SPFL Fall Newsletter

8/13/2019 SPFL Fall Newsletter

1/7

SPFL Fall Newsletter

TABLE OF

CONTENTS

1.1

TIPS TO STRETCH YOUR

DOLLAR20 quick tips about how to

become a smart saver!!1.2

WHY YOU NEED BOTH

CHECKING AND SAVINGS

ACCOUNT

Want to make your day-to-dayfinancial life easier and kick start

your financial future? Open a

checking and a savings account!1.3

CREDIT/DEBIT CARD CASE

STUDY: PIZZALearn about the pros and cons of

debit and credit cards and how

to safely buy a slice of pizza.1.4AVOIDING SCHOLARSHIP

SCAMSLearn about avoiding common

scholarship scams1.5 FINDING NEW AIDafter a change in situation1.6 STUDY ABROADinformation about Study AbroadFinancial Aid

STUDENTS PROMOTING FINANCIAL LITERACY FALL 2013

Who Are We?

Students Promoting Financial Literacy is a sponsoredstudent organization, partnered with the LS&A

Scholarship Office. SPFL is dedicated to empoweringour peers by teaching money management skills.

With an uncertain economy it is important for our

generation to think wisely about earning, retaining,and spending money. We provide peer-to-peer

mentoring and educational opportunities to facilitatefinancial literacy. Student debt has been one of thelargest problems facing students post graduation.

Students need a medium to educate themselves onhow to deal with the burdens of debt. Besides

creating fun and informative newsletters, SPFL holdsworkshops, puts on presentations, and holds social

events. If you would like to learn more about SPFL or

you would like to join the organization, pleasecontact us at

[email protected].

Check Out Our Upcoming Events: The application for the LS&A Current Student Scholarship will

become available in January. Undergraduates enrolled in the

College of Literature, Science, and the Arts who have

completed at least one full academic year at the University and

who receive need-based financial aid are eligible to apply for

the 2014-2015 academic year. Click hereto visit our website! SPFL mass meeting for the Winter Term: date, time and place

TBD. If you are interested in attending and would like to

follow up on information, emailus.
mailto:[email protected]?subject=http://www.lsa.umich.edu/students/scholarships/currentstudents/currentstudentscholarshipmailto:[email protected]:[email protected]?subject=http://www.lsa.umich.edu/students/scholarships/currentstudents/currentstudentscholarshipmailto:[email protected]


2/7

Changing small habits in your

lifestyle can help you save a lot

of money. After all, if the little

things build up, theyll create

one big impact. Here are some

quick ways to become a smart

saver:

1. Learn to cook.You can eat alot cheaper by learning to

cook and making meals at

home.

2. Buy food and supplies in

bulk.Staples like oatmeal,spices, dried fruits, peanut

butter, milk, orange juice, toilet

paper, paper towels, shampoo,

and cleaning supplies can be

bought in bulk, especially at

Costco!3. Use your freezer.Cook in

large quantities and freeze

your leftovers for another day.4. Avoid buying sodas and

snacks out of vending

machines. Instead, plan ahead

and keep some snacks in your

backpack.5. Buy generic.If you buy brand

names, you'll likely pay more

than buying generic, store

brands or on-sale items.6. Order vegetarian.Vegetarian

dishes generally cost less than

meat-based dishes. Remember,

you don't have to go to a

totally meatless diet to enjoy

vegetarian dishes now and

again.7. Dont smoke.Smoking is

expensivenot to mention it

damages your lungs.8. Limit your coffee

runs.Coffee drinks are pricey:at $4 a latte, you're spending

$28 a week for your daily

caffeine fix. If you cut back to

once a week, you'll save $24 a

week or $1,248 a year!9. Drink less.Cutting back on

alcohol can save you tons of

moneyand help you feel

better, too!10. Add another roommate.If

you're living off campus and

you have extra space, consider

adding another roommate to

help share the costs.11. Turn down the heat.You can

save on the heating bill by

lowering the thermostat to 55

to 60 degrees at night and

whenever you're gone during

the day.12. Walk or bike when you

can.Even if you have a car oncampus, walk to class or bike

to the store when you can.

You'll stay fit, feel more

energetic, and save on gas.

Tips to Stretch Your Dollar

Saving Money While In

College: It Can Be Done!

