uccessful Start and the Office of Student Services Present:MONEY MANAGEMENT
SESSION OBJECTIVESyyou in a pg budgetinggg andposition to beginsaving money even while you are in school Know the basics of credit reportspand creditscores and put into practice simple habits thatwill save you thousands of dollars over yourlifetime Give you easy tips to help decrease the overallcost of your educational borrowing Understand loan repayment options Put
WHY BUDGET? Tracking your expenses gives you a strongsense of where your money goes and can helpyou reach your financial goals
OBSTACLES TO BUDGETING DisciplineThinking that it doesn’t matterPProcrastinatingti ti gFamily or other will send me more moneyMy birthday/holiday money will arrive soonMy student loan check will take care of myexpenses
SUCCESSFUL BUDGETING 5 Quick and Easy Steps: DetermineDti bbudgetdg t categoriest g iIdentify all sources and amounts of incomeIdentify how dollars are spent todayCalculate budget amountsSet goals and make adjustments
DETERMINE BUDGET CATEGORIES Commonmistake: Fit your spending intosomebody else’s categories Successfulbudgeting includes categories thatreflectfl t theth way you spendd money
IDENTIFY INCOME Reviewall sources and amounts of income(after-tax) for past three months to determinemonthly income Examples:p« Employment« StudentLoans« Checking Account« Savings Account
IDENTIFY EXPENSES Reviewall bills and expenses for the last threemonths to determine monthly expenses Examples:« RecurringRec rringEExpensespenses« Variable Expenses« Yearly Expenses
FIXED VS.VS DISCRETIONARY EXPENSES Rent Cell phones Groceries Restaurants Utilities Cable TV Car Insurance HaircutsVacations Takeouta eout Designer Clothes Laundry
SET GOALS AND MAKE ADJUSTMENTS Setgoals that reflect your true financial picture TwoTtypestoff financialfii l ggoals:l«managing your money«spending your money Monitorbudgeting process for two months toidentify areas where you can save
EMERGENCY FUNDS Emergency funds are an absolute necessity!! Emergency funds 3 – 6 months of basic livingexpenses Emergency funds should be kept separate froma savings account that is used primarily forlarge, planned purchases
SAMPLE MONTHLY BUDGETSample Monthly Student BudgetFood18%Miscellaneous15%RentCredit Obligations9%Car Loan tation5%FoodMiscellaneousCredit ObligationsLoan PaymentsClothingEntertainmentTransportation
MONEY LEAKAGE Dinner out every Saturday night: 1920 per year One tall Starbucks coffee per weekday: 780 per year Wendy’s #2 Combo tax twice a week:#2 Classic Double with Cheese Combo 364 per year
YOUR TIPS ON SAVING MONEY? Housing? Groceries? Phone? Transportation? Banking and Taxes?
NOW WHAT? If DeficitLook for ways of raising your incomeLook for ways of cutting costs
BENEFITS OF BUDGETINGLess reliance on credit More buying power BetterB tt creditdit scores Ability to obtain credit any time Lower credit costs (prime rate)
LOAN EXAMPLEEXAMPLE- MINIMIZE BORROWING Loan Balance: 30,000.00Monthly LoanPayment: 345.24Cumulative Payments: 41 428 91 41,428.91Total Interest Paid: 11 428 91 11,428.91 Loan Balance: 28,000.00Monthly LoanPayment: 322.22Cumulative Payments: 38,666.99Total Interest Paid: 10,666.99If you borrow only 2 2,000.00000 00 less during your education,educationyou will save 2,761.92 and 23.02 per month inpayments.
LOAN EXAMPLEEXAMPLE- EARLY REPAYMENTLoan Balance: 22,000.00 Loan Interest Rate: 6.80% LoanLTTerm: 15 yearsMonthly Loan Payment: 195.29 Number of Payments: 180Cumulative Payments: 35,152.34 Total Interest Paid: 13,152.34
LOAN EXAMPLEEXAMPLE- EARLY REPAYMENT Loan Balance: 22,000.00Loan Interest Rate: 6.80%Loan Term: 10 yearsMonthly Loan Payment: 253.18Payment: 253 18Number of Payments: 120Cumulative Payments: 30,381.04Total Interest Paid: 8,381.04You save 4 4,771.13771 13 in real moneymoney. This savingstranslates into a guaranteed, tax-free, average annualreturn of 6%.
LOAN EXAMPLEEXAMPLE- CAPITALIZATIONLoan Type: Unsubsidized Loan Amount: 8,900.00 InterestI ttRRate:t 6.8%6 8% Repayment Term: 10 years Capitalization Frequency: Quarterly
LOAN EXAMPLEEXAMPLE- CAPITALIZATIONAmount Borrowed: 8,900.00 Amount owed when you leave school: 10,715.60 Total Payments: 14,388.11 Total Interest Paid: 5,488.11 In-School Interest: 1,815.60 If you had paid interest while in school, youwould save 622.55.
