“Do not save what is left after spending, but spend
what is left after saving.”
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- Warren Buffet
Setting and sticking to a monthly budget can give you peace of mind. With a budget in place, you can more effectively
manage your money, save for large expenses, and prepare for emergencies. Below are ten budgeting tips.
Be Realistic About Your Budget
If you’ve never made a budget before, you need to start by forecasting how much money you’ll have coming in every
month and how much you think you’ll be spending. The more realistic you are about each of these numbers, the more
likely you’ll be to stick to your budget.
Differentiate Between “Needs” And “Wants” In Your Budget
Particularly if money’s tight, differentiating between “needs” and “wants” can help you stay within budget. Needs
come first, and if there’s money left over, you can spend on wants.
Guess Low For Income
In your budget, be conservative, and guess low for income. If your income exceeds the amount you factored into your
budget, all the better! But you don’t want to be caught short because you were overly optimistic.
Guess High For Expenses
In addition to guessing low for income, guess high for expenses. This, too, will give you some wiggle room when
something unexpected crops up or costs rise.
Include A Miscellaneous Category In Your Budget
Take all of your expenses and total them. Then, take 10% of that total and put it into a “miscellaneous” category. This
adds even more flexibility to your budget, helping to ensure that if you’ve omitted something from your calculations,
you won’t go over budget
Include Savings As An “Expense” In Your Budget
Decide on an amount you’d like to save each month, and include it as an “expense” in your budget. Set up a separate
savings account and transfer or deposit money into it every month. Your savings can be used for short-term goals (such
as a vacation or large-ticket item) or long-term goals (such as college tuition or a house). This money can also be used
in case of an emergency, such as a car repair or medical expense.
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Align Your Budget With Your Goals And Values
Once you’ve completed your budget, study it and see if you’re spending your money in alignment with your values
and goals (short-term and long-term). Do this exercise again after you've attempted to live within your budget for a
few months. If you are having difficulty adhering to your budget, you may be overspending on things that aren't
really aligned with your goals.
Keep All Of Your Bills and Receipts Organized
Organize all of your bills and receipts by category (e.g. housing, utilities, car expenses, loans) and file them each
month in a folder or an accordion file. This will make it easy to retrieve information if you need to dispute a bill or
track your spending history. Organizing your bills and receipts as you go along also makes it simple to file your taxes
at the end of the year.
Being Smart about your money is more important than ever. As life expectancy increases. We need to
make sure our finances can last during these exciting years in our lives. Every stage of life can help us prepare
for a more financially fit future.
WHAT IS
& WHY IS IT IMPORTANT?
Review And Recalculate Your Budget
A review of your budget every month can help you stay on track with your finances. In essence, a budget is a
forecast of what will happen; take the time to go back and recount what actually did happen. Where did you
overspend? Where did you save? What can you do differently next month? While it’s important to review your
budget every month, you’ll also probably need to re-calculate your budget every 3-6 months, or whenever
something changes dramatically in your financial life.
Pay Cash For Small Expenses
Give yourself a daily, weekly, or monthly allotment of cash, and use it whenever you can. Every time you pay cash,
you’ll be more conscious of what you’re spending than if you paid by credit card, check, or online withdrawal.
Forgive Yourself For Small Transgressions
It’s almost impossible to follow a budget 100% of the time. No matter how disciplined you are, you may overspend
now and again. Forgive yourself for small errors and get right back on track, as soon as possible.
Submitted by Linda Ornowski, Site Coordinator, Kalispell and SKC
Source: ©2012, Money 101. Money 101 is a free program from the Colorado Department of Higher Education.
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Designing and sticking to a budget can be a challenge for anyone, but especially when you’re a college student
who’s had little or no experience managing your own money. The task becomes even more complex because
large amounts of money often come in and go out at certain times of the year. By setting and sticking to a budget,
however, you’ll be less likely to leave college with a mountain of debt.
Below are simple tips for managing money while you’re in school:
Plan For A Semester or Quarter At A Time
Most people set up monthly budgets, but while you’re in college, it might make more sense to set up a
semester budget and then track your progress on a weekly or monthly basis. Start your budget by calculating your
income (from financial aid, student loan disbursements, parent contributions, income from a part-time job, etc.).
Next, add up your expenses (tuition, fees, books, living expenses, clothes, activities, etc.). Ideally, there will be a
surplus that you can put into savings each month. If not, recalculate the budget (by adding income or cutting
expenses) until you at least break even.
Stay On Track
Once you have your budget in place, stay on track. If you make a mistake, get right back on budget. If you
notice that your income has fallen or your expenses have risen, recalculate your budget immediately. By making
adjustments quickly, you’ll prevent a little deficit from growing into a big problem.
Don’t Try To Keep Up With Your Friends
Throughout your life, but particularly during college, there can be a tendency to try to keep up with friends.
