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Be Wi$e with Money

Be Wi$e with Money. Financial Literacy & Advising Lew DeLuca DeLucaL2@southernct.edu , 203-392-8862 Wintergreen Building 108E. Time Is Money. “Money is something you trade your everyday life energy for.” “You sell your time for money.”

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Be Wi$e with Money

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  1. Be Wi$e with Money Financial Literacy & Advising Lew DeLuca DeLucaL2@southernct.edu, 203-392-8862 Wintergreen Building 108E

  2. Time Is Money • “Money is something you trade your everyday life energy for.” • “You sell your time for money.” • “Your time is your only real asset.” Joe Dominguez Example: You earn $10/hour and your cell phone costs $100/month. Therefore, it takes you 10 hours of work to pay for your monthly cell phone bill.

  3. Life = Making Decisions • We make 6-10 Money Decisions Daily • $5 coffee/day = $1,825/year • https://www.youtube.com/watch?v=8jkri0AeZWQ Alexa von Tobel in One Life-Changing Class You Never Took • http://www2.southernct.edu/financialaid/scholarships.html Scholarships • Go To Class! $62

  4. $ Saving Tips • Track Expenses (LearnVest, Mint, YNAB) • Rent textbooks or buy used (Loan from Multicultural Center: ASC 234) • Use student discounts (UNiDAYS, U-Pass) • Pay Unsub. loan interest now • Limit financial aid refunds

  5. Spending Plan 50% Essentials/Needs • 30% Housing, 10% Groceries, 5% Utilities, 5% Transportation 20% Future • Emergency Fund (6 mons.), Debt, Retirement, 529 College Savings 30% Lifestyle/Wants • Play, Vacation, Charity https://www.youtube.com/watch?v=6Ib-bdko5cE Budgeting

  6. Student Loans • Borrow money now, repay with interest later https://www.igrad.com/videos/how-to-nslds-videoNSLDS • Nearly $27,000 SCSU UG debt (vs. ~$40,000 nationwide) Repay ~$300/month x 10 years including $7,500 interest ($34,500) • Student Loan Rule of Thumb: EARN>BORROW https://www.youtube.com/watch?v=tu1bGgOuyww&feature=youtu.be • Student loans = Investment in Yourself College graduates earn $1M more lifetime earnings than high school graduates

  7. Credit Cards • Use 1 card sparingly (<30% of limit): no annual fee, rewards program (Bankrate.com & nerdwallet.com) • Pay bill in-full and on-time (46% do not) ---OR--- $1,000 bill @ 25% interest rate and pay $40 minimum for 7 yrs. & 2 mo. = $1,840 https://www.youtube.com/watch?v=qKHCOdH64Vo How to use

  8. CREDIT: Reports & Scores • Use CREDIT for: car loan, mortgage, insurance and when applying for a job, private loan or credit card • Reports are FREE@ www.annualcreditreport.com • From Experian, Equifax & TransUnion • Credit score > GPA

  9. FICO Credit Score

  10. Pay Yourself First $42,000 Gross pay ($3,500/month) $34,227 Net pay ($2,852/month) • Automate it to save 20% earnings ($570/month) • Investing: Roth IRA, 401k/403b (co. match), pension $1,000,000 = $10/day at 10% for 54 years or $20/day for 27 years • https://www.reisupllc.com/your401k/compound-interest Reis Up

  11. The Index Card, by Helaine Olen and Harold Pollack

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