Personal Finance

Personal
Finance

Budgeting Skills

​How do we handle it?

• Tracking our expenses: Keeping a record all your expenses and learn where your money goes

• Setting Financial Goals: Set short and long term financial goals to guide your budgeting decisions

• Allocating Funds: Set asside a specific amount of money for your essentials expenses (Some may include rent & utilities, savings, and discretionary spending)

• Accruing significant interest: You may underestimate the impact of interest accrual over time, resulting in higher repayment amounts.

• Defaulting on loans: Lack of understanding could lead to missed payments or defaulting on loans, damaging your credit score and financial future.

Potential long-term implications if you don't comprehend your student loans may include:

It's important to understand the terms and conditions of student loans because:

• You need to know the interest rates to calculate the total cost of borrowing and plan for repayment.

• Understanding repayment plans helps to choose the most suitable option based on your financial situation after graduation.

Understanding Student Loans

Risks associated with using credit cards irresponsibly include:

• Accumulating debt: overspending and carry a balance on a credit card, resulting in high-interest charges and long-term debt.

• Damaged credit score: Missed payments or high credit utilization can negatively impact your credit score, affecting the ability to borrow in the future.

  Strategies to manage your credit card usage include:

• Paying off the full balance each month to avoid interest charges.

• Setting a budget for credit card spending and sticking to it.

• Monitoring your credit card statements regularly to track spending and identify any unauthorized charges.

​ResponsibleCredit Card Usage:

Timely Payment of Rent and Utlities:

​Inconsistent payment of rent and utilities can impact relationships with roommates and living situation by:

• Straining relationships: Late payments can lead to tension and resentment among roommates, affecting their living environment.

• Risking eviction: Consistent late payments may result in eviction or damage your rental history, making it difficult to secure future housing.

  You can ensure timely payment of rent and utilities by:

• Setting up automatic payments or reminders to avoid missing due dates.

• Communicating openly with roommates about financial responsibilities and addressing any issues promptly.

Balancing Academic and Work Commitments:

Strategies to balance having a part-time job with studies:

• Prioritizing tasks and deadlines to manage time effectively.

• Creating a schedule that includes dedicated time for studying, work, and personal activities.

• Seeking support from professors, employers, and campus resources when feeling overwhelmed. Prioritizing commitments is important to avoid burnout and achieve your goals. For example:

• You can prioritize attending classes and completing assignments on time to maintain academic success.

• You can also prioritize self-care activities such as exercise, relaxation, and spending time with friends and family to maintain overall well-being.

- Offering workshops or seminars on budgeting, student loans, and credit management.

- Providing online resources such as articles, videos, or interactive tools for self-paced learning.

​​Strengths of existing financial literacy resources may include

- Limited accessibility: Workshops may have limited availability or attendance, leaving some students without access to valuable information.

- Lack of personalized support: One-size-fits-all resources may not address the specific needs or challenges of individual students.

​​Weakness of existing resources may include:

- Personalized financial coaching or counseling services for students like Sarah who need tailored guidance.

- Peer-led financial literacy workshops or mentorship programs to foster learning and accountability among students.

​​Additional Resources or support systems could include:

​Enhancing Financial Literacy Resources:

Multiple Select

You receive a monthly allowance from your parents but struggles to stick to a budget. Identify at least three key components of an effective budgeting plan that you should consider implementing. (Select all that apply)

• Tracking Expenses

• Setting Financial Goals

• Allocating Funds

• Rely on your parents to track your funds

Multiple Select

Evaluate the current financial literacy resources available on campus for. Then identify two strengths of the existing resources.

• • Offering workshops or seminars on budgeting, student loans, and credit management.

• Workshops with limited availability or attendance, leave some students to access to valuable information.

• One-size-fits-all resources address the specific needs or challenges of individual students.

• Providing online resources such as articles, videos, or interactive tools for self-paced learning.

Open Ended

Recommend two actionable steps someone can take to ensure a student meets their financial obligations promptly and maintains positive relationships with their roommates.

Fill in the Blank

Missed ______ or high credit utilization can negatively impact a students credit score, affecting their ability to borrow in the future.

Poll

What are the best credit cards for students?

• Discover it Student Chrome

• Capital One SavorOne Student Cash Reward

• Chase Freedom Rise

• Bank of America Travel Rewards