Avoid the temptation to do this. Some people will have more access to money than you; others will be more
comfortable racking up credit card debt. Everyone will place a different value on how and when to spend money.
Design your budget based on your goals (such as breaking even every month, saving for a car, or graduating from
college with little or no debt), then have the confidence to live your life within your means, not someone else’s.
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Watch For Little Expenses That Can Add Up To A Big Monthly Drain
Within your budget, you’ll want to allot a certain amount of money for eating out, going to movies,
participating in activities, and other “small” expenses. But it’s important to guard that these “little” expenses
don’t add up to a huge expense at the end of the month. Ten coffee drinks, two trips to the movies, and five
nights out with friends could easily add up to $200 over the course of a month.
Use Credit Cards Wisely
Many college students who are forced to decide between missing out on something or putting the expense
on a credit card will opt to pull out the plastic. Try to behave differently. If you don’t have the money to pay for
it, don’t buy it. Without self-discipline, over the course of four or more years in college, hundreds of purchases
you can’t afford will translate into thousands of dollars in debt. Credit cards should be viewed as a convenient
way to pay for purchases, not as a convenient way to borrow money. If you’re using a credit card while you’re
in college, pay it off every month. If you need to carry a balance into the following month, each time you pull
out your credit card, ask yourself, “Do I want to borrow money to pay for this purchase?” That simple act of
mindfulness will help you use your credit cards more wisely.
By making a budget and sticking to it, you’ll develop healthy money habits that will benefit you not only while
you’re in college, but also for years to come
Submitted by: Linda Ornowski, Site Coordinator, Kalispell and SKC
Source: ©2012, Money 101. Money 101 is a program sponsored by College In Colorado, a division of the Colorado Department of Higher Education.
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You've decided that college or graduate school is your ticket to a better career or the path to advancement in your
current job. Or maybe you just want to take a few classes to upgrade your skills. Either way, returning to school as
an adult has its challenges. You've probably heard the expression "time is money." Well, you'll need plenty of both.
Where will you find the money?
Returning to school often involves financial sacrifices, but there
are ways to lessen the bite. Personal savings, financial aid, private
loans, and employer-funded tuition may be available to you, and
education tax credits and deductions can help you out at tax time.
The first thing to do is calculate how much your education will
cost. Make sure to add in collateral expenses that won't show up
on the college bill (e.g., day-care and commuting expenses). And
if you're giving up your job, factor in the time you'll be without a
paycheck, and the time it might take you to find a job in your new
profession. Then, if you can't afford to pay your education
expenses out-of-pocket, go look for the money.
Ask your employer
Unless you're leaving your job to attend school, ask your
employer about tuition reimbursement. There may be strings
attached, though (e.g., you may need to certify that you're not
retraining for a new career, or promise to work at the company
for a number of years after you graduate). The good news is that
up to $5,250 of employer-provided educational assistance is tax
free, even if it's for classes that are unrelated to your current
position. For more information, see IRS Publication 508, Tax
Benefits for Work-Related Education.
Learn about financial aid--your first academic experience
The maze of student financial aid programs can seem like another obstacle in your quest to return to school, but the
process is understandable if you do some research and ask questions. Start at your school's financial aid office.
To qualify for federal aid, you'll need to submit the federal government's application, the FAFSA, as soon as
possible after January 1st in the year you plan to start school. The FAFSA calculates your expected family
contribution (EFC), and lets you know if you're eligible for financial aid. You'll be classified as an independent
student, which means that if you're married, both your income and assets and your spouse's will count in this
calculation.
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There are different types of federal financial aid:
Loans--The two main federal student loans are the Stafford Loan and the Perkins Loan. Both are made to
undergraduate and graduate students attending college at least half-time, and both have annual and cumulative
borrowing limits. The drawback of student loans is that you'll need to repay them at a later date. And graduate and
professional students are eligible to borrow the full cost of their education (minus any financial aid received) under
the federal PLUS Loan program.
Grants--The two main federal grants are the Pell Grant and the Supplemental Educational Opportunity Grant
(SEOG). They're available only to undergraduate students, and they don't need to be repaid. Two other federal
grant programs are also available to full-time undergraduate students--the Academic Competitiveness Grant for
first- and second-year students and the National Science and Mathematics Access to Retain Talent (SMART) Grant
for third- and fourth- year students.
Work-study--The federal work-study program subsidizes jobs for both undergraduate and graduate students.
Military aid--The federal government offers educational benefits for veterans and their dependents. Contact
your local veteran's office or your school's financial aid office.