Need to save some money? Try cuttingback on the B-Dubs! We all like themwings, but sometimes you have to cut ou

the nonessentials. Set aside the moneyyou need for tuition, books, housing, and

meals first, then create a budget using wh

is left. If shopping around on Craigslist oeBay for the things you need just isn't

cutting it, maybe you should consider

getting a part-time job in something thatinterests you and then pay yourself first b

automatically rolling a certain percentage

of your earnings over to your savings

account. Learning what you need vs. whayou want can really help you stay out of

the red!

Students Promoting Financial Literacy

[email protected]


3/7

Ease of online banking.

Cant be bothered carrying

a checkbook around? No

worries. With online

banking, you can check your

balance and pay bills any

time you want by hopping

online with your phone orlaptop.

The power to cash checks

without paying fees.

Having money in a checking

account allows you to cash

checks at your bank or

credit union for free. Check-

cashing stores charge you a

fee as much as 3-5% for

cashing a check.

13. Use the Web for comparison

shopping.You can do quick pricechecks using websites such asgoogleproduct search before making a

purchase.

14. Use the library.Instead of buying,you can save money on books,

magazines, videos, and DVDs by

checking them out from your library15. Shop around for clothes.Look for

sales, off-season bargains, and

overstock stores. Or go explore

thrift stores with some friends!

16. Avoid clothes that require dry

cleaning.Stick with cottons andmachine-washable synthetics. Check

labels before buying your clothesif

it's dry clean only, think again!17. Use your student discount.Simple

things such as going to the movies,

or buying a pizza may cost you less if

you show your student ID. Sign up

for Groupon and Living Social to

receive discounts as well.18. Consider cheaper

entertainment.Lots of theaters,museums, and restaurants offer

discounts on certain days or times.

Go to the early movie and save two

bucks. Eat at the restaurant that sent

the "buy one, get one free" coupon

in the mail. Or simply host a game

night!

19. Buy less-expensive gifts.Considerhomemade gifts, which can be less

costly for the giver and more

meaningful to the receiver. A DVD of

pictures of you and your friends or

family members, for example, may be

a cherished present.20. Avoid credit card pushers.Credit

card companies flock to college

campuses and solicit students

endlessly in an effort to get new

customers. Don't give in! If you think

you need a credit card, get only one

and use it wisely.

Why You Need BothChecking and Savings

Accounts

Advantages of a Checking

Account

Easy access to your cash. With a

checking account, you have easy access

to your money through writing checks,

using a debit card, or getting cash from

an ATMwhile having the security of

keeping your money in a bank.

Carrying a debit card linked to your

checking account is safer than carrying

cash. Ability to write checks and pay bills.

Having money in a checking account

allows you to write checks, which

costs less than purchasing moneyorders. It allows you to electronically

pay bills that you cannot pay for with

cash


[email protected]


4/7

Advantages of a Savings Account

Safeguard money for future goals.Keep money

for a special goal in a savings account rather than

mixing it with a checking account, so you wont

be tempted to spend it. Get into the habit of savings.It's a smart idea

to open a savings account, even if you don't have

a lot of money to put aside right now. Even thesmallest deposits will add up quickly if you

continue to make them over time. Setting aside

$10, $15, or $25 for savings each week is a good

place to start. Earn interest on your money.Savings accounts

pay interestmoney that the bank or credit

union pays you just for keeping your money with

them. That really is free money! A safe place for your money.In a savings

account, your money is insured up to $250,000

by the Federal Deposit Insurance Corporation

at any FDIC-insured bank. In a savings account ata credit union, your moneyalso up to

$250,000is backed by the National Credit

Union Share Insurance Fund.

Advantages of Credit and

Debit Cards Case Study:

Buying PizzaThe first time I used either a credit or

debit card was two months ago when I arrived

in Ann Arbor. My Visa card can be used both

ways, and I found its convenience to be

liberating, as I did not have to carry around

burdening amounts of cash. However, looking

deeper into the pros and cons of both credit

and debit cards, I found that I should not be too

free with how I use it.A credit card, with one magical swipe,

allows a student with no cash on hand to walk

away from NYPD with a steaming slice of

homemade pizza. Plus, each pizza slice that

student purchases adds to his credit history,

allowing him to build up his reputation as either

a reliable or unreliable borrower and also adds

adds to reward programs such as frequent flier miles.

