Kansas State University

Christmas is coming but money is tight

I want to buy gifts, but they’re all out of sight.

During a time of cheer, the holiday season draws near

Although my budget is tight, my spirit shines bright.

How can I show my love and compassion

Without spending more than I can ration?

Embrace a craft with homemade delight

With paper and scissors, create something bright.

A heartfelt card, A DIY treasure

Brings warmth and love with ample measure.

Try doing a secret Santa, a tradition so fine

It is a great way to keep your budget in line.

Gifts exchanged, a moment so dear

In the spirit of giving, love is clear.

Thrift stores and markets, a hidden gold mine

Discover unique finds that brightly shine.

One person’s discard, another’s delight

Give a second life to treasures so bright.

Experiences over possessions, a gift so rare

Create memories beyond compare.

A day in nature, a concert, a show

Moments cherished, forever to grow.

Shop early, the sales will unfold

Discounts and bargains, a shopper’s gold.

Plan ahead with a list in hand

Avoid last minute splurges, you’ll understand.

So, in the dance of budgets and heartfelt desire

Gift giving becomes a creative fire.

Pockets are light but hearts shine bright

A budgeted present can ignite.

Rylie May

Peer Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial

Recently at Powercat Financial I had a student make an appointment with me and they were trying to save money, specifically on food. The issue was, they didn’t know how. They came to me and said that they were barely able to afford a trip to the grocery store every 2 weeks and could rarely go out with friends. The student wondered if there was any way to still grocery shop and go out to eat but do it in a way that would save more money.  So, we sat down, made a spending plan, and talked through some solutions and options to help save money, here are the main solutions:

Saving Money on Groceries:

1. Know When to Shop

This is a great way to save money on food when grocery shopping. According to Yahoo Finance, Wednesday is considered the best time to shop for groceries. This is because food is going on sale due to mid-week restocks. Grocery stores are trying to get rid of their older products and replace them with newer products, so they’ll do deals and promotions to sell those older products. This can help you save money each trip to the store and overall improve your grocery budget.

2. Make a Plan and Stick to It

Planning before going in the grocery store can help you save money big time. If you have a list of your needs, and only plan to get those things, you’ll tend to not spend more on things you don’t need. You’ll also be less susceptible to discounts and deals on food you don’t need. You know what you’re there for, and that’s what you’re getting.

Credit: Sodanie Chea, https://www.flickr.com/photos/41942551@N02/7259669024

Saving Money on Eating Out:

1. Don’t Be Afraid of Coupons

Sometimes there’s this stigma about using coupons and being considered a cheapskate, but I disagree with that. It shouldn’t be looked down upon for trying to save money and coupons are a great way to save money while eating out. Most food places will have a coupon or deal of some kind available for students to use, and even encouraged to use sometimes. Think twice before immediately throwing away the coupons you receive in the mail next time.

2. Drink Water

Drinking water at a restaurant can be a game changer in terms of saving money. Often beverages other than water cost $2-$3 extra. If you go out to eat and get at least 1 beverage every time, that can cost you close to $10-$15 a week at the minimum. Multiply that by 52 weeks and you’ve spent about $500-$700. Instead, with that money you could have saved it and put it towards your financial goals. So next time you go out, think about drinking water.

After going through some of these solutions, I encouraged this student to track their next months expenses to see the difference these strategies of saving money can have on their budget. If you’re wanting to find ways to save money and track what you are spending, at Powercat Financial we can help. We can go over you’re spending and can come up with solutions to help support healthy spending habits that can save you money and benefit you in the long run. Make an appointment today!

Daniel Hensarling

Peer Counselor II

Powercat Financial

www.k-state.edu/powercatfinancial

Studying abroad is a fun opportunity to pursue college courses in a foreign country. The thought of living in another country can also cause genuine curiosity. Most students will wonder things like, where they will live, what they will eat, and all the other things that can be thought of when getting ready for a foreign experience. To give you some insight, I interviewed Adrian Kaus, a Student at Kansas State University who studied abroad in Orvieto, Italy.

[Aidan Little]

How far in advance should students plan to study abroad?

[Adrian Kaus]

I would say you need to start planning for it almost a year in advance because it is a big commitment, and I only went for a month. You need to make sure you have plenty of finances because there are so many cool places out there and you want to experience it all. When I studied abroad, I tried to just let loose and not really think about the money but the experiences I was having.

[Aidan Little]

What support is available to students once they arrive? (Tour Guide, Translator, etc.)

