Financial Literacy for College Freshmen

Financial Literacy for College Freshmen

By Southern Mullen

Introduction to Financial Literacy

• What is Financial Literacy?
  The ability to understand and manage personal finances, including budgeting, saving, investing, and handling debt.

• Why is it Important for College Students?
  Helps students make informed financial decisions, avoid debt, and build good money habits for the future.

• Consequences of Poor Financial Management
  Can lead to excessive debt, financial stress, and difficulty covering essential expenses like tuition, rent, and food.

Budgeting Basics

• What is a Budget? A plan for managing income and expenses.

• Tracking Expenses: Record spending and separate needs (rent, food) from wants (entertainment, dining out).

• Budgeting Tools: Apps like Mint, YNAB, EveryDollar help track finances.

Understanding Student Loans

• Types of Loans:

  • Federal: Lower interest, income-driven repayment options.

  • Private: Higher interest, fewer protections.

• Interest & Repayment: Know loan terms, repayment plans, and grace periods.

• Timely Payments: Avoid late fees and credit damage.

Credit Cards & Debt Management

• How Credit Works: APR, minimum payments, and late fees affect costs.

• Risks of Overspending: High-interest debt accumulates quickly.

• Smart Use: Pay in full, keep utilization low, and build credit wisely.

Managing Rent & Utilities

• Splitting Costs: Use apps like Splitwise, Venmo for roommate expenses.

• Late Payment Consequences: Fees, eviction risk, and credit score impact.

• Money Management Tips: Set up autopay, budget for utilities, and communicate with roommates.

Multiple Choice

Sarah wants to improve her budgeting. What is the best first step she should take?

• A) Get a credit card and use it for all purchases

• B) Track her monthly income and expenses

• C) Avoid spending money on anything except tuition

• D) Borrow money from friends when needed

Multiple Choice

What is the most responsible way to use a credit card?

• Pay only the minimum balance each month

• Use it for big purchases and pay it off slowly

• Pay the full balance each month to avoid interest

• Open multiple credit cards to increase credit score

Fill in the Blank

The interest rate on student loans determines how much extra money you will pay over time. A higher/lower interest rate means you will pay more/less over time.

,

,

Open Ended

Sarah struggles to pay her rent on time, causing tension with her roommates. What are two steps she can take to avoid this problem in the future?

Poll

Have you ever attended a financial literacy workshop or class before?

• Yes, and it was helpful

• Yes, but it wasn’t helpful

• No, but I’d like to

• No, and I’m not interested

Multiple Choice

Which of the following statements about credit cards is TRUE?

• Carrying a balance improves your credit score

• Paying in full each month avoids interest

• You should always pay just the minimum amount

• Missing a payment has no consequences