Dollars and Decisions

Slide 1: DOLLARS and DECISIONS Money matters for living independently in the “Real World” Tou Lee Yang www.youtube.com/browncollegeguy

Slide 2: www.youtube.com/browncollegeguy www.myspace.com/browncollegeguy

Slide 3: Common Money Mistakes www.youtube.com/browncollegeguy

Slide 4: Overspending www.youtube.com/browncollegeguy

Slide 5: Over Borrowing www.youtube.com/browncollegeguy

Slide 6: Not Organized www.youtube.com/browncollegeguy

Slide 7: Not Making a Plan! www.youtube.com/browncollegeguy

Slide 8: A Fundamental Question: Is it easier to GET money or to KEEP money? www.youtube.com/browncollegeguy

Slide 9: Education is Important! www.youtube.com/browncollegeguy

Slide 10: 1440 Northland Drive Mendota Heights, MN 55120 651-905-3582, 800-627-6966 www.youtube.com/browncollegeguy www.myspace.com/browncollegeguy

Slide 11: A Non-Traditional Education Bachelor Degrees  Career Oriented Programs 36 Months  Real World Learning  Small Classes Associates Degrees 18 Months  Online Learning Option  Flexible Schedules  Admission Requirements ACT/SAT Not Required Personal Interview www.youtube.com/browncollegeguy

Slide 12: 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 www.youtube.com/browncollegeguy

Slide 13: School of Broadcasting Radio Broadcasting Associate of Applied Science Degree – 18 months Television Production Associate of Applied Science Degree – 18 months www.youtube.com/browncollegeguy

Slide 14: School of Technology  Information Technology Bachelor of Science Degree – 36 months  Network Development Associate of Applied Science Degree – 18 months  Software Development Associate of Applied Science Degree – 18 months  Game Design and Development Bachelor of Science Degree – 36 months www.youtube.com/browncollegeguy

Slide 15: School of Design  Visual Communication  Multimedia  Graphic Design Bachelor of Science Degree – 36 months Associate of Applied Science Degree – 18 months  Interior Design Bachelor of Science Degree – 36 months  Digital Photography Bachelor of Science Degree – 36 months www.youtube.com/browncollegeguy

Slide 16: Other Programs  Criminal Justice Bachelor of Science Degree – 36 months Associate of Applied Science Degree – 18 months  Business Management Bachelor of Science Degree – 36 months www.myspace.com/browncollegeguy

Slide 17: As s oc iate Degre e s Offere d Culinary Arts Program – 15 months Patisserie and Baking Program – 15 months

Slide 18: DOLLARS and DECISIONS Money matters for living independently in the “Real World” Tou Lee Yang www.youtube.com/browncollegeguy

Slide 19: GETTING SKILLS to pay your bills www.youtube.com/browncollegeguy

Slide 20: SUPPLY & DEMAND To get money: You must do something And Someone else must do something too! www.youtube.com/browncollegeguy

Slide 21: How do you get money? Work Borrow Other? www.youtube.com/browncollegeguy www.myspace.com/browncollegeguy

Slide 22: What determines YOUR income? Your SKILLS The supply & demand for your SKILLS Your ability to sell your SKILLS www.youtube.com/browncollegeguy

Slide 23: $6.50 an hour $260 week$1,127 month $13,250 year Show up skills People skills Do something skills www.youtube.com/browncollegeguy

Slide 24: $12.50 an hour $500 week$2,167 month $26,000 year HS Diploma/GED Certificate/License Associates Degree www.youtube.com/browncollegeguy

Slide 25: Pay check @ $26,000 a year Earnings rate hours this period Regular 12.50 80.00 1,000.00 (gross pay) Typical Deductions Statutory Paycheck at Federal Income Tax -89.99 (8.9 %) Social Security Tax -59.02 (5.9 %) $26,000 Medicare Tax MN State Income Tax -13.81 -40.73 (1.3 (4.0 %) %) per year Other Checking (direct deposit) 738.31 (take home pay) Dental Insurance -5.60 Health Insurance -42.54 Take home pay for 80 hours $738.31 www.youtube.com/browncollegeguy

Slide 26: $30.00 an hour $1,200 week $5,200 month $62,400 year Advanced Skill High Demand Career Straight Cash Homey! www.youtube.com/browncollegeguy

Slide 27: To Keep Money: It’s up to YOU Your Decisions Your Priorities www.youtube.com/browncollegeguy

Slide 28: Keeping is easier than Getting money www.youtube.com/browncollegeguy

Slide 29: The B Word BUDGET www.youtube.com/browncollegeguy

Slide 30: A Fundamental Concept Trade Off The cost of what you give up EVERY TIME you make a CHOICE www.youtube.com/browncollegeguy

Slide 31: Bye Bye Bye…Money Rent Food Credit Cards Utilities Dine In Cable/Satellite Dine Out Car Clothing/shopping Insurance Designer vs. discounted brands Fuel Personal Maintenance Grooming Phone Wellness Cell Phone Entertainment Internet Going Out Long Distance Dating Text Messages Evil Vices www.youtube.com/browncollegeguy

Slide 32: SHELTER 30% or less of income should be spent on shelter www.youtube.com/browncollegeguy

Slide 33: Rent Approximate average cost of an apartment Twin Cities Metro Area Source: Based on averages from Rent.com Mpls St. Paul North South East West Sub. Sub. Sub. Sub. studio $ 465 $ 458 $ 428 $ 515 $ 494 $ 605 1 bdr $ 800 $ 650 $ 607 $ 800 $ 700 $ 1000 2 bdr $ 1000 $ 816 $ 716 $ 950 $ 1200 $ 1300 www.youtube.com/browncollegeguy

