Columbus: The Columbus Dispatch, 2001.
Checking Accounts 101
Deniesha L. Newby
Counselor, Student Financial Aid
Merilyn K. Lee
Assistant Director, Student Financial Aid
Checking Accounts 101 Goals:
1. How to select the best checking account for you.
2. How to keep your checking account records. 3. How to balance your checkbook.
4. Hints, tips, and words of wisdom!
Picking the right checking account for you:
• How do you want to do most of your banking business: in person, by ATM, on the web? • Which bank is most conveniently located?
• Which bank has the most ATM‘s near you?
• What does it all cost?
Fees, fees & more fees:
• Get a disclosure statement for prices and fees for checking accounts—they HAVE to give it to you! • Compare the fees for various kinds of accounts and services. • Don‘t forget the bank probably charges ―punitive‖ fees for certain actions on your part!
Balancing Your Check Book
Live Like a Student—Managing Your Funds
Adapted from Life Skills USA Funds Presented by Carla Mattmiller, Office of Student Financial Aid
• Become aware of where each and every dime is spent • Learn how to manage your funds • Better ensure your financial position when you graduate
• • • • • •
What Influences Your Return on Investment Here?
Annual Cost of Attendance Deferred/lost wages from employment How long it takes to complete your degree Your life-style as a student Amount of student loan debt Anticipated Salary
• Pressures you face because family/friends have more money/enjoy a better lifestyle than you do • Sacrifices you make now will have a great payoff for you later • Your future will be shaped by how you handle your money from here on in
• Keep track of your student loan debt, beginning now. (www.nslds.ed.gov) Know what your monthly loan payments will be. Recalculate your payments with each new loan. (https:/www.dlssonline.com/tools/pin-anyonenew.asp) • Know how much money you will need to complete your education. • Develop a timeline and stick to it.
Not All Debt is Alike
• Consumer debt is different than educational loan debt • Subsidized loans are different than unsubsidized loans • Know how much debt you have and how much debt you can afford • Financial Education and Counseling, Student Wellness Center, B130G RPAC swc.osu.edu/financial.asp
Managing Your Money
• What does ―living like a student‖ mean to you? • What might you do to stretch your funds over the length of a quarter? • ―Small changes add up to big savings‖
Making Each Dollar Count
• Take control of your money by living simply • Three things to consider when making a purchase: -What happens if I don‘t buy it? -What happens if I don‘t buy it now? -Is there something less expensive I can buy?
• High investment value: potential exists to receive more than the original investment • Low investment value: likelihood exists that there will be depreciation on the investment • Negative investment value: there will be no financial return on the investment
Importance of Planning and Saving
• For planned expenses • For unanticipated expenses • What is spent now will influence how you live later
• Begin to manage your funds now • Always borrow conservatively • Consider additional ways to fund your education • Budget your daily expenses • Save for unexpected expenses • Consider your return on investment prior to deciding to spend—or borrow 77
• If you have any questions or would like to discuss this further, please contact me! Carla Mattmiller Senior Assistant Director, Student Financial Aid email@example.com 614-292-8564
What are you learning from your job?
Brought to you by the Office of Student Financial Aid & First Year Experience
Presented by: Jaime Deafenbaugh Tom Taranto Amber Zuber
To become aware of the importance of workstudy and other part-time jobs To recognize transferable job skills To learn how to transfer skills to a resume To learn attributes and skills of a strong employee
Employers hiring part-time workers expect to hire people with no prior experience or skills.
While many employers hiring part-time workers are willing to train employees with little or no prior experience, employers still seek workers with certain characteristics that will make them successful on the job.
Poor job evaluations at a part-time job will have no effect on a future employer’s hiring decision.
Poor job evaluations, even in jobs that you consider to be dispensable, may impact your ability to secure future employment.
A menial part-time job provides no opportunity to learn transferable job skills.
Even with a menial position, you have the opportunity to learn transferable job skills. Your employer can attest to your dependability, your ability to follow directions, to take initiative, and to assume leadership roles, just to name a few.
In some companies, part-time employment may lead to fulltime employment in the future.
It is not uncommon for employers to utilize part-time positions or temporary positions as a proving ground for potential full-time employees.
Working at an off-campus job can provide better reference than an on-campus job.
While you may be able to find offcampus positions more closely related to your career goals, many on-campus positions may provide the opportunity to develop similar transferable work characteristics.
Examples of Jobs
Part-time Package Handler
Part-time package handlers keep packages moving. Must be able to lift 50 lbs., load, unload, and sort packages.
After-School Program Group Leader
Assist group leaders in the planning and implementation of age-appropriate activities for youth ages 6-12. Assisting with supervision of youth in program. Responsible for assisting with tutoring in math, reading and writing. Also some light clerical work. Must pass criminal background check.
Sell tickets for the Department of Theatre. Take phone orders and messages. Perform various box office duties. Must be able to work extremely well with the public and be able to handle money. Will be trained on TicketMaster System.
Let‘s brainstorm some transferable skills one might gain from the following jobs:
Part-time Package Handler After-School Program Group Leader Ticket Seller
Check Out Our Sample Resume!
Use this as a guide or a model for your own resume (Don’t Copy It!!!) Career Services at OSU • http://www.careers.ohio-state.edu/
Ways to Excel at Work
Be Reliable and Dependable
Come to work on time
Do what you say you’ll do Stay organized Do your Best!
Learn all you can about the company and what you can contribute Find out what else needs to be done and do it Take responsibility for what you do Learn how to do a task if you don’t already know Learn a skill that will help you stand out
Be a Team Player
If you are asked to help a coworker, jump at the chance Be willing to share information
Support and encourage your coworkers
Remember that you cannot control everything Be willing to compromise Be prepared for the unexpected
If you don’t know, ask someone who does
Ask your employer what is acceptable Use your judgment based on the environment It is better to be overdressed than underdressed
Arrive on Time
Your employer expects you to work the hours you are scheduled Remember that they may have to make adjustments to your schedule each quarter
Keep Your Employer Updated
If you’re sick, notify your supervisor as soon as possible When asking for time off, consider your employer’s needs as well as your own Make any changes to your schedule with as much notice as possible
Talk to Your Supervisor about Problems
If you have a problem with some aspect of your job, speak to your supervisor first
Learn About Safety Procedures
Check with your supervisor about the area in which your job is located and what you should know about safety If at any time you do not feel safe, please let your supervisor know
• Federal Work-Study Program Information • On-line Job Board
The Lantern Classifieds The Columbus Dispatch Classifieds Check with your College or Department
Review of Goals
To become aware of the importance of work-study and other part-time jobs To recognize transferable job skills To learn how to transfer skills to a resume To learn good employee skills