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Financial Wellness Curriculum

Introduction to Financial Management

More information available at YouCanDealWithIt.comThis presentation has been developed by and paid for by AES.

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Introduction to Financial Management

• Understand short and long term goals

• Where does your money go

• How to use student loan money wisely

• Learning to budget

• Understand how to manage debt

• Smart ways to think about money

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Setting Financial Goals

• Short Term Goals:» Have enough money to last the semester

» Go out Friday night» Pay off a department store credit card

• Long Term Goals:» Buy a car

» Go to Cancun for spring break» Buy a laptop

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Know Where your Money is Going

• Evaluate and track spending» Keep a record of all your receipts for an entire month

» Update your check register

• Remember that spending beyond your limits is dangerous

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Track Expenses

• Education expenses» Books» Transportation» Meals

• Living expenses» Rent» Utilities» Cell phone

• Debt payments» Car» Credit cards

• Savings» Pay yourself first

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70-20-10 Rule

Use this as a guide to show you how to divide your money successfully.

• Spend 70% » Use for living and education expenses - rent, food, clothing, tuition,

etc.

• Save 20%» 5% for emergency funds» 5% for specific goals – vacation, computer, etc. » 10% invest for the long-term

• Spend 10% » For debt payments – car loan, credit card, student loans

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Determining Financial Priorities

• If you have $50 what would you spend it on?» Savings or Personal Appearance» Social Activity or Paying a Debt» Sports or Eating Out» Hobbies or Paying a Debt» Personal Appearance or Sports» Paying a Debt or Clothes» Eating out or Savings

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Use Your Student Loan Money Wisely

• Use student loan money for school-related expenses only » Tuition

» Books» Supplies» Transportation

Loans are not free money

Don’t incur unnecessary debt

Remember: Your student loan must be paid back!

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Creating a Budget

• Not restricting, but empowering

• Lets you have more control over your life

• Helps you see exactly where your money is going

• Think spending plan, not budget

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Budget Calculator

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Managing Debt

• Monthly debt: » Credit cards

» Student loans» Car payments» Personal Loans

• If your debt is: » Under 15% - Relax

» 15-20% - Be Cautious» Over 20% - Red Flag

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Before You Buy …

• Do you spend without thinking?

• Before you make your next purchase - even if it is a “just” a new pair of jeans – walk away for 15 minutes and think about the following: » Do you NEED it? » How will you pay for it – cash or credit? » Where are you going to put it? » What will happen if you don’t buy it?

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Smart Ways to Think about Money

• Make Your Money Last» Find ways to increase your earnings» Create and commit to a monthly budget» Stay on top of your goals

• Reduce Debt» Stop charging » Break the habit of paying only the minimum» Transfer high rate credit card balances

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Debt Repayment Calculator

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Introduction to Financial Management

• Understand short and long term goals

• Where does your money go

• How to use student loan money wisely

• Learning to budget

• Understand how to manage debt

• Smart ways to think about money