™

Student
Workbook
Supplement

◆ Why money?
◆ Why me?
◆ Why now?
 A Note to Students Using This Workbook

Mastering money management is

F
or many students, the freedom of Your presenter covered one or more of in your financial goals. Add in moving
college also means managing a perhaps one of the most important the following topics today: costs and the cost of setting up
budget for the first time and living tasks of young adulthood. Yet, you house. Then decide if this is a work-
on your own. This world of financial may have noticed, the subject of Making Decisions able idea. You’ll want to understand
responsibility may be new to you—and money usually isn’t discussed until Decision-making can be broken down the basics of leasing, as well.
even if it’s not, chances are you could it’s too late. That’s why Visa has put into steps such as identifying the
still use a few pointers. The purpose together this program. We wanted to problem or goal, considering the alter- Understanding Credit and
of this workbook is to give you some- bring money matters out in the open natives, selecting the best course of Credit Cards
thing to work with and refer to—if you and into the classroom, so you could action, and evaluating the results. Did you know you should shop for a
don’t use this information today, you nail down the basics of managing Often, various factors affect decision- credit card? There are that many dif-
will likely have a need to refer to it in money wisely, get help with the ins making such as time, money and opin- ferent kinds, each with their own
the next few years. and outs of how to be in charge of ions of friends and family. Other terms and conditions. It’s important
So hold on to this workbook—it your credit card, and learn how to issues such as procrastination can to understand how interest is calculat-
could be valuable in helping you navi- start saving now for your future. affect decision-making. Even the econ- ed and how much you actually pay for
gate financial matters—especially omy influences our decisions. things you buy on credit, especially if
when it comes to buying a car or get- Why me? you only cover the minimum balance
ting an apartment or saving for that As a college student, probably almost Budgeting each month. Plus, there are fees,
dream trip to Europe. Some of the nothing is the same for you—there are Budgeting is a must if you’re going to credit limits and grace periods to be
worksheets here have answers that new friends, new academic chal- stay out of financial trouble and live aware of…and a whole lot more.
only come from your personal experi- lenges, a new environment…and new within your means. What this means
ence. Other worksheets require you to responsibilities. Smart money man- is setting aside funds for saving, Saving
come up with the right answer (yes, agement is one of those. This is your spending and future goals. It involves The best way to reach your financial
the answers are given, but you’ll be chance to demonstrate to your par- tracking money coming in and out, so goals is through saving. Remember,
that much more savvy if you first try to ents—and yourself—that your you don’t fall into the “red.” small amounts add up. The amount
figure them out yourself). finances are under control from day saved is less important than getting in
It’s a case of “your money and one. Banking Services the saving habit. There are lots of sav-
your life.” Make the most of both. You Financial institutions (banks, credit ing methods, so find the best one for
can always refer to www.practical- Why now? unions, etc.) offer a lot more services you and put away at least 5% of your
moneyskills.com for additional help. Many of you are now making the break than you may think. There are numer- income. It’s your future. Saving is the
And if you want to find out how long it from your family and moving towards ous kinds of checking accounts and way to make it happen.
takes to save to become a millionaire, living on your own. Although this is a several ways to make deposits and
that’s in here, too! Good luck! process that often takes years, you’re endorse checks. And there are lots of This workbook contains six worksheets
already on that road. Now’s the time electronic banking options as well. as a follow-up to the presentation, so
Why money? to gain the financial know-how to get However, the most important thing to you can practice the concepts present-
Unless you end up living in a society off to a great start. Think of it as a remember is to save your receipts and ed—or find out about topics that may
where barter rules—and no currency is passport to your future. It’s going to deposit slips, and balance your check- not have been covered today. These are
exchanged—money is going to play an be a worthwhile ride. Ready to go? book every month. “keepers” that you may not think you
even bigger role in your life than it has will use. But as time goes on, you’ll be
so far. If you’ve gotten used to living On Your Own surprised how handy they will be.
off your parents, that will soon come You may be ready to “fly the coop,”
to an end. Haven’t been that lucky? but will your finances take you where
You may actually be a step ahead of you want to go? Look at your fixed and
others who have had it easier. flexible monthly expenses and factor

