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Avoid Being a Shopaholic by liaoxiuli


									How to Avoid Being a
Financial Intelligence for College Students
Russell Conwell Center
Fall 2009
 Purpose of this Presentation
The purpose of this online
workshop is to equip
students with the
knowledge and tools to be
financially savvy while living
and learning in the college

This online workshop will
include a series of self-
assessments to allow you
to better understand your
spending habits and
current financial standing.
What Type of Spender Are You?

                  Let’s Find Out!
                 5 Types of Spenders
   #1- The Avoider
          This person avoids making decisions about money.

   #2- The Collector
          This person enjoys making money and spending money.

   #3- The Spender
          You enjoy spending money and think little about your financial decisions.

   #4- The Thinker
          You care about others who may be less fortunate that yourself. Your level of
    empathy may direct your spending habits.

   #5- The Miser
          You like to save money but do not spend it.

    Know that you know what kind of spender you are you can utilize
      various techniques to improve your saving and spending habits.
              True or False

Banks are willing to help college students
  learn to become financially intelligent?

Many banks provide college students with
  savings and checking accounts that allow
 them to build good credit and stay out of
Financial Intelligence In College
   Shop around for a bank that caters to students!
    ◦ Find a bank that offers free checking and savings
    ◦ No excess fees such as ATM withdrawals, check fees
      or transfer fees.
   Use a debit card.
    ◦ A debit card takes the funds directly out of your
      account to ensure you have the money!
   Balance your accounts
    ◦ Overdrawn accounts are charged an additional fee.
   Utilize free ATMs
    ◦ Wawa
    ◦ The Student Center
                        Analyze This!
          Knowledge is Power!

Please take several seconds to complete
    the following budget sheet in order
    to better understand your monthly
        budget and spending habits.

          Budget Calculator:
Ways to Manage your Monthly
Record everything you purchase in one month.

          Highlight essential items.

     Try to cut back on “frivolous” items.

 Be smart about how you spend your money!

       Leave your credit card at home!

   Name at least one advantage of having a
                  credit card.

By using a credit card wisely, one can build
  credit thus enabling that individual to be
 able to take out loans for cars, houses and
           other larger purchases.
Credit Card Intelligence
   Find a credit card with a low interest rate and no annual fees.
    ◦ Only use this card for emergency situations or large unavoidable purchases

   Pay credit card bills on time.
    ◦ By paying your bill on time, you gain good credit and you avoid expensive fees.

   Find a credit card that will reward you for your usage
    (although usage should be minimal!)

   Don’t be fooled by Gimmicks.
    ◦ While some credit card offers may look appealing, make sure you understand the
      fine print associated with each card.
                        What is Credit?
  Credit is defined as financial trustworthiness or “confidence in a
               borrower's ability and intention to repay”.

When you take out a loan, banks want to ensure that you will be able
               to repay the loan in a timely manner.

The credit a person has typically determines how much they will be
  permitted to borrow, for what purpose, for how long, and at what
                            interest rates.

    (2009). Credit and credit management. Retrieved from
What is a credit score?
   Credit cards are a way to spend “future”
                                           …Money you don’t have!
    A credit score is a statistical means to assess how likely a borrower is to
    repay a loan. The credit score is based on the data available in the
    borrower's credit report and measures the relative degree of risk a
    potential borrower represents to the lender or investor…

   An interest rate will be determined by your credit score. If you have no
    accrued any credit, than you will most likely have a high APR (annual
    percentage rate) 15% or higher. Credit card companies make their money
    off of your interest!
So what does this mean?
   If you have a credit card with a APR of
    16% and you have a bill of $1,000 dollars
    (easily accrued through book purchases

 …then you will actually pay $1,613 dollars!

If you pay the minimal balance, this will take
     you 6.7 years to pay off…and that is
       without purchasing anything else!
Tips for Using Credit Cards
                 Prioritize your spending. Before
                  you purchase something ask
                  yourself if you really need it.

                 Pay the entire credit card balance
                  when it is due. If you are unable
                  to pay the balance, pay as much
                  of the balance as you can.

                 Analyze your spending habits and
                  avoid unnecessary purchases.

                 Never lend your credit card to a
And remember…

 Many potential employers check credit

   They want to ensure that those
   professionals they hire are mature,
     responsible and trustworthy!

What are the different types of financial aid
   one can receive to pay for college?

