an intro to managing your post collegiate finances adulting an intro to managing your...
TRANSCRIPT
Financial AdultingAn Intro to Managing your Post-Collegiate Finances
Holly Wright UM Financial Education Program Manager
Repayment/Forgiveness of Student LoansMonthly BudgetsFind your Credit ReportEmergency Savings AccountReaching Financial Goals
FREE
Find Your Dream Job
Sample SoBA Student
Common cities: LA, San Diego, Seattle, NYC, Denver, Missoula
Got a job in San Francisco
Gross Salary of $50,000 per year
Have health and retirement benefits
Calculate your take home pay.
Compare the price difference of various cities.
Sample SoBA Student
Monthly take home pay: $3,085.30
Price difference:
Groceries 24%
Housing 178%
Utilities 24%
Transportation 27%
Health Care 13%
Sample SoBA Student
Monthly take home pay: $3,085.30
Price difference:
Groceries: $250 ----------- 24% increase = $310
Housing: $905 -------------178% increase = $2,515
Utilities: $90--------------- 24% increase = $111
Transportation:$300------ 27% increase = $381
Health Care: $30------------13% increase = $34
Total = $3,351
Article: Rent in San Francisco is so Expensive That it's Cheaper to Commute From Las Vegas
This apartment is a 42 minutes bus ride to San FranciscoMonthly bus pass: $75
Student Loan Repayment 101
Overview of how to manage student loan repayment and available loan forgiveness options
Open to all students but intended for Seniors/JuniorsUC 326 on April 19th from 4:10pm - 5:00pm
Sample SoBA Student
Carrying a balance of $29,500
Have an average interest rate of 4.9%
Have monthly payments of $311/month starting 6 months after graduation and lasting 10 years.
Will pay $7,800 in interest over the life of the loan
Use this repayment estimator to look at your loan payment
Change Loan Repayment
Other Ways to Cut ExpensesUtilize your health benefits:
Will they cover your Gym Membership?
Will they cover child care?
Do you have a Flex Account that will cover co-pays?
Do they have an incentivized wellness program?
Review your options EVERY year
Check your credit report
Shop around for renters and auto insurance
Average Living Expenses
Long Term Ways to Cut Expenses
Build an Emergency Savings Fund
Build a separate savings fund with 3-6 months worth of living expenses
Utilize your retirement benefits:
Will your employer match funds?
Does your employer provide access to a Financail Planner?
Decide how big of a risk taker you are
Invest early
Big Ticket Purchases
A New Car!
Good interest rate on an auto loan is 2%-4%
Typical repayment term is 5 years or 60 months
Sample: 2016 Ford Edge is $34,995
A $34,995 loan at 3.11% with a 60 month term would have payments of $631/month
Auto Loan Calculator on Google
Big Ticket Purchases
Homeownership!
The debt you carry will influence the mortgage you can get
What is the Debt-to-Income Ratio?
Debt-to-Income Ratio Calculator
Other Resources
Article: "Adulting: A Financial Cheat Sheet", Money Magazine, May 2016
mint.com
Consumer Financial Protection Bureau