[Adrian Kaus]

When I went to Italy, we did not really need a translator or tour guide for the place we were living. Most of the people there spoke English and when we arrived, they gave us multiple tours around the town throughout the first week experiencing all of the history and cool things. The people in charge are super helpful and if you need anything they will drop everything to help. I had to interview a local for one of my classes and I asked the local in charge of our program if she could be my translator, in which she was happy to help!

[Aidan Little]

Where can students expect to live while studying abroad? Is Food Provided?

[Adrian Kaus]

We were given housing for the month in a little apartment, it was four of us.  It had a full kitchen so we could cook food for ourselves which saved a lot of money. Food is mostly on your own, but Italy is a lot less expensive than the U.S. They also had farmers markets every week and you could barter with them to save money. There were a couple of big meals that were provided and other small things as well.

[Aidan Little]

What budgeting advice would you give a student who is planning to study abroad? (Any changes or expenses that they should expect?)

[Adrian Kaus]

I would say have a max amount of money that you want to spend when traveling on the weekends and for when you are there for a couple days. That is where I spent the most money, it is very easy to say yes to excursions because it is all about the experience. I don’t regret anything, but I know some people that went with us spent a lot more than they should have because they did not plan ahead enough.

If you are interested in learning more about studying abroad, and different funding opportunities visit the Kansas State Education Abroad website, and request an appointment to meet with an Education Abroad Advisor. For help with budgeting, and other financial questions you may have for studying abroad, schedule an appointment with us at Powercat Financial!

Upcoming Events:

Financial Well-being Ambassadors – November 6th, 4:00-5:00pm at the Union in the Big 12 Room. Want to be part of Powercat Financial and learn about personal finance? Come join us at our monthly meeting.

Aidan Little

Peer Counselor II

Powercat Financial

www.k-state.edu/powercatfinancial

Looking back to my undergraduate studies many years ago, I had the opportunity to pursue two very different internships. The first was an intern zookeeper at the Houston Zoo in my hometown after my Freshman year of studying Biology. The second was as an apprentice to a furniture maker in Chicago where I had never been before after my Senior year to explore career options related to my second major of Studio Art. Both of these particular opportunities were unpaid, however as we learned in our other recent blog post, these experiences can still provide a lot of value in helping you to progress along your career path which I found to be true. Many internships these days may provide some form of compensation depending on the field, but regardless both require proper planning when it comes to saving and budgeting to make them feasible to pursue.

Housing is likely to be your largest consideration and budget item. If you are able to find a position near family or close friends that you can stay with as I did in my first position this certainly helps. On the other hand, you may find yourself working in a new to you location as I did in my second position with the challenge of acquiring housing when you don’t know the area. The fact that you may only be there for a few months can limit your options on finding a place. Often times the company you work for may be able to provide resources to help in your search or connect you with other interns to coordinate shared housing. You will ideally be looking for short-term rentals that are furnished with full utilities included. Also, proximity of housing options to your place of work should be a factor, though you may end up choosing somewhere further away in a more affordable area. Sites like Airbnb.com and Vrbo.com can be places to look and will typically give discounts for longer stays.

Transportation is also important both in getting to the city you will be working in as well as for your daily commute. You may already own a vehicle or be able to borrow one from family. It’s possible that increased mileage as opposed to being on campus during the school year can add to additional costs in gas and maintenance. It may also make sense to fly or travel by bus/train to your internship location if you don’t have a vehicle and rely on other modes of transportation to get around. Public transportation may be a good solution if the location has viable options or ride sharing with fellow interns/employees can allow you to share costs.

Your food budget can vary depending on whether you may be eating at home with family or friends versus being on your own. It can certainly be an adjustment if you are accustomed to being on a meal plan at the dining hall to having to buy groceries and cook when you are in new surroundings. Add to this the potential workload and learning curve of your position and you may find yourself lacking in time or energy which can lead to more ready to eat meals or dining out which comes at a premium.

You also can find yourself needing to shop for a new wardrobe depending on the position. While the dress code is typically more relaxed for interns you still want to present yourself professionally to make a good impression. This could include dressing up at an office or having appropriate protective wear for outdoor work in the field.

There are then all the other smaller miscellaneous items to consider which can add up and that you may already be accustomed to paying for throughout the year. Social and entertainment expenses should not be forgotten either as it’s important to balance fun with work. You will meet new people to get acquainted with and possibly have new places to explore and will want to be sure to include that in your budget as a valuable part of the overall experience.

Once you have done your research into these various areas and have some educated estimates of the total costs, then you can start looking at the resources you have available. Any income or stipends offered by the internship can go a long way towards meeting your needs, especially if living with family. It never hurts to ask your employer if there is any assistance they could provide even if they haven’t explicitly offered it and one could be creative with the request. Once you have all the facts its good to develop a list of income and expenses which you can do using our available Spending Plan Worksheet or other apps/methods of your choosing. This will help you to identify potential excesses in funding or shortfalls. You will also want to consider whether you are dependent on summer income not only to support yourself but also to go towards next year’s education costs. Additional work during the semester or pursuing new scholarships may be required to save up for a budget deficit resulting from the internship, whereas a budget surplus can be used to help fund other goals.

