Mark Mielke, CFP Frank Alvarez, Grad Assistant Scholarships & Financial Aid Texas A&M University

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1 Mark Mielke, CFP Frank Alvarez, Grad Assistant Scholarships & Financial Aid Texas A&M University

2 Learning Now Will Reduce Stress Later Being financially literate can be a huge advantage for you both personally and professionally. Big Factor 70% Financial stress is the most common cause of stress

3 Overview Understanding Your Student Loans Balancing Academic & Financial Goals Achieving Your Financial Goals Setting Up an Easy Money Management System Reviewing Online Resource Establishing a Credit History

4 Understanding Your Federal Student Loans Previous Student Loans Eligible for Deferment as Long as You re at Least Half-Time in Degree Seeking Program Proof-of-Enrollment Can be Sent After 12 th Class Day Check NSLDS.ed.gov for Servicer(s) Unsubsidized Loans Accrue Interest You Can Always Make Pre-payments or Interest Only Payments

5 Balancing Academic & Financial Goals Academic Degree is Gold Ring Financial Goals Need to be Reviewed Investment Allotments May Need to be Temporarily Reduced

6 Financial Goals Short Term New Phone, Best Friend s Birthday Present Medium Term Paying Off Student Loans, Buying a Home Long Term Dream Home, Car, Retirement

7 Balancing Academic & Financial Goals Academic Degree is Gold Ring Financial Goals Need to be Reviewed Investment Allotments May Need to be Temporarily Reduced Completing Academic Goals Probably Big Effect on Financial Goals

8 You are Your Best Investment

9 You are Your Best Investment

10 You are Your Best Investment

11 You are Your Best Investment

12 Achieving Your Financial Goals Establish an Emergency Fund! Always PAY YOURSELF first! Save 10-15% of your monthly income Reach your financial goals

13 Establishing an Easy Money Management System Establish a Financial Goals Determine source(s) of income Estimate monthly expenses Track all expenses for a month Analyze your expenses Establish a budget for each expense Don t be afraid to make adjustments Achieve your Financial Goals!

14 Budgets Aren t Straightjackets Budgets aren t straightjackets to keep you from spending your hard-earned money. Rather, they are the key to financial freedom, ensuring you have ENOUGH money to spend on what you want. -Erin Burt, Kiplinger

15 Sources of Income Show Me The Money! Remember, income isn t just from jobs Financial Aid Family College Fund

16 Fixed Expenses Same every month: Rent Cable/Internet Car Payment Insurance Goals/Emergency Fund

17 Financial Quiz - Question 1 What is the cost of a cheeseburger, fries, and a drink at the College Station Cheddar s? a) $7.80 b) $8.80 c) $9.80 d) $10.80 Cheeseburger - $4.99 Fries - $1.69 Soda - $2.09 Plus tax and tip

18 Variable Expenses Varies month-to-month: Entertainment Food Dining Out Hair Cuts/Styling Clothes Birthday/Mother s/ Father s Day Gifts

19 Financial Quiz Question 2 What is the cost of a Grande Caramel Macchiato at the local Starbucks? a) $2.50 b) $3.00 c) $3.70 d) $4.30 $ $0.35 tax = $4.30

20 Save vs. Spend Example: Buy a coffee and breakfast every morning at the local coffee shop for a total of approximately $5.00. Month 1 - $150 Month 2 - $300 Month 3 - $450 $700 $600 $500 $400 $300 $200 $100 Month 4 - $600 $0 Month 1 Month 2 Month 3 Month 4 $600 x 4 Semesters = $2400!

21 The Latte Factor A latte spurned is a fortune earned People magazine What is a Latte Factor? All unnecessary expenditures that you buy each month How do you find a Latte Factor? Track your expenses Am I buying too much of something? Do I really need this item?

22 Latte Factor Examples

23 Creating a Budget Let s Do It!

24 Estimated Graduate Resident COA (MBA and other programs will differ significantly) Resident Tuition & Fees $6,726 Loan Fees 146 Room & Board 10,950 Books and Supplies 1,066 Travel 622 Personal Expenses 2,574 Total $22,084

25 Creating A Budget Income (Utilize all sources) Grants/Scholarships/Loans Parental Allowance Work Income (After Taxes) Other Income Fixed Expenses (Flat rate bills) Rent Internet/Cable Loan Payments Car Payments Insurance Emergency Money/Goals

26 Creating A Budget Variable Expenses (Change each month) Gas Utilities Books/Supplies Entertainment Clothing Dining Out Travel and Vacations Snacks and Vending Social Activities

27 Online Budgeting Title URL Information Mint Track your bank accounts, credit cards, investments, and loans graphically. Automatically tags expenses. * Before deciding which website to use, make sure that you look into all of the security information to make sure that you feel completely safe uploading your banking account information.

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29 Online Budgeting Title URL Information Mint Track your bank accounts, credit cards, investments, and loans graphically. Automatically tags expenses. * Before deciding which website to use, make sure that you look into all of the security information to make sure that you feel completely safe uploading your banking account information.

30 Budgeting Tips Prepare meals during weekend Potluck dinners with friends Don t make impulse purchases Buy Generic brands Careful with paying for excessive services i.e.. tanning or gym memberships

31 Establishing a Credit History Consider Obtaining a Credit Card Use it Sparingly Pay Off the Balance Each Month If You Can t Use it Wisely, Don t Get One Check Credit History at Least Annually FICO Score Used Most Often

32 Thought for the Day The biggest barrier to becoming rich is living like you re rich before you are. -Knight Kiplinger

33 The Money Wise Aggie FREE Individual counseling or group presentations available Money Management for Graduate Students Saving and Investing Credit Cards and Credit Scores Love and Money I m Graduating: Now What? Eating Smart on a Budget Financing Your Study Abroad Buying a Car Car Maintenance Buying a Home Repaying Your Student Loans

34 The Money Wise Aggie Scholarships & Financial Aid Second Floor, The Pavilion (979) us to join the Money Wise Monthly for monthly financial education tips. Web: moneywise.tamu.edu Money Wise #AgsToRiches