an intro to managing your post collegiate finances · an intro to managing your post-collegiate...
TRANSCRIPT
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Financial AdultingAn Intro to Managing your Post-Collegiate Finances
Holly Wright UM Financial Education Program Manager
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Repayment/Forgiveness of Student LoansMonthly BudgetsFind your Credit ReportEmergency Savings AccountReaching Financial Goals
FREE
http://www.umt.edu/financial-education/
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Find Your Dream Job
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Sample CoB Student
Common cities: LA, San Diego, Seattle, NYC, Denver, Missoula
Got a job in San Francisco
Gross Salary of $50,000 per year
Have health and retirement benefits
Calculate your take home pay.
Compare the price difference of various cities.
http://www.paycheckcity.com/calculator/salary/http://money.cnn.com/calculator/pf/cost-of-living/
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Sample CoB Student
Monthly take home pay: $3,231.91
Price difference:
Groceries 23%
Housing 235%
Utilities 49%
Transportation 41%
Health Care 21%
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Sample CoB Student
Monthly take home pay: $3,231.91
Price difference:
Groceries: $250 ----------- 23% increase = $308
Housing: $905 -------------235% increase = $3,032
Utilities: $90--------------- 49% increase = $134
Transportation:$300------ 41% increase = $423
Health Care: $30------------21% increase = $36
Total = $3,933
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Article: Rent in San Francisco is so Expensive That it's Cheaper to Commute From Las Vegas
http://mobile.businessinsider.com/its-cheaper-to-commute-from-las-vegas-to-san-francisco-than-it-is-to-live-there-2015-10http://mobile.businessinsider.com/its-cheaper-to-commute-from-las-vegas-to-san-francisco-than-it-is-to-live-there-2015-10
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This apartment is a 46 minutes bus ride to San FranciscoMonthly BART pass: $220
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Student Loan Repayment 101
Overview of how to manage student loan repayment and available loan forgiveness options
Open to all students but intended for Seniors/JuniorsEmail notification sent out after Spring Break
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Sample CoB Student
Carrying a balance of $29,500
Have an average interest rate of 4.9%
Have monthly payments of $311/month starting 6 months after graduation and lasting 10 years.
Will pay $7,800 in interest over the life of the loan
Use this repayment estimator to look at your loan payment
https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.actionhttps://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
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Change Loan Repayment
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Bountiful Baskets
http://bountifulbaskets.org
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Other Ways to Cut ExpensesUtilize your health benefits:
Will they cover your Gym Membership?
Will they cover child care?
Do you have a Flex Account that will cover co-pays?
Do they have an incentivized wellness program?
Review your options EVERY year
Check your credit report
Shop around for rentals and auto insurance
Consider finding a roommate
https://www.annualcreditreport.com/index.action
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Average Living Expenses
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Long Term Ways to Cut Expenses
Build an Emergency Savings Fund
Build a separate savings fund with 3-6 months worth of living expenses
Utilize your retirement benefits:
Will your employer match funds?
Does your employer provide access to a Financail Planner?
Decide how big of a risk taker you are
Invest early
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Big Ticket Purchases
A New Car!
Good interest rate on an auto loan is 4%-6%
Typical repayment term is 5 years/60 months
Sample: 2019 Subaru Ascent is $31,995
A $31,995 loan at 4% with a 60 month term would have payments of $589/month
Auto Loan Calculator on Google
https://www.google.com/search?rlz=1C1GCEU_enUS820US821&ei=e9Z-XJrUGojk-gTl6JDYAw&q=auto+loan+calculator&oq=auto+l&gs_l=psy-ab.3.0.0i131i67j0i67l4j0l4j0i67.43787.44865..45858...0.0..0.61.330.6......0....1..gws-wiz.......0i71j0i131j0i10.9-zVYf9X4W0
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Big Ticket Purchases
Homeownership!
The debt you carry will influence the mortgage you can get
What is the Debt-to-Income Ratio?
Debt-to-Income Ratio Calculator
http://www.consumerfinance.gov/askcfpb/1791/what-debt-income-ratio-why-43-debt-income-ratio-important.htmlhttps://www.zillow.com/mortgage-calculator/debt-to-income-calculator/
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Utilize the Homebuyer Education course offered by Homeword
http://www.homeword.org
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Other Resources
Article: "Adulting: A Financial Cheat Sheet", Money Magazine, May 2016
mint.com
Consumer Financial Protection Bureau
http://mint.comhttp://www.consumerfinance.gov
- http://www.umt.edu/financial-education/