Kansas State University

It’s your senior year. You’ve worked so hard to get here and all of your hard work is about to pay off. You know your resume inside and out and you’ve memorized the perfectly worded answer to every interview question under the sun. You interview with company after company searching for the right fit. Finally you find it, the job that’s perfect for you. You rock the interview, send a thank you letter, and wait. One week later, it arrives. The thing you’ve been fighting tirelessly for four years to get is finally here. You got the job offer. You jump up and down screaming with joy… but now what. The job offer is full of details that you don’t understand. Is the salary really what you’re worth? What is a 401k and what does PTO mean? Luckily you remember that Powercat Financial is a free service available to you as a K-State student and they are here to help.

Know Your Worth

The first thing we tend to see or think about when we get a job offer is the salary. After all, you went to college in hopes of learning skills to help you get more money when you graduated. Many students look at the salary on a job offer and think that’s it, take it or leave it. Maybe you think it’s too low and you’re worth more, or maybe you think that it seems high because you’ve never made that much before. No matter how you feel about what you’ve been offered, it never hurts to compare it to what others are making in a similar position with similar experience. One of the best tools for doing this as a recent K-State graduate is the career center’s website (https://www.k-state.edu/careercenter/about/stats/kstatepostgradstats/salary.html). Every year, the career center gathers data about recent graduates and publishes this data to help you make the most informed decision possible. This website can help you see what others in your major and job location are making right out of college to help you understand how competitive your offer is. If you still think your offer is great and you’re happy with it then good, but if you’re disappointed and feel like you deserve more then don’t worry because that number is not set in stone.

Many students are nervous to negotiate their salary because they feel like they don’t have the experience or leverage to negotiate but this is not true. You bring value to a company, and if you got the job offer then your potential employer sees that. Often employers will expect you to negotiate and offer a lower starting salary with that in mind. When negotiating an offer it is always important to be prepared, be respectful, and be open to compromise. You should communicate your gratitude first and then present your argument with facts and statistics such as information you got from the career center. Remember to be confident and professional to show the company that you are worth their investment.

It’s Not All About the Salary

While the salary may be the first thing you think about, money is not everything. There are a lot of other factors that will contribute to your future happiness that have nothing to do with money. For example:

• What is the company culture like? Is this a place where you see yourself working long term and are the people fun to be around? A good company culture and good people can make or break a job. Remember that you have to interact with your coworkers every day and it’s hard to enjoy what you do when you don’t get along with your colleagues.
• Work-life balance is something that we don’t tend to think about when evaluating a job offer, but it is extremely important. A lot of jobs right out of college can be extremely demanding and require you to work a lot of hours. The last thing you want is to get burned out in the job meant to start your career.
• Location is another important factor to consider. After all, not all of your time will be spent at work. You want to make sure that the job is in a place that you want to be and somewhere you can see yourself living.
• Opportunity for advancement is something else to consider. This may only be your first job, but it might be important to you that you have room to grow in the company.

Employee Benefits

The benefits a company provides can sometimes be the most important part of a job offer. Unfortunately, they can also get pretty complicated so here is a list of some of the most common employee benefits that you can expect to see in your job offer:

• Retirement plans are arguably the biggest and most important employee benefit that companies offer. The most common type of retirement plan offered by firms is a 401k. 401k plans are defined contribution plans which is just a fancy way of saying that you are responsible for contributing to the plan and your employer may match your contributions or a percentage of your salary. There are many other types of retirement plans, but you are less likely to see them in a typical job offer.
• Insurance is another huge benefit that firms offer their employees. A company may offer you discounted coverage, or pay the full premium for you. Types of insurance include disability, health, dental, vision, and sometimes life insurance. These can be a large out of pocket cost for individuals so this benefit is an important one.
• PTO stands for paid time off and a company’s PTO policy can be a big benefit especially for people who have never had such a luxury before.
• Bonuses can be another benefit used to incentivize workers to do their best. For some companies these bonuses can be a big advantage.
• Gym Memberships are becoming a popular employee benefit and one that many students are happy to have in a job offer.

