Dollars and Decisions
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Transcript of Dollars and Decisions
DOLLARS DOLLARS and and DECISIONSDECISIONS
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Money matters for living independently in theMoney matters for living independently in the
““Real World” Real World”
Tou Lee YangTou Lee Yang
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Common Money Mistakes
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Overspending
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Over Borrowing
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Not Organized
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Not Making a Plan!
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Is it easier to GET money or to
KEEP money?
A Fundamental Question:
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Education is Education is Important!Important!
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1440 Northland DriveMendota Heights, MN 55120651-905-3582, 800-627-6966
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A Non-Traditional Education
Career Oriented Programs Real World Learning Small Classes Online Learning Option Flexible Schedules Admission Requirements
ACT/SAT Not RequiredPersonal Interview
Bachelor Degrees36 Months
Associates Degrees18 Months
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Brown College Services$ Financial Aid Financial Aid -- personalized tuition planning assistance
Career ServicesCareer Services - - job placement & career prep
InternshipsInternships -- for real world career experience
Wireless Campus Wireless Campus - - student laptop program
Student ServicesStudent Services - - rideshare, housing, activities, etc
Study Abroad Study Abroad - - London, Paris, Florence, & Dubai
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School of Broadcasting
Radio BroadcastingAssociate of Applied Science Degree – 18 months
Television ProductionAssociate of Applied Science Degree – 18
months
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School of Technology Information Technology
Bachelor of Science Degree – 36 months Network Development
Associate of Applied Science Degree – 18 months Software Development
Associate of Applied Science Degree – 18 months Game Design and Development
Bachelor of Science Degree – 36 monthswww.youtube.com/browncollegeguy
School of Design Visual Communication
Multimedia Graphic Design
Bachelor of Science Degree – 36 monthsAssociate of Applied Science Degree – 18 months
Interior DesignBachelor of Science Degree – 36 months
Digital Photography Bachelor of Science Degree – 36 months
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Other Programs
Criminal Justice Bachelor of Science Degree – 36 months Associate of Applied Science Degree – 18 months
Business ManagementBachelor of Science Degree – 36 months
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Associate Degrees Associate Degrees OfferedOfferedCulinary Arts Program – 15 monthsCulinary Arts Program – 15 months
Patisserie and Baking Program – 15 Patisserie and Baking Program – 15 monthsmonths
DOLLARS DOLLARS and and DECISIONSDECISIONS
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Money matters for living independently in theMoney matters for living independently in the
““Real World” Real World”
Tou Lee YangTou Lee Yang
to pay your bills
GETTING GETTING SKILLSSKILLS
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To get money: You must do something
AndSomeone else must do something too!
SUPPLY & SUPPLY & DEMANDDEMAND
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WorkBorrowOther?
How do you get How do you get money?money?
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Your Your SKILLSSKILLSThe The supplysupply & & demanddemand for for
your your SKILLSSKILLS
Your ability to Your ability to sellsell your your SKILLSSKILLS
What determines What determines YOURYOUR income?income?
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$260 week $1,127 month$13,250 year
$6.50 an hour
Show up skillsPeople skillsDo something skills
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$500 week $2,167 month$26,000 year
$12.50 an hour
HS Diploma/GEDCertificate/LicenseAssociates Degree
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Typical Paycheck at $26,000
per year
Pay check @ $26,000 a year
Earnings rate hours this period Regular 12.50 80.00 1,000.00 (gross pay)
Deductions Statutory Federal Income Tax -89.99 (8.9 %) Social Security Tax -59.02 (5.9 %) Medicare Tax -13.81 (1.3 %) MN State Income Tax -40.73 (4.0 %) Other Checking (direct deposit) 738.31 (take home pay) Dental Insurance -5.60 Health Insurance -42.54
Take home pay for 80 hours
$738.31
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$1,200 week $5,200 month$62,400 year
$30.00 an hour
Advanced SkillHigh Demand CareerStraight Cash Homey!
