# Student Success/Finances

This lesson introduces finances. In this lesson you will learn about personal finance, financial aid, working, saving, budgeting, credit cards, and credit reports.

## Objectives and Skills

Objectives and skills for this lesson include:
* Identify sources of income and expenses in your life
* Identify the potential sources of financial assistance available, including subsidized and unsubsidized loans, grants, scholarships, and work study
* Identify employment options for college students
* Track your personal spending habits and identify strategies for cost cutting
* Create a personal budget
* Describe the risks and rewards of credit

## Readings

* Lumen: College Success - Personal Finance
* Lumen: College Success - Financial Aid
* Lumen: College Success - Working
* Lumen: College Success - Saving
* Lumen: College Success - Budgeting
* Lumen: College Success - Credit

## Multimedia

* YouTube: What is the Price of College?
* YouTube: Federal Student Aid -- Myths About Financial Aid
* YouTube: Students Working Through College
* YouTube: Cash Budgeting Using the Envelope System
* YouTube: How to Build a Good Credit Score

## Activities

* Explore student services.
** Contact the college Financial Aid Office to learn about financial planning resources available to students.
** Contact the college Career Center to learn about career planning and placement options available to students and alumni.
* Complete a financial inventory.
** Review Lumen: College Success - Assignment: Personal Finance.
** List your current assets (savings), liabilities (loans or outstanding balances), income, and anticipated annual expenses. Include tuition and fees, housing, books, and monthly incidentals.
* Research student loan impact.
** Review The Balance: 4 Ways Your Student Loans Are Hurting You.
** If you have a student loan or loans, use a student loan calculator to calculate your required monthly payments and total interest paid over the life of the loan(s).
* Apply for a grant.
** Review Lumen: College Success - Assignment: Financial Aid.
** Review Sallie Mae: Grants for college.
** Research grant opportunities in your college, community, and state. Apply for at least one grant that you haven't applied for before.
* Research available jobs.
** Review Lumen: College Success - Assignment: Working.
** Contact the college Career Center to identify available positions for college students on campus or in your community.
** Ask about assistance with resumes and interviewing skills.
* Record your expenses.
** Review Lumen: College Success - Assignment: Saving.
** Record your daily expenses for a week. Compare your results with your original estimate of anticipated expenses above. Are your expenses on target, do you need to revise your estimate, or should you adjust your spending?
* Create a budget.
** Review Lumen: College Success - Assignment: Budgeting.
** Use either a budget spreadsheet template or free personal finance software to create a monthly budget.
* Research credit opportunities.
** Review Lumen: College Success - Assignment: Credit.
** Research credit card options for college students and list the benefits and drawbacks of credit cards and credit card debt.
* Blog / Journal / Wiki
** Update your blog, journal, or wiki page summarizing your experience this week. Include a list of resources and links or contact information for each resource.

## Lesson Summary
### Personal Finance

College expenses include:
* Tuition
* Room and board
* Books and supplies
* Personal needs
* Transportation
Income sources include:
* Jobs
* Free Application for Federal Student Aid (FAFSA)
* Loans
* Grants and scholarships
Recommendations for financial goals include:
* Create SMART goals (specific, measurable, attainable, realistic, and timely)
* Monitor your spending
* Create a budget
* Consider working
* Choose loans wisely

### Financial Aid

College costs include:
* Tuition
* Fees
* Room and board
* Books and supplies
* Living and transportation
* Personal needs and entertainment
Financial resources include:
* Grants and scholarships
* Student loans
* Jobs
Applying for financial aid requires planning and organization:
* Complete the Free Application for Financial Student Aid (FAFSA)
* Make sure the information is accurate
* Ask your high school and college
* Ask your community
* Check due dates
* Write strong essays

### Working

Typical college-student jobs include:
* Work-study programs
* On-campus jobs
* Off-campus jobs
* Internships
* Summer jobs
Advantages of working during college include:
* Earning extra money
* Enhanced budgeting skills
* Enhanced time-management skills
* Networking (career contacts)
Disadvantages of working during college include:
* Lack of time-management skills
* Lack of free time
Employment resources include:
* Career centers
* Career fairs
* Online job search
* Community businesses and places of worship

### Saving

Track personal spending habits:
* New spending
* Credit cards
* Recreational activities
* Scholarship options
Saving strategies include:
* Create a detailed budget
* Cut down on meal costs
* Save on transportation
* Look for discounts and used items
* Apply for scholarships and minimize loans

### Budgeting

When budgeting:
* Be realistic
* Choose a timeline (such as monthly)
* Add financial padding (save for the unexpected)
* Make adjustments as needed
Budgeting advantages include:
* Provides a realistic view of personal finances
* Helps you avoid excess spending
* Assists in goal setting
Budgeting disadvantages include:
* Budgets take energy
* Results take time
* Budgets may be too strict
To create a budget:
* Record your expected income
* Calculate regular expenses
* Adjust your expense percentages, and set goals
* Identify a method for tracking your budget

### Credit

Credit card advantages include:
* Saving money
* Receiving benefits
* Building credit
Credit card disadvantages include:
* Overspending
* Interest expense
* Debt
Consider credit cards with support options, including:
* Error forgiveness
* No extra fees
* Rewards for good grades
* Effective customer service
There are three credit reporting agencies:
* Equifax
* Experian
* TransUnion
Free credit reports are available annually from AnnualCreditReport.com.
Resources for credit problems include:
* Loan consolidation
* Credit counselors
* Debt settlement plans
* Bankruptcy