Guide to Modern Personal Finance: For Students and Young Adults: Guide to Modern Personal Finance, #1

By Matthew Green

Embark on your financial journey with "Guide to Modern Personal Finance: For Students and Young Adults" by Matthew Green. This all-inclusive guide, tailored for young adults, offers valuable insights and expert advice on navigating the complex financial landscape with confidence.

 

Author Matthew Green, with vast experience in various financial fields, has consulted with FDIC representatives and large banks to compile a wealth of knowledge that will empower you to make informed financial decisions.

 

"Financial Foundations" explores key topics, such as:

1. Loans for Higher Education: Learn about different loan types, the application process, and managing student loan debt.

2. Loans for Cars: Understand auto loans, affordability, buying vs. leasing, and factors impacting interest rates.

3. Credit Cards: Choose the right credit card, comprehend associated benefits and risks, and manage credit card debt effectively.

4. Debt Management: Master debt consolidation, negotiating with creditors, and crafting a sustainable financial plan.

5. Building Credit: Grasp the importance of good credit history, factors affecting credit scores, and strategies for improving and maintaining strong credit ratings.

6. Choosing Banks: Evaluate banks and credit unions, select the right financial institution, and comprehend their products and services.

7. Smartphone Banking: Stay current with modern banking practices, manage finances via smartphone apps, and secure your personal information.

8. Scams and Thefts: Safeguard yourself from financial fraud and identity theft by recognizing scams, implementing online safety best practices, and knowing what to do if victimized.

 

With real-world examples, practical tips, and expert advice, Green offers a comprehensive personal finance education. This guide equips young adults with the tools and knowledge to make informed financial decisions, avoid pitfalls, and secure a bright financial future. Ideal for college preparation, first-time car buyers, or anyone starting their financial journey, this book will guide you every step of the way.

• Language: English
• Publisher: CPC
• Release date: May 8, 2023
• ISBN: 9798223635031

Book preview

Part 1: Borrowing Money

Loans for Higher Education

Before taking out a loan for your education, be sure to conduct thorough research and establish a clear repayment strategy.

Attaining a college or graduate degree can expand your career prospects and earning potential, but it may come with a significant price tag. When contemplating taking out a loan for education, it is important to weigh your choices, aim to borrow the minimum amount necessary, and devise and well-defined repayment strategy. Here are some guidelines to keep in mind. 

• Obtaining a Student Loan •

To reduce your reliance on loans, begin by exploring your eligibility for scholarships and grants. Many students qualify for financial aid, so the first step is to complete the Free Application for Federal Student Aid (FAFSA), which can be accessed on the U.S. Department of Education’s website at www.studentaid.gov. This site also provides additional information on the FAFSA and grant opportunities. 

• Know how much you need to borrow and

make sure you can make the monthly payments •

To determine the amount you might need to borrow, subtract your estimated expenses (such as tuition, textbooks, housing, food, and transportation) from your available resources, including savings, family contributions, work-study or job earnings, and scholarships or grants. Remember, your goal should be to keep your loan amount as low as possible, even if  you qualify for a larger loan, as borrowing more will increase the amount you owe in the long run.

It is also important to take into account the minimum monthly repayment amount you’ll need to make after graduation to pay off your loans, including interest. Make sure it corresponds to your projected income upon completing your studies. To estimate your future earnings in your desired fields, consult the U.S. Department of Labor’s comprehensive wage statistics for more than 800 occupations at www.bls.gov/oes. Your monthly loan payments will also depend on the interest rate and the term of your loan, which can range from 10 to more than 20 years.

While most student loans don't require monthly payments until after graduation, typically within six to nine months, it's crucial to understand that student loan debt is a significant commitment, warns Policy Analysts at the FDIC. Borrowing more than you can afford to repay can result in serious financial difficulties that persist long after graduation. It's important to note that unlike some other types of loans, federal and private student loans cannot be discharged through bankruptcy. Failure to repay your student loans may lead to referral to debt collection agencies, a negative impact on your credit score, which can result in higher credit costs and potential employment difficulties, as well as wage garnishment.

If you require guidance on determining the appropriate loan amount, you may wish to consult a professional at your educational institution, such as a school counselor at your high school or a financial aid or admissions officer at your