1. Financial Literacy & Capabilities
Houston Community College Financial Literacy and Capabilities
Prosper Chapter 4

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

3. ? ? ? 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? ?

4. 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?

5. Types of Aid pg. 254 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.

7. Are you Eligible for Federal Aid?
Demonstrate financial need?
Have high school diploma or GED?
Enrolled in an eligible degree program?
Citizen of U.S. with a SS#?
Making satisfactory academic progress?
Male registered with Selective Service?
Any drug convictions?

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

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

10. 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

11. Pay Off As Quickly As Possible!

12. 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 and can follow you up to 30 years.

13. Access the Financial Aid Department
The Financial Aid Website
Financial Aid TV is a 24/7 website where you can find answers to financial aid questions.
The Student Services Hotline, call the hotline for immediate assistance with any student services issue including financial aid!
option 1 for Student Services/ option 2 for financial aid

14. 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

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

16. What is a Credit Card?

17. 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.

18. 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
Avoid High Interest Loans-Pay Day, Title Loans

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

21. What Does Your Credit Score Say?

22. The Impact of Your FICO Score on Home Buying Pg. 259
Fico Score Range (Best to Worst)
Average Interest Rate
Estimated Monthly Payment
Estimated Total Interest
5.78%
$879.00
$166,440
6.00%
$900.00
$174,000
6.28%
$927.00
$183,720
7.09% $
$212,880
8.58% $
$268,320
9.49% $
$303,960

23. Ways to Improve Your Credit Score
Get a credit card, use it, and keep the balance low (lower than 30% of limit).
Get a loan and repay it (biggest impact).
Dispute old negative charges.
Ask for a credit limit increase and do not use it.
Check your credit annually.

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

25. 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?

26. 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.

27. Texas Benefit Bank
Texas has various programs that can provide food, medical assistance, free tax filing, and other support services.
Visit the link below to determine if you are eligible for any benefits and find help with applying.

28. 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

29. 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.

30. 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.

31. Financial Literacy & Capabilities Survey
After you have completed all of the content in the financial literacy and capabilities unit; please wait until the final 3 weeks of your course to take the survey at the link below.