According to the National Center for Education Statistics NCES the research arm of the US Department of Education students who dropped out of postsecondary institutions cited financial reasons as the primary catalyst for leaving school ID: 746217
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Slide1
Financial LiteracySlide2
Budgeting
According to the National Center for Education Statistics (NCES), the research arm of the U.S. Department of Education, students who dropped out of postsecondary institutions cited financial reasons as the primary catalyst for leaving school.
Learning
to develop and manage a budget is a key skill set
that
will help you achieve both short- and long-term financial
goals
throughout life – skills that are especially handy during
college
when money is typically tight
.
For pointers on developing a budget, or to get tips for keeping your budget on track,
consider using the ECMC’s Budget worksheet.
And remember, keep your eyes on the prize.
The time you put into your budget, and the choices you make to keep your budget on track, will pay off over the long run by providing you with greater financial independence and security. Slide3
Education Pays
While the cost of college may seem intimidating, keep in mind that people are
willing to help
you
find the resources – scholarships, grants, and loans – you need to attend college. What's more, people are willing to help you
for free
. Talk to the financial aid office for tips on how to start your search.
Adults with advanced degrees earn
four times more
than those with just a high school diploma. (
U.S. Census Bureau
)
Not only do college graduates earn more, but your future employers
expect
some college education. Ninety percent of the fastest growing jobs in the new information and service economy will
require
some postsecondary education. (
U.S. Department of Education
)
There are more benefits! College graduates are less likely to be unemployed and are more likely to be in better health and active in their communities than those with only a high school diploma. (
College Board
) Slide4
Your rights and responsibilities
Right to ask:
Costs and refund policies
Percentage of students who complete the program; percentage of students placed in jobs
What financial help is available
Them to explain the various elements in your financial aid package
Responsibility to:
Research the colleges
Know and comply with all application deadlines
Respond promptly and provide all information
Read and keep copies of all forms
Complete loan entrance and exit counseling
Repay your student loansSlide5
Don’t Let College Costs Keep You From Earning a Degree
!
If applied for Financial Aid, talk to the Financial Aid Office
if
you have a change in:
Dependency Status
Marital StatusIncome and AssetsChild SupportNumber in Household or CollegePrivate elementary/secondary school tuitionMedical or dental expenses (not covered by insurance)
If
you have exhausted scholarships and grants and still need additional money to pay your college costs,
Federal education loans
may be a good option for you. Unlike grants and scholarships, loans must be paid back
with interest.
Before accepting a loan, however, consider the following
:Slide6
Only Borrow What You
Need
While
loans are a critical way to help finance a postsecondary education,
only
borrow what you need and amounts you can pay back once your education is complete.
Borrow wisely.Learn more about your responsibilities first. Learn more about the repayment process so that you know what your obligations are.Slide7
Know the
T
erminology
Debit
A purchase authorized by you in which a retailer uses money electronically withdrawn from your checking account as payment for goods and services. You initiate the purchase by using your debit card, generally tied to your checking account. Does not contribute to your credit rating.
Interest
The periodic fee charged by the lender to borrow money. Interest charges are repaid in addition to the principal of the loan. Buyer’s Remorse/Impulse Purchases
Regretted purchases usually bought in the heat of an emotional moment.
Checking Account
The most common way to pay your bills. You write a check, use a debit card or authorize a transfer of funds and that money is deducted from your checking account.
Overdraft
P
rotection
By opting in for overdraft protection, you authorize your bank to cover charges even if you don’t have money in your account. Fees for overdraft protection transactions can be very expensive.
Credit Report
A visual summary of how you handle credit. It’s typically viewed by lenders, apartment rental managers, insurance companies and employers as a symbol of your reliability.
Credit Score
A number assigned to your credit report to indicate your overall credit worthiness on a scale from 350 (poor rating) to 850 (excellent).
Consider
using the ECMC’s Financial Awareness
Basics Glossary at
:
http://www.ecmc.org/details/financial-glossary.htmlSlide8
Protect against identity theft
Keep your SSN, DOB, Driver’s license, passwords and PINs confidential
Never give out personal or financial information over the phone or via e-mail
Be careful sharing personal information
Make sure
Web
sites are secure before providing informationGet your free credit report annually
www.annualcreditreport.com
Shred all documents
Learn more at:
www.ftc.gov/idtheft
Slide9
Additional Resources
ECMC-
http://ecmc.org
http
://
www.ecmc.org/overview/financial-awareness-basics.html
Higher One-http
://
www.myonemoney.com/inside-edge
Federal Trade Commission-
http://
www.consumer.ftc.gov/features/feature-0014-identity-theft
Practical Money Skills-
http://practicalmoneyskills.com
/