Budgeting

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					    Life After
     College
Entering the World of Work
           Brought to you by SAFE
  Student Advocates for Financial Education

    Your on campus personal financial educators!
$ Services Include:
  ¢   Answers to your questions
  ¢   Free and confidential one-on-one financial counseling
  ¢   Presentations to classes and organizations
  ¢   Information sheets
  ¢   On-line and in-office resources
           Discussion Points
$   Job Seeking Skills
$   Benefits
$   The New Job
$   Money Management
$   Student Loans
$   Buying a Car
$   Insurance Basics
$   Savings
Please ask questions at any time!
     Finding the Perfect Job
$ Applying for a Job     $ The Interview
  ¢ Resumes                 ¢ Wear proper attire
  ¢ Cover Letters           ¢ Know where to go and
  ¢ Electronic                arrive early
    Applications            ¢ Ask important questions
                            ¢ Research the company
              For more information visit:
      • Family Economics & Financial Education:
          www.familyfinance.montana.edu
    • Career Services: www.montana.edu/careers
                 The Job Offer

$ Average Montana Salary: $28,012
   ¢ Specific salary amounts available at Career Services
$ Negotiation: be realistic, entry level salaries are
  less negotiable
$ Look beyond the dollar figure, look at the
  complete package!
   $ Salary/Bonuses            $ Company Stock Options
   $ Insurance                 $ Vacation Time/Sick Leave
   $ Retirement Plans          $ Holiday Leave
                          Benefits
$ Disability Insurance        $ Vacation Time and Sick
   ¢ Person unable to perform   Leave
     job duties due to injury or   ¢ “Earned” basis
     sickness                         + Depends on amount of time
   ¢ Replaces lost income               employed

$ Life Insurance                   ¢ “Paid time-off” format
                                      + Accrue a certain number of
   ¢ May only be optional               hours/pay period that you
   ¢ Protects person’s family           can use for vacation, sick, or
                                        holidays
              Benefits (continued…)
$ Retirement Plans              $ Health Insurance
   ¢ Variety of plans              ¢ May include all or
      + 401 (k)                      combination of hospital,
      + 403 (b)                      dental, vision or prescription
   ¢ Check the Human                 expenses
     Resources department for      ¢ Full vs. Partial coverage
     details                          + Employee Contribution
                                        /Insurance Deductible
                                      + Co-pay: 80/20 or 70/30
                                   ¢ Expenses covered
                                   ¢ 39% of Americans do not
                                     have employer-based health
                                     insurance
                The New Job

$   Arrive to work on time…early is best
$   Dress appropriately
$   Listen and observe
$   Ask questions
$   Find a mentor
$   Determine bosses expectations
$   Avoid office gossip
$   Mind your manners
             Spending Plans
$ What are They?            $ Are Important!
  ¢ Tool to help people        ¢ Spending plans are a form
    manage their money           of financial freedom
  ¢ An estimate of income      ¢ Eliminate nervousness or
    and expenses over a          frustration of not having
    specific time period         enough money
                               ¢ Help people meet financial
                                 goals
                               ¢ Help people live within
                                 their means
                               ¢ Reduce the need for using
                                 credit, eliminating financial
                                 stress
   Spending Plan Components

Income                           Expenses
$ Fixed Income                   $ Fixed Expense
   ¢ Income received is equal       ¢ Expense that is equal
     amount each time                 amount each time
   ¢ Salary, allowance              ¢ Rent, car payment
$ Flexible Income:               $ Flexible Expense
   ¢ Income received varies in      ¢ Expense varies in amount
     amount and/or time               and/or time
   ¢ Hourly wages, gifts            ¢ Food, clothing,
                                      entertainment
    Developing a Spending Plan

Plan
$   Set financial goals
$   Determine record keeping format
Track
$   Live out month
$   Record actual income and expenses
Evaluate
$   Determine if previous steps worked
$   Make adjustments for following month
      Controlling Spending

$ Things to Remember
  ¢ Cut the things one wants first, not the things one
    needs
  ¢ Become aware of bad spending habits and want to
    change them
$ Implement a Spending System
  ¢ Envelope System
  ¢ Check Register System
  ¢ Calendar System
            Spending Systems

Envelope System
$ Create an envelope for each category of spending
$ Put money budgeted for that category into envelope
$ Write beginning amount at top of envelope
$ As money is spent, take cash out of envelope, writing
  down when and how much taken
$ Once money is gone, its gone
$ CAUTION…if paying a bill, do not send cash!
             Spending Systems

Check Register System
$ Create columns in register and label for each category of
  spending
$ Write amount designated for each category under
  category name
$ Write amount spent in each category as spent and
  subtract from last amount written
$ When a category shows $0.00, money is gone
            Spending Systems

Calendar System
$ Purchase a calendar with pockets
$ Place calendar in a central location at home
$ Place bill stubs or pay envelopes in pocket of calendar
  until they need to be paid
$ Mark on calendar when bill is due or needs to be mailed
               Student Loans

$ Student loans must be      $   Repayment
  repaid                     $   Consolidation
$ Bankruptcy will NOT
  cancel a student loan      $   Exit Counseling
$ Read, understand and       $   Student Assistance
  save all loan documents        Foundation (SAF)
$ Include student loans in       ¢ Kimberly Cummings
  spending plan                    SUB 130A
                                   994-5024
         Buying an Automobile

$ Tips                          $ Costs to Consider
  ¢ Review Consumer Reports        ¢   Age of Car
    and Kelly Blue Book            ¢   Fuel
  ¢ Comparison shop                ¢   License/registration
  ¢ Do not be bullied/rushed       ¢   Taxes
  ¢ Take vehicle to a trusted      ¢   Insurance
    mechanic before buying         ¢   Financing
  ¢ Decide on purchase price
    in advance
  ¢ Bargain
                Insurance Basics
 $ Automobile Insurance              $ Renter’s Insurance
    ¢ Liability Insurance               ¢ Personal belongings are not
       + Required                         covered under the landlord’s
       + Shown in series; 20/40/10        policy
    ¢ Collision Coverage                ¢ Photograph or videotape each
       + Optional                         room with its contents
    ¢ Comprehensive Coverage            ¢ Keep receipts for major items
    ¢ Uninsured Motorist                  in a fireproof place
    ¢ Underinsured Motorist



~Remember to include insurance costs in spending plan!~
                      Savings

$ Basics                        $ Account Features
   ¢ NEVER too early to start     ¢ Average interest rate is
     saving!                        1.0-2.0%
   ¢ Have 3-6 months gross        ¢ Easy to access funds
     income in savings for        ¢ 24-hour ATM access
     emergencies.                 ¢ MAY require a minimum
   ¢ Pay yourself first!            balance
      We are Here for You!


 $tudent Advocates
   for Financial Education

    210 Herrick Hall
Bozeman, MT 59717-3540
        994-7223
   safe@montana.edu
 www.safe.montana.edu

				
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