Financial AdultingAn Intro to Managing your Post-Collegiate Finances

Holly Wright UM Financial Education Program Manager

Repayment/Forgiveness of Student LoansMonthly BudgetsFind your Credit ReportEmergency Savings AccountReaching Financial Goals

FREE

http://www.umt.edu/financial-education/

Find Your Dream Job

Sample CoB Student

Common cities: LA, San Diego, Seattle, NYC, Denver, Missoula

Got a job in San Francisco

Gross Salary of $50,000 per year

Have health and retirement benefits

Calculate your take home pay.

Compare the price difference of various cities.

http://www.paycheckcity.com/calculator/salary/http://money.cnn.com/calculator/pf/cost-of-living/

Sample CoB Student

Monthly take home pay: $3,231.91

Price difference:

Groceries 23%

Housing 235%

Utilities 49%

Transportation 41%

Health Care 21%

Sample CoB Student

Monthly take home pay: $3,231.91

Price difference:

Groceries: $250 ----------- 23% increase = $308

Housing: $905 -------------235% increase = $3,032

Utilities: $90--------------- 49% increase = $134

Transportation:$300------ 41% increase = $423

Health Care: $30------------21% increase = $36

Total = $3,933

Article: Rent in San Francisco is so Expensive That it's Cheaper to Commute From Las Vegas

http://mobile.businessinsider.com/its-cheaper-to-commute-from-las-vegas-to-san-francisco-than-it-is-to-live-there-2015-10http://mobile.businessinsider.com/its-cheaper-to-commute-from-las-vegas-to-san-francisco-than-it-is-to-live-there-2015-10

This apartment is a 46 minutes bus ride to San FranciscoMonthly BART pass: $220

Student Loan Repayment 101

Overview of how to manage student loan repayment and available loan forgiveness options

Open to all students but intended for Seniors/JuniorsEmail notification sent out after Spring Break

Sample CoB Student

Carrying a balance of $29,500

Have an average interest rate of 4.9%

Have monthly payments of $311/month starting 6 months after graduation and lasting 10 years.

Will pay $7,800 in interest over the life of the loan

Use this repayment estimator to look at your loan payment

https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.actionhttps://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action

Change Loan Repayment

Bountiful Baskets

http://bountifulbaskets.org

Other Ways to Cut ExpensesUtilize your health benefits:

Will they cover your Gym Membership?

Will they cover child care?

Do you have a Flex Account that will cover co-pays?

Do they have an incentivized wellness program?

Review your options EVERY year

Check your credit report

Shop around for rentals and auto insurance

Consider finding a roommate

https://www.annualcreditreport.com/index.action

Average Living Expenses

Long Term Ways to Cut Expenses

Build an Emergency Savings Fund

Build a separate savings fund with 3-6 months worth of living expenses

Utilize your retirement benefits:

Will your employer match funds?

Does your employer provide access to a Financail Planner?

Decide how big of a risk taker you are

Invest early

Big Ticket Purchases

A New Car!

Good interest rate on an auto loan is 4%-6%

Typical repayment term is 5 years/60 months

Sample: 2019 Subaru Ascent is $31,995

A $31,995 loan at 4% with a 60 month term would have payments of $589/month

Auto Loan Calculator on Google

https://www.google.com/search?rlz=1C1GCEU_enUS820US821&ei=e9Z-XJrUGojk-gTl6JDYAw&q=auto+loan+calculator&oq=auto+l&gs_l=psy-ab.3.0.0i131i67j0i67l4j0l4j0i67.43787.44865..45858...0.0..0.61.330.6......0....1..gws-wiz.......0i71j0i131j0i10.9-zVYf9X4W0

Big Ticket Purchases

Homeownership!

The debt you carry will influence the mortgage you can get

What is the Debt-to-Income Ratio?

Debt-to-Income Ratio Calculator

http://www.consumerfinance.gov/askcfpb/1791/what-debt-income-ratio-why-43-debt-income-ratio-important.htmlhttps://www.zillow.com/mortgage-calculator/debt-to-income-calculator/

Utilize the Homebuyer Education course offered by Homeword

http://www.homeword.org

Other Resources

Article: "Adulting: A Financial Cheat Sheet", Money Magazine, May 2016

mint.com

Consumer Financial Protection Bureau

http://mint.comhttp://www.consumerfinance.gov

http://www.umt.edu/financial-education/