Budget? What budget? Heads and Tails of Money Management 2009 National Student Loan Program
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
Wow I m rich! Oh wait Why do I need a budget?
Good reasons to budget Reduce stress Borrow less Get closer to your financial goal Be prepared for life events/emergencies Imagine, me with money!
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
Goals? What goals?
Attainable goal characteristics Specific Measurable Attainable Relevant Time bound My short-term goal is to survive this semester.
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.
Give it a try! Goals Activity My #1 goal turn to page 4 of Budget? What Budget booklet. is to pay off my loans
Let s create a budget
Do the math Calculate sources of income List expenses fixed flexible periodic Don t forget savings This list, seems to be unending
Begin saving Flexible and periodic expenses Freedom fund Long-term financial goals education retirement
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
Budget guidelines Net income / expense = % of budget 35% Other 15% Transportation 38% Housing 12% Food
Transportation Car payments and insurance Tag or license fees Maintenance Public transportation Parking 15% Gasoline
Housing Rent or mortgage Utilities (water, gas, phone, electricity) Home maintenance Insurance Taxes 38%
Food Meals Snacks Beverages Pet food 12% Eating out
Other expenses Medical Savings Clothing 35% Entertainment Child care Personal care Charitable giving/tithing Debt repayment (consumer and student loan) Insurance
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
Student loan debt Check out your student loan debt: NSLP s Loan Summary www.nslp.org, Students & Borrowers section National Student Loan Data System (NSLDS) www.nslds.ed.gov Calculate your repayment NSLP s Student Loan Repayment Calculator www.nslp.org, Students & Borrowers/Calculators section
Make the most of your budget
More dollars in Part-time jobs Sell unused items ebay Craigslist consignment shops Use special skills Get creative
Fewer dollars out Buy generic Make your lunch Go to a matinee Find a roommate Turn off lights Buy items used Use the library
The step-down principal p Fine Dining Chain Dining Fast Food Boxed Meals Cook Meals
Stay on track
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 online @ Register online @ www.nslpflonline.org
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
Ask questions and be curious! Friends Family Books Websites Newspapers Magazines TV, talk radio
Now you can Understand why you need a budget Set financial goals Develop a budget Maximize your budget Maintain your budget
Now what?
Learn more about budgeting g @ www.nslpflonline.org Plus you ll find these topics Credit Contracts Credit History Insurance Identity Theft Starting a Business Financing i Education
Contact the NSLP Financial Literacy Team at: nslpfinancialliteracy@nslp.org National Student Loan Program 1300 O Street Lincoln, NE 68508 www.nslp.org