dollars and decisions

DOLLARS DOLLARS and and DECISIONSDECISIONS

www.youtube.com/browncollegeguy

Money matters for living independently in theMoney matters for living independently in the

““Real World” Real World”

Tou Lee YangTou Lee Yang

www.myspace.com/browncollegeguywww.youtube.com/browncollegeguy

Common Money Mistakes


Overspending


Over Borrowing


Not Organized


Not Making a Plan!


Is it easier to GET money or to

KEEP money?

A Fundamental Question:


Education is Education is Important!Important!


www.youtube.com/browncollegeguywww.youtube.com/browncollegeguy

1440 Northland DriveMendota Heights, MN 55120651-905-3582, 800-627-6966

www.myspace.com/browncollegeguy

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


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


School of Broadcasting

Radio BroadcastingAssociate of Applied Science Degree – 18 months

Television ProductionAssociate of Applied Science Degree – 18

months


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


Other Programs

Criminal Justice Bachelor of Science Degree – 36 months Associate of Applied Science Degree – 18 months

Business ManagementBachelor of Science Degree – 36 months


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


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


To get money: You must do something

AndSomeone else must do something too!

SUPPLY & SUPPLY & DEMANDDEMAND


WorkBorrowOther?

How do you get How do you get money?money?

www.myspace.com/browncollegeguywww.youtube.com/browncollegeguy

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?


$260 week $1,127 month$13,250 year

$6.50 an hour

Show up skillsPeople skillsDo something skills


$500 week $2,167 month$26,000 year

$12.50 an hour

HS Diploma/GEDCertificate/LicenseAssociates Degree


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


$1,200 week $5,200 month$62,400 year

$30.00 an hour

Advanced SkillHigh Demand CareerStraight Cash Homey!


It’s up toIt’s up to YOUYOUYourYour Decisions Decisions

YourYour PrioritiesPriorities

To Keep Money:To Keep Money:


KeepingKeepingis easier thanis easier than

GettingGetting moneymoney


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


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


30%30% or less or less of income should be of income should be

spent on shelterspent on shelter

SHELTERSHELTER


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


$ 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


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


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


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


$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!


Smart ShoppingSmart Shopping


Parents Fridge or Dorm Meal Plan


Bargain ShopBargain Shop


Clip CouponsClip Coupons


NEVERNEVER,, EVEREVER go to the go to the

grocery store hungrygrocery store hungry


Everyday Money Everyday Money TipsTips


WAITWAIT one week for one week for anything nonessentialanything nonessential


DO NOTDO NOT let pleasurable past timeslet pleasurable past timesbecome burdensomebecome burdensomehabits habits


CHECKSCHECKSare the best, real money nextare the best, real money next


COMPARISON COMPARISON SHOPSHOP


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


The ENEMY of SAVINGThe ENEMY of SAVING

Over-SpendingOver-Spendingand Debtand Debt


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


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:


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


http://www.bankrate.com/

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?


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 $$$:How credit card companies make $$$:


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


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


When you live on When you live on

your ownyour own


Good credit helps


Rent an Apartment


Cell phones / cable


Insurance Rates


Get Better JobsGet Better Jobs


Buy a Home


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


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


SHOW MESHOW METHE MONEY!!!THE MONEY!!!Ways to help Ways to help you pay for collegeyou pay for college


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


Tuition Tuition

ReimbursementReimbursement


There are literally BILLIONS of DOLLARS

that go unclaimed every year!

Scholarships


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


Tou Lee Yang1440 Northland Drive

Mendota Heights, MN 55120651-905-3582, 800-627-6966 x582

[email protected]


[email protected]


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