If you don't qualify for federal financial aid (and you should always apply, even if you don't think you'll qualify),
you may still be eligible for institutional aid from your school--specifically grants, scholarships, and work-study
programs. Inquire at the financial aid office and do your best to meet all application deadlines, because institutional
aid is typically administered on a first-come, first-served basis. Finally, don't forget to search for outside
scholarships. Thousands of private organizations offer them, and some are based solely on achievement. An easy
way to search for scholarships is on the Internet, but don't pay anyone to do it for you--searching is free.
Keep in mind that the federal government and colleges base your aid eligibility on last year's tax records. If you
plan to reduce your hours or stop working to attend school, your income will obviously be less when school starts.
Make sure to bring this to the attention of your school's financial aid director, who's authorized to take special
circumstances into account, and where appropriate, rebalance aid awards.
Take a trip to the bank
If you don't qualify for financial aid or you need to borrow more than the federal student loan limits, private loans
from commercial lenders are an option. However, the rates on private loans are typically one or two percentage
points higher than on federal student loans.
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Use personal assets (or cash under the mattress)
Do you have savings that could cover a portion of your expenses? Or maybe you could sell some assets. Just
remember that tapping your retirement funds should be a last resort--money you withdraw will reduce your nest egg
and miss out on the potential for tax-deferred growth. And, depending on the type of retirement account you tap, you
may also face tax consequences and penalties for withdrawing money before age 59½.
Investigate education tax credits and deductions
In addition to the tax break noted above for employer-provided educational assistance, there are several other tax
incentives that can help ease the financial burden of returning to school:
American Opportunity credit (Hope credit)--This credit is generally worth up to $2,500 in 2011 for tuition and
related expenses for the first four years of undergraduate education, provided you're enrolled at least half-time. To
take the full credit, your modified adjusted gross income (MAGI) must be below $80,000 (single) or $160,000
(married filing jointly). A partial credit is available to single filers with a MAGI between $80,000 and $90,000 and
joint filers with a MAGI between $160,000 and $180,000.
Lifetime Learning credit--This credit is generally worth up to $2,000 in 2011 to cover the tuition and fees for
higher education courses taken throughout your lifetime, whether to acquire or improve job skills. To take the full
credit, your MAGI must be below $51,000 (single) or $102,000 (married filing jointly). A partial credit is available
to single filers with a MAGI between $51,000 and $61,000 and joint filers with a MAGI between $102,000 and
$122,000. Unfortunately, the American Opportunity credit and Lifetime Learning credit can't be claimed in the same
year--it's one or the other.
Student loan interest deduction--If you graduate with student loans, you can deduct up to $2,500 of the interest you
pay on student loans each year. To take the full deduction in 2011, your modified adjusted gross income (MAGI)
must be below $60,000 (single) or $120,000 (married filing jointly). A partial deduction is available to single filers
with a MAGI between $60,000 and $75,000 and joint filers with a MAGI between $120,000 and $150,000.
For assistance or more information, consult a tax professional or IRS Publication 970, Tax Benefits for Education.
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Finally, how will you balance school, career, and life?
You've found the money--now you need to find the time. Balancing school demands with the rest of your adult
responsibilities will be challenging, though not impossible. Here are some tips:
Map out your life goals (again) to confirm that returning to school will help you achieve them
Establish a family/friend support network before classes start, and make sure your family supports your decision
to return to school.
If you have older children, explain your new routine and how they can help out. If you have younger children,
arrange day care if necessary--check to see if your school offers it.
Look for programs designed for adult students (e.g., support groups, tutoring programs, specially trained
academic advisors and counselors).
Consider going to school part-time, taking night classes, or signing up for online classes. Each option can save
you time and money.
Always keep in mind the financial and personal rewards that will come after your education is complete.
Submitted by: Therese Hinshaw, Site Coordinator, Butte and Helena
Source:www.360financialliteracy.org/Topics/Paying-for-Education/Going-to-College-as-an9
To apply for most financial aid — including federal and state student grants, work-study, and loans — you’ll need to complete
the Free Application for Federal Student Aid (FAFSA). Although this financial aid form may seem complex, there are many free
resources to help you. And completing the form is easier than it used to be, thanks to the new IRS Data Retrieval Tool.
Where to Find the FAFSA
The FAFSA is available online at FAFSA on the Web. If you need a paper copy, you can download a PDF at
www.studentaid.ed.gov/PDFfafsa or call 800-4-FED-AID (433-3243).
FAFSA on the Web
You can complete, submit and track your application online. This is the easiest way to apply for federal aid. The online program
even checks your data before it is transmitted to the processing center, so there's less chance of making an error.
Before You Apply
Complete your income tax return. You don’t have to file your
income tax return before you fill out the FAFSA, but it’s a good
idea to do so. A lot of the requested information is the same, and
you may be able to use the time-saving IRS Data Retrieval Tool.
If your college has an early financial aid application deadline, you
may need to complete your FAFSA before your income tax return
is ready. Just estimate your and your parents’ income as best as
you can on the FAFSA. Don’t worry — you can return and update
your information once your tax returns have been filed.
