REAL LIFE LESSONS
Contents
TUITION, HOPE, FEES
STUDENT LOANS AND GRANTS
PAYCHECKS AND WITHHOLDING
CREDIT CARDS
REAL INCOME
BUDGETING
BEWARE THE FAFSA
tuition, hope,fees
THE
REAL
COST OF
tuition
TUITION AND FEES - COST PER YEAR
Gwinnett Technical Georgia Gwinnett College College
Kennesaw State University
University of Georgia
Tuition 2017
$3,330.00
$3,844.00
$5,273.00
$9,588.00
Fees
Included
$1,704.00
$2,091.00
$2,258.00
Cost Per Year
$3,330.00
$5,548.00
$7,364.00
$11,846.00
$6,660.00 (2 yrs)
$22,192.00
$29,456.00
$47,384.00
4 Years Tuition/Fees
TUITION AND FEES - OVER 4 YEARS
Gwinnett Technical Georgia Gwinnett College College
Kennesaw State University
University of Georgia
Tuition 2017
$3,330.00
$3,844.00
$5,273.00
$9,588.00
Fees
Included
$1,704.00
$2,091.00
$2,258.00
Cost Per Year
$3,330.00
$5,548.00
$7,364.00
$11,846.00
$6,660.00 (2 yrs)
$22,192.00
$29,456.00
$47,384.00
4 Years Tuition/Fees
REAL COST OF TUITION - 4 YEARS $100,000
$97,008
$80,000
$72,208
$60,000
$40,000 $26,812
$20,000
$0
$7,970 (2 YRS) Gwinnett Technical College
Georgia Gwinnett College
Kennesaw State University
University of Georgia
Gwinnett Technical College
Georgia Gwinnett College
Kennesaw State University
University Of Georgia
4 Years Tuition/Fees
$6,660 (2 yrs.)
$22,192.00
$29,456.00
$47,384.00
4 Years Meal Plan
$0.00
$2,000.00
$14,720.00
$19,000.00
4 Years Housing
$0.00
$0.00
$23,360.00
$25,952.00
4 Years Books
$1,310.00
$2,620.00
$4,672.00
$4,672.00
Real Cost 4 Years
$7,970.00 (2 yrs.)
$26,812.00
$72,208.00
$97,008.00
REAL COST OF TUITION - AFTER HOPE
Gwinnett Technical Georgia College Gwinnett College
Kennesaw State University
University of Georgia
Total Cost 4 Years
$7,970 (2 Years)
$24,192
$67,536
$92,336
HOPE
-$5,340
-$15,376
-$20,904
-$39,248
Cost After HOPE
$2,630 (2 YEARS)
$8,816
$46,632
$53,088
student loans and grants
Student loans: SUBSIDIZED VS. UNSUBSIDIZED
Subsidized The US Dept. of Education Pays the interest on your loans Until 6 months after graduation
vs.
UN-Subsidized Interest is added every month While you are in school
Loan Balance After 4 Years Example: 4% interest* YEAR 1
YEAR 2
YEAR 3
YEAR 4
TOTAL
BORROWED YEAR 1
$2,500
$2,500
$2,500
$2,500
$10,000
INTEREST ADDED:
$100
$204
$312
$425
$1,041
Unsubsidized Loan Total Due
$11,041
Subsidized Loan Total Due
$10,000
YOU WILL OWE $1041 INTEREST ON EVERY $10,000 BORROWED
Loan Balance After 4 Years
**Federal Loans offered to parents at a fixed interest rate. (current 7 percent)
PELL GRANTS - Pell Grants are awarded based on family income - It is money that the U.S. Department of Education gives you for college that you do not have to pay back - In some cases a family can earn over $100,000 and still qualify for a Pell Grant - You automatically apply for this grant when you fill out the FAFSA
PELL GRANTS CAN BE UP TO
$5815 / YR $23,260 total
Loan Balance After 4 Years Gwinnett
GA Gwinnett
Valdosta
GA Tech,
Tech
College
State
UGA
$2,000.00
$8,816.00
$46,632.00
$53,088.00
$37.10
$90.48
$478.58
$544.00
$2,226.00
$10,857.00
$57,429.00
$65,280.00
Loan balance after 4 years Standard Monthly Payment Total Amount Paid Including Interest
Extended monthly payment 300 months/ 25 years Monthly payment
$253.67
$298.89
Total amount paid
$76,101.00
$89,667.00
(including interest)
paychecks and withholding
THE
REAL
WAY TO KEEP MORE OF YOUR
PAYCHECK
filling out the w-4a
withholding
You can earn up to…
$10,350/ yr. Without having to have federal and state taxes taken out of your paycheck. You won’t get any tax refund, but you’ll have
more money in every paycheck
credit cards
THE
REAL
COST OF
CREDIT CARDS
If you spend about $100 per month…
2 tanks of gas
2 dinners out
BEWARE THE MINIMUM PAYMENT
They charge you 18.9% interest
Only ask for a 2% minimum payment?
