FICA, 401K, and APR

Making Sense of the Alphabet Soup of Life After College

Jeff PelletierBeta Phi Chapter Advisor - The Ohio State University

pelletier.12@osu.edu - twitter.com/jeffbc94

The Big Picture

• Money – making and keeping it

• Apartment – you can pay for heat

• Work – seriously, all day

• Taxes – like finals, but once a year

• Life as a Big Kid

• What scares you most?

Presentation available at: http://www.slideshare.net/jeffbc94

All About the Benjamins

• Where you can put it– Savings/Checking– Money Market– CD– Mutual Fund

• Which is best?– All of the above!

• What to look for– Interest rate– Minimum balance– Ease of/Penalty for withdrawal

Setting Up a Budget

• Pay yourself first– Deposit into savings, before anything else

• Account for regular expenses– Rent

– Student loans

– Car Payment/Insurance

– Gas, Electric, Cable, Water/Trash

– Credit Card (it is okay to have one)

• Set utilities on a budget

Balance Deposits Withdrawals Description Rec'd Sched. Pay Monthly Expense Amount Loan Amount Rate Donations

200.00 3200.00 Income 1-Jun House $600.00 home loan $100,000.00 5.00 http://www.nationalmssociety.org/

-100.00 Cash Withdrawal Cars&Ins $405.00 car loan $16,000.00 4.50 Beta Phi

-220.00 personal check College Loans $175.00 personal loan $10,000.00 5.50 Delta Tau Delta

-130.00 personal check 29-May Life Insurance $150.00 student loan $5,000.00 5.00 Ohio State

-50.00 student loan Roth IRA $150.00 student loan $8,000.00 2.6 Boston College

-25.00 student loan Loan $100.00 student loan $25,000.00 1.6 ACUI

-100.00 student loan Money Market $60.00 Puget Sound

-350.00 car payment Cash $100.00 Kappa Alpha Theta

-150.00 life insurance AT&T, Gas, Electric, Water $368.00

-60.00 transfer to savings Income $3,000.00

-150.00 IRA payment Bills -$2,108.00

-10.00 Ohio State University Credit Card/Purchases $892.00

-60.00 Water/Trash 27-May 27-May 25-Jun

-53.00 Gas 28-May 28-May 9-Jun

-100.00 Loan Payment 29-May

-55.00 Electric

-200.00 Cable & Wireless

-900.00 Mastercard

interest

-600.00 Mortgage

-105.00 car insurance

-18.00 3200.00 Income 1-Jul

-100.00 Cash Withdrawal

-50.00 student loan

-25.00 student loan

-100.00 student loan

-350.00 car payment

-150.00 life insurance

-60.00 transfer to savings

-150.00 IRA payment

-10.00 Kappa Alpha Theta

100.00 Deposit from graduation money!

-60.00 Water/Trash

-53.00 Gas

-100.00 Loan Payment

-55.00 Electric

-200.00 Cable & Wireless

-900.00 Mastercard

interest

-600.00 Mortgage

319.00 -105.00 car insurance

3200.00 Income 1-Aug

-100.00 Cash Withdrawal Comments:

-50.00 student loan The yellow box on the left keeps a running total of what you have left each month

-25.00 student loan Payments in red are ones which automatically come out of my account

-100.00 student loan Green highlighted payments are payments to "me" in the form in savings/IRA transfers

-350.00 car payment Blue highlighted are payments to the charity/donations we decide to give to

-150.00 life insurance Non-highlighted/colored are regular expenses, most of which are on a budget

-60.00 transfer to savings Each time I receive a bill, I write in when I receive it (so that I know when it should come again),

-150.00 IRA payment when I schedule to pay it, and when it will pay

-10.00 Puget Sound Interest block is to record the amount of interest the checking account earns

-60.00 Water/Trash

-53.00 Gas Each month, when I get my checking account statement, I highlight payments that hit the account (the purple blocks),