While munching away on the delicious pizza in front of

his laptop, the student may have a sudden urge to

purchase a piece of Wolverine apparel on MDens

website. Cash certainly would not help in this situation,

but with the digits on the front of the credit card, the

kid can buy as much maize and blue clothing as his

heart desires. Most retailers take credit cards, so if he

feels like buying from Nike instead, he is able to do so.Finally, say a friend randomly confronts our student and

begs him to spot him for gas at the station down the

block. The credit card enables the student to come

through for his friend in this emergency even though

neither has physical money.As you can probably tell, credit cards can

easily be used to buy more than the student can

actually afford.

Given the

mindset that he

can buy an

unlimited amountof pizza, his credit

card bills could

have a few

detrimental

surprises. First of

all, credit card

companies are

able to charge

late payment fees

of about 30

dollars. This mayseem like no problem, but after annual use fees, interest

rates increased by 22 percent for late payments, and

transaction fees on cash advances, the credit card no

longer seems like free money. In fact, companies often

change annual interest rates on a floating basis, meaning

they can change them at any time. So the moral of the

story is, our friend had better make sure both his

stomach and his wallet can support as much NYPD as

he buys.Now let us examine the same situation but have our

student use a debit card instead. In addition to his

pizza, the U-M student wants a cool beverage from thevending machine, but still does not have any cash. Using

his debit card, he can scan an ATM machine nearby and

pull out cash. While he is at it, he can also purchase

postage stamps, make deposits, transfer bank funds, and

obtain a receipt to keep a close record of his

expenditures. Plus, he can still use this card to make his

MDen and Nike purchases online.

According to recent PewResearch Center polling ,75% of all Americansbelieve that college is tooexpensive for mostAmericans to afford.


[email protected]


5/7

Debit cards, however, are just as liable as credit cards.

If the student drops his card on State Street and does

not report the loss within 48 hours, he could be

accountable for up to 500 dollars in purchases. If

someone happened to pick up the debit card and

start using it, they would be able to clean out the

account if our friend did not call in the theft within 60

days. Additionally, our friend may be subject to a

quarterly or annual-use fee, an ATM fee, or a point-of-sale fee. Usually, ATM machines owned by the

bank to which the card belongs will not charge, but

outside ATMs will. Point-of-sale fees are also

unexpected in that they are small charges enforced

simply for entering a PIN after swiping the card.I, just like most U-M students, have been

tempted to buy delicious Ann Arbor pizza at many

points this semester. However, as I near the looming

prospect of facing my mothers complaints about my

finances, I have cut back on my usage of my card. It is

very easy to use, but obviously if not managed well it

can be more of a burden than a convenience.

Avoiding Scholarship ScamsAs a college student, you are consistently a

target of a scholarship scam. These scams thrive off

college students who are tricked into believing that the

scam is an actual scholarship and often provide money

and personal information to the scam company. It is

critical that you make sure that you are aware of

scholarship scams and take measures in order to protectyourself against a scam.

It is important to use your best judgment, but

there are a few indicators that can help you recognize a

scholarship scam. First, if a scholarship requires you to

pay money to apply, immediately consider this a red flag.

No scholarships require students to pay fees to apply and

this can be a clear indication of a scam. Secondly, if you

receive a scholarship from somewhere or someplace that

you have no relation to or have never heard of, this

scholarship to be a scam. Third, make sure not to provide

your credit card or other important personal financialinformation. Why? These scam scholarships can take this

information and use it to steal your information or

money.When in doubt, always contact your financial aid

office. Your financial aid office will have the resources and

capabilities to look at the scholarship you have allegedly

received to determine its validity.


[email protected]

Finding More Aid After a Change

in SituationStudents can take solace in the fact that

the financial aid office may adjust their award if

there is a change in the students financial situation.

Regardless if you are receiving financial aid or not,

it is extremely important to notify the financial aid

office if your financial situation changes for the

worse. If this happens it may be possible to

increase your aid, even if you have already received

an award package.

