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Budgeting Your College Education. Presented by: Beta Alpha Psi, Zeta Omega Chapter Ball State University. Introduction. Beta Alpha Psi is the most widely respected Honors Fraternity related to the Accounting industry.

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Budgeting your college education

Budgeting Your College Education

Presented by:

Beta Alpha Psi, Zeta Omega Chapter Ball State University


Introduction
Introduction

  • Beta Alpha Psi is the most widely respected Honors Fraternity related to the Accounting industry.

  • Its purpose is to recognize outstanding achievements in accounting, to promote the study and practice of the profession, and encourage a sense of ethical, social, and public responsibility.


Today s presenters
Today’s Presenters

  • Rebekah Rosenfield – President

  • Amy Whyde - Second Vice President

  • Sarah Burrell - Recording Secretary and Social Chair

  • Jack Colwell – Reporting Secretary

  • Mr. Robert Zellers - Director of Scholarships and Financial Aid, BSU


Why are budgets important
Why are Budgets Important?

  • Many goals in life are dependent on how we manage our finances.

  • Budgeting helps us:

    • Identify future expenses

    • Reveal our financial strengths and weaknesses

    • Set and achieve goals

    • Make better life decisions



Budget assuming

Budget assuming….

Ball State University

Delaware County resident

Living situation = Resident Halls


Revenue
Revenue

  • Determine your source of revenue

    • Parental Support

    • Work

    • Loans

    • Scholarships/Financial Aid

    • Savings

  • Determine approximately how much revenue you will have access to throughout the year

  • This amount will affect the categories and dollar amounts entered into your budget


  • Categories
    Categories

    • Tuition

    • Additional BSU fees

    • Books

    • Room & Board

    • Additional Food

    • Car Insurance

    • Cell Phone

    • Transportation

    • Extracurricular Activities

    • Entertainment

    • Miscellaneous


    Tuition
    Tuition

    • Based off of 2005-2006 School Year

    • $6,030 / year

    • Equals $670/mo. using a 9 month school year

    • Additional Information on Tuition costs, visit www.bsu.edu/students/admissions


    Additional bsu fees
    Additional BSU Fees

    • Based off of 2005-2006 School Year

    • $533 / year

      • Health - $132/yr

      • Technology - $406/yr

  • Equals $60/mo. using a 9 month school year

  • Additional Information on fees, visit www.bsu.edu/students/admissions


  • Books
    Books

    • $520/term

      • About $144/mo

      • Varies with course load and major


    Room board
    Room & Board

    • Assuming

      • Delaware County Resident

      • Resident Halls

        Fees Are Waived, therefore, $0


    Additional food
    Additional Food

    • Subject to personality

    • My “social circle” tended to veer away from the dorm food at least once a week, therefore I would budget $40/mo. ($10/week)


    Car insurance
    Car Insurance

    • Amount will be based off personal situation

    • Budgeted Amount $350/6mo. = $59/mo. (what I currently pay)

    • In comparison, using www.esurance.com and my current situation, quoted $435/6mo = $72.5/mo.


    Cell phone
    Cell Phone

    • Based off personal situation

      • Family Plan

      • Cell Phone Company

      • Additional Features

  • Budgeted Amount - $40/mo.


  • Transportation
    Transportation

    • Factor in rising gas prices, may have to adjust budget monthly

    • Assuming

      • Travel primarily in Muncie

      • Gas prices approx. $2.50/gallon

  • 5 gallons/wk X $2.50/gal. X 4weeks/mo. = $50/mo.


  • Extracurricular activities
    Extracurricular Activities

    • Examples

      • Greek Life

      • Intramural Sports

      • Beta Alpha Psi!!

  • $10/month

    • May seem small, but if you multiply it by 9months, that’s around $90 a year for this category

    • Your activities may vary in price, adjust accordingly


  • Entertainment
    Entertainment

    • Everyone needs to get out and socialize, this usually does not come free

      • Movies

      • Bowling

      • Parties

  • $40/month (around $10/week)


  • Miscellaneous
    Miscellaneous

    • Consider what is left in your revenue amount

    • Covers unexpected costs, such as car problems, prescription medicine, etc. (life is unexpected)

    • $20/month



    Wrap up
    Wrap Up

    • Categories/amounts are subject to individual needs/preferences

    • Variance column important

      • Shows possible adjustments to make in budget

  • Budgets only serve their purpose if you use them


  • Budget assuming1

    Budget assuming….