1
 Worksheet:

Identify the problem:

M
aking big decisions is not easy. Sometimes the thought of opting for the
wrong choice can make you want to close your eyes and just throw a ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
dart at a board. Here’s the good news: Decision-making skills improve
as you use them! Gather information and list possible alternatives:

There is a logical way to tackle decision-making. In many cases, in order to ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

make a good decision, all you need is more information. This exercise will walk
you through the decision-making process and help you look at an upcoming deci- ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
sion from several vantage points.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Thinking through some potential consequences of your decision can bring out
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
important information that wasn’t obvious before—information that will clarify
which choice is best for you. Once you get the knack of it, decisions won’t seem ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
as overwhelming.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Visit www.practicalmoneyskills.com for additional decision-making guidance.
Consider the consequences of each alternative:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Select the best course of action:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Evaluate the results:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Was it a good decision or bad? Why or why not?

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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 Expenses Budget Actual Difference
Fixed Expenses

Rent $______________ $______________$ ________________

Car insurance $______________ $______________$ ________________

G
et a handle on the art of budgeting and you’ll be in the money. Why? A
budget helps you spend only the money you have. It’s a chance to divide Car payment $______________ $______________$ ________________
your money among the things you need (and want) and at the same time
save for future goals, needs and wants. If you track money coming in and going Credit card $______________ $______________$ ________________
out, and then make a budget and stick to it, you can keep your financial house
in order. Think of it as a blueprint to finance your dreams. Flexible Expenses
This budget calculation worksheet will help you set up a personal budget. Enter Savings $______________$ ______________$ ________________
your income and expenses in the first column. Try to stick to it for one month.
After the month is up, record your actual income and expenses. How far off Food $______________$ ______________$ ________________
were you? Make adjustments and try it again next month. Keep reworking your
budget until you can live within the reality of your money situation. Utilities $______________$ ______________$ ________________
Visit www.practicalmoneyskills.com for additional budgeting guidance. Transportation

Bus fare $______________$ ______________$ ________________

Gas and oil $______________$ ______________$ ________________

Worksheet:
Parking and tolls $______________$ ______________$ ________________

Income Budget Actual Difference Repairs $______________$ ______________$ ________________

Job #1 $ ________________ $______________$ ________________ Other

Job #2 $______________ $______________$ ________________ Medical expenses $______________ $______________$ ________________

Other $______________ $______________$ ________________ Clothing $______________ $______________$ ________________

Total Monthly Income $______________ $______________$ ________________ Entertainment $______________ $______________$ ________________

Household items $______________ $______________$ ________________

Personal items $______________ $______________$ ________________

Tuition $______________ $______________$ ________________

School expenses $______________ $______________$ ________________

Total Monthly $______________ $______________$ ________________

Expenses
4 5
 Worksheet:

