Finance for College Students

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Finance for College Students

  1. 2. Psalm 24:1 <ul><li>The earth is the LORD’s, and everything in it, </li></ul><ul><li>the world, and all who live in it </li></ul>
  2. 3. Basic Principles <ul><li>God own's it all so learn to manage for him </li></ul>
  3. 4. 1 Tim 5:7-8 <ul><li>Give the people these instructions, so that no one may be open to blame. Anyone who does not provide for their relatives, and especially for their own household, has denied the faith and is worse than an unbeliever. </li></ul>
  4. 5. Basic Principles <ul><li>God own's it all so learn to manage for him </li></ul><ul><ul><li>Care for your house </li></ul></ul>
  5. 6. Deut 26:1-3 <ul><li>When you have entered the land the LORD your God is giving you as an inheritance and have taken possession of it and settled in it, take some of the firstfruits of all that you produce from the soil of the land the LORD your God is giving you and put them in a basket. Then go to the place the LORD your God will choose as a dwelling for his Name and say to the priest in office at the time, “I declare today to the LORD your God that I have come to the land the LORD swore to our ancestors to give us.” </li></ul>
  6. 7. Basic Principles <ul><li>God own's it all so learn to manage for him </li></ul><ul><ul><li>Care for your house </li></ul></ul><ul><ul><li>Care for God's house </li></ul></ul>
  7. 8. Prov 21:20 <ul><li>The wise store up choice food and olive oil, </li></ul><ul><li>but fools gulp theirs down. </li></ul>
  8. 9. Basic Principles <ul><li>God own's it all so learn to manage for him </li></ul><ul><ul><li>Care for your house </li></ul></ul><ul><ul><li>Care for God's house </li></ul></ul><ul><ul><li>Save </li></ul></ul>
  9. 10. Ben and Arthur <ul><li>Ben invests </li></ul><ul><ul><li>$2000/yr </li></ul></ul><ul><ul><li>Ages 19-26 </li></ul></ul><ul><li>Arthur invests </li></ul><ul><ul><li>$2000/yr </li></ul></ul><ul><ul><li>Ages 27-65 </li></ul></ul><ul><li>Same mutual fund </li></ul>
  10. 11. Ben Wins! <ul><li>Ben invests </li></ul><ul><ul><li>$16,000 total </li></ul></ul><ul><ul><li>Over $2 Million </li></ul></ul><ul><li>Arthur invests </li></ul><ul><ul><li>$78,000 total </li></ul></ul><ul><ul><li>$1.5 Million end </li></ul></ul>
  11. 12. Where You Invest Matters <ul><li>Mutual funds </li></ul><ul><li>12% interest rate </li></ul><ul><li>5yr Track record </li></ul>
  12. 13. Mythbusters <ul><li>I will be responsible </li></ul><ul><li>I will pay it off monthly </li></ul><ul><li>Sophisticated people lease cars </li></ul><ul><li>Negotiators get good deals on new cars </li></ul><ul><li>I will help by a friend by co-signing </li></ul>
  13. 14. Baby Steps <ul><li>$1000 emergency fund </li></ul><ul><li>Debt snowball </li></ul><ul><li>3-6mo emergency fund </li></ul><ul><li>Save 15% </li></ul><ul><li>(College Fund) </li></ul><ul><li>Pay off your house </li></ul><ul><li>Build wealth and give </li></ul>
  14. 15. Debt Snowball Item Total Payoff Minimum Payment New Payment JC Penny $150 $15 (Garage Sale) Sears $250 $10 $25 Visa $500 $75 $100 MasterCard $1,500 $90 $190 Car $4,000 $210 $400 Student Loan $4,000 $65 $465
  15. 16. Types of Insurance <ul><li>Life </li></ul><ul><li>Disability </li></ul><ul><li>Renters or Home Owners </li></ul><ul><li>Auto and “Umbrella” </li></ul><ul><li>Emergency fund = Higher deductible = Low $$$ </li></ul>

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