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It’s up toIt’s up to YOUYOUYourYour Decisions Decisions
YourYour PrioritiesPriorities
To Keep Money:To Keep Money:
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KeepingKeepingis easier thanis easier than
GettingGetting moneymoney
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The B Word
BUDGETBUDGETwww.youtube.com/browncollegeguy
Trade OffTrade OffThe cost of what you give The cost of what you give up up EVERY TIME EVERY TIME you you make amake a CHOICECHOICE
A Fundamental Concept
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RentUtilitiesCable/SatelliteCar
InsuranceFuelMaintenance
PhoneCell PhoneInternetLong DistanceText Messages
FoodDine InDine Out
Clothing/shopping Designer vs. discounted brands
PersonalGroomingWellness
EntertainmentGoing OutDatingEvil Vices
Bye Bye Bye…MoneyBye Bye Bye…MoneyCredit Cards
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30%30% or less or less of income should be of income should be
spent on shelterspent on shelter
SHELTERSHELTER
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RentRent
West Sub.
East Sub.
South Sub.
North Sub.
St. PaulMpls
$ 1300$ 950$ 716$ 816$ 10002 bdr
$ 1000$ 700$ 800$ 607$ 650$ 8001 bdr
$ 605$ 494$ 515$ 428$ 458$ 465studio
Approximate average cost of an apartment Twin Cities Metro Area
Source: Based on averages from Rent.com
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$ 1200
Average monthly cost of food at home at four cost levels
USDA Family Food Plans
FoodFood Thrifty Low Cost Moderate Liberal
Male (age 20 – 30)
$127.80 $157.70 $193.00 $229.60
Female (age 20 – 30)
$117.00 $141.50 $167.70 $208.90
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Saving MoneySaving MoneyYour Personal Activity Monthly
SavingsAnnual Savings
Stop dining out $45 $540
Wash your own car $12 $144
Movie rental vs. monthly movie $11 $132
Regular coffee vs. cappuccino $40 $480
Miscellaneous Personal $15 $180
TOTAL $123 $1,476
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Saving Early PaysSaving Early PaysJack
Ages 21 - 30$0.00
Ages 31 - 65$2,000 per year
for 35 years Total Investment
$70,000
JillAges 21 - 30
$2,000 per yearfor 9 years
Ages 31 - 65$0.00
Total Investment $18,000
Total at age 65
Jack$470,249$470,249
Jill$570,471$570,471
Example calculated at 9% interest
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The market does fluctuate from year to yearThe market does fluctuate from year to yearBUTBUT
10% has been the annual average return for 10% has been the annual average return for the stock market for almost 100 yearsthe stock market for almost 100 years
Can you guarantee a 9% return Can you guarantee a 9% return on your investment?on your investment?
NO
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$200 Monthly ($50 a Week)$200 Monthly ($50 a Week)
(Savings over 35 years)(Savings over 35 years)
3%3% $148,683$148,683
6%6% $286,366$286,366
12%12% $1.2 million$1.2 million
Saving money pays!Saving money pays!
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Smart ShoppingSmart Shopping
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Parents Fridge or Dorm Meal Plan
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Bargain ShopBargain Shop
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Clip CouponsClip Coupons
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NEVERNEVER,, EVEREVER go to the go to the
grocery store hungrygrocery store hungry
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Everyday Money Everyday Money TipsTips
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WAITWAIT one week for one week for anything nonessentialanything nonessential
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DO NOTDO NOT let pleasurable past timeslet pleasurable past timesbecome burdensomebecome burdensomehabits habits
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CHECKSCHECKSare the best, real money nextare the best, real money next
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COMPARISON COMPARISON SHOPSHOP
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72 divided by the interest rate gives you the approximate number of years it will take your money to double
3% 24 years6% 12 years12% 6 years
The Rule of 72The Rule of 72
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The ENEMY of SAVINGThe ENEMY of SAVING
Over-SpendingOver-Spendingand Debtand Debt
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We want what we want We want what we want when we want itwhen we want itwhether we can whether we can
afford it or notafford it or not
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Do you Do you NEED NEED aaCredit Card?Credit Card?
