Money Counts A Financial Literacy Series After Graduation

Money. Counts: A Financial Literacy Series After Graduation 11 -A Grange Building University Park, PA 16802 financialliteracy. psu. edu finlit@psu. edu 814 -863 -0214

• Graduation marks the passage from student life to a world of possibility Description • You will make decisions that impact your future in all aspects of your life, socially, professionally, and financially • Financial literacy will assist you in transitioning from student to working life, live your passions, and achieve financial security and freedom

• Tie loose ends before graduation Learning Outcomes • Apply 10 must-know financial literacy principles to your life • Factor your financial future in your present plans • Explore strategies for reaching financial freedom and security in life

Defining moment in life!

Tie loose ends! Check all requirements for graduation Update forwarding information Get recommendation letters Update information with lenders

What’s next?

10 principles in financial literacy 1 Assess your relationship with money 6 Understand retirement plans 2 Negotiate your salary 7 Plan to repay your student loans 3 Calculate your net pay 8 Prioritize your spending 4 Build your budget 9 Know your credit history 5 Pay yourself first 10 Stay insured

1 Assess your relationship with money What does money mean to you? How will it help you live your passions?

2 Negotiate your salary Not negotiating could leave money on the table To successfully negotiate salary… 1. Prepare and practice; confidence is key 2. Do your research – Occupational Outlook Handbook, Salary. com 3. Show appreciation 4. Secure an offer first and use appropriate numbers for negotiation

Great! Thank you! The research suggests… Is it possible to get closer to market average…. ? I’m very interested!

Items to look for in a job offer, besides salary Health & Medical Insurance Retirement Plans Vacation & Sick Leave Potential Achievement

3 Calculate your take home net pay Gross paycheck Taxes Deductions Take-home net pay

4 Build your budget Income Expenses

10, 00% 1. Saving 10, 00% 2. Housing 30, 00% 10, 00% 3. Utilities 5, 00% 4. Food 20, 00% 5, 00% 30, 00% 5. Transportation 10, 00% 6. Entertainment 5, 00% 7. Debt 10, 00% 20, 00% 8. Other 10, 00%

5 Pay yourself first

6 Understand retirement plans What’s a 401(k)? Tax advantaged, employer sponsored retirement account

7 Student loans… Where to start?

Start here: • Federal Student Loans • https: //studentaid. gov/ • Use the Loan Simulator Tool to estimate and explore repayment options: • https: //studentaid. gov/loan-simulator/ • Make an account with your loan servicer • 6 -month grace period • Private Student Loans • Log in to your private loan servicer to find repayment terms • Build payments into your monthly budget

8 Prioritize your spending

9 Know and manage your credit history

10 Stay appropriately insured Health & Medical Disability & Long-term Care Insurance Mortgage & Asset/Liability Business Life

Elements of financial literacy! Present Future Security Control over day-to-day, month-to-month finances Capacity to absorb financial shock Freedom of choice Financial freedom to make choices to enjoy life On track to meet financial goals

Money. Counts: A Financial Literacy Series Comments and questions 11 A Grange Building University Park, PA 16802 financialliteracy. psu. edu finlit@psu. edu 814 -863 -0214