Create an FSA ID. When you start your FAFSA on the Web
application, you will set up your account by creating a user ID
and password. These will become your online identifiers for all
federal student aid programs. You will need to provide your own
email address and password (parents will create their own
account using a different email address and password). Set up
your user ID and password before you start your FAFSA. Learn
how to create an FSA ID (.pdf/2.1MB).
Note: The FSA ID replaces the FAFSA PIN as of May 10, 2015. If you already have a FAFSA PIN, you can create a new FSA
ID and link that to your existing PIN.
Reminders and Resources
January 1 is the first day you can file the FAFSA. You should try to file as close to this date as possible. College, state and
private aid deadlines may be much earlier than federal deadlines. You should pay attention to your colleges' priority financial aid
deadlines. For help, go to the free government website Completing the FAFSA. It has a detailed question-by-question guide to
filling out the FAFSA. More free help can be found at Student Aid on the Web.
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The New IRS Data Retrieval Tool
You can save time and effort if you qualify to use the IRS Data Retrieval Tool. It will transfer your income tax data directly
from the IRS to your online FAFSA.
You and your parents may be eligible to use this tool if:

Your family income tax returns were filed electronically at least two weeks before you complete the FAFSA.

Your family income tax returns were mailed to the IRS at least eight weeks before you complete the FAFSA.
If you are eligible to use the IRS Data Retrieval Tool and choose to do so, you’ll be transferred from the online FAFSA to the
IRS website, which will guide you through the transfer of your tax information. When you’re done, you’ll be sent back to your
FAFSA. You don’t have to use this tool, but it’s recommended that you do. If you have to complete the FAFSA using
estimated income tax information, you can always return to FAFSA on the Web to use the IRS Data Retrieval Tool once you
have filed your tax forms.
What Happens After You Apply
Once you submit the FAFSA, your family’s financial information is analyzed using the federal need formula.
The Student Aid Report (SAR)
After the information you provided is analyzed, you will receive a SAR that contains the data you entered on the FAFSA. The
U.S. Department of Education will send this form to you either by email or by postal mail. Review the SAR carefully for errors
(the form highlights items that may need attention) and follow directions for making and submitting corrections. Submit
corrections promptly. Make sure to keep a copy of the SAR for your records.
Expected Family Contribution (EFC)
On the front page of the SAR, you'll find a figure called the expected family contribution (EFC). Your EFC is an indicator of
your family’s financial strength. It is sent to your state scholarship agency as well as to the colleges you listed on the FAFSA.
They use this number to determine your financial aid award. Learn more about the EFC.
Other Financial Aid Forms
After you complete the FAFSA, make sure you submit any additional financial aid forms that your colleges require. For
example, some colleges require you to submit the CSS/Financial Aid PROFILE® or their own forms.
Submitted by: Michelle Gasek, Site Coordinator, Billings
Source: https://bigfuture.collegeboard.org
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Scholarships and state aid can help cover the
cost of college or career school, but you may
fine yourself in need of federal assistance.
Many states have college funding programs. Ask a guidance
counselor or your college financial aid office for more
information.
Look for scholarships through your state or college as well
as national and community organizations.
It’s time to apply for financial aid.
The FAFSA is the Free Application
for Federal Student Aid and is the
only way to apply for federal
student aid. The schools you list on
your application will use FAFSA
information to evaluate your
financial need and determine how
much federal aid you are eligible
for. Many states and colleges also
use information from your FAFSA
to provide their own financial aid.
Each January the FAFSA is available for the upcoming
school year. It is best to fill it out as early as you can
because some aid is first come, first served.
When you complete FAFSA, you’ll need to provide personal and tax
information. If you’ve filed your taxes already, you may be able to
automatically retrieve the information from the IRS.
If you haven’t, you can estimate and update it later.
Complete the FAFSA online at www.fafsa.gov.
Make sure to fill out and submit the FAFSA
each year you are in college.
After you submit you FAFSA, you’ll receive your Student Aid Report (SAR)
Your FAFSA helps your school determine the types of federal student aid you are eligible to receive.
As the largest provide of financial aid, the U.S. Department of
Federal Student Aid provides grants, loans, and work-study
funds
Grants are free money that
do not have to be repaid.
Student loans are real loans (like a car or
home loan) that need repaid with interest.
A work-study job gives you the opportunity
To earn money to help pay for educational expenses.
Your award letter explains the combination of federal
grants, loans, and work-study a college is offering
You. The offer might also contain state and
Institutional aid.
Every year, millions of new students attend college or
career school for the first time. Your school has a
financial aid office to help guide you along the
way.
When you take the time to plan for your education and let Federal
Student Aid help you along the way, you’ll be setting the
foundation for a bright future and success in the workforce.