Slide 34: Food Thrifty Low Cost Moderate Liberal Male $127.80 $157.70 $193.00 $229.60 (age 20 – 30) Female $117.00 $141.50 $167.70 $208.90 (age 20 – 30) Average monthly cost of food at home at four cost levels USDA Family Food Plans www.youtube.com/browncollegeguy

Slide 35: Saving Money Your Personal Activity Monthly Annual Savings 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 www.youtube.com/browncollegeguy

Slide 36: Saving Early Pays Jack Jill Total at Ages 21 - 30 Ages 21 - 30 age 65 $0.00 $2,000 per year Ages 31 - 65 for 9 years Jack Ages 31 - 65 $470,249 $2,000 per year for 35 years $0.00 Jill Total Investment Total Investment $70,000 $18,000 $570,471 Example calculated at 9% interest www.youtube.com/browncollegeguy

Slide 37: Can you guarantee a 9% return on your investment? NO The market does fluctuate from year to year BUT 10% has been the annual average return for the stock market for almost 100 years www.youtube.com/browncollegeguy

Slide 38: 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

Slide 39: Smart Shopping www.youtube.com/browncollegeguy

Slide 40: Parents Fridge or Dorm Meal Plan www.youtube.com/browncollegeguy

Slide 41: Bargain Shop www.youtube.com/browncollegeguy

Slide 42: Clip Coupons www.youtube.com/browncollegeguy

Slide 43: NEVER, EVER go to the grocery store hungry www.youtube.com/browncollegeguy

Slide 44: Everyday Money Tips www.youtube.com/browncollegeguy

Slide 45: WAIT one week for anything nonessential www.youtube.com/browncollegeguy

Slide 46: DO NOT let pleasurable past times become burdensome habits www.youtube.com/browncollegeguy

Slide 47: CHECKS are the best, real money next www.youtube.com/browncollegeguy

Slide 48: COMPARISON SHOP www.youtube.com/browncollegeguy

Slide 49: The Rule of 72 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 www.youtube.com/browncollegeguy

Slide 50: The ENEMY of SAVING Over-Spending and Debt www.youtube.com/browncollegeguy

Slide 51: Do you NEED a Credit Card? We want what we want when we want it whether we can afford it or not www.youtube.com/browncollegeguy

Slide 52: 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

Slide 53: Which plastic is right for a teenager? Type of card Pros Cons Debit card Uses money in checking or savings Risk of overdrafting account and account. Easy to set up. incurring fees. Does not build credit history. Prepaid or Spending limited to amount loaded on Fees are charged for activation, card. Online checking of balances and loading money, monthly stored-value spending. Authorized adults can load maintenance, many more card funds. Employers can load wages onto actions. Does not build credit some cards. Major credit card branded history. cards can be used many places. Joint credit Builds credit history. Parent and teen responsible for debt. card Secured card Credit limit set by savings account May have high APR. balance. Builds credit history. Authorized Easy to set up. Teen can piggyback on parent's credit history. Parent solely user responsible for debt. Potentially puts parent's credit score at risk. Source: www.bankrate.com www.youtube.com/browncollegeguy

Slide 54: Credit Card Woes? Increased interest rates Late fees add up Reduced credit limit Future credit limitations www.youtube.com/browncollegeguy

Slide 55: How credit card companies make $$$: Interest on unpaid debt % of purchase price (typically 1 - 4%) Annual fees Selling your information www.youtube.com/browncollegeguy

Slide 56: A $6,297 credit card balance Credit card Annual interest Balance Best Buy 22.6% $300 Sears 21% $800 Discover 19.8% $1,100 Visa 18% $1,966 Macy’s 18% $300 Master Card 17.7% $1,831 www.youtube.com/browncollegeguy

Slide 57: Digging out of debt $6,297 balance If You Pay Monthly Interest Total Value Time To Each Month Payment You Pay You Will Pay Pay Off 23 years The Minimum $200 or less $9,570 $15,867 10 months $10 Extra $210 $8,504 $8,504 3 years 5 months Source: Bankcards of America www.youtube.com/browncollegeguy

Slide 58: When you live on your own www.youtube.com/browncollegeguy

Slide 59: Good credit helps www.youtube.com/browncollegeguy

Slide 60: Rent an Apartment www.youtube.com/browncollegeguy

Slide 61: Cell phones / cable www.youtube.com/browncollegeguy

Slide 62: Insurance Rates www.youtube.com/browncollegeguy

Slide 63: Get Better Jobs www.youtube.com/browncollegeguy

Slide 64: Buy a Home www.youtube.com/browncollegeguy

Slide 65: How good is your credit? What makes up your credit score? FICO Lender Score Grade 760-850 A+ 700-759 A 660-699 B 620-659 C 580-619 D Source: myFICO.com 500-579 F www.youtube.com/browncollegeguy

Slide 66: 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 www.youtube.com/browncollegeguy Pay bills before they are due

Slide 67: SHOW ME THE MONEY!!! Ways to help you pay for college www.youtube.com/browncollegeguy

Slide 68: 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 www.youtube.com/browncollegeguy

Slide 69: www.youtube.com/browncollegeguy

Slide 70: Tuition Reimbursement www.youtube.com/browncollegeguy

Slide 71: Scholarships There are literally BILLIONS of DOLLARS that go unclaimed every year! www.youtube.com/browncollegeguy

Slide 72: Search the Web www.studentscholarshipsearch.com www.finaid.org www.fastweb.com www.4scholarships.com www.scholarships.com www.youtube.com/browncollegeguy

Slide 73: www.myspace.com/browncollegeguy Tou Lee Yang 1440 Northland Drive Mendota Heights, MN 55120 651-905-3582, 800-627-6966 x582 tyang@browncollege.edu www.youtube.com/browncollegeguy browncollege582 browncollege582@hotmail.com