Everything you ever Everything you ever wanted to know about…wanted to know about…

Student Student FinancesFinances

Presented by the Tomas Rivera Center for Student Success

A scary statistic…A scary statistic…

A government report states the A government report states the personal savings rate for the nation in personal savings rate for the nation in 2005 was negative 0.5%. That means 2005 was negative 0.5%. That means consumers not only spent what they consumers not only spent what they earned—earned—

they also spent money they didn't they also spent money they didn't have.have.

Warning Signs of Debt Warning Signs of Debt ProblemsProblems

No savingsNo savings Minimum payments on credit cardsMinimum payments on credit cards Use credit cards for things you used to Use credit cards for things you used to

buy with cashbuy with cash More than 2 major credit cardsMore than 2 major credit cards Unsure of total amount you oweUnsure of total amount you owe At or near your limit on credit cardsAt or near your limit on credit cards

Are you in over your head?Are you in over your head?

Do you bounce checks?Do you bounce checks? Have you been denied credit?Have you been denied credit? Do you get calls from collectors?Do you get calls from collectors? Do you lie about your spending or debt?Do you lie about your spending or debt? Do you take out cash advances on your Do you take out cash advances on your

credit cards to pay other bills?credit cards to pay other bills?

Top 5 Money Mistakes College Top 5 Money Mistakes College Students MakeStudents Make

Getting into credit card debtGetting into credit card debt Squandering your student loan moneySquandering your student loan money Ruining your credit scoreRuining your credit score Choosing a college that is too expensiveChoosing a college that is too expensive Not budgetingNot budgeting

So why budget?So why budget?A budget will help you…A budget will help you…

Stay in control of your moneyStay in control of your money Live within your meansLive within your means Meet your savings goalMeet your savings goal Keep track of spare cashKeep track of spare cash Prepare for emergenciesPrepare for emergencies Keep out of debtKeep out of debt Sleep better at nightSleep better at night

Features of a Successful Features of a Successful BudgetBudget

Categories that fit your personal situationCategories that fit your personal situation Accurate income projectionsAccurate income projections Enough categories to give you a Enough categories to give you a

meaningful picture, but not too many meaningful picture, but not too many A line item for savings – treat as a bill A line item for savings – treat as a bill Cash tracking and recordingCash tracking and recording Realistic written goalsRealistic written goals

Understanding your credit Understanding your credit reportreport

Your credit report is a record of your entire Your credit report is a record of your entire credit history, including late and/or delinquent credit history, including late and/or delinquent payments and maxed-out accountspayments and maxed-out accounts

There are 3 credit companies that report There are 3 credit companies that report credit information – it is recommended to credit information – it is recommended to compare data from all three to ensure compare data from all three to ensure accuracy.accuracy.

Your credit report is evaluated anytime you Your credit report is evaluated anytime you apply for a loan (i.e. car or home purchases, apply for a loan (i.e. car or home purchases, credit cards, bank loans, etc.)credit cards, bank loans, etc.)

How to read your credit How to read your credit reportreport

Personal InformationPersonal Information: used to verify your : used to verify your identity; not included in credit score identity; not included in credit score calculationcalculation

SummarySummary: categorized list of all accounts: categorized list of all accounts Account HistoryAccount History: detailed information : detailed information

about all accounts in your nameabout all accounts in your name Public InformationPublic Information: legal matters that : legal matters that

affect your creditaffect your credit InquiriesInquiries: lists businesses that have : lists businesses that have

checked your credit in the last 2 yearschecked your credit in the last 2 years Creditor ContactsCreditor Contacts: lists contact information : lists contact information

for each creditor in your reportfor each creditor in your report

Credit Reporting CompaniesCredit Reporting Companies

Experian: (888) 397 3742 Experian: (888) 397 3742 Equifax: (800)-685-1111 Equifax: (800)-685-1111 TransUnion: (800) 888-4213 TransUnion: (800) 888-4213 Reports are usually about $5-$10 each.Reports are usually about $5-$10 each.

You can also order a You can also order a freefree copy of all copy of all three reports once a year by law at three reports once a year by law at http://www.annualcreditreport.comhttp://www.annualcreditreport.com

Do you impulse spend?Do you impulse spend?

Surprised by your credit card statement?Surprised by your credit card statement? Own lots of things you never wear/use?Own lots of things you never wear/use? Buy things you didn’t even know you Buy things you didn’t even know you

needed until you saw them on display?needed until you saw them on display? Come home with items you had no Come home with items you had no

intention of purchasing when you went intention of purchasing when you went out?out?

Buy things just because they are on sale?Buy things just because they are on sale?

Curbing impulse spendingCurbing impulse spending

Index card trick – wait two weeksIndex card trick – wait two weeks Leave credit cards at home when you go Leave credit cards at home when you go

shopping – bring cash onlyshopping – bring cash only Learn to recognize wants from needsLearn to recognize wants from needs

Activity and Questions