Use the bank statement and the check register at left, and the reconciliation
R econciling your checkbook needn’t be a nightmare. In fact, if you’ve made it
to college, it should be a cake walk! Just two must-dos:
1. Always record your deposits, transfers, ATM withdrawals and debit card trans-
worksheet below to balance this checkbook.
ITEMS OUTSTANDING Enter
actions as soon as you make them. The New Balance shown on your statement $ (A)
________
2. Always fill out the register BEFORE you write a check. That way, you won’t be Number Amount
caught short with the wrong balance, trying to remember what check #127 went 163 26 31
for. Just do these, and the rest is simple math. You can handle that, right? 164 10 00
Add
Any deposits or transfers listed $ ________
Many new online, Web-based services by financial institutions can help you man- in your register that are not $ ________
age your money. Some allow you to view your accounts online and even pay bills shown on your statement $ ________
electronically.
Total + $ (B)
________
Visit www.practicalmoneyskills.com for additional guidance on banking services.
Total 36 31
Calculate the subtotal $ (C)
________
THIS STATEMENT COVERS 6/20/01 through 7/19/01
CHECKING Previous Statement Balance On 6/19/01 366.97
ACCOUNT Total of 1 Deposits For 1,200.00 + Subtract
0471-678 Total of 4 Withdrawals For 1,306.30 - Your total outstanding
Total Service Charges 0.00 - checks and withdrawals - $ (D)
________
New Balance 260.67 +
CHECKS AND CHECK DATE PAID AMOUNT Calculate the ending balance
OTHER DEBITS 161 6/21 216.30 This amount should be the
162 6/29 1,000.00 same as the current balance
ATM Withdrawal #00281 at ATM #423A 6/18 35.00 in your check register $ (E)
________
Check Card #00586 Foodland EFT 6/18 55.00
DATE POSTED AMOUNT
DEPOSITS AND Transfer from 6/23 1,200.00
Use the reconciliation worksheet above to answer the following questions:
OTHER CREDITS 4039-557 at
ATM #423C 1. What is the new balance shown on the statement? (A)___________
2. What is the total amount of deposits listed in the check register but not
CHECK DATE DESCRIPTION TRANSACTION DEPOSIT BALANCE shown on the statement? (B)___________
NO. AMOUNT AMOUNT 366.97
3. What is the sum of the new balance and the deposits not shown
161 6/4 Sound Out (new tape deck) 216.30 150.67
ATM 6/18 withdrawal (spending money) 35.00 115.67 on the statement? (C)___________
ChkCrd 6/18 Check Card (Foodland Groceries) 55.00 60.67 4. What is the total amount of outstanding checks and withdrawals? (D)________
ATM 6/23 deposit (transfer from savings) 1200.00 1260.67 5. What is the ending balance? (E)___________
162 6/26 Woodland Apt's. (rent for everyone) 1000.00 260.67
163 7/5 CD Place (acct. #7M3406) 26.31 234.36
164 7/14 Lucasfilm, Ltd. ("Monkey Island" T-shirt ) 10.00 224.36
ATM 7/20 deposit (pay check) 253.17 477.53
Answers to Banking Services worksheet:
(A) $260.67, (B) $253.17, (C) $513.84, (D) $36.31, (E) $477.53

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 Transportation
Bus fare $
Gas and oil $
Parking and tolls $
Repairs $
Clothing $

Y
ou can’t wait to have your own place—even if you do have to share it with
a roommate. But how do you know how much rent you can afford, and Entertainment $
have money left over to eat…get to work or school…and still join your Household items $
friends for concerts or trips to the mall?
Personal items $
Ever hear the expression “house poor”? The tabs for moving, rent (or mortgage) Tuition $
and all the stuff you need to outfit your own place (it can be a shock to find out School expenses $
that ketchup and mustard don’t come with a fridge) can set you back farther
than you may have imagined. You don’t want to stretch your money so thin that Total Monthly Expenses 1 $
there’s little left over for fun…or other necessities. Complete this worksheet,
and you’ll have a much clearer idea of how much money you’ll need to live on Moving-in Costs
your own. Rent for first month $
Rent for last month $
Visit www.practicalmoneyskills.com for additional guidance on living on your own.
Cleaning deposit $
Security deposit $
Worksheet: Utilities deposit $
Telephone deposit $
Use this form to set up a budget that would allow you and your roommates to Moving costs $
rent and furnish an apartment. You also can use the interactive budget calcula-
tor found in www.practicalmoneyskills.com. Other $
Total Cost to Move In 2 $
Income
Job #1 $ Cost of Furnishing and Equipping an Apartment
Job #2 $ Bedroom #1 $
Other $ Bedroom #2 $
Total Income $ Living room $
Dining room $
Fixed Expenses
Kitchen $
Rent/mortgage $
Bathroom $
Car insurance $
Other $
Car payment $
Total Cost 3 $
Flexible Expenses
Summary
Savings $
Total Cost for First Month (1 + 2+ 3) $
Food $
Utilities (gas, electricity, water) $