The Peer Counselors at Powercat Financial are here to help you navigate these decisions and create a plan to enable you to pursue the internship opportunities you desire in a financially sustainable way. Please feel free to schedule an appointment to start the conversation.

Michael Pumphrey, AFC®
Peer Counselor II
Powercat Financial
https://www.k-state.edu/powercatfinancial/

An internship is one of the most valuable assets in your post-graduation search for a job. These internships provide the necessary industry experience that employers are looking for when hiring new candidates. Recently, Universities had an even bigger push to encourage their students to start early with the search for internships, hosting events such as career fairs, tabling from companies and sending out application links through mass communication emails. 

Though some of these internships are paid, not all interns receive monetary compensation for their work. Some companies offer internships where the main form of compensation is purely through the experience through the duration of the internship. 

There are criteria that must be met by an unpaid internship to make them legal. So, when applying, make sure your employer meets these requirements. Here are some of the criteria an unpaid internship must meet in order to be legal: 

1. The internship’s training is educational in nature
2. The intern directly benefits from the unpaid work
3. The employer does not directly benefit from the intern’s work
4. The intern is a supplement to and not a replacement of paid employees
5. The internship does not guarantee employment with the employer
6. The intern consents to providing work without pay

*Source – https://www.honorsociety.org/articles/pros-and-cons-unpaid-internships* 

Though you are not being paid, an unpaid internship can still be an invaluable tool to assist with landing a job after college and growing your network.  

Meet Andrew, a Junior, studying Business at Kansas State University. Andrew is in the first semester of his junior year and already one of the biggest topics of discussions is which companies invited his peers for an initial interview from the career fair. Andrew had received a variety of interview requests from multiple companies, but only one where the internship would be based out of the location, he wanted… Kansas City, MO. While interviewing with this Kansas City company for an internship in their accounting department. The interviewer tells Andrew the internship is unpaid and consists of observation and training. Initially, Andrew is concerned about how he will support himself through the summer but also recognizes that experience from this company is sure to either land him a job within the company or be enough to look for post-grad employment elsewhere. 

A few weeks down the road, Andrew receives an offer from the Kansas City company for an unpaid internship during the upcoming summer. Andrew is ecstatic and more than prepared to take this offer, but there are some key things he should know prior to making this move.  

Since he will not be receiving monetary compensation throughout his time as an intern, it is imperative that he prepares months prior to the internship. The first method of preparation will be through creating a Spending Plan. This spending plan acts as a budget for the months he is in school leading up to the start of the internship in summer. As he continues the school year, he can track his expenses along with the money he receives from his part-time, on-campus job to create an excess number of resources to save for the following month.  

After a couple of months, Andrew was able to save an amount he deemed would be appropriate to live on for the duration of the internship. Having this plan in place and executing it successfully is what allowed Andrew to go into his summer internship worry free.  

Just like Andrew, you can visit Powercat Financial to have a Peer Financial Counselor guide you through the spending plan to ensure you are comfortable starting your internship! 

Upcoming Events:

Live Your Best Life – October 16^th, 12:00-1:30pm in the Union Courtyard. Come join us for a fun, interactive game of life where you can learn how to make important financial decisions in your life. We will have food and prizes for those who come!

Financial Well-Being Ambassador Meeting – November 6^th, 4:00-5:00pm in the Big 12 Room at the Union. Want to be apart of Powercat Financial and learn how you can help spread financial literacy around campus? Come join us at our monthly meeting to learn more!

Cristian Pena 

Peer Financial Counselor I 

Powercat Financial  

www.k-state.edu/powercatfinancial

Student loans are a common way for students to finance their higher education. Over half of students from public four-year institutions take out student loans. In fact, the average amount of student loans per student is $28,950. This is a significant amount that is often taken on without careful consideration or understanding of how they work. So, what are student loans, where do they come from, and how do they work?

First, let’s look at the basics of loans and how they work. Loans are contracts to borrow money from a lender and pay it back later plus a little extra. There are two parts of loans that you will need to pay back. The first is called the principle, this is the money you borrowed. For example, if you borrow $1,000 dollars, $1,000 is the principle of the loan. The second piece is called interest, interest is the fee you must pay to borrow the money. This ‘fee’ is determined by the interest rate of the loan. The higher the interest rate, the more expensive the loan will be. Interest rates are the percent of the total balance that will be added to the amount you have to pay back. For example, if you borrowed $1,000 with a 5% interest rate, 5% of the $1,000 will be added to your balance annually. A key term to know is compound interest. Essentially, compound interest is the interest that is added on top of interest. This makes the loan more expensive the longer you hold it without making payments.

