matc scholars program: dr. erick c. jones

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Understanding Funding and Budgeting Finances Dr. Erick C. Jones, PE, CSSBB MATC Scholars Program October 3 rd – 6 th University of Nebraska-Lincoln

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Page 1: MATC Scholars Program: Dr. Erick C. Jones

Understanding Funding and Budgeting Finances

Dr. Erick C. Jones, PE, CSSBB

MATC Scholars ProgramOctober 3rd – 6th

University of Nebraska-Lincoln

Page 2: MATC Scholars Program: Dr. Erick C. Jones

OUTLINE

• Introduction

• Learning Objectives

• Learning Outcomes

• Session Presentation

• Conclusion

Page 3: MATC Scholars Program: Dr. Erick C. Jones

LEARNING OBJECTIVES

• Present Funding Sources

• Present Budgeting Basics

• Present strategies for maintaining and increasing funding opportunities

Page 4: MATC Scholars Program: Dr. Erick C. Jones

LEARNING OUTCOMES

• Students will know what funding sources are available

• Students will have a strategy for managing their funds

• Students will know how to work with faculty to support research

Page 5: MATC Scholars Program: Dr. Erick C. Jones

WHY FUNDING IS IMPORTANT?• Reduces student loan debt

• Limited ability to get loans

• Funding is prestigious and looks good on a resume

• Connection to faculty mentors and advisors• Critical faculty advising project

engagement

Page 6: MATC Scholars Program: Dr. Erick C. Jones

GRADUATE STUDENT DEBT

http://www.cgsnet.org/portals/0/pdf/CGSFederalRelationsBriefing_1_27_10.pdf

Page 7: MATC Scholars Program: Dr. Erick C. Jones

GRADUATE BORROWING BY FIELD

Page 8: MATC Scholars Program: Dr. Erick C. Jones

GRADUATE DEBT BURDEN

Page 9: MATC Scholars Program: Dr. Erick C. Jones

• Average cumulative undergraduate and graduate debt burden for graduates:

• Master’s : $51,950

• Collective owing : $22,943,717, 500

• Doctoral : $77,580

• Collective Owing : $3,170,694,600

• Debt burden highest for African-Americans and Hispanics

THE DEBT BURDEN

Page 10: MATC Scholars Program: Dr. Erick C. Jones

WHAT ARE SOME TYPES OF FUNDING? • Grants

• Scholarships

• Fellowships– Recruitment– Special Needs– Faculty Associated

• Teaching Assistantships

• Research Assistantships

Page 11: MATC Scholars Program: Dr. Erick C. Jones

• Grants are gifts that you do not need to repay.

• Students may receive grants from the government or through private sources of funding.

• Grants may require students to maintain a specific GPA throughout their academic career.

• In graduate school, grants can be used towards, travel, research, experiments, or projects.

GRANTS

Page 12: MATC Scholars Program: Dr. Erick C. Jones

• Scholarships are awards given to students based on academic excellence and/or talent.

• Students may also receive scholarships based on factors like ethnic background, field of study, or financial need.

• Scholarships vary in their amounts and the number of years given aid.

• Like a grant, students do not need to pay back the money awarded in a scholarship.

• Scholarships can be awarded through your school or through private sources.

SCHOLARSHIPS

Page 13: MATC Scholars Program: Dr. Erick C. Jones

There are generally three types of fellowships:

• Recruitment• 1st year funding to recruit students• Caution this is only for one semester to a year.

• Special Needs• This can be associated with a

college/department/state and is also has a limited time period

• Faculty Associated – may be required that you work with the faculty member

FELLOWSHIPS

Page 14: MATC Scholars Program: Dr. Erick C. Jones

• Granted to graduate and post-graduate students and do not require repayment.

• Awarded by private organizations, institutions, or through the government.

• Given a 1- to 4-year stipend with or without a tuition waiver.

• Based on merit, need, and the institution's or faculty's grant.

• Awarded by schools to students who have been recommended by a faculty member.