Job offers can be exciting and scary all at the same time. So when you get a job offer and you don’t know where to start, come to Powercat Financial where one of our experienced peer financial counselors will walk through the offer with you and answer any questions you may have.   We also have a handy ‘job comparison tool’ on our website you can download and use today at https://www.k-state.edu/powercatfinancial/work/job-offer-evaluation-worksheet.pdf.

Ryan Kohr

Peer Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial

Do you enjoy talking about money with your significant other or is it a topic you strive to avoid at all costs? A study from Northwestern Mutual found that money was the leading cause of stress among Americans. When you add in a second party who might have different ideas about how to handle money, that stress often escalates. This is particularly an issue for college students whose finances and relationships are muddled by the complications of college life: student loans, work-school balance, and, of course, the complex navigation of dating apps. But regardless of what studies tell us, finances do not have to be a stressful point in a relationship. Here are a few simple strategies that can help new or experienced couples avoid financial friction.

Understand Each Other’s Money Personality

The key to good financial well-being and relationship health is knowing and understanding each other’s views and behavior towards money. If you know what to expect, you can make compromises, and there won’t be as many misunderstandings along the way. Each party should talk about their financial background. This includes anything from their parent’s financial beliefs and habits to their own formal and informal financial education. These conversations are obviously not easy to have, but they create a platform whereby couples can have healthy conversations about money with a partner in the future.

The Klontz Money Script Inventory (KMSI) is another way couples can understand their partners’ money beliefs. Money scripts are the unconscious beliefs about money – rooted in our childhood – that ultimately shape our financial health. The short assessment, which you can find at https://www.yourmentalwealthadvisors.com/our-process/your-money-script/ is designed to help you learn about your own money belief system to improve your financial understanding and decision-making. Couples should share this information to gain insight into the other’s approach to money and, more importantly, how they can work together to live healthy financial lives.

Time It Right

Since conversations about money are often emotionally charged, choose a time to talk about your financial situation or make decisions when both of you are at your best. Both of you should establish boundaries and expectations for what financial conversations will look like and when you will plan to have them. Choose a specific time to meet and topic(s) to discuss and stick to it. This will increase healthy communication habits and deter tension when having money conversations.

Collaborate

Often, one partner deals with most of the finances: managing all bills, budgets, savings, investments, and insurance policies. However, it can be beneficial for both partners to understand and be involved with their finances. Collaboration can help couples establish both individual and combined responsibilities over finances based on their comfort level and skills. Ultimately, ongoing input from both partners will strengthen your relationship and create a true partnership.

Find an Unbiased Financial Counselor

Sometimes the best way to avoid financial tensions, regardless of a couple’s current status, is to work with an objective third party, whether that’s a financial professional, a marriage counselor, or both. A financial professional can work with you and your partner to review your financial situation, identify gaps in their communication, assist in establishing goals, and provide professional and knowledgeable advice. Powercat Financial at Kansas State University is that resource for students. We are a free and confidential service that provides financial information and helps students prepare for the future. Couples are encouraged to come in – together or separate – to discuss their financial circumstances and learn more about how to balance financial responsibilities and their relationship. You can schedule a free appointment at https://www.k-state.edu/powercatfinancial/.

Celebrate Success!

Discussing financial matters can be exhausting. You should celebrate success every once in awhile when you and your partner achieve your goals. Set aside a portion of pocket money that you and your partner can each spend every month on something you love, whether it’s a massage, a picnic, or a night on the town. For K-State students, this could include sweet trips to the Varsity Truck or a day trip to another city. These activities can reinforce financial habits and improve you and your partner’s relationship.

These steps are just the tip of the iceberg when it comes to love and money, but they can go far to improve financial teamwork with your partner. Repetition and reinforcement are key to implementing these habits and achieving your financial and relationship goals.

If you and/or your partner need help creating a budget, managing student loans, or learning more about healthy financial habits, Powercat Financial is here to help. As mentioned earlier, we offer free and confidential appointments in-person as well as on zoom. Appointment requests can be made online at www.ksu.edu/powercatfinancial. If you are unable to make time for a full appointment you can always come to our walk-in days on the first Friday each month. The next walk-in day is Friday, February 4^th.

