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  • 1. MONEY MANAGEMENT “Money Matters
  • 2. Things to think about…
    • Education costs time and money
    • The cost of education is increasing over time
    • Consider your spending habits
    • Different methods of financing your education have different total costs
  • 3. Less time, less money
    • Ask yourself…
      • How long will it take to complete my degree?
    $1531 X 8 $12,248 $1531 X 10 $15,310 120 ÷ 4 yrs = 30 units/yr. 30 units ÷ 2 terms = 15 units/term Four (4) Year Plan 120 Units to obtain a degree 120 ÷ 12 units = 10 terms or 5 yrs Semester Plan, 12 Units Based on 2 semesters per academic year
  • 4. Paying for Education
    • Determine education costs
    • Apply for financial aid
    • Build a budget
    • Loan use
    • Avoid credit cards
  • 5. Cal State San Marcos Fees:
    • 6.0 units or less, $1,003.00
    • 6.1 units or more, $1,531.00
    These are fees for California residents. Non-residents pay an additional $339.00/unit
  • 6. Apply for Financial Aid
    • Complete 2005-2006 FAFSA at www.fafsa.ed.gov
      • Scholarships
      • Grants
      • Employment Opportunities
      • Loans
  • 7. Students using Financial Aid
    • Apply for Direct Deposit
      • You will avoid long check pick-up lines in University Cashiers
      • You will have quick & safe access to your money
    • What’s required?
      • Checking/savings account number
      • Bank routing number
      • APPLICATION ONLINE
      • WWW.CSUSM.EDU/SFS
  • 8. Paying for Education
    • Build a budget
      • Income vs. Expense
      • Track your expenses for 1 month
      • Write down all expenses
      • Include average for expenses that do not happen monthly
      • KEEP IT REAL!
  • 9. Paying for Education
    • Estimated Cost of Attendance (Annual)
    $16,232.00 $10,856.00 TOTAL $2,304.00 $2,304.00 Misc./Personal $990.00 $990.00 Transportation $8,616.00 $3,240.00 Food & Housing $1,260.00 $1,260.00 Bks & Suppl. $3,062.00 $3,062.00 Fees ( full time resident) Living Away from Home Living with Parents
  • 10. SAMPLE BUDGET Leftover=savings
  • 11. Paying for Education
    • Determine whether you need a loan
      • Who can contribute to your education?
        • Financial Aid
        • Family
        • Employment
        • Savings
        • Loans???
  • 12. Paying for Education
    • Do you really need a loan?
      • TuitionPay Installment Plan
        • For Non-financial aid recipients
        • 4-5 Monthly Payments
        • Interest Free
        • One time enrollment fee cost per semester or annual plan
        • www.tuitionpayenroll.com
        • (800) 635-0120
  • 13. Paying for Education
    • Do you really need a loan?
      • Emergency Loans for financial aid recipients
        • Works like an advance until your Financial Aid is disbursed
        • Borrow up to $500, interest free
        • $2 Processing fee
        • www.csusm.edu/sfs
        • (760) 750-4492
  • 14. Loan Use $46,000.00 $23,000.00 AGGREGATE LOAN LIMIT SUB & UNSUB $5,000.00 $5,500.00 Third Year & Beyond Undergraduate $4,000.00 $3,500.00 Second Year Undergraduate $4,000.00 $2,625.00 First Year Undergraduate DEPENDENT STUDENT LOAN LIMITS UNSUB INDEPENDENT STUDENT LOAN LIMITS SUB & UNSUB ACADEMIC LEVEL
  • 15. Loan Use
    • Parent Loan for Undergraduate Students:
      • Unsubsidized
      • Dependent students ONLY
      • Credit check is required
      • Limits
        • College cost – Fin. Aid = PLUS Loan
        • FAFSA is required
  • 16. WHY NOT CREDIT CARDS?
  • 17. Why not credit cards?
    • High interest rates
    • Annual fees
    • Late fees
    • Over-credit limit fees
    • Penalty rates
    • Lost card replacement fees
    • Currency conversion fees
    • Low credit scores
  • 18. GAO Report to Congress Interest savings between lowest/highest payment = $1,570 ; time saved = 75 months or 6.25 years!
  • 19. Why not Credit Cards? 36.5 $7,084 26.1 $4,931 20.7 $3,829 17.3 $3,154 $1,500 26.3 9.1 YRS. 19.3 7.8 YRS 15.6 6.9 YRS 13.3 6.3 YRS $4,083 $2,931 $2,329 $1,954 $1,000 $1,084 $931 $829 $754 $500 PAY-OUT PAY-OUT PAY-OUT PAY-OUT 20% 18% 16% 14% Bal.
  • 20. Why not Credit Cards?
    • If you absolutely have to:
      • Limit the number of cards you have
      • Keep only for emergencies
      • Needs vs. wants
      • Use LOW interest rates
      • Always pay more than minimum
  • 21. Why not Credit Cards?
    • College student statistics
      • 83% of students have 1+ Credit Cards
      • $3,000+ average credit card/s balance
      • 11% make minimum payment
      • 17% feel debt burden
      • SECOND Highest Rate of Bankruptcy Filing.
        • Young Americans Age 25-34
  • 22. Think Wise
    • Apply for financial aid
    • Plan ahead, make a budget
    • Evaluate needs vs. wants
    • Borrow only when absolutely necessary
    • Use loans before credit cards
  • 23. Student Loans vs. Credit Cards
    • No credit check required
    • Interest paid = tax deductible
    • Zero due if attending school at least ½ time
    • Subsidized loans = 0 interest
      • No interest accrued while attending school
    • Unsubsidized loans = low interest
  • 24. Student Loans vs. Credit Cards
    • Credit Cards
      • High interest rates
      • Annual fees
      • Credit check = lower credit scores
      • Late payment fees
      • Consequences
  • 25. Cutting Expenses
    • Changes that WON’T cramp your lifestyle:
      • Use a grocery list
      • Don’t shop when hungry
      • Clip coupons and buy bulk foods
      • Combine errands
      • Bring lunch to work/school a few times a week
      • Leave credit cards at home
      • Estimated monthly savings: $75.00
  • 26. Cutting Expenses
    • Changes that might cramp your lifestyle:
      • Shop at thrift stores
      • Use public transportation
      • Eat out once a week
      • Cancel cable/cell service
      • Rent videos vs. going to the movies
      • Estimated monthly savings: $250.00
  • 27. Cutting Expenses
    • Changes that will cramp your lifestyle:
      • Eat out once per month
      • Use public transportation often
      • Cancel cable TV, cell, Internet
      • Visit the library vs. bookstore
      • Share living costs with roommate or two
      • Read books on ways to be thrifty
      • Estimated monthly savings: $500.00
  • 28. Savings Plan
    • Today’s habits pay off tomorrow
      • Include savings in your budget
      • Save for major purchases
      • Save for emergencies
      • Pay down student loans
      • Save for retirement
  • 29. How to Succeed- Recap
    • Identify financial goals
    • Track your expenses/list your debts
    • Create a financial plan/budget
    • Save in ways that fit your lifestyle
    • Start a savings plan- STICK TO IT
    • Pay off debt
    • Spend less!
  • 30. Resources
    • Financial Planning
      • www.edwise.org
      • www.studentdebthelp.org
    • Credit Report Agencies
      • Equifax (800) 685-1111
      • Experian (888) 397-3742
      • Trans Union (800) 888-4213
  • 31. QUESTIONS?