Financial Literacy & Capabilities Houston Community College Financial Literacy and Capabilities Prosper Chapter 11

Paying for College Houston Community College Financial Literacy and Capabilities Module pt. 2

? ? ? Paying for College How will I pay? How much will it cost? Have you ever asked these questions? How will I pay? ? How much will it cost? ? How much financial aid can I receive? ?

The Cost of Education Did you know? The average cost of attending a 4-year public college (including tuition, fees, room, and board) in-state is more than $17,000 per year? The average cost of attending a 4-year public college (including tuition, fees, room, and board) out-of-state is more than $29,000 per year? The average cost of attending a 4-year private college (including tuition, fees, room, and board) is more than $38,000 per year?

Types of Aid Work Study Grants Loans Scholar- ships Loans Must be repaid with interest 6 months after graduating. Subsidized- do not accrue interest while in school Unsubsidized accrue interest while in school. Acquired from public and private sources does not have to be repaid. Money earned while working on campus, does not have to be repaid. Loans Loans Grants Scholar- ships Work Study Money you do not have to repay, usually need based and first-come basis.

Complete the FAFSA to begin the financial aid process (fafsa.ed.gov).

Your Financial Aid is Determined by The cost of school - your EFC(Expected family contribution) = Your financial need (award)

The Financial Aid Process Your college creates a financial award You accept Funds are applied Student Aid Report Created Sent to you and your college Complete the FAFSA The Govt. processes

Pay Off as Quickly As You Can!

Repay Your Loans! Repaying your loans on time is the key to a strong financial future. If you default (do not pay) on your loans it can ruin your credit score. Student loans cannot be removed by bankruptcy.

Access the Financial Aid Department Financial Aid Website

Activity Research college tuition rates and estimate how much it will cost to complete college degrees at specific institutions. University of Texas costs (tuition & fees only)= $4,908 per 12 semester hours University of Houston costs (tuition & fees only)= $4,601 per 12 semester hours Baylor University costs (tuition & fees only)= $17,073 per 12 semester hours

Smart Credit Houston Community College Financial Literacy and Capabilities Module pt. 3

What is a Credit Card?

Are money you have to pay back. They can help pay for necessities and Credit Cards Are money you have to pay back. They can help pay for necessities and emergencies. They can help you establish your credit history.

Tips for Managing Credit Cards Watch for changes in fees and interest rates Your credit score can affect your rates Avoid cards with annual fees Know grace periods and payment due dates Protect your card with signature and “see ID” Make more than just minimum payments Keep your balance under 35% of the limit Seek reputable counseling if in trouble Only use one general purpose credit card

Your Credit History is Credit Report + Credit Score= Credit History

What Does Your Credit Score Say?

Impact of FICO on Home Buying

Ways to Improve Your Credit Score Get a credit card, use it, and keep the balance low. Get a loan and repay it (biggest impact). Dispute old negative charges. Ask for a credit limit increase and do not use it.

Budgeting Houston Community College Financial Literacy and Capabilities Module pt. 4

Assets vs. Liabilities Asset? Calculate your net worth Assets- liabilities= net worth (wealth) Assets are possessions that have value, generally increase in value, or provide a return. Wealth building assets earn money or increase in value. Accumulating assets can help build wealth. Liabilities are money you owe. Asset?

http://playspent.org/ Why Budget? Budgeting allows you to save money, plan for the future, and understand where your money is going. Use the simulation below to see how living without a budget can impact your life. http://playspent.org/

Budgets help you save money and understand where your money is going. Creating a Budget? Budgets help you save money and understand where your money is going. 1. Determine your monthly income. 2. Determine how much you spend monthly on must haves, wants, and savings/debts. 3. Reduce your spending of much haves to no more than 50% of your income. Reduce your wants to no more than 30% of your income. Reduce your debts to no more than 20% of your income and save or invest the rest! View pg. 261-

Budget Tips Be disciplined. Use the 72-hour wait rule to make purchases. Watch the small purchases you make often. Avoid payday loans! Don’t take cash advances on your credit cards! Buy used products. If you can’t keep up with your bills, contact your lender.

Budget & Savings Activity After creating your budget Stick to your budget over the time specified by your instructor. Report your savings at the end of the specified time period.

Financial Literacy & Capabilities Survey After completing all of the content in the financial literacy and capabilities unit, please take the survey at the link below. https://www.surveymonkey.com/s/6QH6QFZ