Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S.

Certified Public Accountant, State of Washington for 35+ yrs Shareholder, Finney, Neill & Company, P.S., local CPA firm, working with businesses and individuals Board Chair, Washington State Board of Accountancy Continuing Education Instructor in the area of Professional Ethics and Regulation Treasurer, Bethany Community Church Former Adjunct Faculty, SPU and NSCC Graduate of the U of W Foster School of Business, 1980 Married 38+ years, four kids (one SPU graduate!)

Four (or more) years of college, and now you are about to be launched into the “real” world. Many of you will now be (or are already) faced with having to deal with the everyday stuff of life, including your finances We will cover many topics quickly this afternoon, with time for questions – hopefully!

Student Loans Credit Cards Credit Score Budgets Savings and Investing Words of Wisdom Questions

Simply put, pay off your debt as soon as possible This will reduce your overall interest costs Student loans are real debt, and cannot be canceled Pay on Time! Never ignore delinquent notices. This can have an impact on your credit score Deferrment or Forbearance – work with your lender Repayment plans – if your loan is a federal loan, you may be able to modify repayment plans – see loans/forgiveness-cancellation/teacher. loans/forgiveness-cancellation/teacher

Check with your lender to see if there are other repayment options Loan consolidation for multiple loans Extension of loan term Modification of terms Forgiveness – Public Service Loans Teachers Loans Remember – Budgeting helps!

Credit cards are a tool, but a potentially dangerous one Don’t get cards just because you get mileage or points Interest rates – be aware of Teaser Rates Stick with one card – discounts don’t warrant getting a card. Don’t use one card to pay off another If you can, pay in full every month – don’t charge more than you can afford each month PAY ON TIME!! Avoid cash advances – these can carry higher rates Don’t exceed the credit limit

Review Statements Protect personal information The real world - sweet offers from stores - discounts on your purchase if you sign up for card Christmas 2014 – My experience at J. Jill My business partner and airline miles

This is a rating system used to rate your credit worthiness, known as your FICO score, which is determined from your credit report Important to establish a good score – used to determine insurance costs, employment, costs of debt The major items that impact a FICO score – Payment history Amounts owed Length of credit history

Start small – to establish credit, get a small loan or credit card, comply with terms of agreement, pay on time and pay the debt off Negative impacts – paying debts late or not at all, too many charge cards, paying interest only Things to watch out for…. Offers of charge cards at retail stores “how much can you afford per month?” questions Child asks mom or dad to co-sign a loan.

This is, simply put, a plan for coordinating your income and expenses. There is no “average” budget! What works for you depends on your spending and savings priorities and how you interact with numbers Find the budget tool that works for you – don’t just look at your bank balance online to see if you can afford something Tools – Excel, Mint, YNAB, PearBudget, Quicken, envelopes, pen and paper. The key is to make sure you use whatever tool consistently. This is not a now and again thing – you have to develop discipline! Ask for help – remember everyone else is in the same boat

Start small Understand compound interest Contribute to your retirement plan (401k, 403b, etc.) Save thru payroll deductions or automatic investment plans Bank your raises – don’t let your standard of living go up Keep paying down loans Pay off your credit cards Reinvest dividends Keep track of where your money goes (i.e. budget)

Determine if you are a spender or saver – know yourself If you are in a relationship, find out what each other is (spender vs. saver) and most importantly, COMMUNICATE about finances. You should both be on the same page about your money, related goals, etc. Money is a key component in a couples strife and in divorces Watch your card/account statements like a hawk. It is not a safe world out there Beware of the use of your debit/credit card – there are many ways to have your info stolen

Watch your impulse buys. “Retail therapy” can cause issues File your tax returns timely. If you owe taxes, do not ignore them. Tithing – don’t feel guilty if you cannot afford 10%. God wants a cheerful giver, not one bound by rules.