1. finance
2. personal finance
3. lending
4. student loans

Welcome to the first
seminar:
BUDGETING
presented by the Financial Aid Office
and the Medical Alumni Association
How to build your budget
• Make a list of all of your resources
• Make a list of all of your expenses
• Don’t forget non-monthly expenses
• Gifts, car maintenance, insurance, taxes, books,
boards, etc
• Can build these into your monthly plan
Resources
First, make a list of all of your resources for medical school.
• Help from family: parents, grandparents, aunts, uncles, siblings
• Personal (or spouse) income or savings
• Scholarships:
• Need-based school scholarship (must qualify each year)
• Non-need-based scholarships (school and outside):
www.finaid.org
www.fastweb.com
Hampton Roads Community Foundation
Beware of scholarship search sites that make you pay!
• Service-based scholarships
• Loans:
• School loan (must qualify each year)
• Federal loans
• Other loans: private, family, outside
Loans
School loan
• Need-based, must qualify each year
• No interest while in school or grace period
• Fixed 5% interest, must pay INTEREST-ONLY during residency
Federal loans
• Unsubsidized Loans
• 6.8% fixed interest rate
• Interest starts accruing immediately after disbursement
• Maximum listed in your financial aid award letter
• Graduate PLUS Loan – Loan of last resort
• Not included on your award letter, you must contact your counselor
• Can make up difference between aid and Cost of Attendance
Private loans
• Variable or fixed rate
• Variable rates have nowhere to go but up, begin repayment in 4-11
years
• Ask lender for terms
• Consider: residency options, forgiveness options, payment plans,
interest payment and capitalization policies
Expenses
Make a list of all of your monthly and non-monthly expenses.
Make sure to include SAVINGS.
Not sure? Keep track for a few months – keep all of your receipts,
credit/bank card statements, ATM receipts, etc. Find a way that
works for you:
- use your debit or credit card for all purchases (be careful!),
- keep all your receipts in your wallet,
- use software or a website like mint.com, or
- keep track in phone/PDA as you spend money.
Make sure you don’t forget expenses that only come up once or
twice a year: taxes, car insurance, Christmas and birthday gifts,
health insurance, books, board fees, security deposits, etc.
Your Cost of Attendance Budget includes:
• Tuition & fees: $43,378 for in-state, $53,482 for out-of-state for 12/13
• Health insurance: $2,407
• Books and supplies: $613
• Instruments: $600
• Living expenses: $1690/month for 10 months (August – June)
For example:
$800 rent & utilities (including internet)
BUY RENTER’S INSURANCE!
$250 transportation
$300 food and household supplies
$50 savings
$290 personal & miscellaneous (clothes,
recreation, copays, haircuts, gifts,
pets, alcohol, etc)
Budgeting on Financial Aid
One rule: Live as cheaply as possible. Monitor your spending closely
during the month – at least until being frugal is a habit!
If your personal expenses are less than the Cost of Attendance:
• Great! Only borrow what you really need.
• If you need more money later, you can always request more loans.
If your personal expenses are more than the Cost of Attendance:
• Look for creative resources: money from your parents, a part-time
job, or family loans.
• The best solution is to find a way to reduce your expenses.
• Reducing your debt now will allow you more income later:
• Spending an extra $200/month = $110/month for 10 years, cost
you over $13,000 to repay.
• Stretch your payments out to 25 years, that $200/month could
cost you $20,000.
If you are borrowing, your budget will determine how much loan money you
need to request. Add up all of your necessary expenses, then compare that to
your resources. For example:
Expenses: $53,482 tuition & fees
$0 health insurance (on parent plan)
$1000 books/supplies/instruments
$700 misc (car taxes/insurance, gifts)
Monthly costs (for 10 months):
$450 rent
$165 utilities (half of: $80 electricity,
$70 phone/DSL, $50 cable,
$30 water; and $50 cell phone)
$200 groceries
$50 household supplies
$75 car insurance
$50 gas
$150 eating out
$150 misc (recreation, clothes, copays, etc)
$1,290 total/month x 10 months = $12,900
Total Expenses for the year: $68,082
Resources:
$5000 from parents
$1000 from savings
$3000 outside scholarship
$18,500 school scholarship
$10,000 school loan
$37,500 total resources so far
This student can borrow up to
$42,502 in unsubsidized
loans. Should she?
Building a non-aid budget
If you are not on financial aid and have a fixed amount of income, you should
take the sum of your resources, subtract your fixed costs, and what’s left is
discretionary: recreation, personal/miscellaneous, etc.
Example:
Student is married and parents are paying tuition.
