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Money A presentation by
Student Fiscal ServicesUniversity of Washington
Education Pays OffData from the Census Bureau show that people with higher education levels earn more money over a lifetime…Less than high school
High school
Some college
Associate’s
Bachelor’s
Master’s
Doctoral
Professional
$1.0m
$1.2m
$1.5m
$1.6m
$2.1m
$2.5m
$3.4m
$4.4m
Value of $1If you save $1 per day from your 18th birthday until your 65th birthday and the money earns 2% in a savings account, how much will you have saved?
$28,038.27
What is a Budget?Not running out of money before you run out of month
NEEDS VS. WANTS
FOOD STEAK VS. HAMBURGERS
SHELTER
CLOTHING
APARTMENTS VS. DORMITORY
NIKE VS. PAYLESS
How do you decide how to spend or save your money?
If your money is going toward something you value, then youyou will usually feel a sense of satisfaction and accomplishment.
But if your money is going toward something you do not value, then youyou will usually experience a sense of frustration and failure.
Your Credit Report
Your credit report is similar to a transcript and will reflect your credit history
A credit rating/score is a numerical value assigned to you based on your credit history
Low credit scores can affect your ability to buy a home or car, or even get a cell phone
Your Credit Report Could Contain
Personal Information• Full name & other names used• Addresses for the last 7 years• Employer name• Social security number• Home phone number• Inquiries• Tradelines creditor acct/date open/high
bal/pymt terms/curr bal/ status/pastdue
• Charge offs• Court-appointed restitution• Unpaid child support• Bankruptcy
And more• Tax liens• Unpaid parking tickets or moving violations• Evictions• Car repossessions• Bad checks
FRAUD
• Identity theft– Use of another person’s name and
SSN to obtain new credit
• Account take-over– Use of person’s existing accounts
• Application fraud– Fictitious identity to obtain new credit
Credit Cards
• Good to have in the event of an emergency• Establish your own credit history• Offer insurance and replacement incentives
for purchases• Safer than carrying large amounts of cash if
your wallet is ever stolen• Many have air miles or other reward
programs
There are advantages….
But beware…
Beware Of Fine Print
Membership Fees: $59.00 annual feeOne-time processing fee: $49.00 plusAnnual Percentage Rate: 23.99%Grace Period: 20-25 days (if previous month’s balance was paid in full)Fee for cash advance: 5% (min $3) Returned check fee: $25.00Late Payment Fee: $25.00Over-the-Credit-Limit: $25.00
TRAPS!
• Credit Cards• Payday Loans• “Floating” Checks
– NSF– Other Fees
• Emergency Loans– Second Mortgage– Family or Friends– U.W.
