financial literacy debt & budgeting. main points of discussion o debt good debt? problems with debt...
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Financial LiteracyDebt & Budgeting
Main Points of Discussion DebtGood Debt?Problems with DebtWarning SignsGetting out of DebtStaying out
BudgetingWhat it isHow to Create oneTrack Spending
Is there such a thing as good debt?
Need verses Want
Problems With Debt
It can be like quicksandYou end up paying more than you originally spentIt takes away your financial freedom
Debt Warning Signs
Making only the minimum paymentsMaxing out credit cardsNot knowing how much is owedUsing debt to pay for basic living expenses
How To Get Out Of Debt
Figure out how much you oweCreate a budgetCut expenses and free up extra moneyFocus on paying off one debt at a time
Staying Out Of Debt
Focus on savingsChange your lifestyle expectationsUse a budget and stick to itIf you dont have the cash for it, dont buy it
Ways To Reduce DebtThe basics are simple
What Is A Budget?A plan for how you will spend your money
Creating A BudgetList your expensesBe realisticPlan to include savingsIts OK to have some fun money
Prioritize your expenses
Creating A BudgetList your incomePay your expenses, save the restWhat if your income isnt consistent?SAVE, SAVE, SAVEWhat if your income is less than your expenses?CUT, CUT, CUThttps://www.myedaccount.com/
Tracking Your Spending
Excel spreadsheetEnvelope methodOnline siteshttp://www.mappingyourfuture.org/http://money.cnn.com/magazines/moneymag/money101/
Are You Financially Fit? Take the following quiz to find out
Are You In Financial Danger?Take the following quiz to find out.
Need More Information/Help?
Work with your Financial Aid OfficeSeek 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.eduType 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 StatusThis is where Financial Aid applicants can see what may need to be turned in(taxes for verification, appeal, etc.)
Signing Up For Direct DepositClick Direct Deposit Sign-UpClick Bursar RefundsFollow the on screen instructions
Official WithdrawsYou 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 cant 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 Bursars 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 InformationFinancial Aid OfficeEmail: firstname.lastname@example.orgPhone: 574/520-4357FAX: 574/520-5561Visit us: Adm 157
Bursars OfficeEmail: email@example.comPhone: 574/520-4253FAX: 574/520-5001Visit us: Adm 100
***Good debt includes anything you need but can't afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments. Educational debt can be good, as long as you only borrow what you need to cover your tuition, fees, books, supplies and education related expenses. Other examples that could be considered good debt; a home or a reliable vehicle.Bad debt includes debt you've taken on for things you don't need and can't afford (that spring break trip, the new Coach bag, that really cool motorcycle for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.
Discuss opportunity costs of finishing school early and getting into workforce vs taking 5 + years to finish ***Cut down on your variable spending and put the extra money toward your debt payments. Once you determine the maximum amount you can pay off each month, pay down the debt with the highest interest rate first - that usually means your credit-card balance - while paying at least the minimum monthly amount due on all other revolving bills. If you take any kind of loan to pay off your credit cards: Once your credit-card debt is paid off, you have to be vigilant about not running up your balance again because you still will have big loan payments to make. If you're having trouble paying off your credit-card debt, it may be time to consult a debt counseling service for help managing your finances in the future.
*Outside of fixed monthly bills such as your housing or car payment, you probably don't have a precise idea of how you spend most of your money.If you want to get your debt under control, start by figuring out your spending patterns and identifying unnecessary expenses.
***For one month, write down every cent you spend. "Every" means "every," including that $2 cup of coffee that starts your day that $4 magazine you buy on a whim. That will clarify in black and white how much of your spending is fixed and how much is variable (and hence easier to curb). Tally the expenses on the list and compare the sum to your monthly income.Next, make a list of all your debt obligations and the interest you're charged for each.
**A sample billing statement from the fall 2010 semester. This lists the typical fees that a student is assessed:
Resident Undergraduate$194.75 per credit hour Lab FeeFor courses with a lab componentActivity FeeTechnology Fee*Withdraw then add if a student withdrawals first and then cant add, sometimes the class they withdrew from is no longer available and they may lose aid because they are no longer enrolled in the appropriate number of credit hours.*