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 If Jennifer pays the cash advance back at a rate of $120 per month:
10. How long will it take Jennifer to pay for the cash advance? ______________
11. What is the total amount Jennifer will end up paying for the cash advance? ____
12. How much interest and fees will Jennifer pay? ________________________

Stephanie just used her new credit card to buy a bike for $400. Her budget

S
ometimes, people fool themselves into thinking that owning a credit card is allows her to pay no more than $25 each month on her credit card.
like having free money. Nothing could be further from the truth! Unless you Stephanie has decided not to use the credit card again until the bike is paid
pay your credit card bill in full every month, you will pay interest and some- off. The credit card she used has an Annual Percentage Rate of 21% and a
times transaction fees for the privilege of using credit. That’s because buying on periodic interest rate of 1.75%.
credit is a form of borrowing money. Only your closest friends and relatives are
likely to lend you money for free. In all other instances, there are charges If Stephanie pays $25 each month on her credit card:
involved. When it comes to credit cards, it’s important to be aware of what
those charges are—and how they can add up. 13. How long will it take Stephanie to pay for the bike? ____________________
14. What is the total amount Stephanie will end up paying for the bike? ______
Visit www.practicalmoneyskills.com for additional guidance on using credit
wisely, including interactive calculators. 15. How much interest will Stephanie pay for using her credit card to buy the bike? ______

If Stephanie pays the minimum payment of $14 each month:

Worksheet:
16. How long will it take Stephanie to pay for the bike? ____________________
17. What is the total amount Stephanie will end up paying for the bike? ______
18. How much interest will Stephanie pay for using her credit card to buy the
Fernando wants to buy a stereo for $650 and pay for it using a credit card that bike? ________________________________________________________________
has an Annual Percentage Rate of 19.85% and a periodic interest rate of 1.65%.
Justin has just used his credit card to buy a new watch. He got the watch on
If Fernando pays the minimum monthly payment of $21.45: sale for $235. The regular price was $290. He used a credit card that has
1. How long will it take him to pay for the stereo? ________________________ an Annual Percentage Rate of 20% and a periodic interest rate of 1.67%.
2. What is the total amount Fernando will pay for the stereo?________________
If Justin makes the minimum monthly payment each month of $10:
3. What is Fernando’s total cost of using credit? __________________________
19. How much will Justin end up paying for his new watch? ________________
If Fernando makes monthly payments of $60: 20. How long will it take Justin to pay for his watch? ______________________
4. How many months will it take for Fernando to pay off the stereo? ________ 21. What is the total amount of interest Justin will end up paying? __________
5. What is the total amount Fernando will pay for the stereo? ______________
6. What is Fernando’s total cost of using credit? __________________________ If Justin pays $25 each month, instead of the minimum monthly payment of
$10 each month:
Jennifer took a cash advance of $1,500. Her new credit card, as a special
22. How much will Justin end up paying for his new watch? ________________
promotion, charges an Annual Percentage Rate of 5.9% and a periodic inter-
est rate of .4917% for the first six months. After the first six months, an 23. How long will it take Justin to pay for his watch? ______________________
Annual Percentage Rate of 21% and a periodic interest rate of 1.75% apply. 24. What is the total amount of interest Justin will end up paying? __________
The transaction fee for cash advances is 3% of the cash advance with a mini-
Answers to Credit and Credit Cards worksheet:
mum fee of $5.00 and a maximum fee of $35.00. $18.14 24. 16. 39 months $1,944.06 8.
11 months 23. 15. $63.83 33 months 7.
If Jennifer makes monthly payments of $60.50: $253.14 22. 14. $463.83 $59.14 6.
$59.36 21. 13. 19 months $709.14 5.
7. How long will it take Jennifer to pay for the cash advance? ______________ 30 months 20. 12. $174.34 12 months 4.
8. What is the total amount Jennifer will end up paying for the cash advance? ______ $294.35 19. 11. $1,674.34 $237.44 3.
$145.60 18. 10. 14 months $887.44 2.
9. How much in interest and fees will Jennifer pay? ________________________ $545.60 17. 9. $444.06 42 months 1.

