Kansas State University

search

Powercat Financial

Tag: finance

Financial Strategies for Study Abroad Programs

Posted on by kbhennes


Studying abroad is an exciting opportunity to gain international experience, develop new skills, and explore different cultures. However, the financial aspect of studying abroad can be daunting. Having studied in the Czech Republic, I understand the challenges students face when planning for an overseas experience. But with the right financial strategies, you can make studying abroad more affordable and manageable.

1. Research and Apply for Scholarships
One of the best ways to fund a study abroad experience is through scholarships. Kansas State University and various organizations offer scholarships specifically for students looking to study abroad. Here are some places to start:

    ● University Programs: Check with your university’s study abroad office for available scholarships. Many schools, like Kansas State University have dedicated funds to help students offset the cost of tuition, housing, and travel.
    ● Major-Specific Scholarships: If you’re in a specific school or college within K-State, they may have additional scholarships. As a personal example, I found scholarships through the School of Business that helped support my trip.
    ● Affiliated Programs: If you’re part of an honors society, professional organization, or other academic programs, check if they offer scholarships for international experiences. I was able to secure funding through programs I was involved in.
    ● National and External Scholarships: Look into well-known scholarships like the Gilman Scholarship, Boren Awards, or the Fund for Education Abroad. These are competitive but can significantly reduce costs.

2. Plan Your Budget Before You Go
Having a clear budget before heading abroad is crucial. Here are some essential budgeting tips:

    ● Estimate Costs: Break down expenses into categories like tuition, housing, food, transportation, entertainment, and emergency funds.
    ● Set a Monthly Spending Limit: Research the cost of living in your host country and create a monthly spending plan. Apps like Mint or PocketGuard can help track your expenses.
    ● Consider Exchange Rates: If your destination uses a different currency, account for exchange rate fluctuations and bank fees when withdrawing money. Many banks have affiliated ATMs abroad, where the fees for withdrawing cash are much lower.

3. Reduce Expenses While Abroad
Even with scholarships, minimizing expenses will help you stay within your budget.

    ● Use Student Discounts: Many countries offer discounts on transportation, museums, and restaurants for students. Always carry your student ID!
    ● Cook at Home: Eating out can add up quickly. Shopping at local markets and cooking at home can save money.
    ● Choose Affordable Housing: Look for university dorms, host families, or shared apartments instead of expensive private rentals.
    ● Travel Smart: Use budget airlines, trains, or buses for travel. Consider booking in advance or using discount cards for transportation.

4. Prepare for Emergencies
Unexpected costs can arise while abroad. Make sure to:

    ● Have an Emergency Fund: Set aside extra savings for medical expenses, last-minute travel, or other unexpected costs.
    ● Get the Right Insurance: Some programs require travel or health insurance. Make sure you’re covered in case of emergencies.

Final Thoughts
Studying abroad is an incredible experience that doesn’t have to break the bank. By seeking out scholarships, budgeting wisely, and being mindful of expenses, you can make your dream of studying abroad a reality. If you’re considering studying abroad, start planning early and take advantage of the financial resources available to you!

Jackson Rohn
Peer Counselor II
Powercat Financial
www.k-state.edu/powercatfinancial

The Power of Micro-Habits for Financial Success

Posted on by kbhennes

Achieving financial success doesn’t require large changes. Sometimes, it’s the small consistent habits that make the larger impacts down the road. These are what we considered in the financial industry to be micro-habits. These tiny, everyday actions can have massive financial impacts over time. Whether it’s tracking your spending, automating savings, or cutting back on small expenses, these habits can build up over time to create a solid foundation for improving financial health. By incorporating micro-habits into your daily life, you can set yourself on a path towards a healthier financial life.

Track your spending daily.
• Micro habit: Spend 5 or less minutes every day reviewing your expenses.
• Why it works: Tracking your spending regularly helps you stay aware of where your money is going. It also helps prevent overspending. Ways you can go about tracking your daily spending include manually checking your credit card and debit card accounts or downloading apps like NerdWallet or PocketGuard.
• Benefit: By regularly staying on top of your spending, it prevents you from overspending or being unaware of your expenses. It also creates a level of safety in knowing if your information has been stolen by immediately being able to recognize a purchase that wasn’t from you.

Set aside income for savings.
• Micro habit: Every time you get paid, set aside a percentage of your income for savings.
• Why it works: Small amounts of savings add up over time. Doing this consistently overtime helps build up an emergency fund and ensures that you’re building your wealth passively.
• Benefit: By regularly contributing small amounts over time this allows you to create a nest egg of funds in the emergency that you need a chunk of cash. It also creates a mindset of saving that can translate further down the road for when it comes to retirement and other savings goals.

