Your Financial Roadmap to

SuccessOffice of Financial Education

SUB 152406.994.4388

MakeChange@montana.eduwww.montana.edu/financialeducation

What the Office of Financial Education Can Do For You

One-on-One Financial Coaching to assist in loan repayment, credit, budgeting scholarship and other money management skills.

Fall 2014 Workshops9/11/14 Scholarships 101 SUB 177 5pm

9/25/14 What is in a Credit Score & More

SUB 177 5pm

10/14/14 Salary Negotiation SUB 177 5pm

10/30/14 Don’t be Scared of Your Loans

SUB 177 5pm

11/13/14 Your Financial Roadmap to Success

SUB 177 5pm

12/4/14 Survive the Holidays on a Budget

SUB 177 5pm

Your RoadmapKnow How Much You Owe

Start Career Planning Now

Find Alternatives for Paying for College Expenses

Start Saving For Retirement

Importance of Health Insurance

Start a Budget

Know What You Owe Do you have student loans?

How much are you borrowing?

Are you borrowing more than you need?

How else are you paying for school? Student employment?

Scholarships?

Grants?

Start listing all of the ways you are paying for school This will help you determine how much income

you will need to “survive” college

Cost of AttendanceCategory Semester Academic year

Tuition/Fees $3,400 $6,800

Room/Board $4,190 $8,380

Books/Supplies $625 $1,250

Personal/Transportation

$1,665 $3,330

Total $8,215 $16,430

Category Semester Academic year

Tuition/Fees $10,695 $21,390

Room/Board $4,190 $8,380

Books/Supplies $625 $1,250

Personal/Transportation

$1,665 $3,330

Total $15,510 $31,020

Undergraduate Resident Students

Undergraduate Non-Resident Students

Student Loans If you are taking out student loans

Login to NSLDS.ed.gov

Know who your servicer is

Budget loan refunds….pay back what you don’t need

Make payments now! Even small amounts can help reduce your debt after you graduate (pay off your interest first)

Now that you know how much it cost to

attend school…Make a budget to stay on

track!

Create a Monthly Budget

Create expense categories that best fit your lifestyle Include fixed and flexible expense

Categories can include rent, groceries, clothes, loans, utilities, etc.

Don’t forget to track the “small” and “impulse buys”

Creating categories are essential for ensuring that you are not over exceeding your income.

Put a percentage of you income into each category, then when you make purchase in that category track it with your budgeting tool (online resources, excel, apps, etc.)

Category PercentagesCategory Percentage

Savings 10%

Housing 35%

Utilities 10%

Transportation 10-15%

Food 5-15%

Medical/Health 5-10%

Personal/Impulse Buys 5%

Debt 5-10%

Please note: These percentages are just recommendations and it will vary for each individual.

Budgeting Resources GetMoneySmarts.org

Developed by the Commissioner of Higher Education office

Identifies all income sources, lists expenditures, sets up a estimated monthly budget, add transactions, review and modify spending plan on regular basis

Meet with a Financial Coach to create a budget and to stick to it Call 406.994.4388 to schedule an appointment

Don’t forget to review your budget and adjust accordingly

Still need extra income? Start scholarship searching

Check out MUS.edu

Ask your department for scholarships

Make an appointment with a Financial Coach for help navigating the process, call 406.994.4388

Start job searching Visit MyCatCareers.com to start searching for student

employment, internships, and full-time employment.

Need help navigating the job search, writing your resume or to prepare for the interview? Make an appointment with a Career Coach by calling 406.994.4353

MESA Program-MSU Matched Education Savings Account Program For every $1 saved, MESA matched it with $3. Save up to

$500 for the max match of $1,500

Check Out These Business That Offer Tuition Assistance

AT&T

Coca-Cola

FedEx

Gap

Home Depot

John Deere

Staples

UPS

Verizon

Wells Fargo

Start career planning now to save you time

and money

Career Planning Now

Complete a Self-Assessment Know your interests

What Motivates You

What are your Values

Know what your skills/abilities are

Personality

Accomplishments

Dreams

Lifestyle

Career Planning Now Discover the World of Work

Decide on a Major

Meet with a Career Coach

Complete the Strong/MBTI

Attend Student Employment Job Fair/Career Fairs

Attend What Can I Do With a Major In….Workshops

Graduating in four years or taking 15 or more credits per semester can save a resident students $6,560, non-residents $20,520.