Spouse’s take-home: $2400/month (after taxes, health insurance, etc)
Fixed expenses: $100 savings
$900 rent
$300 utilities ($90 electric, $30 water/sewer, $130 phone/internet, $50 cable)
$250 car payment
$90 car insurance
$150 gas/maintenance
$250 groceries
$75 household supplies
$150 non-monthly expenses
$2265
This leaves $135/month
for discretionary
spending – is that
enough?
Real World Budgeting
• Pay yourself first
– Choose an amount and make it automatic
• Remember the debt-to-income guidelines
– 28% maximum for housing (including taxes and insurance)
• $100,000 income = $2300/month max for housing
• In Charlottesville, that’s approximately a $300,000 house
– 36% max overall
• $100,000 income = $670/month in other debts
– Large student loans will increase your overall DTI
• Take your projected debt to www.finaid.org and figure out what your
monthly payments are going to be
• Eliminate debt asap
– Two methods: highest-rate first, snowball
• Have a plan for raises and bonuses
Saving
Pay yourself first! It never works to just “save what’s left.”
Students should always have a small emergency fund in
case unexpected expenses come up.
Start thinking now about 4th-year interviewing expenses.
Make sure to plan for the summer!
In the “real world,” you need at least four types of savings:
–
–
–
–
Regular savings (vacations, repairs, etc)
Emergency fund (at least 3-6 months of living expenses)
Retirement
The get-rich money
You may also need college savings or other goal-oriented
savings (kids, house, car, caring for family members,
etc).
Savings and Banking
Keep savings separate to protect the money from yourself.
Don’t settle for the interest rates offered by your local bank!
• The UVA Credit Union generally has better rates than banks
• Online-only accounts may have even better rates (Capital
One, ING, Discover) – still currently under 1%
• Look into any organization that you belong to – USAA, a
credit union, ask your parents!
Don’t pay fees: avoid monthly maintenance fees, ATM fees,
debit card fees (the UVA credit union doesn’t charge one),
overdraft fees, and returned check fees
Okay, I have a budget. Now what?
• Stick to it! Especially when you first start living on a
budget, keep track of your expenses carefully. Check
weekly to see how you’re doing.
• Tell your friends! It’s very hard to live on a budget
without help from friends and family.
– Organize low-cost activities with your friends
– Participate in meal-sharing with your roommates
• Don’t panic! If you overspend one month, look for ways
to save money and get back on track the next month.
The Psychology of Budgeting
• Beware of “keeping up with the Joneses”
– Remember, the Joneses are broke.
– This problem will get worse when you’re a doctor
• Don’t be overly optimistic
• Watch your language. Getting a good deal is not
“saving” money.
• Find a way to trick yourself into (real) saving:
–
–
–
–
Deposit savings automatically
Save your change
Save what you get from coupons
Set savings goals
More Psychology
• Be realistic about needs vs. wants
– Establish a waiting period
• Mentally double the price of everything you buy
– If you’re buying using loan money, that’s the true price
• You’re busy: pay bills automatically
– Avoid late fees, just balance your checkbook
• Routine is your friend
• Studies show that using plastic makes you spend more
• Think of your budget in positive terms: it lets you spend
your money on what you want and avoid unnecessary
debt
– Saying “no” now means you can say “yes” later
Living Cheaply in Cville
• Housing: share rent with as many people as you can
stand, or just live at the library
– Do NOT forfeit your security deposit
• Utilities: always attempt to negotiate with
telecommunications companies, ask about discounts
(student, UVA)
• Banking: check out the UVA Credit Union
• Transportation: use UVA buses, free transfer to
Charlottesville city buses – avoid paying for gas
• Ask for student discounts everywhere
Local grocery tips
Harris Teeter
• 5% student discount – link your student ID to your VIC card
• Double coupons up to 99 cents
• Circular in store, Wed. Daily Progress, or www.harristeeter.com
Kroger
• 5% student discount – link your student ID to your Kroger card
• Double coupons up to 50 cents
• Circular in store, Sunday paper, or www.kroger.com
Giant
• Circular in store, Wed. paper (effective Friday), or www.giantfood.com
• Double coupons up to 99 cents
Food Lion
• Circular in store, Wed. paper, or www.foodlion.com
• Coupons redeemed at face value
Local household expense tips
• K-Mart
– Circular in store and in the Sunday paper
• Wal-Mart
• Sam’s Club
– $40 annual membership fee (can be used by two people!), a Collegiate
membership gets you a free $15 gift card
– Refer a friend, and get a $10 gift card!
• Target
• Bed Bath & Beyond
– Accepts their coupons past the expiration date!
Sign up at www.bedbathandbeyond.com
• Big Lots
– Circular in Wednesday or Thursday paper
Saving on Splurges
• Gotta have local/organic/fresh produce?
