Everything you ever wanted to know about

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Everything you ever wanted to know about

• Student Finances

Presented by the Tomas Rivera Center for
Student Success
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A scary statistic

• A government report states the personal savings
  rate for the nation in 2005 was negative 0.5.
  That means consumers not only spent what they
  earned
• they also spent money they didn't have.

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Warning Signs of Debt Problems

• No savings
• Minimum payments on credit cards
• Use credit cards for things you used to buy with
  cash
• More than 2 major credit cards
• Unsure of total amount you owe
• At or near your limit on credit cards

4
Are you in over your head?

• Do you bounce checks?
• Have you been denied credit?
• Do you get calls from collectors?
• Do you lie about your spending or debt?
• Do you take out cash advances on your credit
  cards to pay other bills?

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Top 5 Money Mistakes College Students Make

• Getting into credit card debt
• Squandering your student loan money
• Ruining your credit score
• Choosing a college that is too expensive
• Not budgeting

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So why budget?A budget will help you

• Stay in control of your money
• Live within your means
• Meet your savings goal
• Keep track of spare cash
• Prepare for emergencies
• Keep out of debt
• Sleep better at night

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Features of a Successful Budget

• Categories that fit your personal situation
• Accurate income projections
• Enough categories to give you a meaningful
  picture, but not too many
• A line item for savings treat as a bill
• Cash tracking and recording
• Realistic written goals

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Understanding your credit report

• Your credit report is a record of your entire
  credit history, including late and/or delinquent
  payments and maxed-out accounts
• There are 3 credit companies that report credit
  information it is recommended to compare data
  from all three to ensure accuracy.
• Your credit report is evaluated anytime you apply
  for a loan (i.e. car or home purchases, credit
  cards, bank loans, etc.)

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How to read your credit report

• Personal Information used to verify your
  identity not included in credit score
  calculation
• Summary categorized list of all accounts
• Account History detailed information about all
  accounts in your name
• Public Information legal matters that affect
  your credit
• Inquiries lists businesses that have checked
  your credit in the last 2 years
• Creditor Contacts lists contact information for
  each creditor in your report

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Credit Reporting Companies

• Experian [phone]
• Equifax (800)-685-1111
• TransUnion [phone]
• Reports are usually about 5-10 each.
• You can also order a free copy of all three
  reports once a year by law at http//www.annualcre
  ditreport.com

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Do you impulse spend?

• Surprised by your credit card statement?
• Own lots of things you never wear/use?
• Buy things you didnt even know you needed until
  you saw them on display?
• Come home with items you had no intention of
  purchasing when you went out?
• Buy things just because they are on sale?

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Curbing impulse spending

• Index card trick wait two weeks
• Leave credit cards at home when you go shopping
  bring cash only
• Learn to recognize wants from needs

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Activity and Questions