So, what is a student loan? A student loan is money borrowed from a lender to pay for college. The money can be used for tuition, room and board, textbooks, supplies, and/or other fees. The student must pay back the loan after graduation. There are two main sources of student loans: the Federal government and private lenders. Federal student loans make up roughly 92% of all student debt while private loans make up the remaining 8% of student debt. Federal student loans are awarded through filling out the FAFSA (the Free Application for Federal Student Aid). The FAFSA, which must be filled out annually, assesses each student’s needs and awards student loans and grants accordingly. Private student loans must be applied for individually and are based on the individuals credit rating.

Since most student’s dealing with financial aid look to federal loans, let’s look at what federal student aid is. Federal student aid is a secure way to fund higher education. Many protections and safety nets have been put in place for students. For example, federal student loans are in deferment (the postponing of payments) until six months after graduation. This means that students do not have to make monthly payments on their loans while they are in school full time. There are several types of student aid that can be awarded by filling out the FAFSA.

1. Federal Grants: Grants are financial awards from the U.S. government to fund student’s education. Grants are awarded to students based on financial need and determined by the FAFSA form. If you receive a grant, accept it in full; you will never have to pay these back!
2. Subsidized Federal Loan: These are loans offered by the federal government that do not add interest to the balance while the loans are in deferment (this includes the six-month grace period after graduation). Instead, the government pays the interest while the student is in school.
3. Unsubsidized Federal Loan: These are loans taken from the federal government that add interest while you are in school. This means that the amount borrowed will increase with compounding interest while the borrower is in school.
4. Parent Plus Loan: These loans are taken by your parents through the government to cover college expenses. Often, these loans will be offered in a significantly higher amount than the other loans mentioned above. However, they tend to come with higher interest rates as well. These loans use your parent’s credit score, and you will pay them back through your parents. When applying for a parent plus loan you will need to make sure to check the “defer loan” box otherwise your parents will be required to start making payments six months after the loan was taken. If you put the loan into deferment, no payments will need to be made until six months after you graduate. Remember, these loans will affect your parents so make sure that you communicate clearly with them if you decide these loans are needed.

When taking federal student aid, there are three things to keep in mind. First, you don’t have to take out offered loans in full; you can key in the amount you want to take. Second, whatever amount you decide to take will be disbursed into two parts at the beginning of each semester. Because of this, you will need to remember to plan ahead for the spring semester and remember that the amount you will receive this semester is half of what you took for the year. Finally, you can always take out more at a later date if you decide you need more. Studentaid.gov is a very helpful website and can answer a lot of questions you might have. It is also where you can keep track of how much you owe in total student loans. You might also want to check out our website, it has a lot of information on student loans as well as how to navigate finances in general while in college (Powercat Student Loan Info).

In contrast to federal aid, private loans must be individually applied for. Eligibility for private loans is based off your personal credit score. The better your credit score is, the better loans you will be able to qualify for. It is important to note that private student loans often do not have the same protections for borrowers that federal student aid has. One good starting place to look for private student loans is FastChoice.

Once you have graduated college it will be time to start paying off your student loans. If you have federal student loans, you will be put in touch with your loan servicer (the company who you will be sending payments too). At this time, you will select a repayment plan provided through the federal government. If you would like to simulate what your student loan repayment might look like, use this link (Loan Simulator) to use the tool. If you have private student loans, you will begin to make monthly payments to whomever you borrowed from.

Understanding what student loans are and how they work is important to each student’s financial well-being. By knowing how loans work, where they come from, and the various types, students can make informed decisions that align with their personal financial goals. If you have any questions, don’t hesitate to schedule an appointment with Powercat Financial. We can help you understand student loans, determine how much financial aid you need, and create an education financial plan! All appointments are free and confidential; you can sign up at our website: Powercat Financial.

Upcoming Events:

Live Your Best Life – October 16^th, 12:00-1:30pm in the Union Courtyard. Come join us for a fun, interactive game of life where you can learn how to make important financial decisions in your life. We will have food and prizes for those who come!

Financial Well-being Ambassadors – October 9^th, 4:00-5:00pm at the Union in the Big 12 Room. Want to be part of Powercat Financial and learn about personal finance? Come join us at our monthly meeting to learn about credit!

Abram Mugler

Peer Counselor III

Powercat Financial

www.k-state.edu/powercatfinancial