1. Your Financial Roadmap to Success Office of Financial Education SUB 152 406.994.4388 MakeChange@montana.edu www.montana.edu/financialeducation

2. What the Office of Financial Education Can Do For You  One-on-One Financial Coaching to assist in loan repayment, credit, budgeting scholarship and other money management skills.  Fall 2014 Workshops 9/11/14Scholarships 101SUB 1775pm 9/25/14What is in a Credit Score & More SUB 1775pm 10/14/14Salary NegotiationSUB 1775pm 10/30/14Don’t be Scared of Your Loans SUB 1775pm 11/13/14Your Financial Roadmap to Success SUB 1775pm 12/4/14Survive the Holidays on a Budget SUB 1775pm

3. Your Roadmap Know How Much You Owe Start Career Planning Now Find Alternatives for Paying for College Expenses Start Saving For Retirement Importance of Health Insurance Start a Budget

4. Know What You Owe  Do you have student loans?  How much are you borrowing?  Are you borrowing more than you need?  How else are you paying for school?  Student employment?  Scholarships?  Grants?  Start listing all of the ways you are paying for school  This will help you determine how much income you will need to “survive” college

5. Cost of Attendance CategorySemesterAcademic year Tuition/Fees$3,400$6,800 Room/Board$4,190$8,380 Books/Supplies$625$1,250 Personal/Transportatio n $1,665$3,330 Total$8,215$16,430 CategorySemesterAcademic year Tuition/Fees$10,695$21,390 Room/Board$4,190$8,380 Books/Supplies$625$1,250 Personal/Transportatio n $1,665$3,330 Total$15,510$31,020 Undergraduate Resident Students Undergraduate Non-Resident Students

6. Student Loans  If you are taking out student loans  Login to NSLDS.ed.gov  Know who your servicer is  Budget loan refunds….pay back what you don’t need  Make payments now! Even small amounts can help reduce your debt after you graduate (pay off your interest first)

7. Now that you know how much it cost to attend school…Make a budget to stay on track!

8. Create a Monthly Budget  Create expense categories that best fit your lifestyle  Include fixed and flexible expense  Categories can include rent, groceries, clothes, loans, utilities, etc.  Don’t forget to track the “small” and “impulse buys”  Creating categories are essential for ensuring that you are not over exceeding your income.  Put a percentage of you income into each category, then when you make purchase in that category track it with your budgeting tool (online resources, excel, apps, etc.)

9. Category Percentages CategoryPercentage Savings10% Housing35% Utilities10% Transportation10-15% Food5-15% Medical/Health5-10% Personal/Impulse Buys5% Debt5-10% Please note: These percentages are just recommendations and it will vary for each individual.

12. Budgeting Resources  GetMoneySmarts.org  Developed by the Commissioner of Higher Education office  Identifies all income sources, lists expenditures, sets up a estimated monthly budget, add transactions, review and modify spending plan on regular basis  Meet with a Financial Coach to create a budget and to stick to it  Call 406.994.4388 to schedule an appointment  Don’t forget to review your budget and adjust accordingly

13. Still need extra income?  Start scholarship searching  Check out MUS.edu  Ask your department for scholarships  Make an appointment with a Financial Coach for help navigating the process, call 406.994.4388  Start job searching  Visit MyCatCareers.com to start searching for student employment, internships, and full-time employment.  Need help navigating the job search, writing your resume or to prepare for the interview? Make an appointment with a Career Coach by calling 406.994.4353  MESA Program-MSU Matched Education Savings Account Program  For every $1 saved, MESA matched it with $3. Save up to $500 for the max match of $1,500

14. Check Out These Business That Offer Tuition Assistance  AT&T  Coca-Cola  FedEx  Gap  Home Depot  John Deere  Staples  UPS  Verizon  Wells Fargo

15. Start career planning now to save you time and money

17. Career Planning Now  Complete a Self-Assessment  Know your interests  What Motivates You  What are your Values  Know what your skills/abilities are  Personality  Accomplishments  Dreams  Lifestyle

18. Career Planning Now  Discover the World of Work  Decide on a Major  Meet with a Career Coach  Complete the Strong/MBTI  Attend Student Employment Job Fair/Career Fairs  Attend What Can I Do With a Major In….Workshops  Graduating in four years or taking 15 or more credits per semester can save a resident students $6,560, non- residents $20,520.

