Peer Financial Counseling Program [Oct. 2006]

Peer Financial Counseling Program
Does Money Control Your Moves?

FROM ONE STUDENT TO ANOTHER
Empowering Students to Build Effective Personal Financial Management Skills
The Peer Financial Counseling Program (PFC) is designed to provide college students with a basic understanding of personal financial management to help you meet life's challenges and opportunities through effective money management.
PFC is based on a proven model that the best way to reach college students is by having fellow students provide valuable information and experiences that can be related to and applied in daily life. The five PFC modules have been developed to explore critical issues of budgeting, credit card use, credit histories and reports, student loans, and savings and investments. Student speakers present the modules to classes, clubs, residence halls and other student organizations. Each module consists of:
Seminar Effective presentations highlighting the important concepts
Handouts Practical information to take away with you
Group Discussions Opportunities to discuss and apply information
Internet Resources Resources that anyone can access using the Web

MODULE 1 Making It On A College Budget
THE BASICS
Most students are on fixed incomes and have very little experience managing money. Before college, many of us never had to worry about paying for rent, groceries, utilities, and all the other costs that face the average college student. The first step to becoming financially independent is being able to live within our means, and the purpose of this module is to teach you how to track your spending and develop a budget that will work for you.
In Module 1 you will learn to: Evaluate your priorities
Set goals
Recognize the difference between a want and a need
Track your income and expenses
Make a spending plan
Stick to your spending plan

MODULES 2 & 3 Staying On Good Terms -- Staying on Top
CREDIT/DEBT -- CREDIT REPORTS AND CREDIT SCORES
Credit card companies just love college students, and the moment you stepped on campus you became one of their highly sought-after customers. Too often, many students acquire far more debt than they can afford. In fact, almost a quarter of all college students have credit card balances of more than $3,000 when they graduate on top of whatever college loan debt they may have. These modules will help you understand how to use credit cards responsibly, how to access and understand your credit history, and how to get out of credit trouble if you need to.
In Modules 2 & 3 you will learn to:
Understand the different types of credit, including the advantages and disadvantages of using credit cards
Recognize credit trouble and learn how to get help with problems
Understand what is in a credit report and how credit scores are calculated
Understand the impacts of your credit history and credit score and your rights and responsibilities

From One Student To Another -- Empowering Each Other

MODULE 4 Choosing To Understand
STUDENT LOANS
Since 1993, student loan volume has increased 65 percent. Not only are more students taking out loans, we are taking out much larger loans. As a result, student loan debt has grown tremendously in recent years, in Georgia and nationwide. The purpose of this module is to help you understand how to deal with your student loans in a responsible manner.
In Module 4 you will learn to: Understand the size of student debt nationally and in Georgia
Know the difference between subsidized and unsubsidized student loans
Understand the impact of interest on your debt load
Calculate the amount of loan debt you can handle
Gain a realistic expectation of your potential starting salary after graduation
Understand the consequences of defaulting on a student loan

MODULE 5 Becoming A Millionaire
SAVINGS & INVESTMENTS
A recent survey found that most people think that the lottery is their best chance at becoming a millionaire. That's why most people never become millionaires. Truth is, your best bet is to start saving money at a young age and continue saving throughout your career. For example, if you are 20 years old and begin putting $2,000 a year in investments earning an average of 6 percent annually, you will have nearly half a million dollars by the time you retire. The purpose of this module is to show how you how saving regularly can help you to become financially secure.
In Module 5 you will learn to: See the advantages of starting an investment plan early
Know the importance of saving regularly
Set goals
Investigate different investment options
Understand criteria for selecting investments
Know advantages and disadvantages of five types of investments.

To Build Effective Personal Financial Management Skills

peer
financial counseling
Funded by:
Georgia Student Finance Commission
GAcollege411.org Georgia Governor's Office of
Consumer Affairs http://consumer.georgia.gov
Supported by:
The University of Georgia Office of Student Financial Aid
www.uga.edu/osfa/pfc The University of Georgia Department of Housing and
Consumer Economics www.fcs.uga.edu/hace

GAcollege411.org is a powerful, free web resource that helps students research careers, choose a college,
apply for college, and acquire financial aid.

Administered by:
Georgia Student Finance Commission
Loans Scholarships Grants
Giving Students Financial Choices since 1965
2082 East Exchange Place - Tucker, GA 30084 (770) 724-9000 or 1-800-505-4732
The Georgia Student Finance Commission is a State of Georgia agency. GAcollege411 is a service of the State of Georgia provided by the Georgia Student Finance Commission, the Office of the Governor and many Georgia partners, including the University System of Georgia, the Department of Technical and Adult Education, the Foundation for Independent Colleges, the Department of Education, the School Counselors Association, the Office of Treasury and Fiscal Services, Georgia Public Broadcasting, the Professional
Standards Commission, and the Georgia Public Library Service.

Printed on recycled paper

L-19 (10/06)