Personal Finance

Seminar
Managing Student Debt & Savings

Executive Summary
Student Loans
Personal Savings & Life Savings
Credit and Credit Cards

Student Loans
69% of graduates had student debt,
averaging $33,000 per borrower.
78% in Massachusetts, with $31,391
average debt amount.
$1.3 trillion total U.S. Student Debt.

Student Debt Crisis

Bloomberg View

Payment Plans & Interests #1

Payment Plans & Interests #2a

Payment Plans & Interests #2b

If loan amount is paid in 20 years rather than 30:

(A): $96 dollars more per month ($1152 extra per year)
(B): $21,610.18 saved on interest
(C): $111,844.96 total payments rather than $133,455

Payment Plans & Interests #3a

Payment Plans & Interests #3b

If loan amount is paid in 30 years with extra payments:

(A): $100 dollars more per month ($1,200 extra per year)
(B): $26,456.08 saved on interest
(C): $195,971.90 total payments rather than $ 222,425.79

Summary
Beware of compounding interests & interest rates.
Pay more, if able.
Take advantage of special programs.
Public Servant (teachers, firefighters, police.)
Payment plans
Etc. (go to Fafsa.ed.gov)

Employer-sponsored education programs

Savings &
Saving starts now.
Retirement

Savings & Retirement

Savings

Retireme
nt

Yes

21%*

40%

No

62%

45%*

Dont
Know

N/A

N/A*

Save Now! (IRA)

Personal savings & life
savings

*Over 62% of Americans say that do not have, on average, $1,000 in savings, in conjunction with 62% of Americans who
say they have no emergency savings (2015). Faced with emergency, those surveyed stated that they would reduce
spending elsewhere (26%), borrow from family/friends (16%), or using a credit card (12%). In contrast, only 29% said they
had savings in excess of $1,000, 14% in excess of $10,000, and 5% ranging from $5,000 to $10,000.
*45 percent or 38 million working-age households do not have any retirement account assets. The median retirement
account balance is $3,000 for all working-age households and $12,000 for near-retirement households (NIoRS).

Saving for Life

Savings
62% of Americans do not have,
at a minimum, $1,000 saved.

Retirement

62% said they had no

emergency savings.

38 million (45%) Americans do

not own retirement accounts.

Multigenerational issue

Average account balance:

$3,000 per household.
$12,000 average for nearretirement households.
90% fall short on retirement
account balance, 84% on total
assets, 65% on net worth

National Institute on Retirement Security.

Forbes Magazine

Retirement Example

That is

Credit & Credit Cards

Creating a credit history and
managing credit card debt.

Credit Rating

Fair Isaac Corporation (FICO)

 Promos
i.e.: 0%
interest for
15 months

Low rates
Rewards

Credit Card
Shopping

(cash back or
sign up bonus)

Average Cash Back

Credit Card Rate:
20.90%
High: 22.99%
Low: 13.24%
Prime: 3.25%

Average Student
Credit Card Rate:
19.80%
High: 22.62%
Low: 13.99%

Which credit card

should I get?

Prime: 3.25%

Whats a Credit Card?

How to Manage Credit Card Debt

Know how much you owe.
Know how much you have.
Know how much you can afford
Do not overleverage (over-spend)

Buy only what you can afford

i.e. If you have $500 in your savings, do not buy something worth
$1,500 on credit.

Tempted to go on a shopping spree?

Get a low credit limit ($250 to $500)

Summary
Plan, execute, and evaluate your savings and debt
management plans
Without vision, the people cast restraint Prov. 29:18
Save early and as much as possible. Save beyond yourself.
A good man (or woman) leaves an inheritance to his
childrens children (Prov. 13:22)
Be a shopper, and a deal maker.
Manage debt more efficiently.

Thank you! Have a good

night!