Financial
Literacy
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.
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)
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 loans
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 Status
Income and Assets
Child Support
Number in Household or College
Private elementary/secondary school tuition
Medical 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:
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.
Know the Terminology
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 Protection
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.html
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 information
Get your free credit report annually



www.annualcreditreport.com
Shred all documents
Learn more at: www.ftc.gov/idtheft
Additional Resources
ECMChttp://ecmc.org
http://www.ecmc.org/overview/financial-awareness-basics.html
Higher Onehttp://www.myonemoney.com/inside-edge
Federal Trade Commissionhttp://www.consumer.ftc.gov/features/feature-0014-identity-theft
Practical Money Skillshttp://practicalmoneyskills.com/