Career Planning Now Goal Setting

Discover different careers by:

Volunteering

Student Employment

Study Abroad

Internships

Finding the Perfect Career Write Cover Letter/Resume

Interview Techniques

Negotiation Salary/Benefits

Job Searching Techniques

Important Facts Find student employment!

Develop soft skill that will give you a competitive edge in the workforce

Attend the Student Employment Job Fair

Tuesday, September 9th SUB Ballrooms 11:00am – 1:30pm

Participate in at least one internship Internships are the #1 reason why new college graduates are hired by

employers

Provides a way for you to connect your academic experience with the professional world and give you a competitive edge in your job search

Check out the exc.e.ed Grant Will facilitate internship opportunities that will advance students’ career

development through meaningful exposure to career fields of interest.

The goal is to alleviate some of the financial burden associated with unpaid internships or internships where the student is asked to pay to participate.

Importance of Graduating

Now that we’ve talked about making smart

decisions for the now, lets talk about your

future

What you need to know about the Affordable Care

Act The Affordable Care Act includes an individual mandate, which means you have to buy insurance or pay a penalty

If you are still on your parents’ insurance, you are covered until your 26th birthday. After that, if your employer does not offer a healthcare plan, check out https://www.healthcare.gov and navigate to the Montana page to see the options you have to get coverage in Montana or whatever state you plan to live in

Why is Health Insurance Important?

For emergencies… No one plans on getting sick or hurt but most people will need

medical care at some point in their lives

Health insurance helps cover those cost

Did you know? Average 3-day hospital stay is $30,000

Broken leg can cost up to $7,500

Protects you by: Out-of-pocket maximum: the total amount you will have to pay if

you get sick (eg. $3,000 OFP maximum, once you pay that amount, your insurance plan will pay the rest)

Without insurance, you would have to pay the whole amount out-of-pocket, this can lead to large amounts of debt or bankruptcy

MSU Student Insurance & Health Fee

Health Fee: When the fee is paid, visits to health care providers (physicians, physician assistants, nurse practitioners) are free. Students and their spouses/domestic partners may use the Health Services as often as they like.

Charges may apply for prescriptions, minor surgeries, lab work, xrays, and the dental clinic.

Insurance: mandatory whenever you are enrolled for six or more academic credits. This will cover 100% of labs, xrays, minor surgeries and most procedures. MSU insurance costs:

FALL SPRING SUMMER (ONLY)

Waiver deadline End of 15th day of class

End of 15th day of class

End of 5th day of class

Dates covered 9/1/14-1/13/15 1/14/15-8/31/15 5/11/15-8/31/15

Student rate $1,474 $1,474 $987

Don’t Forget About Retirement

Set a goal for the amount you need to retire

This is just a starting goal, you can always adjust later on

How much of your income will come from investments? How much will come from your salary?

Look into your retirement plan options, which include:

401(k): free account you can only get through your employer. Some employers match the amount you put in your 401(k). Take advantage of this great opportunity, it’s free money!

Traditional IRA: This account is set up so that your yearly contribution is tax deductible (under certain income limit). It is only taxed when you start withdrawing for retirement.

Roth IRA: different from traditional IRA; you pay taxes upfront. In return you never pay taxes on investment earnings.

Select the option that works best for you and your goals

Save as much as you can early on. The sooner you start saving, the more time your money has to grow.

Want to know how much you will need save? Check out a retirement calculator for an estimate.

Example Assume $30,000 year salary & 3% raises in

income each year

Assume—3% of your salary deferred to 401K & a 3% company match

Assume tax rate of 20%-Fed, 6%-State

Assume you ARE looking for 70% of pre-retirement income

Aggressive portfolio

Example Cont. You will have $270,587 (assume an annual return of

10.4%) at age 65 & income of $13,230 from Social Security & you can draw down the 401K for $7,770 each year till 85 & still have the retirement plan be worth $313,000+! There’s a 50% chance your cash flow will equal or exceed the $270,587!

 You get a 100% return on your investment the day you put into your retirement plan because your employer matches what you put in with THEIR Money

Bottom Line: Start into your company sponsored retirement plan as soon as you are eligible (by 25 years of age is ideal) & make sure you put enough of your own $ to get a 100% match from your employer!

Thank You!Questions/Comments?