-100.00 Loan Payment so that I know what our balance is according to the bank

-55.00 Electric if that's different from the yellow box, unhighlighted payments should explain the difference

-200.00 Cable & Wireless

-900.00 Mastercard The section above gives me a way to track what monthly expenses should be,

interest what our loan balances and rates are

-600.00 Mortgage and where our money is going towards donations

-105.00 car insurance

346.00 3200.00 Income 1-Sep

-100.00 Cash Withdrawal There is a large balance at the end of each month because the numbers aren't "real," but the concepts should work

-50.00 student loan

-25.00 student loan

-100.00 student loan

-350.00 car payment

-150.00 life insurance

-60.00 transfer to savings

-150.00 IRA payment

-10.00 Ohio State

-60.00 Water/Trash

-53.00 Gas

The yellow

box on the

left keeps a

running total

of what you

have left

each month

Payments in

red are ones

which should

automaticall

y come out

of your

account

Payments in green

are payments to

YOU in the form in

savings/IRA

transfers

Payments in blue

are charitable

donations you

decide to give to

Balance Deposits Withdrawals Description Rec'd Sched. Pay Monthly Expense Amount Loan Amount Rate Donations

200.00 3200.00 Income 1-Jun House $600.00 home loan $100,000.00 5.00 http://www.nationalmssociety.org/

-100.00 Cash Withdrawal Cars&Ins $405.00 car loan $16,000.00 4.50 Beta Phi

-220.00 personal check College Loans $175.00 personal loan $10,000.00 5.50 Delta Tau Delta

-130.00 personal check 29-May Life Insurance $150.00 student loan $5,000.00 5.00 Ohio State

-50.00 student loan Roth IRA $150.00 student loan $8,000.00 2.6 Boston College

-25.00 student loan Loan $100.00 student loan $25,000.00 1.6 ACUI

-100.00 student loan Money Market $60.00 Puget Sound

-350.00 car payment Cash $100.00 Kappa Alpha Theta

-150.00 life insurance AT&T, Gas, Electric, Water $368.00

-60.00 transfer to savings Income $3,000.00

-150.00 IRA payment Bills -$2,108.00

-10.00 Ohio State University Credit Card/Purchases $892.00

-60.00 Water/Trash 27-May 27-May 25-Jun

-53.00 Gas 28-May 28-May 9-Jun

-100.00 Loan Payment 29-May

-55.00 Electric

-200.00 Cable & Wireless

-900.00 Mastercard

interest

-600.00 Mortgage

-105.00 car insurance

-18.00 3200.00 Income 1-Jul

-100.00 Cash Withdrawal

-50.00 student loan

-25.00 student loan

-100.00 student loan

-350.00 car payment

-150.00 life insurance

-60.00 transfer to savings

-150.00 IRA payment

-10.00 Kappa Alpha Theta

100.00 Deposit from graduation money!

-60.00 Water/Trash

-53.00 Gas

-100.00 Loan Payment

-55.00 Electric

-200.00 Cable & Wireless

-900.00 Mastercard

interest

-600.00 Mortgage

319.00 -105.00 car insurance

3200.00 Income 1-Aug

-100.00 Cash Withdrawal Comments:

-50.00 student loan The yellow box on the left keeps a running total of what you have left each month

-25.00 student loan Payments in red are ones which automatically come out of my account

-100.00 student loan Green highlighted payments are payments to "me" in the form in savings/IRA transfers

-350.00 car payment Blue highlighted are payments to the charity/donations we decide to give to

-150.00 life insurance Non-highlighted/colored are regular expenses, most of which are on a budget

-60.00 transfer to savings Each time I receive a bill, I write in when I receive it (so that I know when it should come again),

-150.00 IRA payment when I schedule to pay it, and when it will pay

-10.00 Puget Sound Interest block is to record the amount of interest the checking account earns

-60.00 Water/Trash

-53.00 Gas Each month, when I get my checking account statement, I highlight payments that hit the account (the purple blocks),

