Let’s Talk Money!Presented by

Did you know?

College students make up 10% to 15% of those seeking money-management help.

Source: U.S. Department of Treasury

Your money know-how

Current climate

Basics of money management

Why a spending plan

Debit Card

Credit & you

Student loans

Protecting your $$ & information

Today’s climate….

Challenging economic conditions

Competition for jobs

Costs of housing

Tight credit market

Here are some facts…

Student financials

Average cost of your education is $20,000+ per year

Approximately 60% of you will graduate with more than $22,000 in student loan debt

Average student credit card debt is $2,169

Sources: College Board Trends in College Pricing and Trends in Student Aid, 2008;Nellie May, 2006

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

you spend more money than you have available in your account

You need to know your available balance*

All transactions are your responsibility

Know before you buy**

Stay alert to your account activity

*Please note that some transaction activities (such as outstanding checks and some Check Card purchases) may not be reflected in your available balance.**Compare what the bank shows as your available balance to your own records, and account for transactions you have initiated that may not be included in the bank's available balance (outstanding checks and some check card purchases).

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 (aka Check 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

Avoid interest rates Money comes out of the primary checking

account linked to the card

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

statement

Debit Card (aka Check 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?

Got a free t-shirt with your credit card?

Actually know what your APR is?

How did you use that card?

Coffee & Pizza – 1 year

200 lattes @ $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!

Love the t-shirt, but….

Annual Percentage Rate (APR)

Fees & Penalties

Cost of cash advances

Rate increases

Payment cycle

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 advance

Card limit $1,000

Cash advance $1,000

APR 24%

Minimum payment $25

82 months - $1,035 in interest payments Total cost to you is $2,035 (+ fees?)

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

How much money do you think you’ll be making 2 years after graduation?

What about the average salary of … An Accountant

A Corrections Officer

A Public School Teacher

A Registered Nurse

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

Key – is your effort

Factoid

In 2008, there were 9.9 million reported identity theft victims in the United States!

1 in every 30 people…

Source: 2009 Identity Fraud Survey Report, Javelin Strategy & Research, February, 2009

How pervasive is identity theft?

Identity theft occurs every 2 seconds in the U.S.

1 out of 10 victims knew the identity of the thieves.

Business loss per victim: $4.8K

Total loss to business: $48 billion

Source: 2009 Identity Fraud Survey Report, Javelin Strategy & Research, February, 2009

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, spy ware and crime ware

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

Online resources for YOU

Hands on Banking®

Stagecoach Island®

Backstage@wellsfargo.com®

The Student LoanDownSM blog

Thank You!