    Indiana University

    In-state

    Living situation = Resident Halls


    Tuition1
    Tuition

    • Based off of 2005-2006 School Year

    • $7,112/ year

    • Equals $790/mo. using a 9 month school year

    • Additional Information on Tuition costs, visit:

      • www.indiana.edu/~iuadmit/parents/cf_tuition.shtml


    Additional iu fees
    Additional IU Fees

    • Based off of 2005-2006 School Year

    • $820/ year

      • Activity: $67.36/term

      • Athletics: $15/term

      • Student Health: $92.69/term

      • Technology: $186/term

      • Transportation: $49.40/term

  • Equals $91/mo. using a 9 month school year

  • Additional Information on fees, visit: www.indiana.edu/~blbursar/body/docs/05-06FeeSchedule.pdf


  • Books1
    Books

    • $520/term

      • About $144/mo

      • Varies with course load and major


    Room board1
    Room & Board

    • Assuming

      • In-State Resident

      • Resident Halls

  • $5,616 to $7,164

    • Average: $6,390


  • Additional food1
    Additional Food

    • Subject to personality/preferences

    • Budget: $60 (subject to different prices and situation)


    Car insurance1
    Car Insurance

    • Amount will be based off personal situation

    • Budgeted Amount $400/6mo. = $67/mo.

    • Situations will vary:

      • Use www.esurance.com for more accurate insurance quote


    Cell phone1
    Cell Phone

    • Based off personal situation

      • Family Plan

      • Cell Phone Company

      • Additional Features

  • Budgeted Amount - $40/mo.


  • Transportation1
    Transportation

    • Factor in rising gas prices, may have to adjust budget monthly

    • Assuming

      • Four trips at $30

      • Gas prices approx. $2.50/gallon


    Extracurricular activities1
    Extracurricular Activities

    • Examples

      • Greek Life

      • Intramural Sports

      • Plays, musicals, etc.

      • Beta Alpha Psi!!

  • $60/month

    • 9 months school year:

      • $540/year

    • Prices vary


  • Entertainment1
    Entertainment

    • Everyone needs to get out and socialize, this usually does not come free

      • Movies

      • Bowling

      • Parties

  • $50/month (around $12.50/week)


  • Miscellaneous1
    Miscellaneous

    • What is left in your revenue account?

    • Covers unexpected costs, such as car problems, prescription medicine, etc. (life is unexpected-be prepared)

    • $30/month



    Wrap up1
    Wrap Up

    • Categories/amounts are subject to individual needs/preferences

    • Variance column important

      • Shows possible adjustments to make in budget

  • Budgets only serve their purpose if you use them



  • Budget assuming2

    Budget assuming….

    Penn State University (University Park, PA)

    Out-of-state

    Living situation = Apartment + roommate


    Tuition2
    Tuition

    • Based off of 2005-2006 School Year

    • $21,260 / year

    • Equals $2,362/mo. using a 9 month school year

    • Additional Information on Tuition costs, visit:

      • http://tuition.psu.edu/Rates2005-06/TuitionAndFees2005-06.asp


    Additional fees
    Additional Fees

    • Based off of 2005-2006 School Year

    • $486/year

      • Activity: $52/term

      • Technology: $190/term

  • Equals $54/mo. using a 9 month school year

  • Additional Information on fees, visit: http://tuition.psu.edu/Rates2005-06/TuitionAndFees2005-06.asp


  • Books2
    Books

    • $520/term

      • About $144/mo

      • Subject to vary


    Rent utilities
    Rent & Utilities

    • Assuming living in apartment

      • Estimated $386/mo

      • Things to consider

        • Utilities - $50

        • Cable TV & Internet - $50

        • Washing clothes - $20


    Food

    • Subject to personality/preferences

    • Budget: $404/mo (subject to different prices and situation)


    Car insurance2
    Car Insurance

    • Amount will be based off personal situation

    • Budgeted Amount $400/6mo. = $67/mo.

