For College Students

Money 101
Presenter’s Guide
A Crash Course in Better Money
Management For College Students
Getting Started

The What’s My Score Money 101 presentation features six topics that should take approximately 20 minutes
each, depending on discussion.

DEAR PRESENTER,   PRESENTER’S GUIDELINES AND SUGGESTIONS  

Many students lack basic money management skills. They’re What follows is a lesson-by-lesson breakdown of the
in a new environment, possibly away from home for the first presentation. We encourage you to use this general outline
time, and most aren’t prepared for the financial responsibility as background information to help you flesh out your own
that comes with student loans, credit card offers, lease signings presentation. Think of it as talking points, not as a script.
and more. And the stakes are high — poor decisions today
can have serious consequences for years to come. STUDENT WORKBOOK
The Money 101 Student Workbook is available through our
Research shows that financial literacy programs work, and website, www.practicalmoneyskills.com, as a printable download.
early intervention education offers outstanding benefits. Prior to beginning your presentation, hand out this student
Students who learned about personal finances before they workbook with activities on each of the topics. Take advantage
received a credit card had dramatically more responsible of some selected websites for additional student resources,
behavior than students who lacked education. Those students which are included on the back page of the workbook.
who went through a program similar to this one had 42% fewer
late fees on their credit cards and had revolving balances ADDITIONAL OPPORTUNITIES  
that were 26% lower. Work with the online campus bulletin to promote a money
management campaign for students. Hold an informal seminar
Visa is committed to helping young adults learn the or a questions and answers session. Find a student who
fundamentals about wise money management. That’s why might be willing to talk about financial decisions that he or
we’re sharing this Student Money Guide 101, aimed at college she has made — and the consequences of those decisions.
students and other young adults. What’s My Score Student
Money Guide 101 joins the Practical Money Skills program ADDITIONAL MATERIALS
(www.practicalmoneyskills.com) as a core piece of Visa’s effort For additional free financial literacy materials, visit our orders
for over 22 years to raise Americans’ financial literacy using page at practicalmoneyskills.com/free. There you will find
effective, compelling and relevant educational resources. teaching materials, games and content all geared to educating
consumers about the importance of financial literacy.
Together, we can help teach young adults the basics of
sound financial skills that will last a lifetime.
Budgeting Your Money

We start this presentation with Budgeting Your Money because it’s important for students to know what they
have and where it’s going. Let’s start by tracking expenses and looking at spending patterns. From there, we
explore making a plan and keeping a budget.

BE THE MASTER OF YOUR MONEY   BUDGETING TO MEET GOALS

The key to understanding personal finance is being aware Now students can learn how to budget to meet goals, both
of expenses and income. Students need to track where their long- and short-term, by adjusting their budgets each month.
money is going and how much money is coming in each
month. This plan will help them manage their money. BUDGETING APPS
Get your students familiar with budgeting apps that they can
WHY BUDGET? link to their bank accounts and help organize their spending
What is a budget and why is it important? What are the into different categories and set personal budgeting goals.
consequences of not keeping a budget?
MONTHLY EXPENSE TRACKER
KNOW YOUR INCOME Walk your students through the first month of the monthly
The first step in this process is to know how much you make. expense tracker worksheet. Then have them fill out the next
Have your students use the income chart to calculate how seven months to give them practice and a sense of how
much they make each month. Emphasize that students expenses can fluctuate per month. This will teach them why
should only include income that is reoccurring and reliable — it is so crucial to plan ahead.
no gifts or bonuses. See if they can set aside at least 10% to
15% of their income for long-term savings. BALANCING YOUR BUDGET
Now that your students have tracked their expenses and
TRACKING EXPENSES calculated their income they can start balancing their budget.
Students need to save receipts and track every expense for Walk them through the steps of looking at where their money
a month. It’s a true eye-opener to see where the money goes. is going. Show them how to cut back and save for larger
Point out how much money goes towards small purchases, expenses they plan to make in the future.
like daily coffee.
WORKSHEET
THREE WAYS TO SAVE Walk your students through the budget worksheet to help them
Here are some simple ways to help stay on top of a budget balance their budget. Since spending habits can fluctuate
by saving. Invite students to offer other ideas. month to month explain that if they are spending beyond their
means they will need to make adjustments for the next month.
MAKING A PLAN
After tracking expenses for a month, your students should
have an idea of where their money is going. Now it’s time to
put a monthly budget down on paper. Have them estimate
their monthly income in order to see what they’ve spent and
make a spending plan for the coming month.
Online & Mobile Banking

In this section, students will learn how to take advantage of all that online banking has to offer. Students will
learn that online banking can streamline and provide accurate records for their budgets. Using it the right way,
students can always have an accurate picture of what’s going on in their accounts.