CREDIT CARD EXAMPLECharge Interest Minimum Payment 1,000.0017.99% 20.00At this payment rate,h llong willhowill iti takek to pay theh bbalance?l? 93 months (7.75 years) How much interest was paid? 861.02 or 86% of the initial loan amount
CREDIT CARD EXAMPLE BCharge 1,000.00 Interest17.99% Minimum Payment 20.00 Monthly Payments Made 25.00 A thisAthi payment rate, hhow llong willill iti takek to paythe balance? 62 months (5.16(5 16 years) How much interest was paid? 538.07 or 54% of the initial loan amount
CREDIT REPORT FACTSRecord of your credit payment history Illustrates the amount you have borrowed incredit cards and loans and your timeliness ofpayment ContainsC t i ididentifyingtif i g iinformationfti Used to determine creditworthiness
ANATOMY OF A CREDIT REPORTSection 1:Section 2:S ti 3Section3:Section 4:Section 5:FilePersonal Identification InformationPublic Record InformationCollectionC ll ti AgencyAgAAccountt IInformationftiCredit Account InformationCompanies Requesting your Credit
HOW TO OBTAIN YOUR CREDIT REPORTCredit Agencies: Equifax Experian Trans Union ne free report from each agency every 12months: www.annualcreditreport.com** do not use www.freecreditreport.com ***
ESTABLISHING GOOD CREDITPay your bills on time Establish credit early Don’tD ’t max outt your accountt limitsli it Don't apply for too much credit in a short periodof time Fill out applications uniformly Check your credit report annually or 4 monthsbefore major purchase
CREDIT SCOREReflection of the information on your creditreport Formula developed by Fair and IsaacCorporation (FICO) ScoresSrangeg ffrom 300300-850850 Average score is 720 The lower the score, the greater the risk it is tolend you money
REQUIREMENTS FOR THE PERFECT SCORE Havingpaid all bills on time during the pastseven years Having a minimum of 30 years of credit use Having between four and six revolving creditaccountst
IMPACT ON INTEREST RATES How much can your FICO score impact theinterest you pay on a loan?A LOT!!
HOW TO BE A WISE BORROWER Consider your future salary when borrowing – check our website,www.amsa.com/borwww amsa com/bor to find out what you can expect to earn aftergraduation Use credit cards sparingly – that 5 latte could cost you 15 or moredepending on how quickly you repay your balance If you use your credit cardcard, pay “on-timeon time, in full,full as agreed”agreed Learn how to budget now – track monthly income and expenses soyyou know the “bigg ppicture” Beware living “in the future” – live like a student today, so you won’thave to later
USEFUL WEBSITES AmericanStudent Assistance:www.amsa.com/bor Repaymentand Career Information:www.journeysonline.org U.S.USDepartment of Education:www.ed.gov CareerVoyageswww.careervoyages.gov
RESOURCES AND FINAL MESSAGEp Keepall Financial Aid information in one pplace forfuture reference. Additionalwebsites for unbiased guidance:www.bankrate.comwww.consumerreports.org Don’tbe afraid to ask questions. Seek out yourFinancial Aid administrators
MORE HELP ConsumerCredit Counseling Servicewww.cccsintl.org www.moneymanagement.org Jump tart Coalition for Personal Financial Literacywww.jumpstart.org Student Loan Locatorswww.loanlocators.org ww.nslds.ed.gov A Student’sStudent s Life (click on “AfterAfter College)www.astudentslife.com www.mint.com
QUESTIONS?www.bc.edu/successfulstart firstname.lastname@example.org http://twitter.com/#!/SuccessfulStarthtt //t itt/#!/Sf lSt t
LOAN EXAMPLE- MINIMIZE BORROWING Loan Balance: Loan Balance: 30,000.00 Monthly Loan Loan Balance: 28,000.00 Monthly Loan Payment: 345.24 Cumulative Payments: 4142891 Payment: 322.22 41,428.
money. The Young Money Media group includes YOUNG MONEY magazine, youngmoney.com and YOUNG MONEY Live campus events. Subscriptions YOuNG MONeY Magazine 10950 Gilroy rd. Suite D Hunt Valley, MD 21031 888-788-4335, ext. 7 email@example.com YOUNG MONEY Magazine (iSSN-1098-8300) YOUNG MONEY is designed to provide
and deployment of funds. Money market is the instrument which have less than one year as a maturity period. The most active part of money market is the overnight call money and term money between the Banks, Financial Institutions, as well as Call Money market transaction. Call money or Repo are the two short term money market products.