    • Situations will vary:

      • Use www.esurance.com for more accurate insurance quote


    Cell phone2
    Cell Phone

    • Based off personal situation

      • Family Plan

      • Cell Phone Company

      • Additional Features

  • Budgeted Amount - $40/mo.


  • Transportation2
    Transportation

    • How are you going to get there and how many times are you going to come home?

      • Drive

      • Fly + bus for getting around

    • Factor in rising gas prices, may have to adjust budget monthly

    • Assuming

      • Gas prices approx. $2.50/gallon = $55 (500 mi)

      • One-way ticket = $280


    Extracurricular activities2
    Extracurricular Activities

    • Examples

      • Greek Life

      • Intramural Sports

      • Plays, musicals, etc.

      • Beta Alpha Psi!!

  • $80/month

    • 9 months school year:

      • $720/year

    • Prices vary


  • Entertainment2
    Entertainment

    • Everyone needs to get out and socialize, this usually does not come free

      • Movies

      • Bowling

      • Parties

      • Concerts

  • $60/month (around $15/week)


  • Miscellaneous2
    Miscellaneous

    • What is left in your revenue account?

    • Covers unexpected costs, such as car problems, prescription medicine, etc. (life is unexpected-be prepared)

    • $30/month



    Wrap up2
    Wrap Up

    • Categories/amounts are subject to individual needs/preferences

    • Variance column important

      • Shows possible adjustments to make in budget

  • Budgets only serve their purpose if you use them


  • Comparative budgets
    Comparative Budgets

    • Refer to Example Budget 4 in Excel File



    How do i afford all this

    How do I afford all this?

    Financial Aid and Loans


    First things first
    First things First

    • You must fill out a Free Application for Federal Student Aid by March 10, 2006 for most financial aid, scholarships, and loans at BSU.

    • Other schools/states have varying deadlines.


    Financial aid terms
    Financial Aid Terms

    • Cost of Attendance (Budget) - set by the school (can be adjusted)

      • Examples of adjustments:

        • Computer expenses - $2,500

        • Childcare expenses

    • Expected Family Contribution (EFC) – the amount you and your family are expected to contribute based on the previous year’s income


    Financial aid terms cont
    Financial Aid Terms (cont.)

    • Financial Need – calculated by:

      • Budget – EFC = Financial Need

    • Financial need can be filled in a number of ways;

      • Grants

      • Scholarships/Awards

      • Work Study

      • Loans


    Grants
    Grants

    • Grants – No repayment required

      • Federal Pell

        • up to $4050/yr

        • Income based

      • Federal Supplemental Educational Opportunity Grant (FSEOG)

        • up to $4000/yr

        • Income based

      • Other state grants

        • Indiana Higher Education Grant – up to $3,800/yr


    Scholarships
    Scholarships

    • From your High School

      • Counselor’s Office

    • From your intended college/university

    • Scholarship searches online:

      • www.bsu.edu/finaid/scholarsearch

    • Deadlines and qualifications vary widely


    Work study
    Work Study

    • You work part-time for your school

    • Limited by how much funding is available to the school, and

    • Your remaining financial need

    • Paid directly to you by the school through a regular paycheck


    Loans
    Loans

    • Government – Interest rates usually lower and interest capitalized

      • Stafford – max $2,625/yr for 1st yr, increases in subsequent yrs

      • Perkins – up to $4,000/yr (forgivable)

      • Parent PLUS – not limited

    • Private Lender

      • Sallie Mae

      • Wells-Fargo


    Loans cont d
    Loans (cont’d)

    • Can usually defer for up to 6 months after you cease to be a half-time student

    • You generally MUST pay back

    • Some loans (Perkins) may be forgiven in certain fields of study (usually social/health fields)


    Resources
    Resources

    • www.studentaid.ed.gov

    • www.fafsa.ed.gov

    • www.bsu.edu/finaid




    Contact information
    Contact Information

    • Ball State University Beta Alpha Psi (Accounting, Finance, Information Systems Honors Fraternity)


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