• A budget is a spending plan that divides your income in order to cover expenses. It also tracks how closely your actual spending matches what you planned to spend.
• Budgets are not meant to be a tool for restrictive spending. If a budget is too restrictive, you will be far less likely to stick with it.
• It is best to create a budget that balances your desire to reach your goals with the desire to be satisfied with the journey.
• Budgeting is just the process of predicting your income and then deciding in advance how you are going to use it according to what you value most.

• Before starting a budget, it is important to write down all potential income and expenses you might have in a given month.
• Sources of Income: Earned (working a job), Financial Aid, Gains from Investments, etc.
• Types of Expenses: Fixed (rent), Variable (utilities, groceries), Periodic (health insurance, textbooks)

A key to good money management is separating your needs from your wants. If you are not sure if something is a need or a want, do without it for a period of time. If after that, you truly cannot live without it, it may be a need.

The savings component of a budget is the portion of your income that is set aside for future use rather than spent on immediate needs or wants.

Savings typically involve money reserved for:

• Emergency Fund: For unexpected expenses like medical bills or bike repairs.
• Short-term Goals: Such as saving for study abroad, college textbooks, or buying a car.
• Long-term Goals: Like buying a house, preparing for children’s education, or retirement.
• Investments: Funds allocated to growth through investment in stocks, bonds, or other financial instruments.

Try not to exceed 25-30% of your monthly net income on housing. If living off-campus, be sure to factor in any utility and transportation costs as well as potential roommate contributions.

• Plan out your meals for the week in advance, and stick to your grocery list when shopping.
• Pay attention to labels at the grocery store to determine the unit price of an item. In general, store-brand products will be cheaper than name-brand products.
• If you are on a meal plan, get your money’s worth! Stock up on fruits and snacks to avoid spending money on food later in the day.

Visit CashCourse.org, Mint.com, YouNeedaBudget.com, or even Microsoft Excel for a variety of interactive budgeting templates. Be sure to start simple and build as you go along!

Budgeting Basics

• Nerdwallet Budget Planner and Interactive Spending Plan Worksheet: Free simplified budgeting sheets that keep a running total of all income and expenses.
• How to Read a Paystub: An explanation of the most commonly used terms and abbreviations on a paycheck. See a sample paystub.
• Needs vs. Wants Worksheet: A downloadable PDF where students can write down a list of their most common expenses and determine what is a need and what is a want.

Cost of Living

• W&M Room Rates: This page within the Residence Life section of the William & Mary website helps students determine the current costs of living on-campus.
• Cost of Living Calculator: An interactive calculator that helps students break down the cost of living in an apartment or in a dorm on campus.
• How to Choose an Apartment: This article provides some general guidelines and things to look for when trying to select an apartment.
• What is Renter’s Insurance? A quick and informational video from Allstate explaining what renter’s insurance is and why it is beneficial.

Budgeting for Food

• Unit Pricing: A Consumer Reports video explaining what unit pricing is and how to use it when grocery shopping.
• Eating Well on a Budget: A government-backed website with information about eating healthy, even while on a budget.
• The Real Cost of Eating Out: This article outlines the cost and health benefits of eating at home compared to eating out.

A contractual agreement in which a borrower receives a sum of money (or something of value) and repays the lender at a later date, usually with interest as payment for the opportunity cost of the lender

The invention of credit cards introduced an intermediary to the credit agreement:

• The bank that issued the card repays the merchant in full and extends credit to the buyer, who may repay the bank over time while incurring interest charges in the meantime.
• If the money borrowed on a credit card is paid back in full during the 25-30 day grace period, no interest will be charged.
• This type of credit is known as revolving credit. Compare this to installment credit, such as a student loan, where credit is given in a single amount and repaid over a specific period.

Understand the terms, including whether the interest rate or annual percentage rate (APR) is fixed or variable and if the APR will change after an introduction period.

• The APR is the best indicator of how much it will cost to borrow

Don’t get caught up on rewards programs if they come with an annual fee.

• A credit score is a snapshot evaluation of your credit risk at a given point in time. It can help lenders judge whether loaning you money is a wise investment and how much interest to charge you.
• Aim for a credit score of at least 750. Scores range from 300-850.
• Visit AnnualCreditReport.com once per year for a free copy of your credit report. You can get one report each year from each of the three credit bureaus.

• Become an authorized user on someone else’s card (like a parent’s). Make sure charges are being reported under your Social Security Number.
• Take out and repay a small student loan.
• Get a secured credit card with a low limit.

• Only charge when you can afford to pay today.
• Pay the balance in full each month to avoid interest.
• Carefully review your statement each month for accuracy.
• Sign up for E-Bills and set up automatic payments.

