YOUR MONEY YOUR FUTURE ADULTING 101 WHY SHOULD

YOUR MONEY, YOUR FUTURE ADULTING 101

WHY SHOULD YOU CARE? • $1. 44 trillion in total U. S. student loan debt • Student loan delinquency rate of 11. 2% (90+ days delinquent or in default) • Average monthly student loan payment (for borrower aged 20 to 30 years): $351 Source: Federalreserve. gov

STUDENT LOANS Private Loans • Tend to have higher interest rates and less flexibility in repayment. • Try to use Federal Loans first. Federal Loans • Direct Subsidized • Direct Unsubsidized • Direct Plus • Federal Perkins

Direct Subsidized Direct Unsubsidize d • For undergradua te students • For undergrad or grad students • Given by government based on need • Government will pay interest while a student • Total Maximum: $23, 000 • Not based on need • Higher interest rates for grads or professional • Government does NOT pay interest. • Maximum: $31, 000 Direct PLUS • For parents or grad students • Not based on need. • Interest charged for life of loan • Dependent on credit • Maximum: Cost of attendance* Federal Perkins • For undergrad or graduate students • Students with significant financial need • Not charged interest while a student • Your school is the lender • Maximum: $5, 500 per year, $8000 grad or prof.

STUDENT LOANS • Grace period: • 6 months for Direct Loans • 9 months for Perkins Loans • No grace period for PLUS loans • Standard Repayment = 10 years • Income Driven Repayment Plans • studentaid. ed. gov While you’re in school: • Try to pay interest payments on unsubsidized loans • Student loan money is not extra money! • Try to avoid credit card debt if possible.

BOOKS • Did you know the campus book store is one of the most expensive places to buy text books? • Try one of these: • • Bookrenter. com Bookbyte. com Slugbooks. com Textbookme app

BOOKS

LIVING EXPENSES On Campus Off Campus

LIVING EXPENSES MONEY SAVING HACKS • Renter’s Insurance: • Can help you replace your belongings after a covered incident in your home, such as a fire or burglary. • Average renter owns about $20, 000 in personal property • Average cost for renter's insurance is about $12 per month for $30, 000 worth of property coverage and $100, 000 of liability coverage.

LIVING EXPENSES MONEY SAVING HACKS • Reliable Roommates – Interviews, verification of income, stability • Be a Smart Consumer, Cool Apps TUN Local Discounts Grocery IQ Grocery List Uconnection Epicurous Dining Discounts Meal Planner Hooked Local Deals Gas. Buddy Cheap Gas Redlaser Scan barcodes to see better deals

CREDIT CARDS • Can be a good way to build credit. • A great tool if used wisely. Rogue Student Silver Visa • Must be enrolled in college • $500 - $2, 500 limit • At least 6 months at current job. • One low rate for everything!

MONEY SAVING HACKS • Stick to a budget, whatever method works for you. • Invest in yourself! • Buy your books used • Pay interest on unsubsidized loans while in school • Graduate on time • Keep applying for scholarships • Fastweb app • If you’re on a dining plan, use it! • To go? • Campus activities are usually free.

MONEY SAVING HACKS • Sell your notes • Flash notes, Study Soup • Sell your old stuff and buy used • Twice, Thread up, Poshmark • Plan your meals and eat in if you can • Epicurious, grocery. IQ • Use public transportation if possible • Make your own coffee! • Look for campus jobs like RA • Use student discounts!

COLLEGE BUDGET Help Karim, a freshman at SOU create a MONTHLY budget! ACTIVITY INCOME: Part Time Job Refund $800/month Financial Aid Parents Tax $480/YEAR (÷ 12 = $______/month) Support from (after tuition) $6000/YEAR (÷ 12 = $______/month) $500/month

EXPENSES Rent Utilities Internet Renter’s Insurance Groceries Auto Loan Gas Auto Maintenance $700 Auto Insurance $600 EVERY 6 MONTHS $15 Laundry Cell Phone $58 $35 $250 $130 $60 $360 PER YEAR (÷ 12 = $____ /month) (÷ 6 = $____ /month) $63 $300 EVERY 6 (÷ 6 = $____

DEBT PAYOFF METHODS Before you choose a method: • Make a list of all debts • Include balance, monthly payment, and interest rate.

SNOWBALL METHOD • Pay the minimum on all accounts. • Put extra towards the account with the lowest balance first. • When paid off, pay down the account with the next lowest balance.

AVALANCHE METHOD • Pay the minimum on all accounts. • Put extra towards the account with the highest interest rate. • When paid off, pay down the next highest interest rate.

POST-ASSESSMENT