BECU Dollars + Sense

LESSONS THAT LAST A LIFETIME It pays to be smart with money By following some simple rules when it comes to spending, saving, borrowing and planning for your money, it’ll be easy to have cash on hand when you need it—no matter how old you are or how much money you make. 1 http://money.cnn.com/2017/01/12/pf/americans-lack-of-savings/index.html, 2 www.collegetuitioncompare.com/compare/tables/?state=W A&degree=Undergraduate&type=Public, 3 www.collegetuitioncompare.com/compare/tables/?state=WA&degree=Undergraduate&type=Publ ic, 4 www.collegetuitioncompare.com/compare/tables/?state=OR&city=Eugene&degree=Undergraduate, 5 www.urbandictionary.com/define. php?term=sticker%20shock, 6 www.howtogeek.com/228902/the-iphone-6s-is-almost-here-time-to-lease-or-buy/ , 7 https://arstechnica. com/information-technology/2014/01/verizon-leads-top-wireless-carriers-in-bill-size-at-148-a-month/, 8 www.collegetuitioncompare.com/ state/?state=WA, 9 https://trends.collegeboard.org/student-aid/figures-tables/state-grant-aid-undergraduate-student-2015-16 ($1340 in state aid grants), 1 0 www.collegefactual.com/colleges/washington-state-university/paying-for-college/financial-aid/ (59% of students received $4955 in avg scholarships at WSU), 1 1 www.seattletimes.com/business/real-estate/seattle-area-rents-drop-significantly-for-first-time-this-decade-as- new-apartments-sit-empty/ THINK BEFORE YOU SINK Only spend on what you really need One of the best ways to keep money in your pocket is to have a plan for how to spend it. A lot of the time, you’ll find that the true “costs” of ownership just aren’t worth the price. Goals for managing your money Here’s what you can do now to make sure there will be money in your wallet when you need it: Check your budget Review your monthly budget and find the money before you buy. Do your homework Explore all options; there might be a better or less costly alternative. Set goals Have a plan for how you’ll spend your money in the next few years, as well as the next few months. Expect the unexpected Don’t wait until you’re out of cash. Have a plan to handle surprise expenses. College 101: In state or out? Many publicly funded colleges and universities offer lower tuition to students who live “in state” and graduated from local high schools. Attending a public school across the country from home means you will be charged a higher, out-of-state tuition rate not discounted with taxpayer dollars. Compare the in-state cost for one year at Washington’s public universities against out-of-state costs in neighboring states: SIGN ON THE DOTTED LINE But only if you read the contract first The sticker price shown in ads typically does not include ongoing ownership costs such as car insurance premiums, maintenance costs, fees for borrowing money (also known as interest payments) or fees for late payments. Always take the time to calculate the true cost of ownership before you commit to buying. Goals for saving money Don’t pay more than you really need to. Always have a plan before you buy. Read contracts — know what you’re on the hook for and avoid surprise charges. Save up — Have several months’ worth of payments saved before borrowing money. Put down — Pay as much as you can with cash, rather than paying 100 percent with credit. You’ll save money in the long run by paying less in borrowing fees. Get rich quick! Money-saving tips Putting aside even just a few dollars each month will make your bank account grow. Which of these money-savers have you tried? “ Set it and forget it” with automatic monthly transfers from checking to savings Borrow from the library instead of buying from a store Open a short-term CD to save and earn interest Shop used items instead of new Put cash gifts into a separate savings account Take advantage of student discounts Did you know? 60 percent of Americans say they do not have even $500 in savings to cover an emergency. 1 Did you know? “Sticker shock” is a condition that comes from seeing the true price of an item and realizing the damage is much worse than you thought. 5 Avoid sticker shock Don’t be shocked by the total price tag when you make a big purchase. Here’s a sample breakdown of what you can expect to pay for common life expenses. IN REAL LIFE UNIVERSITY OF OREGON — EUGENE, OR 4 Tuition and fees = $33,442 Books and supplies = $1,122 Living costs = $13,932 Cost of attendance = $48,496 $48,496 $35,448 UNIVERSITY OF IDAHO —MOSCOW, ID 3 Tuition and fees = $22,040 Books and supplies = $1,214 Living costs = $12,194 Cost of attendance = $35,448 UNIVERSITY OF WASHINGTON — SEATTLE, WA Tuition and fees = $10,753 Books and supplies = $825 Living costs = $18,186 Cost of attendance = $29,764 $29,764 WASHINGTON STATE UNIVERSITY — PULLMAN, WA 2 Tuition and fees = $11,041 Books and supplies = $960 Living costs = $14,898 Cost of attendance = $26,899 $26,899 Cheap thrills You can still have fun even if you don’t have a lot of dough. There are many ways to get what you want without spending tons of cash— if you get creative. IN REAL LIFE • Buy an older model phone • Join a family plan • Carpool with friends • Join a car sharing group • Use a ride sharing service • Take advantage of in-state tuition • Transfer credits to your dream school • Live with roommates • Choose a lower-cost area Renting an apartment $4,279 First Month’s Rent $1,647 Last Month’s Rent $1,647 Pet Fee $200 First month’s parking fee $100 Credit Check $35 Security Deposit $500 Cleaning Fee $150 Down payment $1,000 Sales tax $800 Monthly loan repayments (60 months @ $191.22) $11,473.20 Buying a car $13,273.20 Total borrowing fees $2,473.40* *Interest paid on the amount borrowed is part of the monthly payment amount Phone loan payment $40 6 Cell service fee $100 7 Data overage fees $10 Government fees and taxes $20 Surcharges and other fees $20 Late fees $25 Monthly cell phone bil $215 One year of college $12,713 Tuition and fees $4,979 Room and board $13,080 Books and supplies $989 With grants and scholarships $6,335 Money made easy Rules of thumb for managing your money: Spend wisely • Spend less than you earn • Pay bills on time and in full Save often • Always have cash savings on hand • Invest money to make money Borrow carefully • Borrow only what you can afford to pay back • Maintain a healthy credit score Plan ahead • Plan ahead for big expenses • Get insurance to protect yourself Do I have the money for this? Is there a cheaper option? Will I have to make monthly payments? Where will I get the money for this? Do I need to borrow it? 2 SUNDAY, APRIL 22, 2018 | Sponsored Newspapers In Education Content Sponsored Newspapers In Education Content | SUNDAY, APRIL 22, 2018 3