Financial Literacy: Key Tips for Students
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Financial
Literacy
Budgeting
According to the National Center for Education Statistics (NCES),
the research arm of the U.S. Department of Education, students
who dropped out of postsecondary institutions cited financial
reasons as the primary catalyst for leaving school.
Learning to develop and manage a budget is a key skill set that will
help you achieve both short- and long-term financial goals
throughout life – skills that are especially handy during college
when money is typically tight.
For pointers on developing a budget, or to get tips for keeping your
budget on track, consider using the ECMC’s Budget worksheet.
And remember, keep your eyes on the prize.
The time you put into your budget, and the choices you make to
keep your budget on track, will pay off over the long run by
providing you with greater financial independence and security.
Education Pays
While the cost of college may seem intimidating, keep in mind that
people are
willing to help
you
find the resources – scholarships,
grants, and loans – you need to attend college. What's more,
people are willing to help you
for free
. Talk to the financial aid
office for tips on how to start your search.
Adults with advanced degrees earn
four times more
than those
with just a high school diploma. (
U.S. Census Bureau
)
Not only do college graduates earn more, but your future
employers
expect
some college education. Ninety percent of the
fastest growing jobs in the new information and service economy
will
require
some postsecondary education. (
U.S. Department of
Education
)
There are more benefits! College graduates are less likely to be
unemployed and are more likely to be in better health and active
in their communities than those with only a high school diploma.
(
College Board
)
Your rights and responsibilities
Right to ask:
Costs and refund policies
Percentage of students
who complete the
program; percentage of
students placed in jobs
What financial help is
available
Them to explain the various
elements in your financial
aid package
Responsibility to:
Research the colleges
Know and comply with all
application deadlines
Respond promptly and
provide all information
Read and keep copies of all
forms
Complete loan entrance
and exit counseling
Repay your student loans
Don’t Let College Costs Keep
You From Earning a Degree!
If applied for Financial Aid, talk to the Financial Aid Office
if
you have a change in:
Dependency Status
Marital Status
Income and Assets
Child Support
Number in Household or College
Private elementary/secondary school tuition
Medical or dental expenses (not covered by insurance)
If you have exhausted scholarships and grants and still
need additional money to pay your college costs,
Federal
education loans
may be a good option for you. Unlike
grants and scholarships, loans must be paid back with
interest.
Before accepting a loan, however, consider the following:
Only Borrow What You Need
While loans are a critical way to help
finance a postsecondary education,
only
borrow what you need and amounts you
can pay back once your education is
complete. Borrow wisely.
Learn more about your responsibilities first.
Learn more about the repayment process
so that you know what your obligations
are.
Know the Terminology
Debit
A purchase authorized by you in which a
retailer uses money electronically withdrawn
from your checking account as payment for
goods and services. You initiate the purchase
by using your debit card, generally tied to your
checking account. Does not contribute to
your credit rating.
Interest
The periodic fee charged by the lender to
borrow money. Interest charges are repaid in
addition to the principal of the loan.
Buyer’s Remorse/Impulse Purchases
Regretted purchases usually bought in the
heat of an emotional moment.
Checking Account
The most common way to pay your bills. You
write a check, use a debit card or authorize a
transfer of funds and that money is deducted
from your checking account.
Overdraft Protection
By opting in for overdraft protection, you
authorize your bank to cover charges even if
you don’t have money in your account. Fees
for overdraft protection transactions can be
very expensive.
Credit Report
A visual summary of how you handle credit. It’s
typically viewed by lenders, apartment rental
managers, insurance companies and
employers as a symbol of your reliability.
Credit Score
A number assigned to your credit report to
indicate your overall credit worthiness on a
scale from 350 (poor rating) to 850 (excellent).
Consider using the ECMC’s Financial Awareness
Basics Glossary at:
http://www.ecmc.org/details/financial-glossary.html
Protect against identity theft
Keep your SSN, DOB, Driver’s license,
passwords and PINs confidential
Never give out personal or financial
information over the phone or via e-mail
Be careful sharing personal information
Make sure Web sites are secure before
providing information
Get your free credit report annually
www.annualcreditreport.com
Shred all documents
Learn more at:
www.ftc.gov/idtheft
Additional Resources
ECMC-
http://ecmc.org
http://www.ecmc.org/overview/financial-awareness-basics.html
Higher One-
http://www.myonemoney.com/inside-edge
Federal Trade Commission-
http://www.consumer.ftc.gov/features/feature-0014-identity-theft
Practical Money Skills-
http://practicalmoneyskills.com/
Learning financial literacy skills and budgeting are essential for students to manage their finances effectively during college. Developing a budget, seeking financial aid for education, understanding rights and responsibilities, and exploring loan options are crucial steps to secure a stable financial future. Make informed decisions to tackle college costs without compromising your education goals.
