Dollars and Decisions

DOLLARS and DECISIONS www.youtube.com/browncollegeguy Money matters for living independently in the “ Real World” Tou Lee Yang

www.myspace.com/browncollegeguy www.youtube.com/browncollegeguy

Common Money Mistakes

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Overspending

Over Borrowing

Not Organized

Not Making a Plan!

Is it easier to GET money or to KEEP money? A Fundamental Question: www.youtube.com/browncollegeguy

Education is Important! www.youtube.com/browncollegeguy

www.youtube.com/browncollegeguy 1440 Northland Drive Mendota Heights, MN 55120 651-905-3582, 800-627-6966 www.myspace.com/browncollegeguy

A Non-Traditional Education

Career Oriented Programs

Real World Learning

Small Classes

Online Learning Option

Flexible Schedules

Admission Requirements

ACT/SAT Not Required

Personal Interview

Bachelor Degrees 36 Months Associates Degrees 18 Months www.youtube.com/browncollegeguy

Brown College Services

Financial Aid - personalized tuition planning assistance

Career Services - job placement & career prep

Internships - for real world career experience

Wireless Campus - student laptop program

Student Services - rideshare, housing, activities, etc

Study Abroad - London, Paris, Florence, & Dubai

School of Broadcasting

Radio Broadcasting

Associate of Applied Science Degree – 18 months

Television Production

School of Technology

Information Technology

Bachelor of Science Degree – 36 months

Network Development

Software Development

Game Design and Development

School of Design

Visual Communication

Multimedia

Graphic Design

Interior Design

Digital Photography Bachelor of Science Degree – 36 months

Other Programs

Criminal Justice Bachelor of Science Degree – 36 months Associate of Applied Science Degree – 18 months

Business Management

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Associate Degrees Offered Culinary Arts Program – 15 months Patisserie and Baking Program – 15 months

DOLLARS and DECISIONS www.youtube.com/browncollegeguy Money matters for living independently in the “ Real World” Tou Lee Yang

to pay your bills

GETTING SKILLS www.youtube.com/browncollegeguy

To get money: You must do something And Someone else must do something too! SUPPLY & DEMAND www.youtube.com/browncollegeguy

Work Borrow Other? How do you get money? www.myspace.com/browncollegeguy www.youtube.com/browncollegeguy

Your SKILLS The supply & demand for your SKILLS Your ability to sell your SKILLS What determines YOUR income? www.youtube.com/browncollegeguy

$260 week $1,127 month $13,250 year $6.50 an hour Show up skills People skills Do something skills www.youtube.com/browncollegeguy

$500 week $2,167 month $26,000 year $12.50 an hour HS Diploma/GED Certificate/License Associates Degree www.youtube.com/browncollegeguy

Typical Paycheck at $26,000 per year www.youtube.com/browncollegeguy

$1,200 week $5,200 month $62,400 year $30.00 an hour Advanced Skill High Demand Career Straight Cash Homey! www.youtube.com/browncollegeguy

It’s up to YOU Your Decisions Your Priorities To Keep Money: www.youtube.com/browncollegeguy

Keeping

is easier than

Getting

money

The B Word

BUDGET www.youtube.com/browncollegeguy

A Fundamental Concept

Trade Off The cost of what you give up EVERY TIME you make a CHOICE www.youtube.com/browncollegeguy

Bye Bye Bye…Money

Rent

Utilities

Cable/Satellite

Car

Insurance

Fuel

Maintenance

Phone

Cell Phone

Internet

Long Distance

Text Messages

Food

Dine In

Dine Out

Clothing/shopping

Designer vs. discounted brands

Personal

Grooming

Wellness

Entertainment

Going Out

Dating

Evil Vices

Credit Cards www.youtube.com/browncollegeguy

SHELTER

30% or less of income should be spent on shelter www.youtube.com/browncollegeguy

Rent

www.youtube.com/browncollegeguy $ 1200 West Sub. E ast Sub. South Sub. North Sub. St. Paul Mpls $ 1300 $ 950 $ 716 $ 816 $ 1000 2 bdr $ 1000 $ 700 $ 800 $ 607 $ 650 $ 800 1 bdr $ 605 $ 494 $ 515 $ 428 $ 458 $ 465 studio Approximate average cost of an apartment Twin Cities Metro Area Source: Based on averages from Rent.com

Food

Average monthly cost of food at home at four cost levels USDA Family Food Plans www.youtube.com/browncollegeguy

Saving Money

www.youtube.com/browncollegeguy Your Personal Activity Monthly Savings Annual Savings Stop dining out $45 $540 Wash your own car $12 $144 Movie rental vs. monthly movie $11 $132 Regular coffee vs. cappuccino $40 $480 Miscellaneous Personal $15 $180 TOTAL $123 $1,476

Saving Early Pays

Jack Ages 21 - 30 $0.00 Ages 31 - 65 $2,000 per year for 35 years Total Investment $70,000 Jill Ages 21 - 30 $2,000 per year for 9 years Ages 31 - 65 $0.00 Total Investment $18,000 Total at age 65 Jack $470,249 Jill $570,471 Example calculated at 9% interest www.youtube.com/browncollegeguy

Can you guarantee a 9% return on your investment?