Also, make sure not to miss our upcoming event Love & Money! Attendees will be provided helpful resources and tools to manage finances with your partner by K-State Professor of Practice, Dr. Megan McCoy, Ph.D, LMFT, AFC(R), CFT-ITM, and Powercat Financial peer financial counselors. The workshop will be held Thursday February 10th from 4:30 to 5:30 pm in Union 227. Attendees must RSVP by February 3rd through WuFoo at http://bit.ly/PFloveandmoney. Couples are welcome as long as one attendee is a K-State student.

RJ Salmen

Peer Counselor II

Powercat Financial

302 K-State Student Union, Third Floor

918 N. 17th Street

Manhattan, KS 66506-2800

785.532.2889

www.k-state.edu/powercatfinancial

PowercatFinancial@k-state.edu

https://news.northwesternmutual.com/planning-and-progress-2018

https://www.yourmentalwealthadvisors.com/our-process/your-money-script/

https://www.comprehensiveadvisor.com/love-and-money-financial-planning-considerations-for-couples/

https://www.lexisnexis.com/community/pressroom/b/news/posts/survey-finds-financial-honesty-is-hard-to-come-by-in-american-couples-1952288921

https://www.moneymax.ph/personal-finance/articles/financial-tips-couples

It is hard to imagine that the holiday season is already just around the corner. If you are anything like me you are probably wondering where the time has gone this semester. With the holiday season coming up, this means holiday gift giving. This can be an extremely stressful and expensive time. Luckily Powercat Financial is here to help. We are going to discuss a few tips and secrets on to manage the holiday stress and keep your wallets full. First, let’s discuss holiday stress management.

Acknowledge your feelings: This is easier said than done. If you are spending time with family during the holiday season you may be celebrating the holiday for the first time without a loved one. Know that it is normal to feel sadness and grief. Find a safe place to express these feelings, you cannot force yourself to be happy because it is the holiday season. For some of us spending time with family can bring on a mix of emotions. Again find a safe place to express these feelings. If these feelings are difficult to acknowledge on your own, reach out for help. Talk with a trusted relative or friend.

Be realistic: The holidays do not have to be perfect or live up to previous year memories. Families grow and change, traditions and rituals change with families. Find ways to recreate to these traditions that can meet the needs of the family change. As families grow so do differences. Set aside grievances until a more appropriate time for discussion. Be understanding if others get upset or distressed when something goes awry. Opposite parties can be feeling the effects of the holiday stress as well.

Take a breather: Spending time with family and friends can be a lot. It is important to make time for yourself. Find an activity you enjoy doing; take a walk (if you can bear the cold weather), read a book, mediate, do yoga, etc. Find something that reduces stress by clearing your mind.

Now, let’s switch and discuss how we can save money while holiday shopping.

Create a Holiday Budget: Budgeting for the holiday season starts NOW. It is important to consider where your holiday spending falls in relation to your average monthly spending. To find this relation you will have to sit down and create a regular month spending budget. When you do this I suggest making coffee and putting some classic holiday music on. Once this budget is created you can carve out the extra cash for holiday shopping.

Make a list of people you need to shop for: This will make it easier to set a budget. At times it may seem cut throat when you limit your gift recipients, but this will reduce your stress level. I find it difficult to shop for all of my family. While I can get something for each person in my brother’s family, just cannot afford it. So I get one gift for all of them. This is a great way to reduce the number of people on your list.

Compare Prices: After you have gone through the hassle of creating a holiday budget and a recipient list, you can start your shopping. Shop around to find the best deals in town. Surfing the web makes it easy to find the best deals in town. Many stores will price match the deals you find online.

Now that you have a few tips and tricks up your sleeve to handle the stress of the holidays and shopping you are ready to dominate them.

If you need help creating a budget Powercat Financial is here to help we offer free and confidential appointments in-person as well as on zoom. Appointment requests can be made online at www.ksu.edu/powercatfinancial. If you are unable to make time for a full appointment you can always come to our walk-in days. The next walk in day is Friday, December 3^rd. We also have a handy holiday budgeting worksheet and shopping guide you can use on our website in the right side column at https://www.k-state.edu/powercatfinancial/budgeting/.

