Let’s Talk Money!
Presented by
© 2010, 2013 Wells Fargo Bank, N.A. All rights reserved. For public use.
Does this sound familiar?
 Seventy-five percent of students in the
U.S. agree that the state of the economy
makes them very concerned about their
financial future
 They also say they would value financial
information on developing a budget,
saving for a specific goal, understanding
credit scores and managing credit.
Source: The Student Market: Financial Insights (Synergistics) 2011
Your money know-how
 Current climate
 Basics of money management
 Why a spending plan
 Debit Card
 Credit & you
 Student loans
 Protecting your money & information
Today’s climate….
 Challenging economic conditions
 Competition for jobs
 Costs of housing
 Tight credit market
Here are some facts…
Student financials
 Two-thirds of college seniors graduated
with loans in 2010, and they carried an
average of $25,250 in debt.
 The Class of 2010 also faced the
highest unemployment levels for new
college graduates in recent history:
9.1% (still less than half the
unemployment rate for young adults
with only a high school diploma).
Source: The Project on Student Debt,2011 www.projectonstudentdebt.org
Basics – right starting point
 Manage your accounts
 Checking, saving, credit card and debit card
 Keep track of all your “spending”
 If you don’t have it – don’t spend it!!
 Use account options to save you $$ and time
 Mobile and online banking
 Account alerts
 Direct deposit
Your responsibility to avoid overdrafts
 Overdrafts occur when there is not enough
money in your account to cover a transaction
and the bank pays it on your behalf
 You need to know your available balance*
 Keep track of all your transactions
 Remember the bank's available balance
may not include all your transactions
 Stay alert to your account activity
"The amount of money in your account that you can use or withdraw. This balance may not reflect all
of your transactions, such as checks you have written or debit card transactions that have been
approved but not yet submitted for payment by the merchant."
Question?
How many of you would go online
to “shop around” for the best price
for an item like concert tickets,
computer equipment, etc.?
Spending Plan
 Your plan – your money
 Planning saves you $$
 Minimizes “out of control” spending
 Easy tips for saving
 Automatic monthly transfer
 New money: ½ for you – ½ for savings
 Shop for thrift – save for excitement
Your basic budget
Monthly income – Monthly expenses
 Housing
 Food
 Clothes
 Books & supplies
 Savings
 Fun
 Misc. (emergencies)
Debit Card
Allows you to:
 Enjoy a faster, safer, easier way to pay for
everyday purchases
 Make bill payments with your service providers
 Perform ATM transactions
 Different from a credit card
 Money comes out of your primary checking
account linked to the card
 Track Debit Card purchases anytime
 Through online banking or on your checking
statement
Debit Card
 Why is it important to know your Daily
Dollar Limits (DDL)?
 Where can you find your DDL?
 What is Zero Liability?
Let’s talk credit
 How many of you have more than one
credit card?
 Received an offer for the card in the
mail or online?
 Actually know what your Annual
Percentage Rate (APR) is?
How did you use that card?
Coffee & Pizza – 1 year
200 expressos @ $3
$600
100 pizzas @ $15
$1,500
Total credit card debt:
$2,100
So at @12% interest w/min. payment
Yikes…7 years to pay off + $700 in
interest – total cost to you is $2,800!
Your credit basics
 Exactly what is credit?
 Why should I care?
 How do I get it?
Credit card realities
 It’s a loan
 Limits are real
 So many offers
 Rewards
 Cash back
 Personalize
But . . .
Select your card by costs!
A few things to consider:
Annual Percentage Rate (APR)
Fees & Penalties
Cost of cash advances
Rate increases
Payment cycle
Annual fees
These are the REAL need to knows…
The cost of APR
You’ve just charged $1,000…
Card
Balance
Interest
Rate (APR)
Minimum
Payment
Interest
Paid
$1,000
14%
$25
$669.96
123 Months of payments
$1,000
8%
97 Months of payments
Illustration only
Total paid
$25
Total paid
$1,669.96
$289.93
$1,289.93
The costs of minimum payment
You have got to have this $1,500 computer!
Card balance
$1,500
APR
14.7%
Lowest payment:
$40
51 months & $521 interest >$2,021
Double lowest payment:
22 months & $215 interest >$1,715
Illustration only
$80
The cost of credit card cash advance
Card limit
$1,500
Cash advance
$1,000
APR
Fee
Minimum
payment
24%
5% of amount of borrowed
$35
It would take 47 months to pay off paying a
total of $1620 including $570 in interest
Illustration only
Your credit profile
 Credit report
 Credit score
 Why should I care?
 Your job or housing
 Check yearly
Annualcreditreport.com
Question?
What was the average student
loan amount I mentioned earlier?
Paying for college
 Be smart about where you get money for college
 First, use money you won’t have to repay like
scholarships and grants
 Next, consider money you work for through a workstudy program at your school
 Then, use student loans
 Federal student loans – apply for these by completing a Free
Application for Federal Student Aid (FAFSA)
 Private student loans – available from private lenders to
cover additional costs
 If you need to borrow
 Borrow only what you need
 Keep track of your loans and estimate your eventual
monthly payments
 Be realistic about your starting salary
Salary realities
• Can you guess the annual average
salary for these jobs?
 An Accountant
 A Public School Teacher
 A Registered Nurse
 The median starting salary for students
graduating from four-year colleges in
2009 and 2010 was $27,000.
Source: John J. Heldrich Center for Workforce Development at
Rutgers University
Responsible borrowing
 Do you understand your student loan?
 Who is your lender?
 What are your loan terms?
 What are your rights and responsibilities as a
borrower?
 What are your repayment options?
 How are you going to repay your loan?
 What is your financial plan?
Did you answer “I don’t know” to any of these
questions? Then run—don’t walk—to your
financial aid office or your lender!
You can start to manage now
 While you are in school
 Know your student loan total – build it into
your spending plan (future expense)
 Consider making interest payments while in
school
 After graduation
 Stay connected with your lender
 Discuss payment options
 Your effort is key
What personal info do you need to
protect?
 Credit cards and reports
 Social Security card and driver’s license
 Account numbers
 ATM and telephone calling cards
 Mortgage statements
 Date of birth
 Passwords and PINs
 Home addresses and phone numbers
Internet ID theft schemes
Phishing:
A criminal attempt to obtain
personal info using email spam
Pharming:
A scam in which a malicious code
is installed on a personal computer or
server, misdirecting users to fraudulent
websites without their knowledge or
consent
Defend yourself!
 Shield your PC and wireless router with
firewalls and software to catch viruses,
spyware and crimeware
 Avoid unknown sites offering free
music and game downloads
 Ignore and delete emails urging you to
click on a link to verify or provide
account information
For more information….
 Visit the Hands on Banking®
program:
www.handsonbanking.org
Thank You!
© 2010, 2013 Wells Fargo Bank, N.A. All rights reserved. For public use.