The market does fluctuate from year to year BUT 10% has been the annual average return for the stock market for almost 100 years NO www.youtube.com/browncollegeguy

Saving money pays!

$200 Monthly ($50 a Week) (Savings over 35 years) 3% $148,683 6% $286,366 12% $1.2 million www.youtube.com/browncollegeguy

Smart Shopping

Parents Fridge or Dorm Meal Plan

Bargain Shop

Clip Coupons

NEVER , EVER go to the grocery store hungry www.youtube.com/browncollegeguy

Everyday Money Tips

WAIT one week for anything nonessential www.youtube.com/browncollegeguy

DO NOT let pleasurable past times become burdensome habits www.youtube.com/browncollegeguy

CHECKS are the best, real money next www.youtube.com/browncollegeguy

COMPARISON SHOP www.youtube.com/browncollegeguy

72 divided by the interest rate gives you the approximate number of years it will take your money to double 3% 24 years 6% 12 years 12% 6 years The Rule of 72 www.youtube.com/browncollegeguy

The ENEMY of SAVING Over-Spending and Debt www.youtube.com/browncollegeguy

We want what we want when we want it whether we can afford it or not www.youtube.com/browncollegeguy Do you NEED a Credit Card?

Quick Facts for Teenagers:

78% of college students have credit cards Average balance on card is $2,800 1 out of 10 college students carry a balance of more than $7,800 Nearly 94,000 people under the age of 25 filed for bankruptcy 2004 www.youtube.com/browncollegeguy

Which plastic is right for a teenager? Source: www.bankrate.com www.youtube.com/browncollegeguy Type of card Pros Cons Debit card Uses money in checking or savings account. Easy to set up. Risk of overdrafting account and incurring fees. Does not build credit history. Prepaid or stored-value card Spending limited to amount loaded on card. Online checking of balances and spending. Authorized adults can load funds. Employers can load wages onto some cards. Major credit card branded cards can be used many places. Fees are charged for activation, loading money, monthly maintenance, many more actions. Does not build credit history. Joint credit card Builds credit history. Parent and teen responsible for debt. Secured card Credit limit set by savings account balance. Builds credit history. May have high APR. Authorized user Easy to set up. Teen can piggyback on parent's credit history. Parent solely responsible for debt. Potentially puts parent's credit score at risk.

Credit Card Woes?

Increased interest rates Late fees add up Reduced credit limit Future credit limitations www.youtube.com/browncollegeguy

How credit card companies make $$$:

Interest on unpaid debt % of purchase price (typically 1 - 4%) Annual fees Selling your information www.youtube.com/browncollegeguy

A $6,297 credit card balance www.youtube.com/browncollegeguy Credit card Best Buy Sears Discover Visa Macy’s Master Card Annual interest 22.6% 21% 19.8% 18% 18% 17.7% Balance $300 $800 $1,100 $1,966 $300 $1,831

Digging out of debt

If You Pay Each Month The Minimum $10 Extra Monthly Payment $200 or less $210 Interest You Pay $9,570 $8,504 Source: Bankcards of America $6,297 balance Total Value You Will Pay $15,867 $8,504 Time To Pay Off 23 years 10 months 3 years 5 months www.youtube.com/browncollegeguy

When you live on your own www.youtube.com/browncollegeguy

Good credit helps

Rent an Apartment

Cell phones / cable

Insurance Rates

Get Better Jobs

Buy a Home

How good is your credit?

www.youtube.com/browncollegeguy What makes up your credit score? Source: myFICO.com FICO Score Lender Grade 760-850 A+ 700-759 A 660-699 B 620-659 C 580-619 D 500-579 F

Establishing good credit

Keep a personal checking & savings Get annual copies of your credit report Get ONE credit card in your name Pay more than the minimum Pay bills before they are due www.youtube.com/browncollegeguy

SHOW ME

THE MONEY!!!

Ways to help

you pay for college

Planning for College Costs

Determine your need

be inclusive of all costs

Determine your income

Work – be realistic, factor study & personal time in setting hours

Savings

Loans, Grants, Scholarships

Parents

Budget to be successful

Tuition Reimbursement

Scholarships

There are literally BILLIONS of DOLLARS that go unclaimed every year! www.youtube.com/browncollegeguy

Search the Web

www.studentscholarshipsearch.com www.finaid.org www.fastweb.com www.4scholarships.com www.scholarships.com www.youtube.com/browncollegeguy

Tou Lee Yang 1440 Northland Drive Mendota Heights, MN 55120 651-905-3582, 800-627-6966 x582 [email_address] www.myspace.com/browncollegeguy [email_address] browncollege582 www.youtube.com/browncollegeguy