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Personal Finances for the Christian College Student

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Personal Finances for the Christian College Student

  1. 1. Personal Finances for the Christian College Studentby Corey A. Pfaffe, PhD, CPA 1
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  4. 4. Business Officer magazine “84% of undergraduates arrived on campus last fall with at least one credit card.” “One in three students graduates with $10,000 or more in credit-card debt.” “National average undergraduate debt -- $18,000 to $25,000.” 4
  5. 5. “Karen King owes more than shes ever earned in a year.” 5
  6. 6. To graduate with honors in credit-card management:Dont be lured in by free T-shirtsKnow your (credit) limitsRemember, promotional rates aretemporaryWatch out for penalties and unnecessaryfeesSWITCH to 100% Debit cards!! 6
  7. 7. “11 Dumb Ways to Get in Debt” (college student style)Purse and Shoes obsessionsFinancing latest gadgetsGiving family and friends a loan or co-signing for a loanUpgrading stuffPlaying the lottery or gamblingRent-to-own furniture and appliances 7
  8. 8. Three requirements for a personal budget a technique to plan for monthly expenses a pattern to manage disbursement of each paycheck a device to stay “on track” between paychecks 8
  9. 9. Effective Credit Management How Do You Get Money from a Lender? The Five Cs of Credit Character Capacity Capital Collateral GETTING A REPORT Conditions Log on to www.annualcreditreport.com 9
  10. 10. Proverbs 22:7 -- “the borrower is servant to the lender” -- a fact of life! 10
  11. 11. How are yougoing to avoid becoming anunemployment statistic? 11
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  13. 13. Payday “Secure, C onfidentia Loans Instant Ca l, sh Loans. $9.31 per Onl y $100. Act (www.MyC . ashNow.c Now” om) “You simp ly write a check to g post-dated et the cas need on th h you e sp o t ” . (www.cas hstore .com) The Cash Store and EZ Money have 70 WI locations. The closest Check ‘N Go store to Maranatha is 1.6 miles awaySource: State of Wisconsin, Department of Financial Institutions where you’ll be charged 573.57% for a 14-day loan.13 Source: www.checkngo.com/statedisclosures/Wisconsin
  14. 14. Retirement savings Start saving $50 per month at age 25. Retire at age 65 and withdraw over $34,000 per year for 20 years. Start saving at age 45 -- it will require $381 per month to retire at age 65! However, the “early worm” only deposited $24,600 versus $96,042 by the “late starter” 14
  15. 15. How should you invest your retirement savings? For most people—mutual funds Principles of Investment  Growth  Income  Liquidity  Safety 15
  16. 16. Insurance Auto  Liability  Collision  Comprehensive Renter’s Life Health 16
  17. 17. Visit us at www.ministrycpa.com for more presentations or to connect with a tax professional.Visit our Q&A blog at www.ministrycpa.blogspot.com 611 O’Connell Street Watertown, WI 53094 (920) 261-7012 Member: American and Wisconsin Institutes of Certified Public Accountants 17

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