Money and Banking Managing Financial Resources Exploring Business Chapter 13 Thursday 9/6/11.
Chapter 13 - Managing your Money
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Transcript of Chapter 13 - Managing your Money
Managing Your MoneyManaging Your Money
Your TurnYour Turn
So far, how well or poorly are you managing your money in college? Why is it easy or difficult?
Living on a BudgetLiving on a Budget• Creating a budget• Step 1: Gather basic information
• Step 2: Build a plan
• Step 3: Do a test run
• Step 4: Make adjustments
• Cutting costs• Recognize the differences between your needs and
wants
• Share expenses
• Consider the pros and cons of living on campus
• Use low-cost transportation
• Seek out discount entertainment options
• Embrace secondhand goods
• Avoid unnecessary fees
Getting Financial AidGetting Financial Aid• Types of aid• Need-based scholarships
• Merit scholarships
• Grants
• Work-study
• Co-op education
• Qualifying for aid• Free Application for Federal Student Aid
• How to avoid losing your funding• File for financial aid every year
• Meet all filing deadlines
• Inquire every year about criteria-based aid
• Inquire about campus jobs
• Consider asking for a reassessment of your eligibility for
aid
Achieving a Balance between Achieving a Balance between Working and BorrowingWorking and Borrowing
• Advantages and disadvantages of working
• Research possible occupations
• Build on your strengths and develop weaker
skills
• Prepare a marketing strategy that sells you
• Write a convincing resume and cover letter
• Student loans
• Subsidized federal student loans
• Unsubsidized federal student loans
• Parent Loan for Undergraduate Students (PLUS)
• Private loans
Managing Credit WiselyManaging Credit Wisely• Credit score• Derived from a credit report that contains information
about accounts in your name
• Understanding credit• Beware of making only a minimum payment
• Avoid making late payments
• Credit cards should not be used to fund a lifestyle you
cannot afford
• Debit cards• You don’t always have to carry cash
• The amount of purchases will be limited to the funds in
your bank
• Commit your PIN to memory
Your TurnYour Turn
Do you have your own credit card or one that you own jointly with your parents? If not, what are your reasons for not getting one? If you do have a credit card, do you feel you’re in control of the way you use it? Why or why not? If you don’t have a card, do you think you are ready for one? Why or why not?
Planning for the FuturePlanning for the Future
Financing life after graduation
• Plan now for your next step
• Keep your address current with the
registrar even when you have finished
your degree or program
• Make a point of establishing a savings
account and adding to it regularly
Tech Tip: Create Wealth and Tech Tip: Create Wealth and SecuritySecurity
How to make money work for you
• Savings account
• Offers a secure place to grow your money
• IRA (Individual Retirement Account)
• Gives you a tax-deferred way to save for
retirement
• 401(k)
• Employer-sponsored savings plan that lets you
place a certain percentage of your earnings into a
tax-deferred account