financial literacy debt & budgeting. main points of discussion o debt good debt? problems with...

Financial Literacy

Debt & Budgeting

Main Points of Discussion o Debt

• Good Debt?• Problems with Debt• Warning Signs• Getting out of Debt• Staying out

o Budgeting• What it is• How to Create one• Track Spending

Is there such a thing as good debt?

Need verses Want

Problems With Debt

• It can be like quicksand• You end up paying more than you originally

spent• It takes away your financial freedom

Debt Warning Signs

• Making only the minimum payments• Maxing out credit cards• Not knowing how much is owed• Using debt to pay for basic living expenses

How To Get Out Of Debt

• Figure out how much you owe• Create a budget• Cut expenses and free up extra money• Focus on paying off one debt at a time

Staying Out Of Debt

• Focus on savings• Change your lifestyle expectations• Use a budget – and stick to it• If you don’t have the cash for it, don’t buy it

Ways To Reduce Debt

• The basics are simple

What Is A Budget?

• A plan for how you will spend your money

http://www.youtube.com/watch?v=nFY0HBkUm8o

http://www.hulu.com/watch/1389/saturday-night-live-dont-buy-stuff

Creating A Budget

• List your expenses– Be realistic– Plan to include savings– It’s OK to have some “fun money”

• Prioritize your expenses

Creating A Budget• List your income• Pay your expenses, save the rest• What if your income isn’t consistent?

SAVE, SAVE, SAVE• What if your income is less than your

expenses?

CUT, CUT, CUThttps://www.myedaccount.com/

Tracking Your Spending

• Excel spreadsheet• Envelope method• Online sites

http://www.mappingyourfuture.org/http://money.cnn.com/magazines/moneymag/money101/

Are You Financially Fit?

• Take the following quiz to find out

http://www.mappingyourfuture.org/money/fitnessquiz.htm

Are You In Financial Danger?

• Take the following quiz to find out.

http://www.mappingyourfuture.org/money/dangerquiz.htm

Need More Information/Help?

• Work with your Financial Aid Office• Seek Credit Counselinghttp://www.mappingyourfuture.org/money/creditcounseling.htm

Things You Need To Know About Finances at IU South Bend

• Log in at http://one.iu.edu• Type in ‘Student Center’ in the search bar at

the top of the page. When the SIS App shows, click on that, and it will lead you to our Student Center.

One

How Do I Find My Bill?

• On the right side of the Student Self-Service page under To Do: there is a section for Bursar Account Status.

• This shows the current balance on your account. It also gives you a link to View or Pay your bill.

Sample Fall 2010 Bill

To Do List

• Financial Aid is in the To Do section directly below Bursar Account Status

• This is where Financial Aid applicants can see what may need to be turned in(taxes for verification, appeal, etc.)

Signing Up For Direct Deposit• Click Direct Deposit Sign-Up• Click Bursar Refunds• Follow the on screen instructions

Official Withdraws• You must officially withdraw from a class through

One.• If you stop attending class without officially

withdrawing, you will receive a FN on your transcript for that class which means Failure for Non-Attendance. If you receive an FN you may also owe money to the Bursar.

• ALWAYS add before you withdraw. Sometimes you can’t get in to the class you want to add.

•Census is the end of the first week of classes.•William is enrolled in 12 credit hours and has a Pell Grant of $2775.•William withdraws from 1 class during the first week.•His Pell Grant is reduced to $2082.•William adds an additional class during the second week of classes.•His Pell Grant cannot be increased because he did not add his class until after census.•He now owes a balance to the Bursar’s Office.

William Withdrawal

• Satisfactory Academic Progress (SAP) – Policy that requires Undergraduate students to maintain a cumulative GPA of 2.0 or greater and pass 75% of their credits to maintain eligibility for financial aid. Students who fall below these minimums are suspended from Financial Aid until they have met the minimum requirements. Visit

• www.iusb.edu/sbfinaid/progress for more information.

• Students may appeal a suspension. Visit www.iusb.edu/sbfinaid/forms to download the form.

Contact Information

Financial Aid OfficeEmail: sbfinaid@iusb.eduPhone: 574/520-4357FAX: 574/520-5561Visit us: Adm 157

Bursar’s OfficeEmail: bursarsb@iusb.eduPhone: 574/520-4253FAX: 574/520-5001Visit us: Adm 100