-100.00 Loan Payment so that I know what our balance is according to the bank

-55.00 Electric if that's different from the yellow box, unhighlighted payments should explain the difference

-200.00 Cable & Wireless

-900.00 Mastercard The section above gives me a way to track what monthly expenses should be,

interest what our loan balances and rates are

-600.00 Mortgage and where our money is going towards donations

-105.00 car insurance

346.00 3200.00 Income 1-Sep

-100.00 Cash Withdrawal There is a large balance at the end of each month because the numbers aren't "real," but the concepts should work

-50.00 student loan

-25.00 student loan

-100.00 student loan

-350.00 car payment

-150.00 life insurance

-60.00 transfer to savings

-150.00 IRA payment

-10.00 Ohio State

-60.00 Water/Trash

-53.00 Gas

Non-

highlighted/colored

are regular

expenses, most of

which can be

budgeted

When a bill

comes in the

mail, write in

when it is

received,

when you

schedule to

pay it, and

when it will

pay

Interest block is to

record amount of

interest your

checking account

earns

Each month, record

what is reflected on

checking account

statement (purple

blocks).

Differences

between bank

balance and

spreadsheet

balance (yellow

box) should be the

unhighlighted

payments

The section above gives you a way to track

what monthly expenses should be, loan

balances and rates and where money is going

towards donations

Living More Than

Month-to-Month

• Budget-Busters– Living outside your means

– Exceeding your income on credit

– Unplanned expenses

– Buying what you don’t need

– Loans and high interest rates

• Budget-Helpers– Regulate utilities

– Reward/Point credit cards

– Coupons and saver cards

Money Miscellany

• Shop around and ask for better deals

– Big purchases and credit cards/bank accounts

– Watch new regulations on credit card fees

• Store credit cards

• Save for large purchases & down payments

• Keep track of what you buy

• Lots of loans & bills? Pay highest interest first

Home is Where the Rent is

• Do your homework

– In person or online

– Apartments.com

– Capandcompass.com

– Moversguide.com

• Get a room…mate

• First apartment – not dream house

What to Know

• Money down – first and last month’s rent

• Security deposit/fee for pets

• Move-in specials

– Free month rent – spread over lease

– Appliances

• Penalty for breaking lease early

• Lease term/rent increases

• Co-signer

Factors to Consider

• Amenities

• Safety (drive by at night too)

• Maintenance response/snow removal

• Proximity to:– Work

– Grocery

– Fitness

– Hospital

– Dry Cleaner

– Friday night liquid refreshment provider

What you Need to Sign a Lease

• Money order/cashier’s check

• Driver’s license

• Proof of income

• Credit report

• References

• Renter’s insurance

Day One on the Job

• Attire– It is OK to ask

– What did people wear at your interview

– Do not buy your full wardrobe before your job

– Business Professional/Casual/After Work

• Pay attention to:– W-4

– Health Insurance

– Retirement Plan (401K)

Top Ten List: E-mail Etiquette

1. CAPS LOCK

2. Excessive punctuation!!!!!!!!!!!!!!!!!!!!!!

3. Emoticons ;-) 8-)

4. Grammar and capitalization in e-mail

5. Don’t forget subject line, attachments

6. Make signature line appropriate

7. Double check pertinent information (date, time, location)

8. Practical font and background

9. Avoid vernacular, jargon, abbreviation

10. Think before you hit “send”

Taxes – They do Suck a Little

• Income = what you make (anywhere)

• Deductions (document for everything)– Tax withheld (W-2)

– Standard

– Mortgage

– Student loan interest

– Donations to charity

• Where to get forms

• What form is best

• When to file

Other Stuff you Get to Do

• Clean up: Facebook, voicemail, e-mail signature

• Buy/Lease a car

• Have insurance (car, home, life)

• Paint/decorate your place

• Buy a diamond

• Give back

You Can

It!Do