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MoneyCounts : A Financial Literacy Series

Learn the core competencies of financial literacy and practical strategies to become financially literate. Understand earning, saving, spending, borrowing, and protecting principles. Explore the importance of budgeting and student financial responsibilities. Achieve financial security and freedom for a better future.

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MoneyCounts : A Financial Literacy Series

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  1. Financial Literacy Overview (FLO) MoneyCounts: A Financial Literacy Series 11-A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

  2. Description • The Pennsylvania State University is committed to provide students with the resources needed to make informed decisions regarding their money management • But what is Financial Literacy? What are the main principles that a student should explore? And what is the purpose of becoming financially literate? • Financial Literacy is not just about managing your money, it dives deep to help you question your attitudes and values toward money and guides you to reach a life full of financial security and freedom

  3. Learning Outcomes • Identify the core competencies for financial literacy • Explore the knowledge using the KAB concept • Knowledge, Action, Behavior • List practical strategies to becoming financially literate • Discuss financial security and freedom goals

  4. For your future financial freedom! Why do we need financial literacy?

  5. KAB Principle Knowledge Action Behavior

  6. Core Competencies

  7. Earning – Core Competency #1 Knowledge Action/Behavior • Understand your paycheck • Verify and adjust your exemptions and deductions on your W4 (withholding) • Learn about potential benefits and taxes • Invest in your future, plan for your career through education – search the market • Gross versus net paycheck • Benefits and taxes • Education is important

  8. Saving & Investing – Core Competency #2 Knowledge Action/Behavior • Start saving early, pay yourself first • Comparison shopping for a financial institution – reconcile your accounts • Plan for retirement, child education, renting versus owning a home • Replace with saving • Saved money grows • Banking – saving and checking accounts • Long-term financial planning • Eliminate or reduce waste

  9. Spending – Core Competency #3 Knowledge Action/Behavior • Develop a spending plan • Track spending habits • Live within your means • Understand the social and environmental impact of your spending decisions • Difference between needs and wants • Develop a quantitative awareness of your spending habits • Get the most/best value for your money

  10. Borrowing – Core Competency #4 Knowledge Action/Behavior • Borrow only what you need (rather than what you want) • Avoid high cost loans, penalties, late fees, and surcharges • Minimize interest payments • Get your free annual report, check your financial grade, review and correct if necessary • Shop for low interest cards, use only in emergencies, avoid paying PILS • Distinguish net income from loans • Cost of borrowing: Penalty, interest, late fee, surcharges (PILS) • Amortization schedules • Credit Score – FICO: Equifax, Experian, TransUnion • Credit cards

  11. Protecting – Core Competency #5 Knowledge Action/Behavior • Shop for insurance, review and update insurance, build up an emergency fund • Watch for your social security number and cards, your date of birth, and your banking information • It is too good to be true, it most certainly is • Risk management and insurance coverage • Identity theft • Fraud and scam

  12. Budgeting

  13. Increase income

  14. Decrease Spending

  15. Quick tips for students • Find an app to help you create and stick to a budget • Use bank accounts that offer free saving, checking, and ATM services & watch for overdrawing funds • Avoid impulse buys • Find free social activities on campus • Use the free CATA Bus service • Pack healthy snacks • Budget your meal plan • Establish an emergency fund • Pay credit card balance in full and on time

  16. Budgeting your meal planhttps://foodservices.psu.edu/campus-meal-plan

  17. Scholarships • Scholarships are a form of gift aid that does not need to be re-paid. The Penn State scholarship awarding process is very de-centralized, with each College having its own awarding process. https://studentaid.psu.edu/types-of-aid/scholarships

  18. Health Insurance Requirements • Penn State requires all international students to have health insurance and will be implementing a University-wide health insurance requirement for all students during the 2019-2020 academic year. https://studentaffairs.psu.edu/health-wellness/health-insurance

  19. Student Financial Responsibility Agreement • Penn State students have to sign a financial responsibility agreement prior to enrolling in classes to certify their obligation to pay all outstanding balance, together with all fees and costs, due Penn State • https://tutorials.lionpath.psu.edu/public/Docs/FRA.pdf

  20. Elements of financial well-being Future Present Security Control over day-to-day, month-to-month finances Capacity to absorb financial shock Financial freedom to make choices to enjoy life On track to meet financial goals Freedom of choice

  21. Comments and questions MoneyCounts: A Financial Literacy Series 11A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

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