Upcoming Event: Money Management for All – this is a financial workshop sponsored by SGA, Student Governing Association with Powercat Financial on Tuesday, November 16^th at 5:30pm in the Union Big 12 room or via Zoom. A link can be found on our website at https://www.k-state.edu/powercatfinancial/.

Eli McDonald

Graduate Assistant

Powercat Financial

302 K-State Student Union, Third Floor

918 N. 17^th Street

Manhattan, KS 66506-2800

785.532.2889

www.ksu.edu/powercatfinancial

PowercatFinancial@k-state.edu

Often credit cards can be daunting for college students because we have heard all the stories about massive amounts of debt stemming from mismanagement of credit cards. Although you can put yourself in bad situations by misusing a credit card, it may not be as complicated as you think to responsibly use a credit card to begin building a credit score.

What is Credit?

Credit is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date. In terms of credit cards, this is the trust that the credit card companies have that allows you to make purchases with their money that you would pay back to them at the end of the month, or over time.

The reputation that you build through borrowing money and paying it back forms your credit score and credit report. These two reflections of your credit reputation often are used interchangeably but are actually very different. A credit score is a number that reflects an individual’s creditworthiness based on their credit files, while your credit report is a detailed list of all your credit transaction within the past 7 years. In college terms, your credit score would represent your credit GPA while your credit report would represent your credit transcript. Although no one knows the exact formula that is used to determine your credit score, we do have a good idea of the different weighting they use when determining your credit score.

1. Payment History (35%): Payment history is the biggest factor when determining your credit score at 35%. This is simply whether or not you pay on time the amount owed.
2. Utilization (30%): Utilization is the second biggest factor in determining your credit score at 30% and represents how much of your available credit (credit limit) you are using each month. As a general benchmark, try to avoid using more than 30% of your credit limit each month to satisfy responsible utilization. For example, if I had a credit limit on my credit card of $1,000, I would try to avoid spending more than $300 with that card.
3. Length of History (15%): Length of history represents the length of your credit history, with longer relationships with creditors being viewed favorably. For this reason, it is a good idea for college students to get a credit card and start using it for routine expenses such as gas or groceries to begin building up their credit history, keeping that credit account open for a long period of time.
4. Shopping for Credit (10%): This portion rates how often you are opening new account or applying for different credit cards. The more often you open new accounts and apply for credit, the more poorly this area will be reflected in your credit score.
5. Mix of Credit (10%): Mix of credit is based on the kinds of credit you have with a mix of cards and loans being preferred. Credit cards would be considered revolving credit while a mortgage would be considered installment credit because it is a contract to repay the loan over time.

Why is it important?

Credit becomes important for various reasons. Your creditworthiness (credit report and credit score) will determine the interest rates which you will receive on loans. These loans can be a mortgage to buy a house, a car loan, etc. Having good credit as opposed to bad credit causes lenders to have more confidence in your ability to pay the debt back in full and on time, causing them to offer lower interest rates due to the lower risk they are taking. Your credit worthiness can also even affect your ability to get a job, especially in the financial industry. As your credit worthiness one measure of your responsibility with money, having bad credit may cause an employer to second guess your ability to manage money within their company. Another way your creditworthiness can impact your life is your ability to rent from a landlord. While applying for an apartment, duplex, condo, etc. the landlord often checks your creditworthiness so that he is confident in your ability to keep up with rent payments.

Tips for Credit Use in College

Now that we have established what credit is and why it is important, let’s talk about some responsible ways that you can start building credit in college. The first step to building credit is getting a credit card. As there are many different credit cards, it can be a daunting task to select the one that is best for you. A site like www.nerdwallet.com is a great place to start as they have a great credit card comparison page that allows you to compare hundreds of different cards so that you can find the best one for your specific spending needs.

Now that you have selected your credit card, it is time to start building up your credit. First look at your credit card limit and determine the recommended utilization for your card. The benchmark for over utilization is around 30%, so avoiding spending over 30% of your card limit will assure you are not receiving negative utilization on your credit report. Some of the items that would be great to purchase with your credit card are purchases that you must make each month that you are 100% certain that you can pay off at the end of the month such as gas and groceries. Another good tip is to set up automatic payments so that you do not forget to pay your credit card bill every month. Automatic payments are set up by linking your bank account to your lender’s website so that instead of having to write a check or pay the bill manually, it will just take it directly out of your bank account.

