financial leadership bootcamp: bring it!. 2 today's workout set 1: budgeting set 2: savings set...
TRANSCRIPT
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Financial Leadership Bootcamp: Bring It!
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2Today's Workout
Set 1: Budgeting
Set 2: Savings
Set 3: Credit
Set 4: Resources
Set 5: Bring It!
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
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3Bootcamp Rules
1. YOU MUST SET AT LEAST 3 GOALS.
You can learn stuff, but change only occurs when you take action.
2. YOU MUST CHALLENGE YOURSELF.
You might have to step outside your comfort zone…its OK, we are here to
help!
3. YOU MUST BRING IT!
You can play an essential role in being a financial leader on campus –
helping yourself and others become financially savvy.
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
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4Warmup: Career Pay
Check out the Bureau of Labor Statistics www.bls.gov
Annual Mean Wage, May 2013 National: $46,440
New York: $54,580
Arkansas: $37,340
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5Warmup: Money Home
Age 25-34 Earnings Earnings - Taxes
HS Graduate $30,888 $23,166
Associate $37,393 $28,045
Bachelor’s $46,415 $34,811
Master’s $52,467 $39,350
Professional $63,244 $47,433
Doctorate $67,470 $50,603
SOURCE: U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic Supplement
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6Set Students up for Success with Realistic Expectations!
Are students aware of average earnings in their field of study?
Do they understand tax implications? Where are there opportunities to have these
conversations? How does this impact borrowing conversations?
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Set 1: Budgeting
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8A Budget Is…
Budgeting
Spending Plan
Torture?
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9
Track Your Spending Identify your monthly “fixed expenses” (e.g. Rent, utility bills, phone bill,
etc.)
Identify your monthly “flexible expenses” (e.g. Groceries, transportation Estimate if needed)
Use: Bills, CC statements, Online Banking, Receipts, Spending Tracker
Identify all sources of Income. Paycheck, Gifts, Financial Aid Refunds, other money
Subtract all Expenses from Income Surplus? Increase expense OR add to savings
“In the Red”? Time to reevaluate
Review on a monthly basis
Budgeting Basics
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10Other Options?
Try it!!
The Envelope Method
Secret Savings Account
Paying Ahead Large Expenses
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11But I “Need" It
Needs vs. Wants Do we “blur the lines” between the two?
Spending plan implications?
Savings Challenge
Big purchase philosophy $50, $100, $500
Buying motive
Opportunity cost
Lots of small things = big purchase
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12Spending Tactics
Wait overnight Accountability partner Put it on ice – literally!
Get creative in cost cutting Get creative in reaching your goals
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13Start with the Spending Plan Conversation
Easily Digestible Concept Plenty of Tools to help
When & How? Financial Aid Process
Provide Worksheets
FYE/College 101 Course Priority from Day one
Financial Literacy Program? Before the Holidays! Right place/right time
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Set 2: Savings
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15
Earn
Spend
Savings
Savings Approach
Earn
Savings
Spend
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16Millionaire At 65
25•Starting Age
$500/mo•$240,000 total
$1,000,724•At age 65
40•Starting Age
$1,400/mo•$420,000 total
$975,043•At age 65
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17Or Get to $0
$25,000
$288/mo
$9,524 interest
10 Years
$338/mo
$7,504 interest
8 Years, 1 Month
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18Paying Down Debt
Philosophy 1
• Organize according to interest rate• Pay off highest interest rate first• Saves the most money in the long run
Philosophy 2
• Organize according to amount owed• Pay off smallest debt first• Provides positive reinforcement
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19Make Savings a Priority
Establishing good habits For college students, amount saved is less important than the habit
being formed
When & How?
Peer to peer Tactics/best practices
Upperclassmen
Financial Literacy Program? Post pay checks/refund checks Soft reminders following FWS/WS paychecks
Right place/right time
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Set 3: Credit
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21Credit Matters!
Future Credit approval Interest rates Benefits Insurance rates Job opportunities
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22Credit Reports Tell All
Personal information Credit history
Amount borrowed
Credit limit
Payment history
Delinquencies
Public records Inquiries
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23Get Your Reports
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24Your FICO® Score
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25What’s Your Score?
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26Mortgage 2014: {www.myfico.com}
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27Good Vs. Bad Credit
$505,827• 620-
639• $85,
492
$475,577• 640-
659• $55,
242
$452,388• 660-
679• $32,
052
$441,061• 680-
699• $20,
726
$431,804• 700-
759• $11,
468
$420,336• 760-
860• SCO
RE!
Save $85,492!
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28Quick Credit Tips
Opt out of pre-approved offers www.optoutprescreen.com
Stop {most} telemarketer calls www.donotcall.gov
Evaluate credit card offers www.bankrate.com
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29Long Term Affects of Understanding and Establishing Credit
Think about relevant purchases First car, apartment, home, etc.
When & How? Workshops
Credit can be overwhelming…break into small chunks
Financial Aid Process Discuss long term borrowing considerations
Outside Professionals
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Set 4: Resources
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31Sites With {mostly} Free Resources
www.annualcreditreport.com www.myfico.com www.creditkarma.com www.bankrate.com www.mint.com www.finaid.org
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32Social SALT
www.facebook.com/saltmoney www.twitter.com/salt_money blog.saltmoney.org
SALT CREATED BY AMERICAN STUDENT ASSISTANCE
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Set 5: Bring It!
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34Lead your own Financial Literacy Bootcamp
Is everyone on the same page?
Have you conveyed the “WIIFM” to each group?
Common mission
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35Taking Action
Short Term Identify three actions you would like to take that will have
an immediate positive impact
Long Term Consider the ideal state
What resources do you need to make this happen?
Who do you need to partner with? Expertise on Campus (e.g. CPAs)
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36Financial Leadership…An Example
You!
Post financial tips of the
day/week/month
Recruit students to serve as FL ambassadors
Share/Re-tweet SALT FB and Twitter posts
Lunch and Learn series
Create a group committed to
setting a financial goal—do
monthly check-ins with the
group
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37Thank You
SALT: A Responsible Borrower Program
CONTACT SALT
617.728.4559 [email protected] asa.org