   Student Loans

   Grants

   Scholarships

   Work Study

   Work
Types of Student Loans
   Stafford Loan
    ◦   Subsidized-
           Government makes interest payments
            during grace period so any payment you
            make goes directly towards principle
    ◦   Unsubsidized-
           Loan continues to accrue interest over
            the grace period adding to your principle
   Perkins Loan-
    ◦   Need based loan that carries a fixed interest
        rate of 5% for the duration of the ten-year
        repayment period.
    ◦   Loan does not accrue interest during grace
   Parent Plus Loan-
    ◦   A loan taken out by a parent/guardian in
        order to assist with paying a dependent’s
        undergraduate education
    ◦   Undergraduate student must be enrolled full-
        time in order for the parent to be eligible for
        this loan.
            Additional Ways to Pay!
    Scholarship
     ◦ Scholarships are awarded on various criteria usually reflecting the values
       and purposes of the donor or founder of the award.

    Grant
     ◦ Grants are a form of financial aid, based on need, which you do not have
       to repay

    Work Study
     ◦ Money that is earned through part time employment at the university or
       college intended to assist with the payment of college.

    For additional information on opportunities such as these at Temple
           University, visit the student financial services website at:
   FAFSA stands for Free Application for Federal
    Student Aid.

   One must fill out the FAFSA in order to receive
    loans from the government.
    ◦ The earlier you complete the FAFSA, the better! However, the due date is March 1,
      2010. If you are late, you will receive less financial aid!

   The FAFSA requires the following information
    ◦ Social Security Number
    ◦ Federal Tax Information
    ◦ Information on savings and investments for yourself and your parents if you are providing
      parental information.


              True or False:

   It is possible to save money while in

By making simple changes to your daily
spending habits you can save hundreds of
  dollars a year…while still paying for
                        Want to Save Money?
             Take Advantage of Temple University Services
   Use Temple University incentives and
    programs to purchase large items
    needed for class (computers, software,

   Eat in the dining halls rather than at the
    food trucks or restaurants on and
    around campus.

   Take advantage of campus activities and
    student discounts.


   Attend Free Food and Fun Fridays at
    Temple University!

   Rent your text books from a service
    such as

   Go on or to
    purchase used books for much

   Use diamond dollars to purchase
    ◦ They don’t charge you tax!

   Shop early and purchase used
    books at the University bookstore.

   Sell those books back that you will
    not use in the future.
Be knowledgeable about cheap
     activities in the City!
                  Philadelphia Restaurant
                   ◦   Happens two times a year…great way to
                       visit the expensive restaurants on a

                  Free concerts/open
                   mic nights
                   ◦   Penn’s Landing
                   ◦   Milkboy Coffee
                   ◦   World Café Live

                  Student discounts
                   ◦   Museums, restaurants, movies, etc.
                   ◦ discount pass- accepted at
                       various locations around the city. Pick yours
                       up at Temple Fox School of Business.

                        Great website for events in Philadelphia
Simple Ways to Save Some Cash!
   Go to a Matinee Movie.
    ◦   Movies before 6pm are cheaper

   Rent movies from your local library.
    ◦   Movie rentals from libraries typically cost
        much less than renting from a movie

   Brown bag it!
    ◦   Prepared food or convenience items cost
        more so bring your lunch from home!

   Utilize websites like or for used items.
    ◦   When looking for larger items such as
        furniture, appliances, etc. purchase used
        items to save money.
   Make your own coffee
    ◦   A daily $3 latte adds up so make your
        own coffee or fill up a thermos at the
                 Financial Intelligence Quiz
   What is the advantage to owning a credit card?
   What does APR stand for?
   Name two ways you can use a credit card intelligently?
   What is a credit score?
   Name two ways you can build good credit.
   What does unsubsidized mean when discussing student loans?
   Name three ways to pay for college.
   What information is needed in order to complete the FAFSA.
   Where is the Student Financial Services Office here at Temple University?
   True or False: Work Study is part of an individual’s financial aid package?
   Name four ways you can save money while in college.
   Name one free activity you can take part in over the weekend.

Please answer each question fully and turn in to a student preceptor or email answers to
                                        in order to receive credit for this workshop.

   Can you be financially intelligent?

              Yes, you can!

With an awareness to your spending habits
 and the right tools and information you
        can be financially intelligent!

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