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 Worksheet:

Y
ou may not be in the habit of saving money now. But once you do the
1. If you put $200 in a savings account that paid 5.5% simple interest each
math, you might change your thinking, pronto! Saving is the best way to
year, how much interest would you earn in five years? ______________________
put your money to work for you. When you save, your money grows—dou-
bling, tripling, quadrupling and so on. It’s a way to earn money without lifting a
2. If you put $150 in a savings account that paid 6% compounded yearly, how
finger. Now that has some appeal, right?
much interest would you earn in five years? __________________________________
Whenever you get a cash infusion (paycheck, parents, etc.), make sure you save
3. If you put $25 each month into a savings account that paid a simple interest
some money from it, even if it’s a small amount. Save change and deposit it
rate of 6.5% each year, how much would you have in your account at the end of
regularly. And if you run into an unexpected windfall, put a portion of that into
two years? ____________________________________________________________
savings as well. You’ll quickly see how small sums can add up to big dollars.
And how getting in the habit of saving will put you on the road to becoming a
4. If you put $10 each week into a savings account that paid 6% interest com-
millionaire.
pounded yearly, how much money would you have in your account after three years?
(Hint: Use Save a Million Calculator. Find it at www.practicalmoneyskills.com)
Visit www.practicalmoneyskills.com for additional savings and investment guidance.
____________________________________________________________________________

Answers to Saving worksheet:

$1,634.27 x 1.06 = $1,732.33 (after 3 years)
$1,135.47 + $520 = $1,634.27
$1,071.20 x 1.06 = $1,114.25 (after 2 years) $189.37 x 1.06 = $200.73 (after 5 years)
$551.20 + $500 = $1,051.20 $178.65 x 1.06 = $189.37 (after 4 years)
$520 x 1.06 - $551.20 (after 1 year) $168.54 x 1.06 = $178.65 (after 3 years)
$10 x 52 = $520 $159 x 1.06 = $168.54 (after 2 years)
4. $1,732.33 $150 x 1.06 = $159 (after 1 year)
2. $50.73
$319.50 + $319.50 = $639.00 (after 2 years)
$300.00 x 1.065 = $319.50 $11 x 5 = $55
$300.00 x 1.065 = $319.50 (after 1 year) $200 x 0.055 = $11
3. $39.00 1. $55

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 Web Sites for Making Decisions
MetLife Online Life Advice Center http://www.lifeadvice.com
National Center for Financial Education http://www.ncfe.org
Kiplinger’s Personal Finance Magazine http://www.kiplinger.com

Web Sites for Budgeting

The Motley Fool http://www.fool.com
SmartMoney.com http://www.smartmoney.com
Cash for College http://www.nasfaa.org/subhomes/
cashforcollege/index.html

Web Sites for Banking Services

American Bankers Association http://www.aba.com/default.htm
Federal Deposit Insurance Corporation http://www.fdic.gov

Web Sites for On Your Own

FinanCenter: Personal Finance &
Calculators http://www.financenter.com

Web Sites for Understanding Credit and Credit Cards

CardTrak.com Comparison of Costs http://www.cardtrak.com
& Features
Credit Cost Calculators http://www.
practicalmoneyskills.com/
english/resources/calculators/
calc_creditcard.php

Web Sites for Saving

Bloomberg.com http://www.bloomberg.com
FinanCenter.com http://www.financenter.com

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