1. © 2008 BALANCE FINANCIAL FITNESS PROGRAM Personal Finance for College Students

2. Use Money Wisely Become and remain organized Be aware of spending Prepare for upcoming expenses

3. Analyze Income Total all incoming funds: Job, student loans, grants, scholarships, financial support Determine monthly amount: Divide periodic income by number of months Make cash last Consider savings from seasonal work

4. Set Goals Three basic goal types: Short-term – 1 year or less Mid-term – 1-3 years Long-term – 3+ years Multiple goals – all at once/one at a time Know goal cost and achievement date Price/ time frame = $ to save each month Be prepared for setbacks

5. Develop a Savings and Spending Plan Analyze the present/prepare for the future Track spending Plan for spending and savings Expenses should never exceed income Include savings Decrease expenses/increase income Understand difference between wants and needs

6. Keep an Eye on Cash Avoid impulse purchases Don’t gamble your money away Track spending

7. Use Your Checking Account Wisely Handle/monitor account: Read statements for accuracy Keep track of deposits, withdrawals, checks, purchases, fees Use ATM/debit card wisely Write checks responsibly Set up automatic bill pay Balance account Use overdraft protection

8. Open a Savings Account Make savings a habit Save for emergencies – 2-3 months worth of essential expenses Use automatic transfer of funds

9. Establish Credit Use credit wisely: Build history and score When shopping for credit, look for: Low APR Long grace period No annual fee Low penalty fees Get the right card type: Secured General purpose (unsecured) Store and gas

10. Use Credit to Your Advantage Stay out of debt Pay more than minimum payment due Pay on time Limit the number of cards you have Build a good credit history: Credit bureaus report credit activity Companies score activity

11. Treat Bills Responsibly Rent – establish good relationship with landlord Utilities – be careful with use Telephone – be aware of minutes Pay all of your bills on time: Late payment fees Collection agency Suspended service

12. Know Your Student Loans Subsidized – government pays interest for a period of time Unsubsidized – interest accumulates immediately Loan Types: Stafford loans – subsidized and unsubsidized Perkins loans – subsidized PLUS loans – unsubsidized, made to parents Private loans – no government involvement

13. Pay Your Student Loans Know your grace period – 6 to 9 months Seek a deferment or forbearance, if necessary Avoid default Make the right payment arrangements Consider forgiveness programs

14. Summary Get into good personal finance habits now Avoid over-borrowing Live within your means Save for emergencies and goals Dedicate time to money management

15. BALANCE BALANCE is a financial education and counseling service available as a benefit of credit union membership Money management counseling Debt repayment options Credit report review 888-456-2227 / www.balancepro.net