For more tips and tricks on how to responsibly start building you credit or any questions you have on credit please visit Powercat financial so that a peer counselor can help you!

Anytime you want help with student loans, job offers, budgeting or have additional questions about other financial topics, remember Powercat Financial is available for Zoom or in-person financial counseling sessions. They may be requested via our website link at www.k-state.edu/powercatfinancial.

We also have walk-in days on the first Friday of every month where students can simply walk-in without an appointment to ask a quick money question and get a free pop. Our next Pop Up to Powercat Financial day will be December 3rd.

Do not miss our other upcoming event:

Money Management for All – a financial workshop sponsored by SGA Student Governing Association with Powercat Financial on Tuesday July 16^th in Union Big 12 room at 5:30pm!

Alex Miller

Peer Counselor II

Powercat Financial

302 K-State Student Union, Third Floor

918 N. 17th Street

Manhattan, KS 66506-2800

785.532.2889

www.k-state.edu/powercatfinancial

PowercatFinancial@k-state.edu

As many students are getting ready to graduate it is common for stress to arise from the many changes coming in the near future. From planning graduation, interviews for a full time job, evaluating job offers, finding a city to live in and an apartment or house to stay, to even just the thought of managing your money on your own, these daunting tasks all seem to come at once. But, with a little planning ahead many of these stressors can be limited or avoided all together. By thinking ahead and planning for post graduate expenses, creating a budget, and by utilizing and being aware of employer benefits you can set yourself up for post grad success.

1. Consider ALL post grad expenses:

There are many expenses that students don’t anticipate after graduating and many expenses that are more than anticipated. Planning ahead and researching these expense can be very beneficial in feeling successful about money management after college. There are many factors to consider when estimating post grad expenses:

• Where you will be living: Manhattan has a lower cost of living compared to many bigger cities, if you anticipate moving to larger city, it is common to find significantly higher rent prices and higher prices of goods and services across the board. Consider this factor when evaluating your job offer. If you plan to move to places like California or New York, you may need a higher salary to compensate for the cost of living difference. One way to estimate possible overall expenses is by using this cost of living calculator such as https://www.nerdwallet.com/cost-of-living-calculator.
• What current expenses will you start paying for: Many students starting to live on their own post college will begin to pay for expense that their parents or family members had typically paid for in the past. Examples of this could be a phone bill, car payment, insurance, medications, etc. Every situation is different, but check with anyone that helps pay for your expenses to determine which ones you will begin paying upon graduation.
• What new expenses may arise: There will be many new expenses that arise after graduation, it is important to sit down and determine which expenses you will have, but here are a few examples. Rent payment, utilities, pet expenses, happy hours with coworkers, business travel, insurance, doctors’ visits and medications, kitchen and cooking supplies, home décor, etc.

2. Create a budget

Once students go into the work force and start receiving a full time salary, it is easy for people to overspend. A full time salary goes a lot further than money most students made in college so it is common to want to buy more with your salary. When starting to make a full time income, it is important to create a budget to understand how much you are making and spending and adjust accordingly. Below are a few resources that are helpful in creating a budget

• Powercat Financial budgeting page: Powercat Financial offers may great resources and tips in creating a budget through the following link, https://www.k-state.edu/powercatfinancial/budgeting/
• Online Apps: there are numerous apps that can sync to your online banking to help you manage your money through your phone. https://www.nerdwallet.com/article/finance/best-budget-apps
• Paper or a spreadsheet: you can also create a simple budgeting by tracking income and expenses either on paper or on a spreadsheet, these are easy to create on your own and provide you flexibility when starting a budget.

3. Take advantage of employer benefits

Companies provide a wide array of benefits that can help you with saving money, managing your money, and numerous other benefits. Here are just a few examples to keep in mind.

• Retirement plan and matching: Companies will put extra money into your retirement account if you make contributions as well, this differs between companies, but always try and maximize the amount you put into your account so you can get the most benefit from your company.
• Office perks: many offices offer free lunch, free gym membership, free haircuts, and more. If your office has any of these perks, make sure to take advantage of them to save money.
• Financial planning credit: many companies will offer a stipend each year to see a financial planner, take advantage of this if your company provides this perk.

