thomas neill, cpa, cgma finney, neill & company, p.s

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Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S. Seattle Pacific University Life After College Managing Your Money

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Page 1: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Thomas Neill, CPA, CGMA

Finney, Neill & Company, P.S.

Seattle Pacific UniversityLife After College

Managing Your Money

Page 2: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

My Background…

•Certified Public Accountant, State of Washington for 30+ yrs

• Shareholder, Finney, Neill & Company, P.S., local CPA firm, working with businesses and individuals

•Board Member, Washington State Board of Accountancy

•Continuing Education Instructor in the area of Ethics and Regulation

• Treasurer, Bethany Community Church

• Former Adjunct Faculty, SPU and NSCC

•Graduate of the U of W Foster School of Business, 1980

•Married 37 years, four kids (one SPU graduate!)

Page 3: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Graduation is Approaching – Now You Can Start Worrying!

• Four (or more) years of college, and now you are about to be launched into the “real” world.

• Many of you will now be faced with having to deal with the everyday stuff of life, including your finances

• We will cover many topics quickly this afternoon, with time for questions – hopefully!

Page 4: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Today’s Topics

• Student Loans

• Credit Cards

• Credit Score

• Budgets

• Savings and Investing

• Words of Wisdom

• Questions

Page 5: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Student Loans – Time to get out of debt

• Simply put, pay off your debt as soon as possible

• This will reduce your overall interest costs

• Student loan are real debt, and cannot be canceled

• Pay on Time! Never ignore delinquent notices. This can have an impact on your credit score

• Deferrment or Forbearance – work with your lender

• Repayment plans – if your loan is a federal loan, you may be able to modify repayment plans – see http://studentaid.ed.gov/repay-loans.

Page 6: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Student Loans – Time to get out of debt

• Check with your lender to see if there are other repayment options

• Loan consolidation for multiple loans

• Extension of loan term

• Modification of terms

• Forgiveness –

• Public Service Loans

• Teachers Loans

• Remember – Budgeting helps!

Page 7: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Credit Cards – Beware!

• Credit cards are a tool, but a potentially dangerous one

• Don’t get cards just because you get mileage or points

• Interest rates – be aware of Teaser Rates – often high

• Stick with one card – discounts don’t warrant getting a card. Don’t use one card to pay off another

• Pay in full every month – don’t charge more than you can afford each month

• PAY ON TIME!!

• Avoid cash advances – these can carry higher rates

• Don’t exceed the credit limit

• Review Statements

• Protect personal information

Page 8: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Credit Score

• This is a rating system used to rate your credit worthiness, known as your FICO score

• Important to establish a good score – used to determine insurance costs, employment, costs of debt

• Start small – get a small loan or credit card, comply with terms of agreement

• Negative impacts – paying debts late or not at all, too many charge cards, paying interest only

Page 9: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Budgets

• This is, simply put, a plan for coordinating your income and expenses. There is no average budget!

• What works for you depends on your spending and savings priorites

• Find the budget tool that works for you – don’t just look at your bank balance online to see if you can afford something

• Tools – Excel, Mint, Quicken, pen and paper. The key is – use whatever tool consistently. This is not a now and again thing – you have to develop discipline!

• Ask for help – remember everyone else is in the same boat

Page 10: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Savings and Investing

• Start small

• Understand compound interest

• Contribute to your retirement plan

• Save thru payroll deductions or automatic investment plans

• Bank your raises

• Keep paying down loans

• Pay off your credit cards

• Reinvest dividends

• Keep track of where your money goes (i.e. budget)

Page 11: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Words of Wisdom…

• Determine if you are a spender or saver – know yourself

• If you are in a relationship, find out what each other is, and most importantly, COMMUNICATE about finances. You should both be on the same page about your money, related goals, etc. Money is a key component in divorce

• Watch your card/account statements like a hawk. It is not a safe world out there

• Watch your impulse buys. Retail therapy can cause issues

• Tithing – don’t feel guilty if you cannot afford 10%. God wants a cheerful giver

Page 12: Thomas Neill, CPA, CGMA Finney, Neill & Company, P.S

Questions…..