Pay off credit cards in full monthly.
• Micro habit: Each month pay off your credit card in full before the due date.
• Why it works: Paying it off in full each month allows you to avoid paying on hefty interest rates, fees, and debt payments.
• Benefit: By paying your credit card off in full every month, you avoid spiraling into credit card debt, paying extra fees, and it helps build your credit score. Think of this as three birds, one stone kind of benefit when paying your credit card off in full.

In summary, micro-habits are small actions that, when practiced regularly, can lead to significant improvements in financial health. By focusing on simple behaviors like tracking spending, saving regularly, and paying off credit cards in full, you can start building better financial habits. These small adjustments to your daily life can have large impacts on your financial health over time. With patience and consistency, micro habits can lay the groundwork for lasting financial success. If you have any further questions or would like to learn more about this topic, reach out to us at Powercat Financial Here to schedule an appointment.

Drew Cason
Peer Counselor II
Powercat Financial
www.k-state.edu/powercatfinancial

Is It Time to Buy a Home?

Posted on by ekoochel

Is it time for me to buy a home? This is often a question many students about to graduate ask themselves. But, even if you’re not getting a diploma in May, there are still many factors to consider while preparing to buy or rent a home.

  • Interest Rates Are Low. In the past interest rates for mortgages have been close to 17%. But currently they are staying around 4-6%, which is an advantage for buyers.
  • Your credit can affect both your ability to get a mortgage and get approved for a lease. Just know that you can help yourself by building credit early on. A person with a higher credit score is more likely to receive a lower rate for their mortgage. For example:

Sales Price:                         $80,000
Down Payment (5%)      $4,000
Loan Amount:                   $76,000
4% Interest Rate              Monthly Payments = $362.84
6% Interest Rate              Monthly Payments = $455.66
That is a difference of $33.415.20 for a 30 year mortgage!

  • First Time Homebuyer’s Programs. There are various programs specifically designed for people who have never owned a home. Some of the benefits of these programs include: income-based grants (for qualified candidates), lower down payments, and help with loan approval. For more information on different programs visit http://www.kshousingcorp.org/homebuyer-assistance.aspx or schedule an appointment with Powercat Financial Counseling! (k-state.edu/pfc) Most of the time candidates are only eligible around college age, due to income restrictions.
  • Tax Deductions. If you itemize your taxes, mortgage interest and real estate taxes are deductible. So you’ll only get this benefit if you own a home.
  • When renting a home, you are often asked to sign a one year lease. Compared to buying, where you’ll typically have to be in the home for around 5 years to make your money back. In addition, you could be required to stay in a purchased home for up to 10 years if you opt for a specific first time homebuyer program!
  • If something in a rental home needs repaired, often times it is the landlord’s responsibility. They hold most of the liability. If you were to own a home and, for example, the furnace went out, that would be your responsibility to fix! This can lead to many unhidden costs- that you will not have to pay for if you rent. However, it is important to read the fine print of rental contracts to make sure your landlord does hold the liability. In addition, it could be to your advantage to get Renter’s Insurance to cover some issues your landlord won’t.
  • The housing market is ever changing. When you are paying rent you roughly know what your check to your landlord will be every month. Housing costs can quickly raise or fall. That is not to say your rent price will stay set in stone forever. But many times your monthly rent payment is locked in for a year when you sign a contract. Again, read the fine print to make sure this is the case.

Finally, there are many things to keep into consideration when deciding whether or not to buy a home. If you are uncertain of what to do, please schedule an appointment with Powercat Financial Counseling. We are always here to help. Listed are just a few of the “home buying” topics we can assist with:

  • Building credit – which you need to get approved for a loan. Better credit will help get you a lower interest rate and save money in the long run.
  • Budgeting – if you are renting or buying, you’ll need to set a budget that includes both your monthly house payment and other expenses. Some other expenses that it is important to keep in mind are: utilities, other debt payments (car, student loans, etc.), and necessities (food & clothing).
  • Personalization – come in to PFC to get more personalized home buying/renting help (or another financial topic!)

Visit www.ksu.edu/pfc to schedule your appointment today! It is never too early to start preparing for your first home purchase!

Resources:

Larry Curran, The Mortgage Company, http://www.tmckansas.com/home.html
Morgan Powell, SalinaHomes.com, http://www.salinahomes.com/

Hillary Williams

Peer Counselor I