• Make only the minimum payment each month.
• Incur unnecessary fees.
• Make payments late.
• Let your account be sent out to collections.

Personal Credit Basics

• How to Apply for a Credit Card: An article that displays the step-by-step process necessary to apply for a credit card and get approved.
• The Basics of Credit: Netnet is a student loan servicer that specializes in consumer finance. This article gives a brief but clear explanation of the basics of personal credit
• How to Read Your Statement: This interactive tool allows you to explore the different components of a credit card statement.
• Managing Credit for the First Time: This article provides 7 useful tips to set first-time credit card users up for success.

Comparing Credit Cards

The websites contain helpful information about a variety of credit cards and personal loans and give the ability to compare selected cards side-by-side.

• Bankrate
• NerdWallet
• Mint
• LendingTree

Credit Scores and Reports

• Credit Karma: Students can create an account with Credit Karma to begin monitoring their credit score over time.
• Credit Score Estimator: This interactive, online credit score calculator provided by FICO gives users an idea of the components that factor into determining a credit score.
• Annual Credit Report: Individuals can visit this site to request a free copy of their credit report. Credit Reports are only available once per year from each of the three credit bureaus.
• Sample Credit Report: This document provided by Experian displays a breakdown of what a credit report looks like. It includes explanations of each section of the report.

• Direct Subsidized Loans are for undergraduate students who demonstrate financial need as determined by the FAFSA. The U.S. Department of Education pays the interest on Direct Subsidized loans as long as the student is in school at least half time, as well as for the first six months after the student leaves school.
• Direct Unsubsidized Loans are for undergraduate and graduate students and do not require a student to demonstrate financial need in order to be eligible. The student is responsible for paying the interest on their Direct Unsubsidized loan from the time the loan is disbursed into their account.
• Direct PLUS Loans are available to graduate students and parents of dependent undergraduate students. PLUS loan eligibility is not based on financial need. The maximum amount available to recipients is the total cost of attendance (as determined by your school), less any other financial aid received.
• Private Loans are available to students who might need to borrow more money for educational expenses than they are eligible to receive from federal loans. Because these loans are not backed by the federal government, they have less favorable terms and conditions. Students need to do research on private loan options, including comparing different eligibility requirements, interest rates, and repayment options.

• First-time borrowers must complete Loan Entrance Counseling and a Master Promissory Note on the FSA website before any funds can be disbursed into their student account.
• Loan funds will be disbursed into a student’s account at the start of each semester for which they have borrowed loans. Any excess funds that might result will be refunded to the student.
• Students have 120 days from the original disbursement date of a loan to return the loan.

There are three main types of repayment options for student loans (these might be different for a private loan).

• Standard Repayment: fixed monthly payments over a set period of time.
• Graduated Repayment: monthly payments are lower to begin with but typically increase every two years.
• Income-Based Repayment: monthly payments are based on the borrower’s discretionary income over time.

• Visit the National Loan Data System (NSLDS) for a full overview of your federal student loans.

Loan Basics

• Glossary of Financial Aid Terms: The Federal Student Aid website provides a glossary of commonly used financial aid terms.
• Types of Aid: William & Mary provides a variety of financial aid options and explains the differences between the four basic types of financial aid.
• Private Loans: FASTChoice provides resources for students looking into private loan options.
• Annual Borrowing Limits: The Federal Student Aid website lists answers to commonly asked questions about student loans and provides a table to outline the annual loan limit based on student type.

Know What You Owe

• National Student Loan Data System: The NSLDS is the central database for federally backed student loans. Students can visit this site for a comprehensive overview of their federal loan information.
• Loan Repayment Simulator: A Federal Student Aid website that allows students to import their federal loans and determine which repayment strategy will be best for them.
• Compare Private Student Loans: A LendingTree breakdown of some of the best private student loan options based on different specifications and types of students.

Entrance and Exit Counseling

• Entrance Counseling: All first-time borrowers of a Direct Subsidized or Direct Unsubsidized student loan must complete loan entrance counseling before their loan funds are disbursed.
• Master Promissory Note: The MPN is a legal document that all borrowers must sign as a promise to repay any loans and accrued interest.
• Exit Counseling: Exit Counseling must be completed when a student leaves school or drops below half-time enrollment.

Loan Forgiveness Programs

The websites are from Federal Student Aid, an official website of the U.S. government that outlines the qualifications and application processes for the following programs:

• Teacher Loan Forgiveness
• Public Service Loan Forgiveness

• Traditional banks are for-profit companies that are typically run by paid board members. Anyone can use these institutions and offer a wide range of financial products and services.
• eBanks are online banks that you can access only through the internet. Because these banks do not have physical branches, they can afford to offer higher rates and lower fees than traditional banks while still offering the same protections.
• Credit Unions are non-profit organizations that serve a community of people under a common association. These institutions focus on customer service, and financial wellness, and have higher rates and lower fees than traditional banks.

