Budget? What budget? Heads and Tails of Money Management National Student Loan Program

Transcription

1 Budget? What budget? Heads and Tails of Money Management 2009 National Student Loan Program

2 After this session, you will be able to Understand d why you need a budget Set financial goals Develop a budget Maximize your budget Maintain your budget

3 Wow I m rich! Oh wait Why do I need a budget?

4 Good reasons to budget Reduce stress Borrow less Get closer to your financial goal Be prepared for life events/emergencies Imagine, me with money!

5 To avoid financial difficulty Bad habits keeping up with the Jones (wants vs. needs) failure to develop/manage a plan Unforeseen life events job loss car accident illness

6 Goals? What goals?

7 Attainable goal characteristics Specific Measurable Attainable Relevant Time bound My short-term goal is to survive this semester.

8 Set goals - timeline Short-term goals Pay off credit cards. Pay off small loans Mid-term goals Pay off car loan. Save for home down payment. Long-term goals Pay off student loan. Pay off mortgage.

9 Give it a try! Goals Activity My #1 goal turn to page 4 of Budget? What Budget booklet. is to pay off my loans

10 Let s create a budget

11 Do the math Calculate sources of income List expenses fixed flexible periodic Don t forget savings This list, seems to be unending

12 Begin saving Flexible and periodic expenses Freedom fund Long-term financial goals education retirement

13 Go figure Plan your money needs for each month Total the expected monthly income List EVERY monthly expense Prorate periodic monthly expenses Customize your plan

14 Budget guidelines Net income / expense = % of budget 35% Other 15% Transportation 38% Housing 12% Food

15 Transportation Car payments and insurance Tag or license fees Maintenance Public transportation Parking 15% Gasoline

16 Housing Rent or mortgage Utilities (water, gas, phone, electricity) Home maintenance Insurance Taxes 38%

17 Food Meals Snacks Beverages Pet food 12% Eating out

18 Other expenses Medical Savings Clothing 35% Entertainment Child care Personal care Charitable giving/tithing Debt repayment (consumer and student loan) Insurance

19 Give it a try! List expenses Activity turn to page 8 of Budget? What Budget? booklet T k time t Take time to do the math

20 Student loan debt Check out your student loan debt: NSLP s Loan Summary Students & Borrowers section National Student Loan Data System (NSLDS) Calculate your repayment NSLP s Student Loan Repayment Calculator Students & Borrowers/Calculators section

21 Make the most of your budget

22 More dollars in Part-time jobs Sell unused items ebay Craigslist consignment shops Use special skills Get creative

23 Fewer dollars out Buy generic Make your lunch Go to a matinee Find a roommate Turn off lights Buy items used Use the library

24 The step-down principal p Fine Dining Chain Dining Fast Food Boxed Meals Cook Meals

25 Stay on track

26 Track expenses for one month Record expenses on a mobile device or in a notebook Save EVERY receipt and record daily At month end, add expenses to see where your money goes Register Register

27 Develop pgood money habits Start one new money habit weekly track expenses, file receipts, pay bills the same day, etc. Reward yourself for minor successes allow for a treat t in your budget plan Never spend change save every penny it adds up fast

28 Ask questions and be curious! Friends Family Books Websites Newspapers Magazines TV, talk radio

29 Now you can Understand why you need a budget Set financial goals Develop a budget Maximize your budget Maintain your budget

30 Now what?

31 Learn more about budgeting Plus you ll find these topics Credit Contracts Credit History Insurance Identity Theft Starting a Business Financing i Education

32 Contact the NSLP Financial Literacy Team at: National Student Loan Program 1300 O Street Lincoln, NE