Once you leave school, you will need to repay your
student loans. Contact your loan servicer to discuss your
r
repayment options.
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There are billions of dollars of financial aid available to students who need help paying for college. If you want this assistance,
it’s important that you determine your eligibility and apply on time.
How many college students get financial aid?
About two-thirds of full-time students pay for college with the help of financial aid in the form of grants and scholarships.
Approximately 57 percent of financial aid dollars awarded to undergraduates are in the form of grants, and 34 percent take the
form of federal loans.
Can I afford to go to college?
Despite all the news stories about rising college prices, a college education is more affordable than most people believe. There
are many colleges that provide an excellent educational experience at a price you can manage. Public college prices are much
lower than you might expect.
Does applying for financial aid hurt my chances of being admitted?
Not usually. You are generally admitted based on your academic performance and the qualities you bring to the campus
community. Colleges want to admit a diverse group of students and often use financial aid to achieve that goal. It is very
important to apply for financial aid early in the application process, before all of a college’s funds are allocated.
Do I qualify for aid even if I don’t get straight A’s?
It's true that many scholarships reward student performance in high school, but most government aid is based on financial need.
Remember, if you do receive need-based aid, you must remain in good academic standing to renew your aid annually.
Are private colleges out of my reach?
Although the cost of college is certainly an important factor, you should not concentrate on it until later in your college-selection
process. Instead, focus on finding a college that is a good fit — one that meets your academic, career and personal needs. In
some cases, you might have a better chance of receiving aid from a private college and end up paying a lower total price than at a
public college. Private colleges often offer more financial aid to attract students from every income level.
Is my family’s income too high to qualify for aid?
Financial aid is intended to make college available to students from many different financial situations. College financial aid
officers consider family income, the number of family members in college, medical expenses and many other factors when
reviewing your financial aid application So, even if you think your family income is too high for you to qualify for aid, you
should fill out the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1. This form determines
your eligibility for federal and state student grants, work-study and federal loans.
The best way to get an estimate of how much financial aid a college will offer you — and therefore how much you’ll really pay
to go to that college — is to use the college’s net price calculator. Most colleges have these tools on their websites. Net price
calculators give you an estimate of your net price for a particular college — that is, the cost of attendance minus the gift aid you
might get. Learn more about net price.
Should I work while I’m attending college?
Students who attempt to juggle full-time work and full-time studies may have difficulty completing their academic programs.
However, students who choose to work a moderate amount often do better academically. You may find that working in campus
jobs related to your career goals may be a good way to manage college costs, get experience and create new ties with the
university.
Can I try to get my aid award revised?
Some colleges may be willing to review your financial aid package if your financial situation changes. Consider discussing these
changes with the financial aid office if your family has experienced an unexpected decrease in income or increase in expenses
since you applied for financial aid.
Submitted by: Michelle Gasek, Site Coordinator, Billings
Source: https://bigfuture.collegeboard.org & studentaid.gov
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College students logging onto the National Endowment for Financial Education’s CashCourse can take a “Financial
Realities” quiz to test their knowledge. In the opening question, they’re asked what will have the worst impact on
their finances: gourmet coffee drinks, borrowing money, or spending without a plan. Teaching students why the
third option is the correct answer is a common goal of college financial literacy programs. While these programs
stress that borrowing to get a college degree can be a wise investment that pays off big in lifetime earnings, one of
their other top aims is reducing the student loan default rate.
Many higher ed leaders are realizing that the best way to wrangle
runaway student loan debt is to make sure students master the
basics of money management. Their institutions have implemented
comprehensive financial literacy programs that encompass not just
managing loans and paying for college but also topics like
budgets, credit cards, 401(k)s, and payroll taxes. To some degree,
institutions are rolling out these programs by necessity. The Higher
Education Act of 1965 requires colleges to provide entrance and
exit counseling to students receiving federal loans, to review such
information as the terms of the loan and repayment plans. Some
institutions also offer general debt management advice in those
counseling sessions, as financial aid and college planning author
Mark Kantrowitz notes on his website FinAid.org. And some
financial literacy advocates would like to see a stronger push from
the federal government. “We at ASA are in favor of using the
upcoming reauthorization of the Higher Education Act to
encourage financial education counseling to student borrowers through financial aid offices, employers or
nonprofits,” says Allesandra Lanza, director of corporate public relations for American Student Assistance. Here’s
how financial literacy efforts have evolved on campuses and how the content of these programs is helping students
to wisely manage their debt—and in turn helping to keep default rates down.
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Programming is prevalent
Back in 2004, Sharon Cabeen, now financial literacy program director for TG, was just entering the college
financial aid consulting business. That year she attended a conference of financial aid directors and asked a room of
about 100 attendees how many believed it was their job to teach students about money management. Fewer than 10
people raised their hands. “Two years later, in the same kind of situation, about 90 percent of the room raised their
hand,” Cabeen says. “So it has really grown since the early 2000s.
