Chapter 13 - Managing your Money
- 2. Your Turn So far, how well or poorly are you managing your money in college? Why is it easy or difficult?
- 3. Living on a Budget Creating a budget Step 1: Gather basic information Step 2: Build a plan Step 3: Do a test run Step 4: Make adjustments Cutting costs Recognize the differences between your needs and wants Share expenses Consider the pros and cons of living on campus Use low-cost transportation Seek out discount entertainment options Embrace secondhand goods Avoid unnecessary fees
- 4. Getting Financial Aid Types of aid Need-based scholarships Merit scholarships Grants Work-study Co-op education Qualifying for aid Free Application for Federal Student Aid How to avoid losing your funding File for financial aid every year Meet all filing deadlines Inquire every year about criteria-based aid Inquire about campus jobs Consider asking for a reassessment of your eligibility for aid
- 5. Achieving a Balance between Working and Borrowing Advantages and disadvantages of working Research possible occupations Build on your strengths and develop weaker skills Prepare a marketing strategy that sells you Write a convincing resume and cover letter Student loans Subsidized federal student loans Unsubsidized federal student loans Parent Loan for Undergraduate Students (PLUS) Private loans
- 6. Managing Credit Wisely Credit score Derived from a credit report that contains information about accounts in your name Understanding credit Beware of making only a minimum payment Avoid making late payments Credit cards should not be used to fund a lifestyle you cannot afford Debit cards You dont always have to carry cash The amount of purchases will be limited to the funds in your bank Commit your PIN to memory
- 7. Your Turn Do you have your own credit card or one that you own jointly with your parents? If not, what are your reasons for not getting one? If you do have a credit card, do you feel youre in control of the way you use it? Why or why not? If you dont have a card, do you think you are ready for one? Why or why not?
- 8. Planning for the Future Financing life after graduation Plan now for your next step Keep your address current with the registrar even when you have finished your degree or program Make a point of establishing a savings account and adding to it regularly
- 9. Tech Tip: Create Wealth and Security How to make money work for you Savings account Offers a secure place to grow your money IRA (Individual Retirement Account) Gives you a tax-deferred way to save for retirement 401(k) Employer-sponsored savings plan that lets you place a certain percentage of your earnings into a tax-deferred account