1
Financial Wellness Curriculum
Introduction to Financial Management
More information available at www.YouCanDealWithIt.com
2
Introduction to Financial Management
Understand short and long term goals
Where does your money go
How to use student loan money wisely
Learning to budget
Understand how to manage debt
Smart ways to think about money
3
Setting Financial Goals
Short Term Goals: Have enough money to last the semester Go out Friday night Pay off a department store credit card
Long Term Goals: Buy a car Go to Cancun for spring break Buy a laptop
4
Know Where your Money is Going
Evaluate and track spending Keep a record of all your receipts for an entire month Update your check register
Remember that spending beyond your limits is dangerous
5
Track Expenses
Education expenses Books Transportation Meals
Living expenses Rent Utilities Cell phone
Debt payments Car Credit cards
Savings Pay yourself first
6
70-20-10 Rule
Use this as a guide to show you how to divide your money successfully.
Spend 70% Use for living and education expenses - rent, food, clothing, tuition,
etc.
Save 20% 5% for emergency funds 5% for specific goals – vacation, computer, etc. 10% invest for the long-term
Spend 10% For debt payments – car loan, credit card, student loans
7
Determining Financial Priorities
If you have $50 what would you spend it on? Savings or Personal Appearance Social Activity or Paying a Debt Sports or Eating Out Hobbies or Paying a Debt Personal Appearance or Sports Paying a Debt or Clothes Eating out or Savings
8
Use Your Student Loan Money Wisely
Use student loan money for school-related expenses only Tuition Books Supplies Transportation
Loans are not free money
Don’t incur unnecessary debt
Remember: Your student loan must be paid back!
9
Creating a Budget
Not restricting, but empowering
Lets you have more control over your life
Helps you see exactly where your money is going
Think spending plan, not budget
11
Managing Debt
Monthly debt: Credit cards Student loans Car payments Personal Loans
If your debt is: Under 15% - Relax 15-20% - Be Cautious Over 20% - Red Flag
12
Before You Buy …
Do you spend without thinking?
Before you make your next purchase - even if it is a “just” a new pair of jeans – walk away for 15 minutes and think about the following:
Do you NEED it? How will you pay for it – cash or credit? Where are you going to put it? What will happen if you don’t buy it?
13
Smart Ways to Think about Money
Make Your Money Last Find ways to increase your earnings Create and commit to a monthly budget Stay on top of your goals
Reduce Debt Stop charging Break the habit of paying only the minimum Transfer high rate credit card balances
15
Introduction to Financial Management
Understand short and long term goals
Where does your money go
How to use student loan money wisely
Learning to budget
Understand how to manage debt
Smart ways to think about money