Numerous kinds of groups have tried to assist the higher education
community in implementing financial literacy, but the schools are
finally adopting it.” NEFE was one of the first U.S. organizations to
develop a financial literacy curriculum for college students,
launching its CashCourse program in 2007. “Each year we’ve seen a
huge growth of interest in personal finance ... and teaching students
how to manage their money, not only while they’re in school but also
preparing them for after school,” says Amy Hartenstine, NEFE’s
CashCourse program director. She anticipates that many colleges and
universities will not only launch similar programs, but more
institutions will form specific departments or centers focusing on
student money management. Cindy Morris, senior default conversion
consultant at TG, says financial literacy has become a key
component in the default management plans at many colleges and universities. “Default prevention is kind of a
new idea for schools,” Morris says. “It’s just within the last few years that schools have been thinking about default
prevention as part of their responsibility. ... At a bare minimum, students get entrance and exit counseling when
they borrow money.”
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Financial Literacy
Common Cents
Lessons learned, early and often
The University of Texas-Pan American, which started its financial literacy program in 2009, has used various iterations
of the TG curriculum. Initially student financial services staff members made presentations using TG materials to the
university’s freshman Learning Framework classes. When a staff restructuring in 2011 made that method of covering
the curriculum’s 50 course sections unfeasible, professors teaching Learning Frameworks started accessing information
from TG’s online Learning Center and distributing it to their students. “Some professors did it; others didn’t,” Garcia
says. “We didn’t get as many users as we would have liked.” Since fall 2012, Garcia’s team has been giving financial
literacy talks to incoming freshmen at the Bronc Roundup, UT Pan American’s three-day orientation event. Also
reaching students early on, and often, is Syracuse University in New York through a comprehensive financial literacy
program dubbed “I Otto Know This!” Named for the university’s mascot, Otto the Orange, the program has
components geared toward both undergrads and graduate students. Administrators first integrated financial literacy into
the university’s Money Awareness Program (MAP) in the spring of 2009. Through MAP, eligible students can have
their private student loan balances reduced or replaced with Syracuse University grant money. “In exchange, the
students have to attend one financial literacy session per semester until they graduate,” says Rebecca Rose, assistant
director of the office of financial aid at Syracuse. Because of the positive student response to those sessions, Syracuse
administrators expanded the financial literacy program to the entire campus, with participation voluntary for most. Like
MAP students, recipients of federal TEACH grants—which help reduce student borrowing for teacher education and
related disciplines—also are required to take financial literacy. In addition, students can go online to access the
self-directed Life Skills modular curriculum from USA Funds. According to Rose, more than 6,000 Syracuse students
have completed at least one module since June 2010. California State University, Bakersfield has a financial literacy
web page, hosted by iGrad, that has been incorporated into its student orientation and first-year core curriculum. The
page has been promoted in everything from the university’s general website to direct emails to an electronic monitor in
the lobby of the administration building, says Ron Radney, director of financial aid and scholarships.
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“Student feedback has been very positive, which will hopefully translate into assisting students in making sound financial
decisions in the future,” Radney says. University officials also hope the program will help increase retention and graduation
rates, thus “fostering future alumni contributors and lowering our default rate,” he adds. At San Jacinto College, a Texas
community college system with three campuses in and around Houston, financial literacy education is mandatory for all
students who are appealing the loss of federal financial aid due to academic ineligibility, says Elena Olivier, the default
prevention coordinator. Part of the college’s default prevention plan, the program has been in place three years. It consists of
graded online courses from USA Funds’ Life Skills program and face-to-face lessons that Olivier conducts herself. In
addition to the Life Skills content, Olivier uses PowerPoint presentations from TG. While the students often gripe about being
forced to take the courses, once they get exposed to information that boosts their money management know-how, they “are
like sponges,” Olivier says. Many return to take additional sessions. Also an adjunct professor of business at the college,
Olivier incorporates financial literacy into all of her classes, from business English to computer skills. Several other San
Jacinto business professors have followed suit, she says.
USA Funds introduced a redesigned financial literacy curriculum in May 2013. Student focus groups helped guide the
redesign and offered some surprising feedback, given what the consulting company’s campus reps had heard previously from
higher ed officials, says Sara Wilson, financial literacy project manager at USA Funds. “When you asked the schools what
they thought students wanted to know, saving for the future was one of the lowest topics on the list,” Wilson says. Further
analysis revealed that administrators thought students wouldn’t be interested in Information not pertaining to their immediate
concerns. But talking to student groups showed that wasn’t the case. They actually were interested in understanding more
about things like saving money and investing in 401(k)s, Wilson says. Many college students don’t know what they don’t
know about money, experts say, and they can benefit greatly from the direction and focus that a formal financial literacy
curriculum provides. “They know they need help, but they can’t articulate the exact need,” says Alisa Wilke, director of
product development at ASA. “They really want someone to hold their hand and give them the next steps.”
