1. Money Management
Presentation

2. What is your goal?
• In high school…
• To graduate
• In college…
• To graduate
• Post graduation…
• To get a job
• Get a job to…
• MAKE MONEY
** If your end goal is to make money, will you ever have enough?
– No…
• Your ultimate goal should be FINANCIAL SECURITY

3. Why is this important?
• Because 76% of Americans live pay check to pay
check
– Golden Hand Cuffs
• You will always adjust your lifestyle according to your salary
• AKA you will always spend what you make
** Even if you make 1 million dollars today and spend 1
million dollars +1 tomorrow you are in debt
• Let’s learn from the experts not from the media
(entertainment stars, professional athletes, etc)
• Because money is the #1 stressor in America and
#1 reason why students drop out of school

4. • Do you believe you can just put this on the
backburner until you graduate and have real
income and expenses?
– Studies show people create their spending and saving
habits between the ages 18-24 that they will keep for
the rest of their lives
• What can you do about it??
– Learn: Top 4 Things College Student Need to Know
about Money
– It might change your life!

5. Don’t borrow too much
Student loans
• What types of loans are there?
– Private
– Federal Direct Loans
• What are the two types of Federal Direct
Loans?
1. Subsidized
2. Unsubsidized

6. • What is the difference between these two loans?
– Subsidized- government pays the interest for you
while you are in school
– Unsubsidized- you pay the interest while you are in
school
• What is the current interest rate for Unsubsidized loans?
– 4.66%

7. • When do you have to start paying your loans back?
– 6 months after you graduate, drop out, or drop below
6 hours
• How much average student loan debt did last years
seniors graduate with? (undergraduate federal direct
loans)
– $30,000
• Do you think this number is likely to go up or down when
you graduate?
– Likely to increase

8. • How many years is the standard repayment
plan?
– 10 years
• What is the monthly break down for that
repayment?
– Approximately $300 (depending on interest)

9. • What if you can’t pay that on top of rent, utilities, food,
etc?
– Stretch out payment plan up to 25 years for smaller
monthly payment but paying more over time
• How old will you be 25 years after your graduate
college?
– Probably about the same age as your parents are now
• What kind of problems does this create in America?

10. Creating a budget
• Why do people hate budgets?
• What is the purpose?
– It’s your money, have it work FOR you, not
AGAINST you

11. • Know how much money you have coming in
– Parents
– Job
– Financial Aid
• Know how much money you have going out
– Going out to eat/groceries
– Entertainment

12. • How can you track this?
– Pencil and paper
– Apps like Pocket Expense (Free)
• Does your spending exceed your earnings?
You have two options:
– Make more
– Spend less

13. • How do you
save?
– Pay yourself
first
– Save by
spending less
– Borrow less

14. Investing Wisely
• Saving is allocating some of our current cash
inflows to the future
• Investing is then what we might do with the
money we save (discretionary funds, not
money you may need in the event of an
emergency)
• Save before Investing

15. • What is compound interest?
– Interest added to the principle so that it also earns interest
– What are ways compound interest is working against you?
– How can compound interest work for you?
• https://www.youtube.com/watch?v=8eHDZSgNFbs
• Ben saved $2,000 a year
– Monthly break down $167
– ROTH IRA
• Even if you try to save a $1 a month you will be ahead of the
76% that live pay check to pay check- start a good habit!

16. • What is the #1 cause of bankruptcy?
– Medical bills
• Unavoidable
• How can you prepare yourself for these kinds
of emergencies?
– Build an emergency fund

17. Credit is a tool
• Just like a hammer, it can both hurt you and help
you
• How can credit hurt you?
– Maxing out your credit card (20% capacity)
– Not making payments on your credit card on time
– Co-signing for a friend/family member
– Mismanaging credit
– Not checking your credit report
• How can you check your credit report for free up to 3 times
a year?
– www.annualcreditreport.com

18. Importance
35%
30%
15%
10%
10%
Payment History
Capacity
Length of History
New Credit
Types of Credit
FICO Score Breakdown
**Remember: Score calculates perceived risk level

19. • How can credit help you?
– Building good credit over time = a high credit
score
• What can a good credit report AKA your
Financial Resume get you?
– Low interest rates on big ticket items (car, house,
etc)
– Lower insurance rates
– A job: Employers
– A place to live: Landlords

20. • How do you build good credit over time?
– Using your credit card like a debit card (not having a
balance)
– Paying on time
– Be careful with the amount of cards you have
– Length of history

21. How can we help you?
• Schedule a one-on-one coaching session at
http://www.utc.edu/financial-wellness/
• Come to our events!
– Live Like A Student
– Awareness campaigns/tabling
• Join the Financial Wellness Club!
– Leadership opportunities available
– Contribute to making campus and the Chattanooga
Community financially secure