Some examples of situations that can alterones financial aid package or qualify one for

financial aid include loss of a job (parents job if you

are a dependent student), work hours are reduced

(parents work hours for dependent students), any

other income reported on the FASFA is reduced

or eliminated, you have left the workforce or

reduced your hours to return to school, you or a

family member has a costly medical emergency, or

your familys home has gone into foreclosure. If you

experience any of these, it is very important to

contact the Office of Financial Aid, as you may now

qualify for more aid.

You will need to submit a financial aid

appeal and the University will ask you for

documents or evidence to show that your financial

situation has changed. It is important for you to

gather all relevant documentation once a change

occurs.


6/7

An example of this would be to include a lay-off

notice if you are claiming in the appeal that you

need more aid because you lost your job. The

appeal will most likely also include a written

description explaining exactly what happened. It is

important to include all numbers and be a

transparent as possible in order to simplify the re-

adjustment process. If the Financial Aid Office

requires anything further, they will usually notify

you. Most appeals include a written description of

the change, plus all evidence or relevant

documentation.

After you submit this appeal, it is

important to keep track of whom you have talked

to in the office. You should also ask the office

when they expect to have a decision by. Always

remember to be patient, the Financial Aid Office is

here to help you. There are many resources at

their office available to all students. Dont forget,

even if your financial situation has changed and

your aid did not change, you can still apply toscholarships.

Paying for your study abroad semester is much

more complex than paying for typical U of M tuition. When

deciding to go abroad, it is important to take into account

the fees and tuition

associated with a

particular program.There are many types

of programs available,

from CEA to

Washington State

University. Michigan

programs will require

you to pay similar

tuition. Other

programs may have

much different fees.

Something important to

note is, you may qualify for in-state tuition if you choose

your state schools program. An example of this is, I am

from New Jersey. If I choose a Michigan program, I must pay

out-of-state tuition. If I choose a program through Rutgers,

I may save thousands of dollars.Always remember that there are extra fees

associated with studying abroad that are not usually

considered. Be sure to consider any exchange rates. If you

study abroad in Europe, you will be using a currency that is

stronger than the dollar. This means $1 will exchange you

less than 1 Euro. Also take into account any visa fees that

you may have to pay to live another country.Finally, take into account living expenses. If you are

interested in studying in a large city such as Paris, you must

remember that living expenses will be much more

expensive in Paris than here in Ann Arbor.

When living and studying abroad, it is important to

budget. Now that you are in a foreign country, it may be

necessary to have more emergency money on you at all

times. Take into account that an emergency in another

country may cost a lot of money.There are many sources of aid when deciding a

study abroad program to choose. If you choose a Michigan

program, you can receive financial aid through the Financia

Aid Office. If you choose a program at a different school, i

is important to contact their financial aid office as you may

qualify for aid via the

school of your

program. Other

sources of aid for

studying abroad include

the College Boards Big

Future scholarship

search and the Institute

of International

Education. Both are

databases, which include

many different scholarships. You can also visit the websitefor Global Michigan. This website shows all resources

available to UM students when deciding to study abroad.

There are also various scholarships available through the

university.The Center for Global and Intercultural Study

provides a wide variety of global engagement and learning

opportunities to the University of Michigan community.

The LSA Scholarship Office offers scholarships for the LSA

Global Experience Scholarship for all LSA students with

financial need. For more information, please check out the

website at: http://www.lsa.umich.edu/students/scholarships

currentstudents/lsaglobalexperiencescholarshipprogram. It

also should be noted that different schools and colleges,

within the university, may have their own study abroad

programs and students should explore these options and

questions regarding funding with them specifically.

Stud Abroad


[email protected]

For moreinformation on

Study Abroad

Financial Aid, visit

www.finaid.umich.e

du/abroad


7/7

The leaders of SPFL strive to learn about money managemen

and share their knowledge across campus. If you are

interested in becoming a leader, email us:

[email protected]

About CashCourseCashCourse is a great resource for all college students. There are many helpful resources

including articles, online quizzes, budgeting tools, short videos, and financial planning documents

All of these materials help to make financial planning easier to manage and understand. The LSA

Scholarship Program, the Office of Financial Aid, and Students Promoting Financial Literacy

strongly encourage you to visit the website and learn more about your finances. This year, you

need to create a login to use CashCourse. Its super easy and takes five minutes, so visit

CashCourse.organd get started!!

Documents

SPFL Fall Newsletter