Submitted by: Eleanor Martin, Director of EOC
Source: University Business
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$
$
$
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Financial Rules
Every College
Student Should
It’s time to stuff your suitcases full of all your earthly belongings and go shopping for a hoodie bearing some fearsome
mascot. You’re headed off to college, perhaps the first time you will be left to your own financial devices. It’s a liberating
feeling, but also a period that petrifies financial advisers and parents, too. Faced with student loans — along with
fend-for-yourself expenses like paying for food and rent — many college students are often unprepared for the financial
world they’re entering.
“High schools and middle schools don’t do a good job preparing students for budgeting,” said Ronya Corey, senior vice
president of wealth management at Merrill Lynch. “Unfortunately for most students, going to college is a practical exercise
in finance.”
Students are leaving college with a big mound of student loan debt. Seven in 10 college students owe an average of $28,000
in student loans, according to an Institute for College Access & Success study in 2013, the last year for which such data is
available.
So how do you get through college with enough fiscal savvy to avoid living with your parents after graduation? Here are five
financial tips for college students to help you navigate those four (or five years) and exit with less monetary heartache then
your peers
1. Start thinking about money now, or even before you go off to school.
Develop your financial strategy before you set foot on campus, said Katherine Dean, managing director of wealth planning
at Wells Fargo. Hash out your expenses: tuition, books, rent, food, airfare home for Thanksgiving, entertainment, tickets to
football games. Be transparent with yourself and your parents about how much college is really going to cost.
Talk with your parents to get a stronger grasp on what real world expenses look like. Go food shopping with your
dad to learn how much groceries cost. Going on a family vacation? Book travel plans with your mom so you know how much
your family spends on airfare.
“The earlier the better,” Dean said, “because it better equips and prepares them for what they’re getting into.” It’s
never too late to approach your parents or a financial mentor (like a grandparent or family friend) to learn some of the same
basics, Dean said. “Find folks in your life who you see are financially successful and reach out to them informally about
what they did and what you should do,” she said.
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2. Make a budget and stick to it.
Remember all those expenses you laid out? The tuition, books, rent, food, entertainment and whatnot? Set goals for
yourself about how much you want to spend on each and hold yourself to those goals.
Categorize your spending into “buckets,” said Rick Harkins, wealth management adviser at Harkins Wealth Management
in Providence, R.I. And if you’re on track to overspend in one bucket, don’t pour money from another into it. “Stick to those
allocations,”
Harkins said. “If you spend down one bucket, don’t take from another.” Use online tools to track your spending habits and
help you set accurate goals. Most banks offer free spending-tracking software.
Other Web sites like Mint.com or eMoney do, as well. Some of those tools allow you to set up recurring payments online for
monthly expenses, such as rent, utilities and tuition. That takes away some of the risk of accidentally paying a bill
late, Harkins said.
If you’re still struggling to figure out your financial priorities, take a class in personal finance, Harkins said. Most colleges
offer personal finance courses (which might help you rack up some credits toward that degree) or seminars that can help
you nail down the basics and find a system that works best for you.
“A Budget is telling your money where to go
instead of wondering where it went.”
- Dave Ramsey
3. Monitor and protect your credit.
College is the first time a lot of young people get credit or debit cards. It’s
also the first time young people might take on substantial amounts of
debt in the form of student loans. Opening a credit card may help
students establish a financial foothold and create a credit history. But
there are potential pitfalls, Harkins said.
Missing a single credit card payment can ding your credit score and
increase the fees and interest rate associated with the card. And some
credit cards target students with free giveaways, but carry high fees and
interest rates. Compare credit cards to find out the interest rates they
charge.
Research their fee structures. One card might have a low interest rate,
but charge an exorbitant fee every time you withdraw money or make a
payment, said Michelle Cortes-Harkins, an adviser at Harkins Wealth
Management (and Harkins’ wife).
If you have a job in college that gives you a steady and relatively
substantial income, start paying down your student loans then and there,
Cortes-Harkins said. If not, make sure you know when the loans will be
due, Corey said. If it’s not until after you graduate, that gives you time to
find a stable job and get your financial feet on the ground before you
must start to make payments.
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If the size of credit cards were
In proportion to credit card debt.
“No one’s ever
Achieved
Financial
Fitness with a
January
Resolution
That’s
Abandoned by February.”
- Suze Orman
4. Save, save, save, save, save, save, save. Then save some more.
Have you saved yet? You should, financial advisers agree. In fact, take a break from reading this piece to go sock
away a few dollars. College is a time rife with uncertainty, which means students need to have some money on
hand for an unexpected expense.