78% of college students have credit cardsAverage balance on card is $2,8001 out of 10 college students carry a balance of
more than $7,800Nearly 94,000 people under the age of 25 filed
for bankruptcy 2004
Quick Facts for Teenagers:Quick Facts for Teenagers:
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Which plastic is right for a teenager?Which plastic is right for a teenager?
Type of card Pros Cons
Debit card Uses money in checking or savings account. Easy to set up.
Risk of overdrafting account and incurring fees. Does not build credit history.
Prepaid or stored-value card
Spending limited to amount loaded on card. Online checking of balances and spending. Authorized adults can load funds. Employers can load wages onto some cards. Major credit card branded cards can be used many places.
Fees are charged for activation, loading money, monthly maintenance, many more actions. Does not build credit history.
Joint credit card
Builds credit history. Parent and teen responsible for debt.
Secured card Credit limit set by savings account balance. Builds credit history.
May have high APR.
Authorized user
Easy to set up. Teen can piggyback on parent's credit history. Parent solely responsible for debt. Potentially puts parent's credit score at risk.
Source: www.bankrate.com
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Increased interest rates Increased interest rates
Late fees add upLate fees add up
Reduced credit limitReduced credit limit
Future credit limitationsFuture credit limitations
Credit Card Woes?Credit Card Woes?
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Interest on unpaid debtInterest on unpaid debt
% of purchase price (typically 1 - 4%)% of purchase price (typically 1 - 4%)
Annual feesAnnual fees
Selling your informationSelling your information
How credit card companies make $$$:How credit card companies make $$$:
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Credit card
Best BuySears
DiscoverVisa
Macy’sMaster Card
Annual interest
22.6%21%
19.8%18%18%
17.7%
Balance
$300$800
$1,100$1,966$300
$1,831
AA $6,297$6,297 credit card balancecredit card balance
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Digging out of debt
If You Pay Each Month
The Minimum
$10 Extra
Monthly Payment
$200 or less
$210
Interest You Pay
$9,570
$8,504
Source: Bankcards of America
$6,297 balance
Total ValueYou Will Pay
$15,867
$8,504
Time To Pay Off
23 years10 months
3 years 5 months
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When you live on When you live on
your ownyour own
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Good credit helps
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Rent an Apartment
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Cell phones / cable
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Insurance Rates
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Get Better JobsGet Better Jobs
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Buy a Home
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What makes up your credit score?
Source: myFICO.com
How good is your credit?
FICO Score
Lender Grade
760-850 A+700-759 A660-699 B620-659 C580-619 D500-579 F
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Keep a personal checking & savingsGet annual copies of your credit
reportGet ONE credit card in your name
Pay more than the minimum
Pay bills before they are due
Establishing good creditEstablishing good credit
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SHOW MESHOW METHE MONEY!!!THE MONEY!!!Ways to help Ways to help you pay for collegeyou pay for college
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Determine your need be inclusive of all costs
Determine your income Work – be realistic, factor study & personal
time in setting hours
Savings Loans, Grants, Scholarships Parents
Budget to be successful
Planning for College CostsPlanning for College Costs
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Tuition Tuition
ReimbursementReimbursement
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There are literally BILLIONS of DOLLARS
that go unclaimed every year!
Scholarships
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www.studentscholarshipsearch.comwww.studentscholarshipsearch.com
www.finaid.orgwww.finaid.org
www.fastweb.comwww.fastweb.com
www.4scholarships.comwww.4scholarships.com
www.scholarships.comwww.scholarships.com
Search the WebSearch the Web
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Tou Lee Yang1440 Northland Drive
Mendota Heights, MN 55120651-905-3582, 800-627-6966 x582
www.myspace.com/browncollegeguy
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