– Bellair Farm Community Supported Agriculture: $14/week for an
abundance of locally grown produce
• Need new dress clothes?
– Goodwill and Salvation Army have great finds, and the money
goes to a good cause.
• Like fine wine?
– Local wineries offer free tastings, and local wine shops like Wine
Warehouse can find you great bottles on a budget.
• Night on the town?
– Pick a bar/restaurant with specials, go during happy hour, and/or
drink at a friend’s house!
Local food deals
Monday
Biltmore: $6
thumbs/toes
McGrady’s:
$3.50 apps
(every happy
hour)
West Main: $5
burgers
Wild Wing:
15% off
military
Tuesday
College Inn:
$13 large
pizza/pitcher
Maarten’s:
double wings
Wednesday
Baja: $5 allyou-can-eat
tacos
College Inn: ½
off specialty
pizza
Thursday
Baja: $3 apps
Biltmore: $7
ribs/fries
Trinity: $5
burger
McGrady’s: $9
ribs
Maarten’s: $5
cheeseburger
McGrady’s:
$3.75/10 wings Coupe’s: $6.50 Chili’s: $0.25
steak
wings (every
West Main:
happy hour)
$10 ½ ribs
Maarten’s: $5
bbq/fries
No. 3: $5
dinner
Friday
Saturday
Baja: $1 tacos
Chili’s: $2
burger bites
Wild Wings: $2
tacos
These are just a few of the deals! Check www.cvilledrinkspecials.com.
Local drink deals
Monday
Biltmore: $2
PBR Tallboy
Boylan
Heights: $6
Coors Lt
buckets
Virginian: $3
Jack, $3 Jim
Bean
Chili’s: $3.50
margs
Tuesday
Wednesday
Thursday
Biltmore: rail
and pitcher
progressives
Baja: $2 Sol,
jello shooters
Biltmore: $1
rails 8-9pm
Virginian: $3
shooters
Biltmore:
Free virgin
drinks 5-7
Boylan
Heights: $2
drafts, rails
McGrady’s:
$1 Bud Lt
McGrady’s:
$6 Killians
pitchers, $3
rails
Virginian: $2
rails
Boylan: $2
rails
Mellow
Mushroom:
$2 pints
Trinity: $3
rails
Beer Run: $1
off pints
West Main:
$3 local beer
South Street:
$3 pints
Mellow
Mushroom:
select $5
pitchers
Friday
Saturday
Baja: $2
drafts, $3
rails
Boylan
Heights:
Baja: $2 Sol, football
jello shooters, specials
rail
progressive
Sunday
Wild Wings:
$4 SoCo
Miller’s: $2
bourbon
Virginian: $2
rails
These deals change constantly! Ask your favorite bartender, and go during
happy hour if possible. Or drink at home!
Other tips
• Ask about student discounts and discount cards everywhere.
• Don’t be loyal. Shop around for banks, credit cards, insurance, utilities,
etc. Call periodically and threaten to cancel your service.
• Get a credit card that gives you cash back or points, and auto-pay your
utilities with that card.
• Discounts using Cav Advantage - www.virginia.edu/cavalieradvantage
• Talk to the 4th-years!
• Websites to check out:
– www.frugalliving.tv – specifically, www.frugalliving.tv/free-stuff/birthdayfreebies.html for birthday freebies
– Mom sites are great for tips and coupons: www.momsneedtoknow.com and
www.moneysavingmom.com
– Slickdeals.net (especially for online shopping and tech stuff)
– Amazon: Subscribe & Save, buy gift cards at Kroger to get Kroger points
Other tips
• Free entertainment in Charlottesville:
– Fridays after 5:00 – free concerts during warm weather
– Final Fridays – free art shows, cheese and crackers, and wine
– Lots of local bands
– Hiking trails/parks
• Make use of your resources as a student
– $3 movies at Cinematheque (Newcomb Hall basement)
– Free recreational facilities, football games
– Cheap/free entertainment: Rotunda Sing, Tom Deluca, speakers, art shows check the UVA Student calendar
– Find the University Programs Council on Facebook or check their website.
– Free movie rentals at UVA library (and local libraries)
– Student Health
– Greenberry’s locations give away their extra food at the end of the day
• Share tips with your fellow students
The Financial Aid Office
We have an open-door policy – feel free to drop by anytime with
questions or concerns. We can help with:
• making a budget
• debt management
• figuring out how much loan money to take out
• financial decisions (for example, using savings vs. taking out
loans)
• financial emergencies
Dennis (A-H)
Margaret (I-R)
Nancy (S-Z)