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Presentation Transcript
Financial Literacy
Budgeting According to the National Center for Education Statistics (NCES), the research arm of the U.S. Department of Education, students who dropped out of postsecondary institutions cited financial reasons as the primary catalyst for leaving school. Learning to develop and manage a budget is a key skill set that will help you achieve both short- and long-term financial goals throughout life skills that are especially handy during college when money is typically tight. For pointers on developing a budget, or to get tips for keeping your budget on track, consider using the ECMC s Budget worksheet. And remember, keep your eyes on the prize. The time you put into your budget, and the choices you make to keep your budget on track, will pay off over the long run by providing you with greater financial independence and security.
Education Pays While the cost of college may seem intimidating, keep in mind that people are willing to help you find the resources scholarships, grants, and loans you need to attend college. What's more, people are willing to help you for free. Talk to the financial aid office for tips on how to start your search. Adults with advanced degrees earn four times more than those with just a high school diploma. (U.S. Census Bureau) Not only do college graduates earn more, but your future employers expect some college education. Ninety percent of the fastest growing jobs in the new information and service economy will require some postsecondary education. (U.S. Department of Education) There are more benefits! College graduates are less likely to be unemployed and are more likely to be in better health and active in their communities than those with only a high school diploma. (College Board)
Your rights and responsibilities Right to ask: Costs and refund policies Percentage of students who complete the program; percentage of students placed in jobs What financial help is available Them to explain the various elements in your financial aid package Responsibility to: Research the colleges Know and comply with all application deadlines Respond promptly and provide all information Read and keep copies of all forms Complete loan entrance and exit counseling Repay your student loans
Dont Let College Costs Keep You From Earning a Degree! If applied for Financial Aid, talk to the Financial Aid Office if you have a change in: Dependency Status Marital Status Income and Assets Child Support Number in Household or College Private elementary/secondary school tuition Medical or dental expenses (not covered by insurance) If you have exhausted scholarships and grants and still need additional money to pay your college costs, Federal education loans may be a good option for you. Unlike grants and scholarships, loans must be paid back with interest. Before accepting a loan, however, consider the following:
Only Borrow What You Need While loans are a critical way to help finance a postsecondary education, only borrow what you need and amounts you can pay back once your education is complete. Borrow wisely. Learn more about your responsibilities first. Learn more about the repayment process so that you know what your obligations are.
Know the Terminology Debit Overdraft Protection A purchase authorized by you in which a retailer uses money electronically withdrawn from your checking account as payment for goods and services. You initiate the purchase by using your debit card, generally tied to your checking account. Does not contribute to your credit rating. Interest The periodic fee charged by the lender to borrow money. Interest charges are repaid in addition to the principal of the loan. Buyer s Remorse/Impulse Purchases Regretted purchases usually bought in the heat of an emotional moment. Checking Account The most common way to pay your bills. You write a check, use a debit card or authorize a transfer of funds and that money is deducted from your checking account. By opting in for overdraft protection, you authorize your bank to cover charges even if you don t have money in your account. Fees for overdraft protection transactions can be very expensive. Credit Report A visual summary of how you handle credit. It s typically viewed by lenders, apartment rental managers, insurance companies and employers as a symbol of your reliability. Credit Score A number assigned to your credit report to indicate your overall credit worthiness on a scale from 350 (poor rating) to 850 (excellent). Consider using the ECMC s Financial Awareness Basics Glossary at: http://www.ecmc.org/details/financial-glossary.html
Protect against identity theft Keep your SSN, DOB, Driver s license, passwords and PINs confidential Never give out personal or financial information over the phone or via e-mail Be careful sharing personal information Make sure Web sites are secure before providing information Get your free credit report annually www.annualcreditreport.com Shred all documents Learn more at: www.ftc.gov/idtheft
Additional Resources ECMC- http://ecmc.org http://www.ecmc.org/overview/financial-awareness-basics.html Higher One- http://www.myonemoney.com/inside-edge Federal Trade Commission- http://www.consumer.ftc.gov/features/feature-0014-identity-theft Practical Money Skills- http://practicalmoneyskills.com/
