Money Concepts for Teens and Young Adults

1. Money ConceptsforTeens and Young Adults “Empowering People to Lead Financially Healthy Lives” Name Title

2. Who is GreenPath? Non-Profit Industry Leader David W. Counselor Financial Education and Counseling Over 1,100 partners!

3. Today’s Agenda • YourFirst Job! • Big Decisions • PayingforCollege • YourCollegeYears • EnteringtheWorkforce • EstablishingCredit

4. Do the money decisions I make now matter?

5. Your First Job! Gross Income State & Local Taxes (Withholdings) 401 K / 403B Retirement Insurance (Medical, Dental, Vision etc.) Social Security Medicare NetIncome (70-80%)

7. Creating a Spending Plan • Money for goals • Savings • Gas money • Food money • Cell phone • Entertainment • Clothing • Personal care items • Charity/church/gifts

8. Tracking Expenses

10. Buyer’s Remorse

11. Decision Time

12. Choices That Impact College Costs In-state vs. out-of-state On campus vs. off campus Community College

13. Paying for College Loans Grants Scholarships College Fund

14. Free Application for Federal Student Aid (FAFSA) • October 1 • Student Aid Report (SAR) • Expected Family Contribution (EFC) www.fafsa.ed.gov

15. So many choices! Subsidized Loans Unsubsidized Loans Perkins Loans Parent PLUS Loans Private Loans

16. Your College Years Where will your income come from?

17. Your College Years Time to budget again!

18. Your College Years Opening a checking account

19. Entering the Workforce What about a roommate? Is it time to move out?

20. Managing Student Loans When you graduate, your loan payments start 6 months later.* You can usually select payment plans ranging from 10 years to 25 years or based on your income. *9 months for Perkins loans

21. Managing Student Loans • Standard Repayment usually 10 years • Graduated Repayment usually increases every two years • Extended Repayments if balance exceeds $30,000; fixed or graduated payments not to exceed 25 years • Income driven plans

22. www.studentloans.gov Balance = $30,000 Go to the Managing Repayment tab to get actual or estimated payments.

23. www.ibrinfo.org Income Based Repayment (IBR) Pay as You Earn (PAYE)Revised Pay As You Earn (REPAYE)

24. Public Service Loan Forgiveness Work for a non profit or government agencyand you may be able to have your federal loans forgiven after 10 years.

25. Savings

26. Establishing Credit • Credit Cards • Secured Credit Cards • Secured Loans • Store (Retail) Credit • Gas Card • Co-signer/authorized User

27. Cost of Credit

28. Three C’s of Credit Capacity Capital Character

29. Credit Bureaus Review all three reports for a complete picture.

30. You can receive your credit report ONLINE www.annualcreditreport.com

31. Credit Scores How is FICO calculated? • Payment History: 35% • Credit Utilization: 30% • Length of Credit History: 15% • New Credit: 10% • Types of Credit Used: 10% See www.myfico.com for more information

32. Before Applying For a Credit Card 1. Have a stable source of income 2. Have a written monthly budget. Track expenses first to help create realistic numbers. 3. Build up enough savings to cover any monthly credit card charges.

33. Using Credit Wisely 1. Set up automatic charges to avoid impulse spending. 2. Use less than 1/3 of your available credit. 3. Pay off the entire balance at the end of the month.

34. A Final Word

35. CONTACTUS We’d love to chat more! GreenPath Financial Wellness is a nationwide non-profit that provides financial education and tools for people to lead financially healthy lives. 877-428-1113 www.greenpath.org