Crash-Course, Cash Course

Presented by:

Budgeting!

Budgeting
Fixed Expenses

Housing
Tuition
Car Insurance
Cell Phone
Monthly Dues
Netflix
Spotify
Amazon Prime

Variable Expenses

Books
Food
Entertainment
Gifts and Celebrations
Gas or Transportation
Event/PR shirts

Budgeting
Live Within Your Income!
What is Net Income?
Gross Income (Total Paid) (Fixed + Variable Expenses)
The money that is left over is your net income and
should be used wisely!
If Net Income is negative, revise your spending habits
and adjust accordingly
Remember taxes!

Budgeting
Money Saving Alternatives
Bus/Walk/Carpool/DART
Free events on campus
Movies on campus
Use student discount
Around campus food
Even Spotify Premium and Amazon Student

Eating Healthy on a Budget Workshop

Tomorrow! MC 3.610 2:30PM - 3:30PM

Budgeting
Now that youve identified and prioritized
expenses
Identify any and all sources of income
Track your spending
Reconsider wants and needs
Live within your income!

Prepare for the Future

Saving Strategies
Practice self-discipline
Make savings a fixed expense
Set realistic goals
Be aware of Christmas, birthdays, and vacations!
..and Big/Little Week!

Life After College

Retirement
Is it too early to save for retirement??
IT IS NEVER TOO EARLY

The earlier you begin to plan and save for

retirement, the better prepared you will be
The economic principle of the time value of
money illustrates the significance of saving early

Time Value of Money

Interest Rate
Number of years
contributions
were made
Amount contributed

Jorges IRA

Olivias IRA

9%

9%

9 years
(age 22 to age 31)

34 years
(age 31 to age 65)

$1,000 per year

For 9 years = $9,000

$1,000 per year

For 34 years = $34,000

Value of IRA at age 65 $13,021 at age 31;

this lump sum then compounds:

At age 65 equals:
$243,863

At age 65 equals:
$196,982

Reality Check..
1 Starbucks drink @ $3.50
$3.50 x 7 days = $24.50
$3.50 x 365 days = $1,227.50
1 Whataburger @ $3.09
$3.09 x 7 days = $21.63
$3.09 x 365 days = $1,127.85

Introduction to Credit

Credit
Advantages
Buy now, pay later
Online purchases
Dont have to carry large
amounts of cash
Establish good credit history
Credit card rewards

Disadvantages
Likely to spend more than if
you use cash
Items purchased actually
cost more if you cant pay
off the balance each month
Debt hinders you from
saving and investing
Establish poor credit history

Using Credit
Credit Card Strategies
Limit use to one card
Define emergency use
Understand credit terms
Pay it off each month

Credit
Checking Your Credit Report
Eligible to receive one free credit report from each
of the three credit reporting agencies every year

Experian: www.Experian.com
Equifax: www.Equifax.com
TransUnion: www.transunion.com
Credit Karma App!

Credit Reports and Scores Workshop!

Friday, April 1st MC 3.610 12:00PM 1:00PM

Debt Repayment

Credit
Card
Balance

Interest
Rate (%)
Charged

$2,000

18%

$2,000

18%

$2,000

18%

Months Years to
Monthly
to Pay Off Pay Off
Payment
Balance Balance

$40

Total Cost
(Balance
+
Interest)

94

7.8

$3,760

$50

62

5.2

$3,100

$150

15

1.3

$2,250

minimum

Dealing with Debt

Prioritizing Repayments
Pay the debt with the highest balance first, or
Highest interest rate first, or
Lowest balance

www.powerpay.org
How much interest will I pay over time?
Use this information to help prioritize your debt
repayment

Dealing with Debt

The Quick Fix is not a solution!
Pawnshops
Payday loans
Title loans
Tax refund anticipation loans

Student Loans

Student Loans
Graduating with Debt
Good News!!!
You have a choice of repayment plans

Bad News
You must repay your student loans
There are serious consequences if you dont

What You Owe

Principal: the amount you borrowed

+
Interest: the charge for borrowing,
calculated as a percentage of principal

=
Total debt

Repayment Schedule

Graduation

Grace
Period

Repayment