Post-HS Budgeting
Financial Literacy Resources
In this section, we offer some tools for students to start understanding key elements of finances as they enter into their life after high school. Consider the info on this page a starting point!
While we hope that you find this information useful and robust, please know that handling one's finances is a very individual (and sometimes very sensitive) process. While looking these resources over, either independently or with your family members it's important to keep the following things in mind:
- Your post-secondary path will influence how you navigate your financial life.
While things like specific terminology or getting into the practice of building a budget are beneficial for ALL students, no matter their plan, some aspects of your life after HS will be very unique to you.
- The CCC is not a substitute for professional financial advice.
Things like your individual tax situation (not relating to financial aid) and establishing credit may be conversations best had with your family and financial professionals. If you're curious about topics such as these, and want deeper knowledge than what is offered on this page, connect with the CCC and we will connect you with what resources we may have available.
- These are the basics.
All learning has to start somewhere! Additional research will help you better understand your unique situation. Our goal with this page is set students up for success with the foundation knowledge and terminology they will encounter in their lives after HS
Financial Literacy Terms to Know
In addition to knowing where you're money is coming from and where it's going, a big portion of Financial Literacy is understanding the terms that are used to talk about money. Take a look at the terms below to help you get a better understanding of the language you'll encounter in your life after HS surrounding money
Gross Income
In general, income refers to the money that one is making from their job. Gross Income is the amount you make before any taxes or expenses are accounted for
Ex: You make $2,292 dollars a month
Net Income
The amount you make after accounting for, taxes, withholdings, and expenses.
Ex: I make $1,730 a month after taxes
Fixed Expenses
An expense that is the same from month to month
Ex: My rent is $700 a month
Variable Expenses
An expense that may occur infrequently, or changes from month to month
Ex: I bought tickets to a concert
Withholdings
The portion of your income that goes directly from your check to paying for things like taxes and employee benefits.
W4
A W4 is a tax form needed by the federal government and your employer. It tells both your employer and the government how much of your check will be withheld for federal income tax
The more allowances you claim, the less the federal government takes from your check for taxes
Debt
An amount of money owed and that requires repayment. There are many different types of debt, but managing debt is one important aspect of building credit.
Credit
The ability of a person to buy goods or services before payment, based on the trust that payment will be made in the future.
Your credit is captured by a credit score, a three-digit number that indicates to lenders how likely you are to repay debt. Your credit score is calculated based on credit history which includes things how frequently you make on-time payments on bills, loans, etc; how you manage your credit limits (on credit card accounts); and how frequently your credit is investigated (by things like banks, car dealers, property renters/sellers, etc.)
Having some credit is important when it comes to applying for things like credit cards and loans, or buying things like cars and houses. Credit also affects things like interest rates on loans!
Interest
When a person borrows money (in the form of a loan) or uses their credit to purchase something (using a credit card) there is a percentage of cost added into the original expense that will need to be paid back. Interest is an amount of money, added to a debt, that an individual is also expected to pay. The amount of money added is determined by an interest rate.
Financial Literacy Resources: A Crash Course
This presentation is a great starting place for any student looking to brush up their financial literacy. Take a look at the presentation to learn some basics on how you can begin taking control of your finances.
Topics covered include:
Financial Literacy Terms
An overview on Credit
An overview on Budgeting
This presentation is complemented by some of the other tools linked below.
Financial Literacy Resources: MN Paycheck Calculator
This is a handy tool for projecting your take home pay from a potential salary. If you only have information on hourly wages, this tool will help you calculate an annual salary. Once you know your annual salary, you can input information to calculate your Net Income after money is deducted from your check as taxes
Financial Literacy Resources: Occupational Employment Stats - Find Out How Much People in Your Field Make
Minnesota's Department of Employment and Economic Development has a handy tool that allows users to research how much folks in a particular line of work make. Access the tool by clicking the button below.
Click on a region of Minnesota that you plan to work in (for many students, Minneapolis-St Paul-Bloomington MN-WI is a great place to start).
Once you've selected your region, you can type in the name of a career in the "Search for an Occupation" box (Ex. "Nurse"). You'll be given a list of official job titles to select from.
After selecting one, you can click on the results given and find the median (most reported) hourly wages for folks living in Minnesota, working in that career.
Budgeting Template.docxBuilding a Budget
The template featured on this page is meant to assist students in the task of building a budget for their life after HS. Building a budget is a useful task for all students, no matter their plans for after HS. Feel free to download this template and use it, regardless of your post-secondary plan.
However, if you are choosing to pursue an apprenticeship, go straight to work, or enlist with the military after high school your RHS CCC Coordinators will require that you complete an initial budget for you life after HS, rather than completing any sort of financial aid application.
Please download the template and take some time to meet with a CCC Coordinator to walk through what your financial future will look like.
Additionally, check out the other financial literacy resources on this page so you can prepare yourself for a future of financial independence!