Chapter 11_PROSPER.ppt
- 1. Financial Literacy & Capabilities Houston Community College Financial Literacy and Capabilities Prosper Chapter 4
- 2. Paying for College Houston Community College Financial Literacy and Capabilities Module pt. 2
- 3. How much financial aid can I receive? Paying for College Have you ever asked these questions? How will I pay? How much will it cost? ? ? ?
- 4. The average cost of attending a 4-year public college (including tuition, fees, room, and board) in- state is more than $17,000 per year? The average cost of attending a 4-year public college (including tuition, fees, room, and board) out- of-state is more than $29,000 per year? The average cost of attending a 4-year private college (including tuition, fees, room, and board) is more than $38,000 per year? Did you know? The Cost of Education
- 5. Types of Aid pg. 254 Loans Must be repaid with interest 6 months after graduating. Subsidized- do not accrue interest while in school Unsubsidized accrue interest while in school. Acquired from public and private sources does not have to be repaid. Money earned while working on campus, does not have to be repaid. Loans Grants Money you do not have to repay, usually need based and first- come basis. Scholar- ships Work Study
- 7. Are you Eligible for Federal Aid? • Demonstrate financial need? • Have high school diploma or GED? • Enrolled in an eligible degree program? • Citizen of U.S. with a SS#? • Making satisfactory academic progress? • Male registered with Selective Service? • Any drug convictions?
- 8. Complete the FAFSA to begin the financial aid process (fafsa.ed.gov). The FAFSA
- 9. • The cost of school • - your EFC(Expected family contribution) • = Your financial need (award) Your Financial Aid is Determined by
- 10. Your college creates a financial award You accept Funds are applied Student Aid Report Created Sent to you and your college Complete the FAFSA The Govt. processes The Financial Aid Process
- 11. Pay Off As Quickly As Possible!
- 12. • Repaying your loans on time is the key to a strong financial future. If you default (do not pay) on your loans it can ruin your credit score. • Student loans cannot be removed by bankruptcy and can follow you up to 30 years. Repay Your Loans!
- 13. • The Financial Aid Website • Financial Aid TV is a 24/7 website where you can find answers to financial aid questions. • http://hccs.financialaidtv.com • The Student Services Hotline, call the hotline for immediate assistance with any student services issue including financial aid! • 713.718.2000 • option 1 for Student Services/ option 2 for financial aid Access the Financial Aid Department
- 14. • Research college tuition rates and estimate how much it will cost to complete college degrees at specific institutions. • University of Texas costs (tuition & fees only)= $4,908 per 12 semester hours • University of Houston costs (tuition & fees only)= $4,601 per 12 semester hours • Baylor University costs (tuition & fees only)= $17,073 per 12 semester hours • Activity
- 15. Smart Credit Houston Community College Financial Literacy and Capabilities Module pt. 3
- 16. What is a Credit Card?
- 17. •Are money you have to pay •back. •They can help pay for •necessities and •emergencies. •They can help you establish •your credit history. Credit Cards
- 18. • Watch for changes in fees and interest rates • Your credit score can affect your rates • Avoid cards with annual fees • Know grace periods and payment due dates • Protect your card with signature and “see ID” • Make more than just minimum payments • Keep your balance under 35% of the limit • Seek reputable counseling if in trouble • Only use one general purpose credit card • Avoid High Interest Loans-Pay Day, Title Loans Tips for Managing Credit Cards
- 19. Credit Report + Credit Score= Credit History Your Credit History is
- 21. What Does Your Credit Score Say?
- 22. Fico Score Range (Best to Worst) Average Interest Rate Estimated Monthly Payment Estimated Total Interest 760-850 5.78% $879.00 $166,440 700-759 6.00% $900.00 $174,000 660-699 6.28% $927.00 $183,720 620-659 7.09% $1008.00 $212,880 580-619 8.58% $1162.00 $268,320 500-579 9.49% $1261.00 $303,960 The Impact of Your FICO Score on Home Buying Pg. 259
- 23. • Get a credit card, use it, and keep the balance low (lower than 30% of limit). • Get a loan and repay it (biggest impact). • Dispute old negative charges. • Ask for a credit limit increase and do not use it. • Check your credit annually. https://www.annualcreditreport.com Ways to Improve Your Credit Score
- 24. Budgeting Houston Community College Financial Literacy and Capabilities Module pt. 4
- 25. • Assets are possessions that have value, generally increase in value, or provide a return. Wealth building assets earn money or increase in value. Accumulating assets can help build wealth. • Liabilities are money you owe. • Asset? Calculate your net worth Assets- liabilities= net worth (wealth) Assets vs. Liabilities
- 26. • Budgeting allows you to save money, plan for the future, and understand where your money is going. • Use the simulation below to see how living without a budget can impact your life. •http://playspent.org/ Why Budget?
- 27. • Texas has various programs that can provide food, medical assistance, free tax filing, and other support services. • Visit the link below to determine if you are eligible for any benefits and find help with applying. • http://www.thebenefitbank.org/QuickCheck Texas Benefit Bank
- 28. • 1. Determine your monthly income. • 2. Determine how much you spend monthly on must haves, wants, and savings/debts. • 3. Reduce your spending of much haves to no more than 50% of your income. Reduce your wants to no more than 30% of your income. Reduce your debts to no more than 20% of your income and save or invest the rest! • View pg. 260-261 Budgets help you save money and understand where your money is going. Creating a Budget?
- 29. • Be disciplined. • Use the 72-hour wait rule to make purchases. • Watch the small purchases you make often. • Avoid payday loans! • Don’t take cash advances on your credit cards! • Buy used products. • If you can’t keep up with your bills, contact your lender. Budget Tips
- 30. • Stick to your budget over the time • specified by your instructor. • Report your savings at the end of the • specified time period. After creating your budget Budget & Savings Activity
- 31. • After you have completed all of the content in the financial literacy and capabilities unit; please wait until the final 3 weeks of your course to take the survey at the link below. • https://www.surveymonkey.com/s/6QH6QFZ Financial Literacy & Capabilities Survey