FWA HSBC Financial Backpack Program Take Control of Your Money! Spending Plans and Budgets All materials are on FWA.ORG Follow us on FACEBOOK
Top Lessons A budget is a plan that lays out what you will do with your money A budget helps you relieve stress and achieve your goals A budget is very important for college students
Money and College What people believe Most students go to college full time. If they leave without a degree, its because they are bored with their classes and do not want to work hard. Is this true? Researchers conducted a study of young adults who left school, asking about their major reasons for leaving. Researchers gave participants a list of nine possible reasons and asked each of them which ones were their major reasons for leaving. Johnson, Jean, and Jon Rochkind. "With Their Whole Lives Ahead of Them: Myths and Realities About Why So Many Students Fail to Finish College." (n.d.): n. pag. Public Agenda. Bill & Melinda Gates Foundation, Dec. 2009. Web.
Major Reasons for Leaving College Which reasons do you think were the most popular reasons for leaving? Rank from 1 (most popular reason) to 9 (least popular reason) Some of the classes were too difficult I don t like sitting in class All things considered, it just didn t seem to be worth the money I thought many of the classes were boring I didn t have enough time for my family I had to take too many classes that I did not think were useful I needed a break from school I just couldn t afford the tuition and fees I needed to go to work and make money
Major Reasons for Leaving College Survey Summary It is not true that the main reason for most students leaving college is that they re bored with their classes and don t want to work hard It is true that financial concerns are the top reasons for leaving school It is true that balancing work and school is a major stress for many college students Lessons Financial concerns do not have to stress you out in college You can alleviate stress in college by managing your finances well Using a budget helps you relieve stress and achieve your goals
Take Control of Your Money What words come to mind when you think of the word budget? Who makes budgets? Do college students need to make a budget?
How to Make a Budget Parts of a Budget Income: money you earn Expenses: money you spend Savings: money you keep for unexpected events and future goals Budget Formula Income = expenses + savings Sample Monthly Budget Income = $2,000 Expenses: Rent/Food = $900 Utilities = $200 Clothes/Personal = $300 Other = $400 Savings = $200
Case Study: Jenny s College Budget Welcome to College! Jenny is going to be a freshman in college Tuition, room, and board are covered by grants, loans, and scholarships Jenny needs a budget for all of her remaining expenses Help Jenny with the following issues: Prepare a budget and analyze Roommate issues Entertainment budget Credit cards Spring break Study abroad Present to the whole group on how you were able to help Jenny make her freshman year successful and fun
Case Study: Jenny s College Budget Help Jenny prepare her budget by filling in blanks on your worksheets: Using Jenny s story, fill in her expenses paying attention to monthly vs. 9 month expenses Calculate total expenses monthly and 9 month. Calculate net balance monthly and 9 month. Does Jenny s income cover her expected expenses? Will she be able to save as much as she would like? Which expenses are a need vs. want? Where can she cut back on her expenses? What is the benefit of looking at one month amounts? Discussion Questions: Present your team answers to the class
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