College Financial Planning Workshop I Intro to Glow, IDA, College Benefits and Budgeting Fall 2010 Online Version for Program Course Credit 2010-11.

College Financial Planning

Workshop IIntro to Glow, IDA,

College Benefits and Budgeting

Fall 2010

Online Version for Program Course Credit

2010-11

Page 2

Goals for This MeetingGroup Agreements

Orientation - Glow Foundation Program

and Timeline

IDA Overview

Benefits/Costs of College

Budgeting – Expenses

Closing/Questions

Page 3

Group Agreements

Commitment to Glow Foundation’s program

Be prompt and prepared for all Glow sessions

(including Homework items)

Reach out for help when needed

Respond promptly to emails or phone calls

Share the information learned with family and peers

Be respectful (one mic)/confidentiality

Accountable for myself and the group success

Page 4

What is Glow Foundation?

Glow Foundation aims at providing all dedicated high school students with the

opportunity to afford, attend, and graduate from college, regardless of their

income level.

To do this, we provide:

1. Financial Education Workshops

2. Mentoring/College Planning Support

3. “Unmet need” scholarships

Page 5

• College Financial Planning- Benefits and costs

of college, financial aid, scholarships, student loans, award letters, and budgeting

• College Financial Planning- Benefits and costs

of college, financial aid, scholarships, student loans, award letters, and budgeting

• Creation of individual college budgets including:

- Detailed expenses - Income sources

including parent contributions, scholarships, grants, jobs, and loans

- Determine funding gap and identify ways to close or reduce it

• Creation of individual college budgets including:

- Detailed expenses - Income sources

including parent contributions, scholarships, grants, jobs, and loans

- Determine funding gap and identify ways to close or reduce it

• Budget support sessions

- Students meet with Glow Foundation volunteers to work on and refine their individual budgets

• Budget review and submission

- Individual budgets are assessed by volunteer reviewers

• Budget support sessions

- Students meet with Glow Foundation volunteers to work on and refine their individual budgets

• Budget review and submission

- Individual budgets are assessed by volunteer reviewers

September~ February February ~ March

Financial Education Program

Page 6

Program Dates/Timeline

Session Number Date Time Session Topic

1(Orientation) Orientation

2 (CFPW-I) Understanding the Costs of College/Budgeting

3 (CFPW-IV) Funding Your Education – Award Letters and Financial Aid Overview

4 (Budget Support) Budget Support Session

5 (Budget Review) Budget Review Session

(Dates/Times will be posted at the end of the session)

Page 7

“Unmet Need” ScholarshipUpon COMPLETING our financial education program,

eligible students are given the opportunity to apply for our Glow Foundation Scholarship:

Priority is given to low-income students who are first in family/first generation to attend college

Amount varies depending on the “unmet need” in funding

Requires the submission of a personal budget and additional scholarship materials

Page 8

Individual Development Account

What it is: A 2:1 matched savings account for your college education - for every $1 you save, receive $2 in matched funds up to $6,000!!

How it can be used: Tuition, books, or a computer

Basic Requirements:

Fall below specified income ceilings

Parents must file a tax return and be working

Save a minimum of $20 a month

Complete Glow Foundation’s Financial Education Program

Page 9

How Do I Participate in IDA?

Complete the following:

Online student application (11/1)Media WaiverEngage in the program!

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Benefits of College

More money!!

More/better job

security

More opportunities

Personal growth

FUN!!

Level of education completed

Mean earnings in

2006

Unemployment rate

(August 2006)

Didn't finish High School

$30,146 7.10%

High School Graduate

$38,837 4.40%

Some College/ Associate’s Degree

$45,232/ $47,401

3.80%

College Graduate $67,766 2.20%

Master’s Degree 82,022 1.80%

Doctorate 115,377 1.30%

Earnings and Unemployment Rates for People 25 and Older with Different

Education Levels

College graduates earn almost $1,000,000 MORE than high school graduates on average over a life time 

Page 11

How Much Does College Cost?

Page 12

College Costs HOW MUCH??!

SAN FRANCISCO STATE UNIVERSITY: California State University Less intense application process Moderate class sizes Practice-based learning Gets you ready to work after you graduate More affordable than UCs and private colleges

Actual Cost of Attendance:

$23,476

Page 13

College Costs HOW MUCH??!

UNIVERSITY OF CALIFORNIA, BERKELEY: Part of the UC system High reputation High student-to-teacher ratio Research-based learning Gears you toward graduate school Expensive tuition

Actual Cost of Attendance:

$29,259

Page 14

College Costs HOW MUCH??!

Type of School Tuition and Fees

Room and

Board

Books/ Supplies

Health Insurance/

Fee

Personal/Transportation

Total Cost of Attendance

Two-Year Community College (De Anza*)

855 10,872 1,728 - 3,996 $17,451

Four-Year Public In-State Resident (SF State)

5,014 12,414 1,704 - 4,344 $23,476

Four-Year Public Out-of-State Resident (SF State)

16,918 12,414 1,704 - 4, 344 $35,380

Four-Year Public In-State Resident (UC Davis)

12,034 12,498 1,601 1,048 2,078 $29,259

Four-Year Public Out-of-State Resident (UC Davis)

34,055 12,498 1,601 1,048 2,078 $51,280

Four-Year Private (Stanford) 39,138 11,876 1,485 501 2,385 $55,385

Cost of Attendance by Type of School (2010-2011 Academic Year)

But, this is before Financial Aid!

Page 15

College Website Navigation-SFSU

Page 16

What Do I Do with These Costs?

How can you plug this cost of attendance info

into a meaningful tool that will help you think

about how to finance and afford college?

Page 17

Budgeting

Spend a few minutes thinking about about

the following (see page 2 in student

packet):

What is a budget?

What is the purpose of a budget?

What does a budget tell you about your financial

situation/what decisions can it help you make?

What should be included on a budget?

Page 18

Creating a College Financial Budget

Expenses: Cost of Attendance Fixed Expenses

(E.g., tuition, rent, car payments, insurance)

Flexible Expenses (E.g., books & supplies, food, utilities/bills, transportation, personal care)

Discretionary Expenses(E.g., entertainment, going-out, gifts)

Income: Sources of Funding Parents or Savings / Investment Job / Work Study Grants (Pell Grants, ACG, Cal Grant etc.) Loans (Stafford, Perkins, Plus, Private) Others??

Funding Gap

minusminus

equalsequals

Page 19

Tradeoffs

What happens when you don’t have the

enough money to cover your expenses?

How can a budget help you in this

situation?

Page 20

Budgeting with Microsoft Excel

What is Microsoft Excel? A Program that stores, sorts, and analyzes data. Excel allow you to make calculations, graphs,

and perform other data analysis Excel allows you to keep versions and update

We will use Microsoft Excel to create our budgets – Excel will allow us to calculate these numbers quickly with the use of basic math formulas

Page 21

Microsoft Excel 101

Excel Basics: Review the Budget Directions Test how to do simple tasks (“How To”) in

Excel Use “Shortcuts/Tips,” especially related to

basic math functions Review any other “Important Information”

related to the budget you will create

Page 22

Create a Draft Budget

for Understanding

Page 23

Homework

Continue researching college costs and

inputting this information into your

budget

Complete the online student application

Sign and return the media waiver

Page 24

Recap

Group Agreements

Orientation - Glow Foundation Program

and Timeline

IDA Overview

Benefits/Costs of College

Budgeting – Expenses

Closing/Questions

Page 25

Contact Info

Jason HongProgram Associate

[email protected]

Veronica FloresProgram Associate/Volunteer Coordinator

[email protected]

Alana OkamotoProgram Director

[email protected]