FELLOWSHIPS

Page 15: MATC Scholars Program: Dr. Erick C. Jones

TEACHING ASSISTANTSHIPS

• TA offers students opportunities to learn how to teach and develop an excellent understanding of the course material

• You can expect to receive an annual stipend between $6,000 and $15,000, as well as free tuition.

• You gain experience in and out of the classroom and have the opportunity to interact closely with faculty members.

Page 16: MATC Scholars Program: Dr. Erick C. Jones

• Duties of a TA vary, and you can expect to be responsible for one or more of the following:

• Teaching or assisting with one or more sections of a course

• Running laboratory sessions

• Grading undergraduate student papers and exams

• Holding regular office hours and meeting with students

• Conducting study and review sessions

TEACHING ASSISTANTSHIPS

Page 17: MATC Scholars Program: Dr. Erick C. Jones

GRADUATE ASSISTANTS

• Why Become a Research Assistant?

• What Does a Research Assistant Do?

• How Do You Get Involved as a Research Assistant?

• Benefits for Faculty

Page 18: MATC Scholars Program: Dr. Erick C. Jones

RISKS OF LOSING FUNDING?

• Not meeting funding renewal guidelines• Performance (GPA, publication record,

teaching reviews)

• Agency program ending

• Changing faculty researchers• Voluntarily and involuntarily

Page 19: MATC Scholars Program: Dr. Erick C. Jones

BUDGETING, SAVING AND INVESTING AS A HEDGE AGAINST FUNDING RISKS

• Budget Basics

• Saving for a bad semester

• Investment

• Common mistakes

Page 20: MATC Scholars Program: Dr. Erick C. Jones

BUDGET BASICS

• Pass out budget form

• Show sample graduate student budget

• 5 minutes to do quickie budget

• Go over relevant percentages for expense categories

• Discuss zero-based budgeting

• Discuss the need for a real budget versus theoretical budget

Page 21: MATC Scholars Program: Dr. Erick C. Jones

SAVING FOR A BAD SEMESTER

•A common budgeting mistake for graduate students

– Not planning on losing funding• Loss of stipend• 1 yr stipend or fellowship ends• Loss of parental support• Unplanned expenses – car accidents• Life happens

Page 22: MATC Scholars Program: Dr. Erick C. Jones

YOU MUST SAVE!!!•Rule of thumb- one semester of funding

– Example: Stipend amount =$1500/mo. x 5 months =$7500

WAIT! That’s a lot of $$$$

•Generally you can live off ½ of what you bring home in an emergency, but that’s still $3250

SAVING FOR A BAD SEMESTER

Page 23: MATC Scholars Program: Dr. Erick C. Jones

Some strategies for saving include

– Budget with your assistantships and save you 1 yr. fellowships, scholarships, and other short-term funds

– Put 10% of your funding into a savings account

– Understand your tax situation and estimate your tax refund, adjust withholding accordingly

SAVING FOR A BAD SEMESTER

Page 24: MATC Scholars Program: Dr. Erick C. Jones

INVESTMENT

• Pay off all debt before investing– Best investment is reducing credit card interest

• Investments can be lost. (stock market, gold, etc.) You can lose your money.

• Best strategy is to put $$ into savings

• Investment strategies – 25% into savings – Generally long-term investment strategies won’t

work (day-trading and short-term strategies work best for semester-by- semester investments

Page 25: MATC Scholars Program: Dr. Erick C. Jones

COMMON MISTAKES

• No savings for emergencies

• Invest and lose all your money

• Incurring a lot of school debt

• Not knowing the difference between funding sources

• Changing or not changing advisors without considering funding

Page 26: MATC Scholars Program: Dr. Erick C. Jones

CONCLUSION

• Weigh the benefits of different types of funding

• For PhD students you will need a link to Research faculty

• Stack your funding– Applying to multiple sources

• Be aware of conflicts

• Graduate with minimal debt

Page 27: MATC Scholars Program: Dr. Erick C. Jones

Slide design © 2009, Mid-America Transportation Center. All rights reserved.

Dr. Erick C. Jones, P.E., CSSBB Associate Professor

University of Texas Arlington Department of Industrial and Manufacturing Systems Engineering

420 Woolf HallArlington, TX 76017

[email protected]

CREDITS