FUNDS TRANSFER  
Most banks offer online banking services. From a security
standpoint, one of the best qualities of online banking is that
it allows you to transfer funds electronically. This section will
review what these services are and how students might use
them to track their finances and saving strategies.

DIGITAL WALLETS
There are many apps that also come in handy for making
payments. Many services allow you to keep track of your
debit and credit cards digitally. Have your students consider
the pros and cons of paying with a digital wallet versus with
a physical card.

ONLINE BANKING BENEFITS

See if your students can come up with all the banking benefits
listed and see if they can come up with additional ones.
The Checking Account

The checking account is the central hub for all financial transactions and is accessible in numerous ways —
ATM, check, debit card and your bank branch. Every payment and purchase made will be reflected in the ac-
counts both offline and online. A mini-statement may be printed at your ATM in case you want to check in.

BANKING OPTIONS AVAILABLE TO STUDENTS   CHECK IT OUT  

In this section, students will learn how to choose a bank, open It is important to understand the building blocks of budgeting
a checking account, take advantage of the convenience that and online banking — the checking and savings accounts.
online banking offers, and manage their checking accounts. Help your students understand the banking basics of a checking
account and why it is different from a savings account.

CHECKING ACCOUNT CHECKLIST

Here are some key tips to maintaining your checking account
and managing your spending for your students.

WRITING A CHECK
Despite checks being a less common method of sending or
receiving money, they are important to know how to fill out.
This section covers what happens when you or someone else
cashes a check and how to keep track of your written checks.

GOOD RECORD-KEEPING
Part of responsible financial management is good record
keeping, and with automated bill pay, this is fast and easy.
Your online account is a great organizational tool, but it’s just
as important for you to keep a hard copy of your finances for
your own day-to-day records and budgeting purposes.
Debit Cards

A debit card is an ATM card but an ATM card isn’t necessarily a debit card. A debit card will have a VISA logo
on it and can do some things that an ATM card can’t. In this section, we’ll go into the differences and things to
look out for when using a debit card.

DEBIT vs. CREDIT   THINGS TO REMEMBER: HOW TO USE YOUR DEBIT

It’s important you emphasize that although a debit card looks CARD WISELY  
a lot like a credit card, there are some key differences to keep Go through these steps to use your card wisely. Key steps
in mind. Every debit card transaction is linked directly to the include creating and securing your PIN, knowing where your
checking account and is only good for the amount currently card will be accepted, keeping tabs on the account balance
available. It is not a credit card. While credit cards allow you and saving receipts from your purchases.
to put off the payment, debit cards instantly withdraw the
money spent from your checking account.

USE IT — DON’T LOSE IT

Remind your students that a debit card is only as good as the
checking account that’s behind it. For that reason, it’s a more
prudent choice for some college students — less credit, less
temptation. Like a credit card, it’s nearly universally accepted
and is as good as cash. This is why it is important to emphasize
that students should be careful not to lose them. They are
a good way to limit your spending since you can only spend
what you have.
The Savings Account

Another key element of a financial plan is a savings account. It’s normal for a checking account to continually
fluctuate in size while a savings account is stable, if not growing at a steady rate. It’s ideal for students to set
aside at least 5% to 10% of their income for savings. This section will review how a savings account works and
how easy it can be to start saving for the future.

SAVING FOR A RAINY DAY  

Developing a consistent savings habit is easier than most
people think. It can mean putting away as little as 5% of income
on a regular basis. Most students will be surprised how quickly
savings grow when earning compounded interest.

COMPOUND INTEREST
Savings accounts typically earn compound interest.
Compounding means that whenever interest is calculated, it
is based not only on the original amount in the account but
also on any interest that has accumulated.

SIMPLE INTEREST
This interest rate is based only on the original amount in the
account. Emphasize how compound interest benefits the
account-holder more and why. Even though accounts with
simple interest are rare, it is still important to understand.

RULE OF 72
This rule provides an approximation of how long it will take to
double your money at a specific interest rate. For example, if
you earn 2% compound interest, divide 72 by 2, which means
it will take about 36 years for your original investment to
double in value.

WORKSHEET
Help your students truly understand why interest is so
important in their savings accounts. Make sure they take
away the lesson that the earlier you contribute to your
savings account, the more you make from interest.
Understanding Credit

By the time students reach college age, they may have started to establish some sort of credit history. In this
section, students will gain an understanding of what goes into a credit score, as well as what goes into making
and maintaining a good credit score. Credit and debit cards also pose challenges and temptations to students.
What follows will help to minimize risk.

