Money A presentation by

Student Fiscal ServicesUniversity of Washington

Education Pays OffData from the Census Bureau show that people with higher education levels earn more money over a lifetime…Less than high school

High school

Some college

Associate’s

Bachelor’s

Master’s

Doctoral

Professional

$1.0m

$1.2m

$1.5m

$1.6m

$2.1m

$2.5m

$3.4m

$4.4m

Value of $1If you save $1 per day from your 18th birthday until your 65th birthday and the money earns 2% in a savings account, how much will you have saved?

$28,038.27

What is a Budget?Not running out of money before you run out of month

NEEDS VS. WANTS

FOOD STEAK VS. HAMBURGERS

SHELTER

CLOTHING

APARTMENTS VS. DORMITORY

NIKE VS. PAYLESS

How do you decide how to spend or save your money?

If your money is going toward something you value, then youyou will usually feel a sense of satisfaction and accomplishment.

But if your money is going toward something you do not value, then youyou will usually experience a sense of frustration and failure.

Your Credit Report

Your credit report is similar to a transcript and will reflect your credit history

A credit rating/score is a numerical value assigned to you based on your credit history

Low credit scores can affect your ability to buy a home or car, or even get a cell phone

Your Credit Report Could Contain

Personal Information• Full name & other names used• Addresses for the last 7 years• Employer name• Social security number• Home phone number• Inquiries• Tradelines creditor acct/date open/high

bal/pymt terms/curr bal/ status/pastdue

• Charge offs• Court-appointed restitution• Unpaid child support• Bankruptcy

And more• Tax liens• Unpaid parking tickets or moving violations• Evictions• Car repossessions• Bad checks

FRAUD

• Identity theft– Use of another person’s name and

SSN to obtain new credit

• Account take-over– Use of person’s existing accounts

• Application fraud– Fictitious identity to obtain new credit

Credit Cards

• Good to have in the event of an emergency• Establish your own credit history• Offer insurance and replacement incentives

for purchases• Safer than carrying large amounts of cash if

your wallet is ever stolen• Many have air miles or other reward

programs

There are advantages….

But beware…

Beware Of Fine Print

Membership Fees: $59.00 annual feeOne-time processing fee: $49.00 plusAnnual Percentage Rate: 23.99%Grace Period: 20-25 days (if previous month’s balance was paid in full)Fee for cash advance: 5% (min $3) Returned check fee: $25.00Late Payment Fee: $25.00Over-the-Credit-Limit: $25.00

TRAPS!

• Credit Cards• Payday Loans• “Floating” Checks

– NSF– Other Fees

• Emergency Loans– Second Mortgage– Family or Friends– U.W.

Want to Learn More?

To sign up for Money 101, send an email to:

sfscust@u.washington.edu