Financial Leadership Bootcamp: Bring It!

2Today's Workout

Set 1: Budgeting

Set 2: Savings

Set 3: Credit

Set 4: Resources

Set 5: Bring It!

SALT CREATED BY AMERICAN STUDENT ASSISTANCE

3Bootcamp Rules

1. YOU MUST SET AT LEAST 3 GOALS.

You can learn stuff, but change only occurs when you take action.

2. YOU MUST CHALLENGE YOURSELF.

You might have to step outside your comfort zone…its OK, we are here to

help!

3. YOU MUST BRING IT!

You can play an essential role in being a financial leader on campus –

helping yourself and others become financially savvy.

SALT CREATED BY AMERICAN STUDENT ASSISTANCE

4Warmup: Career Pay

Check out the Bureau of Labor Statistics www.bls.gov

Annual Mean Wage, May 2013 National: $46,440

New York: $54,580

Arkansas: $37,340

5Warmup: Money Home

Age 25-34 Earnings Earnings - Taxes

HS Graduate $30,888 $23,166

Associate $37,393 $28,045

Bachelor’s $46,415 $34,811

Master’s $52,467 $39,350

Professional $63,244 $47,433

Doctorate $67,470 $50,603

SOURCE: U.S. Census Bureau, Current Population Survey, 2011 Annual Social and Economic Supplement

6Set Students up for Success with Realistic Expectations!

Are students aware of average earnings in their field of study?

Do they understand tax implications? Where are there opportunities to have these

conversations? How does this impact borrowing conversations?

Set 1: Budgeting

8A Budget Is…

Budgeting

Spending Plan

Torture?

9

Track Your Spending Identify your monthly “fixed expenses” (e.g. Rent, utility bills, phone bill,

etc.)

Identify your monthly “flexible expenses” (e.g. Groceries, transportation Estimate if needed)

Use: Bills, CC statements, Online Banking, Receipts, Spending Tracker

Identify all sources of Income. Paycheck, Gifts, Financial Aid Refunds, other money

Subtract all Expenses from Income Surplus? Increase expense OR add to savings

“In the Red”? Time to reevaluate

Review on a monthly basis

Budgeting Basics

10Other Options?

Try it!!

The Envelope Method

Secret Savings Account

Paying Ahead Large Expenses

11But I “Need" It

Needs vs. Wants Do we “blur the lines” between the two?

Spending plan implications?

Savings Challenge

Big purchase philosophy $50, $100, $500

Buying motive

Opportunity cost

Lots of small things = big purchase

12Spending Tactics

Wait overnight Accountability partner Put it on ice – literally!

Get creative in cost cutting Get creative in reaching your goals

13Start with the Spending Plan Conversation

Easily Digestible Concept Plenty of Tools to help

When & How? Financial Aid Process

Provide Worksheets

FYE/College 101 Course Priority from Day one

Financial Literacy Program? Before the Holidays! Right place/right time

Set 2: Savings

15

Earn

Spend

Savings

Savings Approach

Earn

Savings

Spend

16Millionaire At 65

25•Starting Age

$500/mo•$240,000 total

$1,000,724•At age 65

40•Starting Age

$1,400/mo•$420,000 total

$975,043•At age 65

17Or Get to $0

$25,000

$288/mo

$9,524 interest

10 Years

$338/mo

$7,504 interest

8 Years, 1 Month

18Paying Down Debt

Philosophy 1

• Organize according to interest rate• Pay off highest interest rate first• Saves the most money in the long run

Philosophy 2

• Organize according to amount owed• Pay off smallest debt first• Provides positive reinforcement

19Make Savings a Priority

Establishing good habits For college students, amount saved is less important than the habit

being formed

When & How?

Peer to peer Tactics/best practices

Upperclassmen

Financial Literacy Program? Post pay checks/refund checks Soft reminders following FWS/WS paychecks

Right place/right time

Set 3: Credit

21Credit Matters!

Future Credit approval Interest rates Benefits Insurance rates Job opportunities

22Credit Reports Tell All

Personal information Credit history

Amount borrowed

Credit limit

Payment history

Delinquencies

Public records Inquiries

23Get Your Reports

24Your FICO® Score

25What’s Your Score?

26Mortgage 2014: {www.myfico.com}

27Good Vs. Bad Credit

$505,827• 620-

639• $85,

492

$475,577• 640-

659• $55,

242

$452,388• 660-

679• $32,

052

$441,061• 680-

699• $20,

726

$431,804• 700-

759• $11,

468

$420,336• 760-

860• SCO

RE!

Save $85,492!

28Quick Credit Tips

Opt out of pre-approved offers www.optoutprescreen.com

Stop {most} telemarketer calls www.donotcall.gov

Evaluate credit card offers www.bankrate.com

29Long Term Affects of Understanding and Establishing Credit

Think about relevant purchases First car, apartment, home, etc.

When & How? Workshops

Credit can be overwhelming…break into small chunks

Financial Aid Process Discuss long term borrowing considerations

Outside Professionals

Set 4: Resources

31Sites With {mostly} Free Resources

www.annualcreditreport.com www.myfico.com www.creditkarma.com www.bankrate.com www.mint.com www.finaid.org

32Social SALT

www.facebook.com/saltmoney www.twitter.com/salt_money blog.saltmoney.org

SALT CREATED BY AMERICAN STUDENT ASSISTANCE

Set 5: Bring It!

34Lead your own Financial Literacy Bootcamp

Is everyone on the same page?

Have you conveyed the “WIIFM” to each group?

Common mission

35Taking Action

Short Term Identify three actions you would like to take that will have

an immediate positive impact

Long Term Consider the ideal state

What resources do you need to make this happen?

Who do you need to partner with? Expertise on Campus (e.g. CPAs)

36Financial Leadership…An Example

You!

Post financial tips of the

day/week/month

Recruit students to serve as FL ambassadors

Share/Re-tweet SALT FB and Twitter posts

Lunch and Learn series

Create a group committed to

setting a financial goal—do

monthly check-ins with the

group

37Thank You

SALT: A Responsible Borrower Program

CONTACT SALT

617.728.4559 jdashiell@asa.org asa.org