• Checking Accounts are beneficial for anyone who wants to make frequent withdrawals or transactions from a bank account. Setting up a checking account is generally very easy: you can apply online, or visit a bank branch, and get a checking account within an hour.
• Savings Accounts have some limitations on how often you can withdraw funds, but generally offer flexibility ideal for building an emergency fund, saving for a short-term goal, or simply keeping surplus cash you don’t need in your checking account so it can earn more interest.
• Certificate of Deposit (CD) is a savings product that earns interest on a lump sum for a fixed period of time. CDs differ from savings accounts because the money must remain untouched for the entirety of their term and, therefore, offer higher interest rates.
• Money Market Accounts are financial products that give holders some of the key benefits of a savings account while providing them with the features of a checking account.

• Debit cards are linked to a checking account and can be used for point-of-purchase transactions, online transactions, or to withdraw money from an ATM.
• Credit cards give the user access to a line of credit and can be used to make in-store and online purchases. A credit card is essentially a form of personal loan that you repay at the end of each billing cycle.

• If you use an ATM that is not operated by your own bank, you might be subject to extra processing fees.
• Overdraft protection is an extension of credit from a lending institution when an account reaches zero. This allows the individual to continue withdrawing money even if their account does not have enough money to cover the withdrawal.

There are now several new online avenues for sending and receiving funds. Venmo, Zelle, Cash App, and Pop Money are all digital applications that allow quick and secure money transfers between users.

Take advantage of online services that come with your bank account. Automatic bill pay, direct deposit, and account alerts can help to ensure that you don’t miss any important payments while budgeting tools, cash-back deals, and other services will help you get the most out of your banking experience.

Banking Options

• Picking a Bank Account as Carefully as a College: NerdWallet explains key factors students should consider when choosing a bank, such as fees and account security.
• Best Student Checking Accounts: Forbes reviews a range of bank accounts providing student-friendly features.
• Student Bank Accounts: A comprehensive Investopedia guide to understanding different types of accounts available to students and their benefits and limitations.

Banking Rights and Fees

• Know Your Banking Rights as a College Student: Consumer Financial Protection Bureau offers an overview of student protections, such as the Credit CARD Act of 2009.
• Avoiding Bank Fees: A series of short videos from Consumer Reports about common bank and ATM fees.

Online Banking

• Guide to Online-Only Banks: Bankrate discusses the top 7 things to look out for when choosing an online bank.
• Online vs. Traditional Banks: A direct comparison of the benefits and downsides of online and traditional banks to help decide which is best for you.

• Find out if you need to file a tax return.
• The deadline to file taxes is April 15 of each year.

• 1040 – Can be used by anyone to file taxes. This form requires a lot of information from the tax filer.
• W-2 – This form is received in January and displays how much you earned from working and how much you paid in taxes. You should receive one for each job that you work.
• 1099 – This form is received in January only if you earned dividend or investment income from a company or bank.
• W-4 – This form is received when starting a new job. It requires information about yourself and your family in order to determine how much should be withheld for taxes from your pay.
• I-9 – This form is received when starting a new job and is used to prove that you are eligible to work in the U.S. Additional forms of identification are required in tandem with this form.

• By yourself. Manually filling out taxes is becoming less popular with the rise of online and in-store options.
• Online. A ‘DIY’ option that is easy to use and offers guidance at a small fee.
• In store. You can visit a brick-and-mortar location like H&R Block.

• Do not give personal information over the phone.
• Go paperless and shred any documents with sensitive information.
• Review your credit report and financial statements regularly to check for any inaccuracies.
• Opt out from pre-approved credit card offers.
• Keep technology locked with a secure password whenever possible.

• Contact one of the three credit bureaus to request a credit freeze.
• File a complaint with the Federal Trade Commission (FTC). Call 877-IDTHEFT (877-438-4338) or access the FTC’s Identity theft affidavit online.
• File a police report.

Tax Basics

• Tax Preparation Checklist for Students: A checklist that walks students through everything they will need in order to file their taxes.
• Tax Forms and Their Purposes: This document explains the most common types of tax forms.
• Understanding Taxes: This IRS website includes an interactive simulator to walk students through different tax-related tasks.

Fraud Basics

• How to Protect Yourself from Fraud: Tips from CashCourse with simple actions to take to prevent identity theft.
• 10 Ways to Protect Yourself: Another CashCourse resource with 10 practical ways to protect yourself.
• Have I Been Pwned? This website allows you to check if your email address has been compromised in a data breach.
• Recovering from Identity Theft: This article outlines the steps that you should take if any of your personal information has been compromised.

