Let’s Talk Money!Presented by

© 2010, 2013 Wells Fargo Bank, N.A. All rights reserved. For public use.

Does this sound familiar?

Source: The Student Market: Financial Insights (Synergistics) 2011

Seventy-five percent of students in the

U.S. agree that the state of the economy

makes them very concerned about their

financial future

They also say they would value financial

information on developing a budget,

saving for a specific goal, understanding

credit scores and managing credit.

Your money know-how

Current climate

Basics of money management

Why a spending plan

Debit Card

Credit & you

Student loans

Protecting your money & information

Today’s climate….

Challenging economic conditions

Competition for jobs

Costs of housing

Tight credit market

Here are some facts…

Student financials

Two-thirds of college seniors graduated with loans in 2010, and they carried an average of $25,250 in debt.

The Class of 2010 also faced the highest unemployment levels for new college graduates in recent history: 9.1% (still less than half the unemployment rate for young adults with only a high school diploma).

Source: The Project on Student Debt,2011 www.projectonstudentdebt.org

Basics – right starting point

Manage your accounts Checking, saving, credit card and debit card

Keep track of all your “spending” If you don’t have it – don’t spend it!!

Use account options to save you $$ and time

Mobile and online banking

Account alerts

Direct deposit

Your responsibility to avoid overdrafts Overdrafts occur when there is not enough

money in your account to cover a transaction and the bank pays it on your behalf

You need to know your available balance*

Keep track of all your transactions

Remember the bank's available balance may not include all your transactions

Stay alert to your account activity

"The amount of money in your account that you can use or withdraw. This balance may not reflect all of your transactions, such as checks you have written or debit card transactions that have been approved but not yet submitted for payment by the merchant."

Question?

How many of you would go online to “shop around” for the best price for an item like concert tickets, computer equipment, etc.?

Spending Plan

Your plan – your money

Planning saves you $$

Minimizes “out of control” spending

Easy tips for saving Automatic monthly transfer

New money: ½ for you – ½ for savings

Shop for thrift – save for excitement

Your basic budget

Monthly income – Monthly expenses

Housing

Food

Clothes

Books & supplies

Savings

Fun

Misc. (emergencies)

Debit Card

Allows you to:

Enjoy a faster, safer, easier way to pay for everyday purchases

Make bill payments with your service providers

Perform ATM transactions

Different from a credit card

Money comes out of your primary checking account linked to the card

Track Debit Card purchases anytime Through online banking or on your checking

statement

Debit Card

Why is it important to know your Daily Dollar Limits (DDL)?

Where can you find your DDL?

What is Zero Liability?

Let’s talk credit

How many of you have more than one credit card?

Received an offer for the card in the mail or online?

Actually know what your Annual Percentage Rate (APR) is?

How did you use that card?

Coffee & Pizza – 1 year

200 expressos @ $3 $600

100 pizzas @ $15 $1,500

Total credit card debt: $2,100

So at @12% interest w/min. payment

Yikes…7 years to pay off + $700 in interest – total cost to you is $2,800!

Your credit basics

Exactly what is credit?

Why should I care?

How do I get it?

Credit card realities

It’s a loan

Limits are real

So many offers

Rewards

Cash back

Personalize

But . . .

Select your card by costs!

A few things to consider:

Annual Percentage Rate (APR)Fees & Penalties Cost of cash advancesRate increasesPayment cycleAnnual fees

These are the REAL need to knows…

The cost of APR

Card Balance

Interest Rate (APR)

MinimumPayment

InterestPaid

$1,000 14% $25 $669.96

123 Months of payments Total paid $1,669.96

$1,000 8% $25 $289.93

97 Months of payments Total paid $1,289.93

You’ve just charged $1,000…

Illustration only

The costs of minimum payment

You have got to have this $1,500 computer!

Card balance $1,500

APR 14.7%

Lowest payment: $40

51 months & $521 interest >$2,021

Double lowest payment: $80

22 months & $215 interest >$1,715

Illustration only

The cost of credit card cash advanceCard limit $1,500

Cash advance $1,000

APR 24%

Fee 5% of amount of borrowed

Minimum payment

$35

It would take 47 months to pay off paying a total of $1620 including $570 in interest

Illustration only

Your credit profile

Credit report

Credit score

Why should I care?

Your job or housing

Check yearly Annualcreditreport.com

Question?

What was the average student loan amount I mentioned earlier?

Paying for college

Be smart about where you get money for college First, use money you won’t have to repay like

scholarships and grants Next, consider money you work for through a work-study

program at your school Then, use student loans

Federal student loans – apply for these by completing a Free Application for Federal Student Aid (FAFSA)

Private student loans – available from private lenders to cover additional costs

If you need to borrow Borrow only what you need Keep track of your loans and estimate your eventual

monthly payments Be realistic about your starting salary

Salary realities

• Can you guess the annual average salary for these jobs? An Accountant

A Public School Teacher

A Registered Nurse

The median starting salary for students graduating from four-year colleges in 2009 and 2010 was $27,000.

Source: John J. Heldrich Center for Workforce Development at Rutgers University

Responsible borrowing

Do you understand your student loan? Who is your lender?

What are your loan terms?

What are your rights and responsibilities as a borrower?

What are your repayment options?

How are you going to repay your loan?

What is your financial plan?

Did you answer “I don’t know” to any of these questions? Then run—don’t walk—to your financial aid office or your lender!

You can start to manage now

While you are in school Know your student loan total – build it into

your spending plan (future expense)

Consider making interest payments while in school

After graduation Stay connected with your lender

Discuss payment options

Your effort is key

What personal info do you need to protect?

Credit cards and reports

Social Security card and driver’s license

Account numbers

ATM and telephone calling cards

Mortgage statements

Date of birth

Passwords and PINs

Home addresses and phone numbers

Internet ID theft schemes

Phishing:A criminal attempt to obtain

personal info using email spam

Pharming:A scam in which a malicious code

is installed on a personal computer or server, misdirecting users to fraudulent websites without their knowledge or consent

Defend yourself!

Shield your PC and wireless router with firewalls and software to catch viruses, spyware and crimeware

Avoid unknown sites offering free music and game downloads

Ignore and delete emails urging you to click on a link to verify or provide account information

For more information….

Visit the Hands on Banking® program:

www.handsonbanking.org

Thank You!

© 2010, 2013 Wells Fargo Bank, N.A. All rights reserved. For public use.