After 4 years… YOU SPENT
$4,800
YOU PAID
($2,880)
18.9% INTEREST
$2,140
OWE NOW
$4,060
PAYMENTS MADE:
$2,880
INTEREST ADDED
$2,140
DON’T LET THIS HAPPEN!! 1.Don’t spend more than you can pay 2.Always pay more than the minimum due 3.DON’T SPEND MORE THAN YOU CAN PAY
WHAT IS A
credit score
AND WHY IS IT SO
Important ???
credit score • Every time you get a bank loan, credit card, or acquire any long-term bill, it will appear on your CREDIT REPORT. • The credit reporting agencies know every time you receive anything on credit and will track your balances and payments. • Your report will start the first time you get any credit and continue on for the rest of your life. • Credit and Payment history will stay on the report for a minimum of 10 years.
• Your CREDIT SCORE, often called your FICO SCORE, is a three-digit number from 300-850 generated using information from your credit report. • It is used to predict whether or not you are a likely to repay money that you borrow. • The lower your score is, the harder it is to get a loan, and the higher your interest rates will be.
Credit Scores will effect SO MANY things your life. • Car Dealers use it to decide your interest rates • Employers use it to see if you’re a responsible person • Landlords use it to decide if they will rent to you or not • Cable, Internet, and Cell Phone companies will use it to decide if they will lease you equipment • Banks use credit scores to decide if you’re likely to repay a loan
Your Credit score will be based on….
PAYING ON TIME IS THE SINGLE MOST IMPORTANT THING YOU CAN DO TO KEEP A GOOD CREDIT SCORE SECOND WOULD BE TO KEEP YOUR CREDIT CARD BALANCES LOW
If you always do these two things, your score will always be on the good side You can see your credit score for FREE at…
CREDITKARMA.COM
income
Real income
AFTER TAXES
Real income after taxes (Based on $60,000 income)
Real income after taxes $60,000
Income
-$15,000
Federal Taxes (25%)
-$3,000
State Taxes (6%)
-$4,590
FICA (Social Security and Medicaid 7.65%)
-$3,180
Student Loan (Avg. 2016) $265/Month
$33,630
Total Left After Taxes
Real
LIFE EXPENSES
Life expenses
Life expenses $33,630
Income after taxes
-$10,500
1 Bedroom Apartment (Avg. Gwinnett/Decatur) $875/Month
-$3,000
Utilities $250/Month
-$4,860
Car Payment ($22,500 Loan) $405/Month
$18,360
Money Left for Everything Else
That leaves you‌ $1,530/month
For Food, clothes, gas, make-up, car insurance, Walmart runs, fun stuff, cleaning supplies, health insurance‌
CREATING A…
PERSONAL BUDGET
A Personal Budget‌ is the most important tool for keeping your finances in order and will help you attain your goals- like buying a car. Following a simple budget will show you where your money is going and help keep you from ending up in trouble
simple realistic
KEEP IT KEEP IT
1. Estimate your income 2. Estimate you spending 3. Include savings as an expense 4. Review monthly
EXAMPLE OF BANK OF AMERICA APP…
CASH VS.
DEBIT CARD
VS. It’s easier to skip impulse purchases when you are looking at the actual money in your wallet. Swiping your debit card is easy and makes it easy to forget you spent the money. If you carry your cash “allowance” for the week, you are much less likely to overspend. As you spend your money, you will constantly see how much you have left and be Less likely to spend on things you don’t really need or want.
WHEN IT’S GONE, IT’S GONE.
STUDENT MONTHLY INCOME DESCRIPTION Income from work
AMOUNT $500.00
Student loans
$90.00
Scholarships
$50.00
Grants
$75.00
Other financial aid Parent/family contributions Gifts and other Total income each month:
$100.00 $815.00
STUDENT MONTHLY EXPENSES DESCRIPTION Laundry Food (main meals) Food (snacks, coffee, etc.) Heath insurance
AMOUNT $25.00 Meal plan $75.00 Mom
Haircut/manicure/pedicure
$45.00
Personal items, bathroom supplies
$75.00
Clubs/organizations
$25.00
Clothes Entertainment/nights out
Mom $125.00
Dorm supplies - cleaning etc.
$25.00
School supplies (printer ink/paper)
$10.00
Parking
$15.00
Car payment Car insurance Gas Other transportation Cell phone
$175.00 Mom $50.00 $0.00 $60.00
Cable
Dorm
Internet service
Dorm
Utilities (electricity/natural gas)
Dorm
Savings (10% of income to start) Total expenses each month Money left over
$50.00 $755.00 $60.00
beware the
fafsa