Financial Literacy 101: Personal Finance for College Students

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  • Presenter note: This presentation requires school-specific information on the following pages: Page 1. Optional school logo or simply type school name Page 14. Type any school-specific resource contact information (counseling center, aid office, etc.) or delete the page Page 15. Enter the school access code to the course Page 16. Enter the course administrator contact name information Need help or do not have access to PowerPoint? Please contact us at http://www.decisionpartners.org/contact.htm.
  • Financial Literacy 101 is a short course (it takes less than 1 hour to complete) that helps you make smart financial decisions that are right for you. The course helps you learn to avoid the financial pitfalls that many adults fall into - overspending, misusing credit and not budgeting. Don't be that one in three college students who graduates with over $10,000 in credit card debt! In this presentation we’ll also talk about financial health and some of the challenges facing students today. Optional: We will also talk about other financial resources available to you here on campus.
  • Understanding financial health for students Budgeting Getting the best deal on banking Managing credit and debt and avoiding the misuse of credit Avoiding identity theft
  • Pre-course survey customizes the course to your needs Multimedia modules give you the facts Interactive exercises and goal-setting opportunities help you relate the content to your life Quizzes reinforce main points Personal recommendations are provided at the end of the course Now let’s take a look at a few topics covered in the course…
  • There is no magic formula for becoming financially healthy. It takes discipline and knowledge to make responsible choices. The building blocks for financial health include: - creating a realistic budget (which is a spending and saving plan) - minimizing your total debt (which means that you borrow wisely – borrow what you need, not what you want) - planning for your future (live like a poor college student now so that when you graduate you don’t have to live like a college student)
  • Some common financial problems include: - Overspending – it is easy to spend money - Buying on credit – you can spend more money than you really have - Peer pressure – wanting to keep up with friends – buying the latest electronics or fashions - Procrastination – putting off taking charge of your finances will cost you money
  • A budget is a spending and savings plan based on your expenses and income. The course offers an online tool allows you to compare your income and expenses. If the end result is a positive number, then you are on your way to financial health. If your expenses are greater than your income, you will need to adjust either your income or expenses. You may want to consider keeping a daily log of your expenses, to help you see where you are spending too much money. This also allows you to see if your spending reflects your priorities. The course budget calculator saves your work, lets you compare your actual spending with your budget, and easily create a weekly budget for printing.
  • One of the easiest traps to fall into as a student is credit card debt. Keep these rules in mind: Use credit cards only for true emergencies – your car breaking down on the way home for spring break is an emergency – a sale at the mall is NOT an emergency! Generally, if you can eat it, drink it, or wear it, you should not use credit to buy it. Making the minimum payment each month does not mean you are repaying your debt. Try to pay off the total balance each month if you do use a credit card. Remember, there is interest accruing on your unpaid balances, so typically you pay at least 3 times the original price for an item if you are carrying a balance on your credit card. Avoid using credit cards to pay for your educational expenses, instead explore other financing options. Could have some additional discussion about needs versus wants – emergencies versus non-emergencies.
  • You can set weekly, monthly, and longer term goals, using Financial Literacy 101’s online tools. Weekly goals might be to track your expenses and reduce the amount you spend on pizza and soda. Monthly goals might be to balance your checking account, save a certain amount of money, pay more than the minimum payment due on your credit card. Review your income and expenses at the end of each semester – after you’ve finished those finals – and give yourself a grade based on how you did. Reevaluate your budget and goals for the next semester. Your can reach your long term financial goals by taking the steps now to control your spending and reduce unnecessary debt. Ask participants to share other general financial goals with the group.
  • Personal recommendations are based on your pre-course survey responses. They cover topics including financial stress, credit card use, hours worked per week, budget habits, and, for dependent students, conversations with parents about money. Objective feedback on these topics can help you spot potential risk factors before they become a problem.
  • Dozens of pages of personal finance and financial aid information is in the Resources section.
  • Monthly budget, weekly budget, credit card repayment, educational loan repayment, and the popular “Real World” budget calculator are available in the Resources area.
  • Your personal My Money page organizes the course experience, with one-click access to course completion certificates, fact sheets, course bookmarks, notes, calculators, textual resources, and course review features.
  • This is an example of the Real World Calculator. It estimates monthly income and allows you to customize anticipated monthly expenses. You can see if you have a positive or negative cash flow at the end of the month. The calculator lets you “re-do” your college financial experience by editing your education debt and credit card payments. After taxes, debt payments are one of recent graduates largest expenses. This calculator shows what to expect after graduation. If you are
  • Financial Literacy 101 is at www.financialliteracy101.org. An access code is required and will be supplied by the school.
  • Financial Literacy 101: Personal Finance for College Students

    1. 1. Financial Literacy 101: Personal Finance for College Students Course Introduction Presentation Optional: School name or logo here
    2. 2. Financial Literacy 101 <ul><li>Presentation Objectives: </li></ul><ul><ul><li>Introduce the online course </li></ul></ul><ul><ul><li>Outline the key concepts of financial health </li></ul></ul><ul><ul><li>Other resources online and on campus </li></ul></ul>Introducing Financial Literacy 101 2008-9 Version
    3. 3. Course Topics <ul><li>Understanding financial health for students </li></ul><ul><li>Budgeting </li></ul><ul><li>Getting the best deal on banking </li></ul><ul><li>Managing credit and debt and avoiding the misuse of credit </li></ul><ul><li>Avoiding identity theft </li></ul>2008-9 Version Introducing Financial Literacy 101
    4. 4. How it Works <ul><li>Pre-course survey customizes the course to your needs </li></ul><ul><li>Multimedia modules give you the facts </li></ul><ul><li>Interactive exercises help you relate the content to your life </li></ul><ul><li>Quizzes reinforce main points </li></ul><ul><li>Personal recommendations are provided at the end of the course </li></ul>2008-9 Version Introducing Financial Literacy 101
    5. 5. What is Financial Health? 2008-9 Version Introducing Financial Literacy 101
    6. 6. Common Financial Problems 2008-9 Version Introducing Financial Literacy 101
    7. 7. Budgeting: The Key to Financial Health 2008-9 Version Introducing Financial Literacy 101
    8. 8. The Credit Card Trap 2008-9 Version Introducing Financial Literacy 101
    9. 9. Your Financial Goals 2008-9 Version Introducing Financial Literacy 101 Write your goals down when taking the course!
    10. 10. Additional Resources – Personal Recommendations 2008-9 Version Introducing Financial Literacy 101
    11. 11. Additional Resources – Text 2008-9 Version Introducing Financial Literacy 101 Dozens of pages of personal finance and financial aid information is in the Resources section.
    12. 12. Additional Resources – Calculators 2008-9 Version Introducing Financial Literacy 101 Monthly budget, weekly budget, credit card repayment, educational loan repayment, and the popular “Real World” budget calculator are available in the Resources area.
    13. 13. Additional Resources – My Money Homepage 2008-9 Version Introducing Financial Literacy 101
    14. 14. On Campus Resources <ul><li>Course administrators will need to add campus resources or delete this page. </li></ul>2008-9 Version Introducing Financial Literacy 101
    15. 15. How to Access the Course 2008-9 Version Introducing Financial Literacy 101 www.FinancialLiteracy101.org and e nter access code: Your school code
    16. 16. Enter course administrator contact information. 2008-9 Version Introducing Financial Literacy 101 Thank You!

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