The ability to manage money has to be learned, developed, and practiced on a daily basis. There are eight steps to successful money management: 1. Get organized. 2. Decide what you want to do with your money. 3. Look at all available resources. 4. Decide how much money you are worth. 5. Find out how much money you make. 6. Find out how much .
2.3 Gresham’s Law 2.4 Money and near money 2.5 Role of money in Capitalist, Socialist and mixed Economy 3. Money Supply and Banks (14) 3.1 Narrow and broad definition of money 3.2 Alternative measures of money supply in India and their components 3.3 Concept of High Powered Money 3.4 Definition of Bank – Functions of bank 3.5 Multiple credit creation by bank and limitations to it. 4 .
9. There are many sayings about money. Which one best reflects your family’s attitude about money while you were growing up? Check one and explain why. m Money doesn’t grow on trees. m It’s only money. m A penny saved is a penny earned. m Money is burning a hole in your pocket. m Money can’t buy hap
MONEY MATTERS 6 Money Matters 1: Setting a Budget How can budgeting now help me make a big purchase later? Money Matters 2: Take it to the Bank! Why should I have a bank account and how do I use one? Money Matters 3: Keeping Track of Your Money How can I keep track of the money in my checking account?
explanation for how the money was earned, and the money is now in the financial system ready to be freely used. The money has been laundered! In money laundering terminology, there are three main phases: placement (when the money is introduced into the financial system), layering (when the money is transferred to create confusion) and .
Yet, money management is frequently overlooked, and by not exercising proper money management a player can wager on an overwhelming number of winning picks and still lose money. For truly successful wagering, both the ability to have winning picks and to exercise proper money management is essential. What does money management mean?
Money moving in the direction of our highest commitments nourishes our world and ourselves Money carries our intention. If we use it with integrity, then it carries integrity forward . Let your soul inform your money and your money express your soul.” ―Lynne Twist, The Soul of Money: Transforming Your Relationship with Money and Life. 20
spend money quickly after they get it, making these funds available for other uses. Others, however, hold money for longer periods. Obviously, when some money remains idle, a larger total is needed to accomplish any given volume of transactions. Who Creates Money? Changes in the quantity of money may originate with
The Functions of Money Any asset that is used as money should fulfill the following four functions: 1. Medium of Exchange People use money to make payments for goods, services, and financial assets. 2. Unit of Account Prices are quoted in terms of money values. 3. Store of Value People can hold money for a time without losing much of its
The money creation paradox May 2018 1 The money creation paradox Banks create money, but also have to borrow it Economists frequently assert that banks can create money out of nothing. Bankers have a different opinion: for every loan they need to attract money. And, stra
YOUR MONEY MATTERS! YOUR RELATIONSHIP WITH MONEY 02 YOUR MONEY MATTERS! YOUR RELATIONSHIP WITH MONEY As a young adult your relationship with money will still be quite new. You need to be able to understand the basics of finance and financial systems in order to learn to manage
direct your money to where it matters most set goals so you can enjoy more of the good things in life. Steps to taking control of your money Step 1 Track your day-to-day spending See page 02 Step 2 Compare money in and money out See page 06 Step 3 Prioritise where you want your money to go See page 1
What Is A Money Mindset Anyway? If all this talk about your "money mindset" has you feeling more confused than mindful, we feel you. Let's unpack it. Your money mindset is your unique and individual set of core beliefs about money. More speciﬁcally, it's your attitude around money, and really, the driver of your ﬁnancial behavior.
of Money The Future of Money Money's destiny is to become digital. Throughout the ages physical money in the form of objects, coins and notes has increasingly been replaced by more abstract means of payment such as bills of exchange, cheques and credit cards. In the years to come that trend to virtual money will continue apace. As technological
definition of a 'short-term money market fund'; therefore, all references in this paper to a 'money market fund' are references to a short-term money market fund. The use of amortised cost accounting by money market funds Much of the recent debate about money market funds (MMFs) has focused on the purported advantages of
Call us today at 310-714-5616 to discuss your hard money loan needs. We are making hard money loan on commercial and residential properties in southern California. We can typically fund quickly, and have a large network of hard money lenders and private investors, which enables us to make many hard money loans that other hard money lenders cannot.
Management Every decision you make represents a trade-off, or opportunity cost. Trade-offs are especially common when it comes to making decisions about money management. Good money management can help you keep track of where your money goes so that you can make it go farther. money management
Welcome to Money Matters! We designed Money Matters to help you take better care of yourself by taking better care of your money. When you feel good about your money management, you’re less stressed. You have more energy for the things that are important to you.