EDGE SQ 2016 Final (1)

Financial Fitness Fundamentals:

Part II Spring 2016

Part I: Lease Signing 101

L EA S E

SIGN YOUR NAME HERE

Apartment Renting Timeline •  4-6 Months Prior: Review finances, cut

unnecessary spending, increase savings, review

area apartments and average neighborhood

costs

•  3-5 Months Prior: Determine amount you can

afford

o  Consider other expenses: utilities, first month costs,

furniture, groceries, cleaning supplies

o  Determine where money is coming from

•  2-3 Months Before: Surf websites for

apartments and make appointments with

landlords

o  Act fast

o  Collect documents for cosigner (proof of employment

and salary, tax information, references, bank

statements, rental history

•  1-2 Months Before Move-In: Finalize and sign

lease terms, gather apartment fixings, finalize

budget

Maintaining a Good Relationship with Landlord

•  Establish cordial relationship with landlord

•  First visit = first inspection

•  Review any questions in the lease

•  Have your security deposit ready

•  Quiet hours continue outside of the dorm

Additional Notes of Caution

•  Read your lease in full

•  Visit Student Legal Services

•  Do not sign lease without examining

specific apartment unit you will be

renting

•  Any changes to lease must be

included in writing of the lease

•  Never sign a lease with blank spaces

•  Get a copy of your lease

•  Renter’s Insurance

Part II: Budgeting

B UDGET S HE ETMonthly salary

Short term savings

Long term savings

Utilities

Cable & Internet

Cleaning supplies

Groceries

Dining out

Clothing

$600.00

$60.00

$80.00

$50.00

$50.00

$12.50

$160.00

$80.00

$40.00

Entertainment $80.00

$472.50

===

=======

TOTAL =

What do you think?

50.8% of college-age adults agree with this statement:

“I have experienced repeated, unsuccessful attempts to control, cut back, or stop excessive money use.”

Common Budget Breakers

•  Coffee

•  Grubhub/Takeout

•  Cab/UBER rides

•  ATM fees

•  Subscriptions

90 Day Challenge

•  Track your expenses (or look at past bank statements) for 3 months

•  Save all receipts

•  Hate tracking expenses?

o  Try using Mint or budgettracker.com to track spending

•  Choose budget strategy

o  Percentage allocation

o  Categorical budget

o  Envelope method

Budget Ratios While in School

•  80% Living Expenses: Rent/Mortgage (<40%), food, clothing, transportation, utilities, entertainment

•  10% Savings: 5% emergency fund, 5% irregular items/goal specific

•  10% Debt Repayments: student loans, credit cards, car payments

80% living expenses

10% savings

10% debt repayment

Cutting Back Expenses

•  DePaul Demon

Discounts

discounts.depaul.edu

•  Shop at smaller local

markets for produce and

meat

•  Use coupons and apps

•  Look at savings as a bill, pay yourself first

•  Use direct deposit or bank transfers

•  Have a set amount each month

Make Your Savings Automatic

Short term Less than 1 year

*Buy a new winter coat

Intermediate 1-5 years

*Build an emergency fund *Study Abroad

Long Term 5 years or more

*Pay off student loan debt in 10 years

Attach Goals to your Savings

Make ‘em S.M.A.R.T.

Specific Goal Measurable Time-Sensitive Attainable Realistic Action

Buy a new winter coat (short term) $200 4 mos.

$50/mth ($12.50/

week)

Cut back Starbuck’s lattes to twice a week

Build a study abroad fund (intermediate) $1,200 2 years

$50/mth ($12.50/

week)

Cut back weekend restaurant spending

Pay off student loans in 10 years

(long term) $27,000 10 years

$311/mth ($78/ week)

Keep debt low by searching for scholarships

Review and Adjust

•  After each month, review your budget

o  What worked?

o  Where did you struggle?

•  Make adjustments to resolve any issues or account for different expenses

B UDGET S HE ETMonthly salary

Short term savings

Long term savings

Utilities

Cable & Internet

Cleaning supplies

Groceries

Dining out

Clothing

$600.00

$60.00

$80.00

$50.00

$50.00

$12.50

$160.00

$80.00

$40.00

Entertainment $80.00

$472.50

===

=======

TOTAL =

Activity: Apartment Budgeting

Congratulations on your new apartment!

Utility Costs (gas/electricity)

Studio 1br 2br 3br

$50 $60 $80 $120

Internet Only Cable + Internet

Bargain - $20.00/month Bargain - $50.00/month

Midrange - $50.00/month Midrange - $150/month

Luxury - $70.00.month Luxury - $200/month

Phone

Basic Plan - $50/month

Mid Range - $80/month

Unlimited Everything - $100/month

Using Loans for Off-Campus Housing Costs

•  You can use a loan refund to pay for off-campus housing.

•  Find an apartment within your budget

•  Remember you and/or your parents have to pay loans back at some time with interest

Part III: Loans and Borrowing Wisely

L OA N S

$35,000.00TOTAL =

Private Loans Plus Loans

Subsidized Loans Unsubsidized Loans

Finding Your Loan Servicer

•  Visit National

Student Loan

Data System

https://

www.nslds.ed.go

v/nslds/

nslds_SA/ to find

your servicer

Types of repayment options

•  Standard

•  Graduated

•  Extended

•  Pay as You Earn (PAYE)

•  Revised Pay as You Earn (REPAYE)

Forgiveness

Additional forgiveness options are

available in many fields including:

•  Public Service Loan Forgiveness

•  Medical

•  Teaching

•  Law

•  Federal Employment

•  AmeriCorps / Peace Corps – Stipends

toward loan repayment after specific

time of service check with program for

details

•  Visit

http://www.finaid.org/loans/

forgiveness.phtml for more information

Next Steps

•  Develop monthly budget

•  Review monthly budget

•  Cut back on expenses if needed

•  Examine your loan debt

Let Financial Fitness Help You 1. Schedule a Financial Advising Appointment

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