• Develop a budget that lets you enjoy your life while also saving for your goals.
• Prepare to repay any student loans. Contact your loan servicer to ensure you have a complete understanding of what you owe.
• If you leave a job, don’t cash out your 401(k) – roll it over!

Know what your specific industry pays based on the location, role, and/or company you are considering working for. Do your own research on salary comparison sites before negotiating a job offer.

These are often overlooked but are just as important as the salary offer. Pay attention to the benefits package offered by a prospective company, such as health insurance plans, paid vacation, and student loan repayment assistance. Don’t be afraid to ask questions!

• Defined contribution plans depend on several factors: how much you contribute, how long the funds have been invested, and how much your employer may have contributed. These accounts are funded with pre-tax dollars and include 401(k), 403(b), and 457. Your earnings are taxed at your marginal rate at distribution.
• An IRA is an account you can set up when an employer does not have a plan, or you want to contribute more. These accounts are funded with post-tax dollars. These accounts have a lower annual contribution limit.
• A defined benefit plan (aka, “pension”) pays a specific amount, usually monthly, once you retire and is based on your years of service. These accounts are taxed at your marginal rate when you receive the distribution.

If you are considering pursuing a Graduate degree, think about these factors first.

• Choose a program that will pay for you to attend, usually Ph.D. programs, not Master’s programs. Alternatively, look for a graduate assistantship position that might offer tuition assistance.
• Have a clear understanding of how the credential is necessary for the career path you have chosen.
• Understand the financial trade-offs of lost years of earnings and reduced time to invest for retirement, save for a home, pay off student loans, etc.

Preparing for Salary Negotiations

The websites contain helpful information about industry and role-specific salary standards. These are a good place to start to gain a solid understanding and framework before any salary negotiations.

• Job Search Intelligence
• Glassdoor
• Salary.com
• MyPlan
• Career One Stop

• Securities – a combination of assets that are commonly invested in (stocks, bonds, mutual funds, real estate).
• Stocks – shares of ownership in a corporation.
• Bonds – loans issued to companies and governments.
• Mutual Fund – an investment company that pools funds by selling shares to investors and makes diversified investments.
• Index Fund – a type of investment fund that aims to track the performance of a market index, such as the S&P 500.
• Exchange-traded funds (ETFs) – similar to index funds but can be traded during market open hours.
• Dividend – a portion of a company’s earnings that the firm pays to its shareholders.
• Liquidity – the speed and ease with which an asset can be converted to cash.
• Diversification – selecting a variety of different investments that are chosen for their dissimilar risk-return characteristics.

• Active Investing – this is typically viewed as a very high-risk, high-reward option. It involves constantly studying the economy and current market trends and trying to ‘beat’ those trends.
• Passive Investing – this approach (also described as a ‘buy-and-hold’ strategy) succeeds over the long run. It does not actively engage in trading securities or spend large amounts of time monitoring investments.
• Determine your risk tolerance. Are you conservative, moderate, or aggressive when it comes to risk?

• Prioritize your investing goals – ask yourself why you want to invest.
• Consider your time horizon – when will you want to use this money in the future? How does that affect your risk tolerance?
• Get the money to invest – make a plan to determine what money are you able to set aside for investments.
• Determine possible long-term returns – have an idea of what your investments might yield in a given time period.

• Brokerage Account – a financial account that allows investors to buy and sell a variety of investments, such as stocks, bonds, mutual funds, ETFs, and more.
• Individual Retirement Account (IRA) – a tax-advantaged savings account that helps people save for retirement. IRAs can be opened and managed by individuals, without an employer, and they have access to the same investments as a standard brokerage account.
• Employer-Sponsored Retirement Accounts – a retirement plan, such as a 401k, that allows employees to contribute a portion of their wages to an account, and in some cases, have their employer contribute as well.

• Buy-and-Hold your investments
• Diversify your portfolio
• Utilize dollar-cost averaging
• Maintain your asset allocation
• Reinvest

Investing Basics

• The Language of Investing: This resource from Investopedia provides in-depth definitions and explanations for common terms related to investing.
• Know Your Risk Tolerance: This document allows individuals to determine their level of risk tolerance by taking a brief quiz.

Investment Strategies

• Diversification: This article from Fidelity outlines a basic approach to diversifying your investment portfolio.
• Dividend Reinvestment Plan: A brief article that introduces readers to the basics surrounding dividend reinvestment plans.
• Buy-and-Hold: An Investopedia article that outlines the pros and cons of a passive buy-and-hold investment strategy.
• Dollar-Cost Averaging: A resource that explains the basics of a dollar-cost averaging investment approach along with some relevant examples.