Taking Care of Your Pockets ($$)

finances

Financial Literacy

As college students, we all know the Real and true meaning of Financial Aid! The money that allows us to be at college and the money that feeds us. With this new online college experience, we all have had to reassess our meaning of finances.

One major and key element to successfully learning about financial literacy is terminology. Like what is credit, debit and interest as well as learning resources that will help us navigate?

Credit Card: The ability of a customer to obtain a good/or service before payment, based on the trust that a payment will be made in the future. Often as young adults, you may lack a credit history and will need a co-signer on your first credit card. I.e., a parent or guardian to assure that you/them will pay back the money borrowed. Building credit is essential for one’s future, career and line of credit down the line.

Debit Card: a method of payment, other than cash that is directly taken from one’s bank account for services or goods. I.e., you have the money in the bank and it will be deducted from your account.

How to Budget:

This is a life lesson and skill set that requires daily practice. A budget is an estimate of income and expenditure for a set period of time. I.e., weekly, monthly budget.

Deciding on the amount to allocate for food, entertainment and clothes are important. You don’t want to spend more than you have, which is known as debt.

 

Know the difference between want and need:

When deciding on an item to purchase, ask yourself…

  • Do I want this new pair of shoes?
  • Or do I need them? (Items you need are: food, shelter and clothes)
    • P.s: If shopping online download Honey and Rakuten laptop extensions and or UIC UNIDAYS app for coupons and automatic savings!

 

Additional Resources:

  1. Next Door Chicago: it’s a free life coaching and financial coaching platform in Chicago areas. Did I mention is 100% free for all their classes and coaching. https://www.nextdoorchicago.com/
  2. Top ten apps for budgeting on your smartphone: https://youtu.be/bet_psG-Aws
  3. UIC Student Financial Aid Office: https://financialaid.uic.edu/ You are able to schedule a Zoom appointment for any and all questions regarding financial aid and finances at UIC
  4. Student Money Management Center: Talk to a money mentor to strategize budgets, spendings, saving accounts, and much more! https://www.studentmoney.uillinois.edu/

Other Tips:

  • Start saving now, it’s never too early to apply for work study projects on campus.
  • Have the “Money Talk” with your parents or guardians, asking questions and concerns about money for school.
  • Know the limit on your debit, credit card and who’s paying the monthly bill. Building self-esteem, confidence and credit history takes time, so be patient.
  • Understand the meaning of the types of Financial aid your award: Loans, grants and scholarships. Grants are money, you don’t have to pay back.
  • Scholarships are incredibly important, along with guidelines required of the student to maintain the scholarship, ie: GPA and remaining in good standing with the university.
  • Read and re-reading the loan agreements, knowing the grace period and interest rates.

Top ten apps for budgeting on your smartphone