OVERVIEW   HOW TO APPLY FOR A STUDENT LOAN  

It’s important for students to understand the responsibilities The necessary first step to take when applying for a student
and advantages of good credit. The first step is understanding loan is to fill out the Free Application for Federal Student Aid
what a credit score is and how it’s established. This section (FAFSA) form. This will help the student match with qualified
also deals with credit cards and student loan information. The student loans. Remind your students that this form is extremely
fees, the credit limits, interest rates — all the things people extensive and they should start the student loan process as
may not think about when they pull out their credit card or early as they can. Mention that they should not limit their
sign for a loan. search to government provided loans. Research other loans,
scholarships or grants that they could qualify for based on
THESE THINGS MAKE UP YOUR CREDIT REPORT  more than income.
Go over the list of things that make up a credit report. Think
of spending habits that could negatively impact the credit report. MAKING THE GRADE
Get your students familiar with Tess, the average college
WHAT’S A GOOD CREDIT SCORE AND WHY IS student, who is trying to manage her finances. Go through
IT IMPORTANT?   her financial choices and discuss why some choices may
In the simplest terms, a credit score is a number that helps have been better than others. Then refer to the advice to
lenders determine how likely you are to repay your debt. It’s make the best financial grade.
like a student’s personal finance GPA. The higher the number,
the better the score. Help your students understand that the TYPES OF STUDENT LOANS
lower your score the higher your interest rates will be. Have There are many types of student loans. See if your students
the them consider what spending habits could positively can create a pros and cons list for each loan, this will help
impact their credit score. them realize there is a lot to consider when choosing a loan
or multiple loans. Go over how important it is to start planning
WHEN DOES YOUR CREDIT SCORE MATTER?   loan repayment during your college career. Consider the list
Someone wouldn’t give their friend money to buy something of options you will have for repayment and create a pros and
if they had a history of never paying it back, right? The credit cons list for these.
score is a recorded history that proves how reliable (or
unreliable) you are about repaying money borrowed. Have CREDIT CARDS — KNOW YOUR LIMIT
your students think of other areas where credit scores might A credit card is basically a loan. There’s a predetermined
matter; have them think in the perspective of their parents credit limit and money spent can be paid back in full or in
or their future selves (like those who go to college or want to installments. Anything not paid back in full is assessed with
buy a house). an interest charge. Be sure to emphasize that credit cards are
one way to build your credit history, as long as payments are
THE INS AND OUTS OF STUDENT LOANS made on time. If you are under the age of 21, you will have to
Student loans are a great option for those who might not get a cosigner* on the card or prove you have a job and can
otherwise afford to attend college; they are also expensive make payments. (*Credit CARD Act of 2009,
and only increasing in price. Walk your students through www.whitehouse.gov)
the basics of student loans and explain that even though
you usually won’t need to start repaying the loans until after
graduation, a plan should be put in place to start repaying.
Understanding Credit

CONSIDER A SECURED CREDIT CARD ACCOUNT KEEP YOUR EYES ON THE FEES
For people who are just starting to build or rebuild their Credit cards also come with fees. Be sure to consider these
credit, a secured credit card account is a good option. This factors before choosing a new credit card account.
keeps spending in check because it limits you to spending
only what is in the account. Re-establish why this option is THINGS TO LOOK FOR IN A CREDIT CARD
different from a regular credit card account. In addition to credit card fees, there are other aspects of a
credit card account that one should consider before signing up.
TAX SAVINGS LESSEN THE BLOW
One way to ease the sting of college costs is to tap into the DECODING OTHER CREDIT CARD TERMS
tax advantages available to you and your parents. The three Choosing the right credit card starts with comparison shopping.
options are possible areas where tax savings could be made. Terms and conditions vary from card to card. Have students
Contact your tax advisor about the deductibility of interest. research and compare different cards. If students already
have a card, advise calling current credit card issuers to see if
DON’T GET IN OVER YOUR HEAD they’ll match the “other offer” terms. Encourage them to read
Credit cards are useful and can help build one’s credit, but be all information closely, including mailing inserts, because they
sure to review the list of warnings that covers how the card may announce changes in terms and conditions.
could be misused and negatively impact their credit.

ADVANTAGES AND DISADVANTAGES OF CREDIT CARDS

Consider the pros and cons of credit cards, then have students
think of instances where it’s better to use a credit card versus
a debit card.
Online Resources
Budgeting your money
Practicalmoneyskills.com Money management portal

Banking
ABA.com American Bankers Association
FDIC.gov Federal Deposit Insurance Corporation
ICBA.org Independent Community Bankers of America
NCUA.gov National Credit Union Administration

Understanding credit
Myfico.com Information about your FICO score
Annualcreditreport.com Free comprehensive credit report
Consumerfinance.gov Consumer Financial Protection Agency

Student loan Info

Finaid.org Student loan programs for families
NSLDS.ed.gov National Student Loan Data System
FAFSA.ed.gov Free Application for Federal Student Aid

For more information, visit: practicalmoneyskills.com

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