Introduction to Maroon Money Management

1. Introduction to Maroon Money Management Preparing Future Faculty March 21, 2014 How to Graduate Successfully and Prosper Financially

2. Contact Rebecca Smith, Ph.D. Director, Extension Center for Economic Education and Financial Literacy Becky.smith@msstate.edu

3. Extension Center for Economic Education and Financial Literacy

4. Agenda • The Case for Financial Literacy • Resources • Introduction to Maroon Money Management • Evaluation

5. Connect With Us maroonmoneymanagement@msstate.edu Please follow MMM Twitter account: @MSStateMoney #CreditForCredit • What did you like most about this workshop? • What topic would you like to learn more about?

6. Why Do We Want to Improve Our Financial Standing?

7. Getting Good Judgment Good judgment comes from experience, and experience well, that comes from poor judgment. Confederate Army General Simon Bolivar Buckner

8. Resources

9. http://www.cashcourse.org/prep Cash Course

10. http://www.feedthepig.org/

11. http://www.360financialliteracy.org/

12. www.Bankrate.com

13. http://www.youtube.com/watch?v=rK6WLHNYjwM

14. Is mint.com safe? • Pros • The site is protected with the same level of security as your financial institutions • No personal identifying information connected to your account other than your email address • You may not transfer money to or from your accounts through mint.com • Cons • You must give them your bank account login ID and password • Anytime you enter or access personal information on-line there is a risk “Should You Trust Mint.com?” by Jennifer Saranow Schultz, The New York Times

15. http://www.themintgrad.org/

16. https://www.learnvest.com/

17. www.annualcreditreport.com • Free once per year and after denial of credit • 877-322-8228

18. Government Credit Education http://www.consumer.ftc.gov/articles/0155-free-credit-reports http://www.consumerfinance.gov/askcfpb/search?selected_facets=category_exact:credit-reporting

19. http://studentaid.ed.gov/

20. http://www.nslds.ed.gov

21. Introduction to Maroon Money Management How to Graduate Successfully and Prosper Financially http://www.youtube.com/watch?v=EM_p1Az05Jo

22. The Power of Higher Education

23. For Most, College is a Good Investment! Benefits Costs Public funding is declining Cost of higher education is increasing More students and parents are taking out loans Delinquency rates are rising • Higher job satisfaction • Healthier lifestyles • Contribute more to society • More prosperous children • Higher pay • Lower unemployment

24. Financial Return on Higher Education

25. Rising Student Debt Loads

26. Student Debt Loan Load is Rising Source: http://www.newyorkfed.org/studentloandebt/

27. Introduction to Maroon Money Management How to Graduate Successfully and Prosper Financially

28. Objective of MMM What? • A campus-wide initiative to increase personal finance literacy and practices of MSU students Why? • To empower participants to add more value to their lives, so that they can achieve their dreams and live their lives more fully How? • Provide new perspectives, knowledge, experiences, and resources • http://www.moneymanagement.msstate.edu/

29. MMM Opportunities • Participate in MMM programming • Programming for your organizations • MMM Peer Mentors

30. Register atmaroonmoneymanagement@msstate.edu

31. http://msues.adobeconnect.com/beckys/

32. Worth Your Time Treasurer Lynn Fitch Roundtable • Wed., March 26 at 2:00pm in 310 Lloyd Ricks Watson April 8 Open House 11:00am-2:00 pm • Dawg House “Life After College” Mississippi Saves • www.mississippisaves.org MS Savers Club • Meets every 4th Wednesday at noon in Bost 409 • Bring your lunch!

33. Graduate Healthy and Wealthy

34. Success, Anxiety, and Failure You be the One to Define Your Success • Alain de Botton - • Job snobbery – judging the worth of people based on what they do • Begins from idea that we can be anything • Envy from perceived equality; spirit of equality with existence of deep inequality • “We can be anything” and “anything is possible” leads to low self-esteem • Meritocracy – position achieved in life is merited and deserved • “Unfortunates” (victim of fate) vs. “Losers” (self-caused outcome) • It is wrong to judge anyone by their position in life • Fear failure because we fear the judgment and ridicule of others • Tragedy (learning) vs. Failure (ridicule) • Self-worship – there is nothing greater than us to believe in • Success and failure • Idea of success = money, renown in field • Can’t be successful (excellent) at everything • To be successful (excellent) in one facet, means can’t be successful in other facets • Have your OWN IDEA of SUCCESS – you get to define it because you are the one that must live with it; make it your own http://www.youtube.com/watch?v=-dMoK48QGL8

35. Hiring Managers’ Assessment of Recent Grad Candidates Vs. Students’ Self-Assessment(% Responding Very Prepared or Completely Prepared) 25% difference 27% difference 22% difference 22% difference Bridge That Gap: Analyzing the Student Skills Index; www.chegg.com/pulse

37. Relieving Stress • Time management strategies and division (reduction) of responsibilities have been shown to reduce stress • Relaxation techniques, physical activity, exercise, and other enjoyable (!) activities also serve as effective stress relievers

38. Remember the Big Picture • Make healthy choices when they are available and most of the time in general. • Focus on what to eat, not what NOT TO EAT. • Remember that you don’t have to eat perfectly all the time. • Allow fun foods.

39. Making Your Major Profitable

40. Maximize the Return on Investment in Your College Major http://www.bls.gov/ooh/ http://www.gradsense.org/gradsense

41. Successful Decisions and Cutting Costs How to Graduate Successfully and Prosper Financially

42. Improving Decision-Making

43. Are you waiting for a future you? • Is there an important change or task that you are putting off, hoping that a future you with more willpower will show up? • All the time? Often? Sometimes? Rarely? • Do you optimistically overcommit yourself to responsibilities, only to find yourself overwhelmed by impossible demands? • All the time? Often? Sometimes? Rarely? • Do you talk yourself out of something today, telling yourself that you’ll feel more like it tomorrow? • All the time? Often? Sometimes? Rarely? • How does this affect your choices today? • What are strategies that can help you become the future self you want to become?

44. Use A Spending Diary • Date • Item • Amount Look back to see what the most common categories were in your spending and how much you spent in each category.

45. Plugging Spending Leaks • Leave your debit/credit card at home • Attend free campus concerts and plays • Use your bike or public transportation • Carry a refillable water bottle instead of purchasing soft drinks or coffee drinks • Limit the number of songs, ringtones, etc., you download • Avoid buying sodas and snacks out of vending machines • Kick a costly habit (cigarettes, lattes) • Use the library • Use the Internet for comparison shopping

46. How Much is Your Daily Brew Costing You?

47. Cutting Expenses—MSU Account Due FROM Student • Personal Payments • Monthly eBills • Balance due on the 9th • HOLDs & Fees Due TO Student • MoneyMate • Refund • Leave on Account • Federal Aid recipient: it is critical that you clear your account at the END of each aid year (end of SUMMER term)

48. Successful Saving and Budgeting

49. Where Did All the Money Go? • Saving • Budgeting

50. The Power of Saving While Young