Everything you ever wanted
to know about…
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
Minimum payments on credit cards
Use credit cards for things you used to buy
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
Getting into credit card debt
Squandering your student loan money
Ruining your credit score
Choosing a college that is too expensive
So why budget?
A budget will help you…
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
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
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
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