19. Career Planning Now  Goal Setting  Discover different careers by:  Volunteering  Student Employment  Study Abroad  Internships  Finding the Perfect Career  Write Cover Letter/Resume  Interview Techniques  Negotiation Salary/Benefits  Job Searching Techniques

20. Important Facts  Find student employment!  Develop soft skill that will give you a competitive edge in the workforce  Attend the Student Employment Job Fair  Tuesday, September 9 th SUB Ballrooms 11:00am – 1:30pm  Participate in at least one internship  Internships are the #1 reason why new college graduates are hired by employers  Provides a way for you to connect your academic experience with the professional world and give you a competitive edge in your job search  Check out the exc.e.ed Grant  Will facilitate internship opportunities that will advance students’ career development through meaningful exposure to career fields of interest.  The goal is to alleviate some of the financial burden associated with unpaid internships or internships where the student is asked to pay to participate.

21. Importance of Graduating

22. Now that we’ve talked about making smart decisions for the now, lets talk about your future

23. What you need to know about the Affordable Care Act  The Affordable Care Act includes an individual mandate, which means you have to buy insurance or pay a penalty  If you are still on your parents’ insurance, you are covered until your 26 th birthday. After that, if your employer does not offer a healthcare plan, check out https://www.healthcare.gov and navigate to the Montana page to see the options you have to get coverage in Montana or whatever state you plan to live in https://www.healthcare.gov

24. Why is Health Insurance Important?  For emergencies…  No one plans on getting sick or hurt but most people will need medical care at some point in their lives  Health insurance helps cover those cost  Did you know?  Average 3-day hospital stay is $30,000  Broken leg can cost up to $7,500  Protects you by:  Out-of-pocket maximum: the total amount you will have to pay if you get sick (eg. $3,000 OFP maximum, once you pay that amount, your insurance plan will pay the rest)  Without insurance, you would have to pay the whole amount out-of- pocket, this can lead to large amounts of debt or bankruptcy

25. MSU Student Insurance & Health Fee  Health Fee: When the fee is paid, visits to health care providers (physicians, physician assistants, nurse practitioners) are free. Students and their spouses/domestic partners may use the Health Services as often as they like.  Charges may apply for prescriptions, minor surgeries, lab work, xrays, and the dental clinic.  Insurance: mandatory whenever you are enrolled for six or more academic credits. This will cover 100% of labs, xrays, minor surgeries and most procedures. MSU insurance costs: FALLSPRINGSUMMER (ONLY) Waiver deadlineEnd of 15 th day of class End of 5 th day of class Dates covered9/1/14-1/13/151/14/15-8/31/155/11/15-8/31/15 Student rate$1,474 $987

26. Don’t Forget About Retirement  Set a goal for the amount you need to retire  This is just a starting goal, you can always adjust later on  How much of your income will come from investments? How much will come from your salary?  Look into your retirement plan options, which include:  401(k): free account you can only get through your employer. Some employers match the amount you put in your 401(k). Take advantage of this great opportunity, it’s free money!  Traditional IRA: This account is set up so that your yearly contribution is tax deductible (under certain income limit). It is only taxed when you start withdrawing for retirement.  Roth IRA: different from traditional IRA; you pay taxes upfront. In return you never pay taxes on investment earnings.  Select the option that works best for you and your goals  Save as much as you can early on. The sooner you start saving, the more time your money has to grow.

27. Want to know how much you will need save? Check out a retirement calculator for an estimate.

28. Example  Assume $30,000 year salary & 3% raises in income each year  Assume—3% of your salary deferred to 401K & a 3% company match  Assume tax rate of 20%-Fed, 6%-State  Assume you ARE looking for 70% of pre-retirement income  Aggressive portfolio

29. Example Cont.  You will have $270,587 (assume an annual return of 10.4%) at age 65 & income of $13,230 from Social Security & you can draw down the 401K for $7,770 each year till 85 & still have the retirement plan be worth $313,000+! There’s a 50% chance your cash flow will equal or exceed the $270,587!  You get a 100% return on your investment the day you put into your retirement plan because your employer matches what you put in with THEIR Money  Bottom Line: Start into your company sponsored retirement plan as soon as you are eligible (by 25 years of age is ideal) & make sure you put enough of your own $ to get a 100% match from your employer!

30. Thank You! Questions/Comments?