1. Mark Riggs Citizens Bank
Money Matters
Mark Riggs
Citizens Bank

2. Tips In Managing Your Finances
In addition to greater earnings, studies show that individuals who have a college degree:
Receive better health insurance & get more vacation time
Have skills that allow them flexibility to change jobs & move to where they want
Own a home & car
Have a greater appreciation for diversity
Have a higher life expectancy
Provide a better quality of life for their children
Travel more for vacation and business

3. Create a Budget
Know where you spend your money before you begin to budget otherwise…
You’ll be working in an unrealistic situation
Possibly setting yourself up for failure
Write down every penny you spend for 30 days
Budget accurately including a plan to spend money for what you want

4. Track Income & Expenses
List Sources of Income, Wages, & Parental Allowances
Keep track of your Expenses:
Savings $____________
Food $____________
Housing/Rent $____________
Transportation $____________
Utilities $____________
Clothing $____________
Personal Care $____________
Insurance $____________
Health $____________
Misc. $____________
Personal Debt $____________
Total Monthly Expenses $___________
Consider an online personal tool like Mint.com

5. Your Accounts
Make sure all deposits are reflected in your bank account
Keep track how you want – electronic or paper
Citizens Bank mobile app
Make sure that all withdrawals/debit card transactions were made by you
Be sure to track ATM withdrawals and associated fees, account maintenance fees, automatic payments, and debit card purchases
Catch any mistakes early
If you write checks, keep track of outstanding transactions

6. Save - A Habit to Keep Save on a weekly basis, no matter how little.
Develop a great habit of saving that will serve you well when you graduate by:
Allowing you to increase the amount you save once you’re working.
Money can be available for short and long term goals.
Money set aside for emergencies.

7. Know When to Spend
When contemplating an expense outside your budget learn…
Need versus Want
Do I need it?
Do I want it?
Spring Break in Florida
Fixing your car
Tall white chocolate mocha
Concert tickets
Set personal limits and stick to them

8. Practical Living in a Material World
Shop for the best cell phone plan and be careful about what your plan offers (unlimited text messaging).
Buy used books.
Have roommates; maybe even more than one!
Spring break: can you afford it??
New designer hand-bag or buy second hand.
Free entertainment, very chic, artsy and smart.
Live like a student - you are one.
Open a Savings Account
Use technology to your advantage
Never pay full price: Groupon / Living Social

9. Credit Cards, a Fact of Life
Use them wisely
Emergencies
Build credit, charge only what you can pay-off each month
When you don’t …
$800 on credit card, charge nothing else, 15% interest rate, 2% minimum payment
Minimum payment of $16 each month, it will take you 11 years, 10 months to pay off the $800. Total paid $1,589.64
Pay $50 each month, it will take you 1.5 years to pay off. Total paid $898.15
Another example:
Credit Card Balance of $3,774. Minimum payment of $63 each month would take 15 years to pay off for a total of $8,392. Interest 18.24%.

10. Stretch Your Money
Treat your savings account as a bill; pay the account each month or week.
Use 13 monthly payments each year trick on loans/mortgages.
Try to pay credit cards in full each month. A $2,000 balance on a card, paying min. of $40 will take over 15 years to repay costing nearly $5,000 in total. (21% APR)
Pay off interest early, HUGE savings! For some consumer loans, you will actually get lower interest rates for paying choosing to pay interest early.
Sleep on it – Wait 24 hours before purchasing anything on your “want” list. You may not still want it the next day.

11. Stretch Your Money, Cont.
Right Meal Plan/Brown Bag it – Is your meal plan working for you? If you have a meal plan, don’t spend money you don’t have to on food.
Make your own coffee – A $3 coffee each work day is costing you $700 a year.
Car pool, plan ahead for travel.
Grocery store versus convenience store (snacks/water/soda)
Thrift Store
Library – Not only books/DVD’s but discount tickets

12. FICO Score FICO Fair Isaac Corporation
Developed the software used by most credit bureaus to calculate a credit score
A FICO score is the most commonly used credit rating
Credit scoring is a quick, objective & consistent method
for lenders to measure the “risk” of an applicant
Scores based solely on information in consumer credit reports maintained at the credit reporting agencies (Experian, TransUnion & Equifax)
FICO score is the best-know and most widely used credit score model in the United States. It provides a snapshot of risk that banks and other institutions use to help make lending decisions.
Base FICO is

13. After the SAT, LSAT, MAT, MCAT, and GRE…FICO is the score you need!
FICO is a mathematical equation that evaluates:
payment history
amount you owe
length of your credit history
pursuit of new credit (inquiries)
types of credit you use
The higher your FICO score:
the lower the risk
the better your rates and terms
It’s a constant work in progress

14. Credit Score Breakdown
The percentages below represent the 5 factors that make up a FICO credit score. The percentage amount is how important that particular factor is in determining the score.
FICO scores are used by most lenders. There are 3 credit reporting agencies that provide these scores – Equifax, Experian and TransUnion.
Lenders use credit scores to determine if they will lend, how much they will lend and what the rate will be.
In order for a FICO score to be calculated on your credit report, the report must contain at least one account that has been open for 6 months or longer. In addition, the report must contain at least one account that has been updated in the last 6 months. This, in most cases, is why a student need a co-borrower.
Source:

15. Is There an Average Credit Score?
According to Experian,
the current national average FICO score is….
687
% of Population
Credit Score 6%
8.5%
9.9%
10.1%
12.2%
16.2%
18.8%
18.4%
Credit Score
Description
Excellent
Great
Good
Average
Bad
How does PA do? The Experian average score in PA is 700 and is ranked 13th nationwide. Southern states tend to have lower FICO scores.

16. Credit Reports It is important to know what’s in your credit report!
Three major credit bureaus
Experian:
TransUnion:
Equifax:
Check Your Credit Report Annually.
It is important to review your credit report to make sure there is no erroneous information which could indicate identity theft.
Research conducted by Javelin Strategy & Research found that is takes year olds nearly twice as long to detect fraud compared to other age groups. Young adults are also more likely to fall victim to fraud and identity theft by people they know. Be vigilant and keep your documents locked and secure.

17. Building Good Credit
Start slowly – don’t apply for too many cards at one time.
Every time credit is checked for the purposes of lending it’s an inquiry on the credit report.
Individually they have little to no effect on a credit score, but many inquiries (especially in a short period) can bring a score down by several points.
Use only the credit that you can afford to pay back.
Pay balances in full and on time.
If a balance is carried, keep it small.
Lenders look at the percentage of credit balances against the credit limits allowed. The higher the percentage the greater the risk.
Use credit. Cards that are opened and stagnant can affect negatively over time.
Don’t close accounts when they carry balances.

18. Fixing Your Credit Developing a Budget
The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend.
If you are having trouble making ends meet, contact your creditors to create a payment plan or see a legitimate credit counselor.
Personal bankruptcy generally is considered the debt management option of last resort because the results are long-lasting and far-reaching.
Errors
Contact both the credit bureau and the organization reporting the erroneous information. Each are responsible for correcting inaccurate or incomplete info under the Fair Credit Reporting Act.

19. 10 ways to stop identity theft:
Guard your Social Security Number
Monitor your credit report annually– it’s free!
Buy a shredder and use it
Remove your name from marketing lists
Watch what you carry in your wallet
Keep duplicate records
Mail payments from a safe location
Monitor your credit card & bank account activity
Know who you are talking to before you share personal information

20. Borrow Only What You Need
Borrow only for legitimate costs
If you must borrow, pay highest debt cost first
Did you explore all resources before borrowing?

21. Resources www.citizensbank.com/student-services www.mint.com