What if your car breaks down or you have to fly home suddenly? Harkins recommends regarding saving as a
subscription. If you’re willing to pay $7.99 a month for Netflix, couldn’t you put aside $10 a month — or $20 or
however much you can afford — to “pay yourself?”
“As soon as you do have discretionary income and start living on a budget, you can probably find that money,”
Harkins said. View your saving as a sliding scale, he said. It’s best to stash away 10 to 15 percent of your income,
but if you have a job, maybe you can afford to save 20 percent.
If you’re living off an allowance from your parents, maybe save 7 or 8 percent. That’s a good way to start saving for
retirement or some larger future expenses, such as buying a home or going to graduate school (because no one
wants to leave college). Set up a Roth IRA — an individual retirement account — the advisers say.
You can invest up to $5,500 a year in a tax-free Roth IRA. You can take $10,000 out of that account after five years
without penalty to buy your first home or for more education. Otherwise, that money you’ve invested stays locked
up accruing interest until you’re 59 and a half years old, when — presto! — you have retirement savings!
“Students are pretty reluctant to open a Roth IRA because they think, ‘I can’t access that money for another 40
years,’ ” Corey said. “To have especially millennials think about long-term planning, I find very difficult. I show
people the power of compounding to show them how far ahead it gets them.”
Last year, Charles Schwab reported that 87 percent of custodial accounts — the kind parents or relatives set up for
young people — were Roth IRAs. That’s a great way to get started. Ask parents or grandparents or aunts and
uncles to match the contribution you make, Corey said.
Young people who are paying their own expenses for the first time are probably wary of locking their money away
for the long haul, Corey said. Partnering with adults who can help support financial future is a great incentive to
keep saving.
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5. Live below, not within, your means.
Think about it this way: If you live below your means during college, you have a bunch of money left over after
college when you’re thrust into the dark and scary “real world.” Take advantage of student discounts,
Cortes-Harkins said.
They’re everywhere, from riding public transportation, to buying movie tickets. High school and college students
can save 10 percent on Amtrak fares with a “student advantage” card. College students get free two-day shipping
from Amazon.
Use travel Web sites such as Kayak and Travelocity to hunt for travel deals. Think twice about
whether you really need that sweater from the book store or that extra cup of coffee.
Talk with your roommates about sharing expenses for things like groceries or dorm or apartment decor. Talk with
your significant other about who pays for every date. “Talk about money,” said Harkins. “I think, in years past, we
didn’t even talk about money when we were kids. It was a taboo subject.” That shouldn’t be the case anymore, he
said, especially for young people who have to fend for themselves.
“ If you buy things
you do not need,
soon you will have
to sell things you
do need.”
- Warren Buffet
Submitted by: Jamie Kearra, Site Coordinator, Missoula
Source: https://www.washingtonpost.com/news/get-there/wp/2015/08/10/5-ways-to-ensure-youarent-broke-when-you-graduate-college/
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Why is money management important?
Throughout life you will spend, borrow, save, and invest money. You will make economic
decisions as a student, a wage earner, an investor, and a citizen. Each day you will make
choices that affect your financial future. Achieving financial security involves planning and
making sound financial choices. Sound choices
include:
Saving early and consistently
Comparison shopping
Developing a money management plan
Increasing your education or training
Learning how to use credit wisely
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Why is goal setting important?
Goals should reflect the person you are and what is important to you. Think of setting goals as
determining the destination for your future. Goals help you focus your energy, time, and
financial resources; as well as help you make informed decisions when unexpected situations
arise. A goal should provide guidance and direction. Use the S.M.A.R.T. criteria below to
put more detail into your goals.
Specific:
Create a specific goal rather than a general one.
Measurable: Establish criteria for measuring progress towards each goal.
Attainable:
Stay inspired to meet the goal by making it reasonable.
Realistic:
Be willing and able to work towards the objective.
Time-based:
Give the goal a deadline.
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Put money management and goal setting together and you
can become financially successful. Consider the keys to
success as you read forward. Examples may include:
Learning to manage money wisely
Living within your means
Being willing to work and sacrifice
Taking the time to gather information
Goals generally fall into one of two broad categories:
Often achieved in the near future (in a day, a week, or
within a few months). Some examples of short term goals
are:
Paying off a debt
Putting money in a saving account
Completing a class with a high grade
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Long-term goals are achieved over a longer period of time (one year, five years, or twenty years).
Some examples of long term goals are:
Graduating from college
Buying a home
Living Debt free
Short and long term goals complement each other. The completion of short term goals
will give you the momentum and motivation to accomplish your long term goals.
Submitted by: Marty Foxman, Site Coordinator, Great Falls and Havre
Source: http://mus.edu/prepare/Dollars_and_Sense_2014.pdf
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Call EOC at the following locations:
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