Overall, there are many changes that come with graduation and starting a new job, but with a little time and effort in setting up a strong financial foundation, you can ease the stress and manage your finances with confidence. Congratulations soon to be graduates!

Cameron Jones

Peer Counselor II

Power Financial

302 K-State Student Union, Third Floor

918 N. 17^th Street

Manhattan, KS 66506-2800

785.532.2889

www.k-state.edu/powercatfinancial

PowercatFinancial@k-state.edu

Temporary relief measures were implemented on October 6, 2021, by the U.S Department of Education for the federal student loan Public Service Loan Forgiveness (PSLF) program under which borrowers may receive credit for payments that previously did not qualify. The U.S. Department of Education has made this specific change to last only until October 31, 2022. There are some key changes that could provide beneficial amounts of loan forgiveness to the right borrower. Although, the best thing you can do to see if you apply is to reach out to your loan servicer. In this blog, I will briefly explain what looks different for this next year regarding the Public Student Loan Forgiveness program. Borrowers should review all of the details of this temporary relief at https://studentaid.gov/announcements-events/pslf-limited-waiver.

Before the announcement was made on October 6, 2021, there were many qualification rules that made it difficult for borrowers to receive any forgiveness from PSLF. The borrower still needs to be employed full-time by a U.S. federal, state, local, or tribal government, 501(c)(3) nonprofit or other nonprofit organization that provides qualifying services. They still need to be direct federal loans or consolidated into direct loans to qualify. The borrower still must make 120 total payments but past ineligible payments may now count.

With the new announcement, a qualification that has been waived is that the person no longer had to be enrolled under an income-driven repayment plan. Now, past payments under any type of plan will count toward the potential credit.

If the person needs to consolidate to direct loans, then that will need to be done before October 31, 2022. This means that if you have outstanding FFEL and/or Perkins loans, you will need to consolidate them to direct loans as well. Parent PLUS loans will not be eligible for this temporary PSLF waiver. Under normal PSLF Program rules, if you consolidate your loans, only qualifying payments that you make on the new Direct Consolidation Loan can be counted toward the 120 payments required for PSLF. Any payments you made on the loans before you consolidated them don’t count. However, if you consolidate these loans into a Direct Loan before October 31, 2022, you may be able to receive qualifying credit for prior payments made on those loans through the limited PSLF waiver.

There will be an updated PSLF help tool on the studentaid.gov website soon at https://studentaid.gov/pslf/. It will account for the new changes that have taken place in regards to processing FFEL and Perkins loans and how to consolidate them. Right now, step 1 of the help tool is available to verify that the borrower’s employment is PSLF certified. In the coming months, the rest of the tool will be helpful to determine if the temporary credit on past loan payments is applicable.

If you believe that this change is something that could apply to you, there are four main steps to take (https://studentaid.gov/announcements-events/pslf-limited-waiver): 1) Verify your loan types and amounts. 2) Verify that your employment meets the PSLF requirements using Step 1 of the PSLF Help Tool. (This part of the tool is available right now.) 3) If your employer is eligible but you need to consolidate to all direct loans, then request consolidation by October 31, 2022. 4) Submit a PSLF form with the PSLF Help Tool by October 31, 2022. (This is the part of the tool that will be available very soon.)

This is a time-sensitive opportunity, so please reach out to your loan servicer soon and take the necessary steps to see if this is a beneficial opportunity as soon as you can. If you have questions, Powercat Financial can also meet with you in-person or virtually through zoom. To schedule an appointment, please visit our website: https://www.k-state.edu/powercatfinancial/.

Now for a not so serious topic, we have a fun event coming up called “Thrifty Gifting!” This is a great event for anyone that needs help managing their money during the holiday season. There will be free festive food, fun games, and cool prizes from local businesses. The event will take place on Thursday, November 4^th at 4:30pm in the Student Union Room 227. We hope to see you there!

Laura Peterson

Peer Counselor II

powercatfinancial@ksu.edu

www.k-state.edu/powercatfinancial