Checks and Balances: A
Financial Literacy Session
Aravind Mohan, Manager, PwC
Mikela Suter, Corporate Responsibility Fellow & Senior
Associate, PwC

PwC: Bridging the financial literacy gap
do not know how to use
a credit card effectively
Jumpstart
50%
of teens
believe schools do not do
enough to educate kids
about money
Creative Wealth International
43%
of parents /
guardians
do not feel competent to
teach personal finance
topics
FDIC
80%
of teachers

Millennial
stressed out
about
finances:
case study #1

Survey result
#1:
Do you feel that
high school and
college
prepared you to
be financially
literate?
No
61%
Absolutely
Not
31%
Kind Of?
8%

Paying my own bills
How to preserve the
benefits my parents have
built for me instead of
squandering them away
I feel like the main stress I
have now is that I know that
I am not particularly good at
keeping track of my finances
- I just got my first credit
card this week (I have been
told for years that I should
have one of those), I have all
of my money in my checking
account because until like 2
months ago I didn't have a
savings account (which
apparently also is a bad
idea?).
Filing my
taxes
Building credit. I had
absolutely no idea how that
worked. I thought if I didn't have
a credit card or didn't use it much
it was good....
1) Determining which 401k plan to
enroll in (how much risk did I want to
take?)
2) What % of my salary I could actually
afford to contribute to my 401k each
year
Budgeting
Long
term
financial
planning
Survey result #2: What were you most
nervous about related to finances when
you were entering real life?

GOAL =
LESS OF
THIS
“I’m
financially
illiterate!!!”

AND
MORE OF
THIS
“I’m in control of my finances!”

BUDGETING 101

57% of US households
do not have a budget.
(Don’t be one of those
households)Economic Watch

This is a budget 
Quick tips:
1. Don’t spend more than you
make
2. Account for savings and
emergency fund
3. Use apps to track your
spending
4. Stick to it!

CREDIT 101

#DidYouKnow…
• You spend 12-18% more when you swipe a card instead of
paying in cash. Dun and Bradstreet
• The average household credit card debt is $15,706. Nerdwallet
• 56% of Americans have no idea their credit score is the MOST
IMPORTANT FACTOR in applying for any loan – only 58%
of Americans have “good” credit score ratings or higher. Business Insider

CREDIT:
What is it?
Our spending habits and
payment histories often
serve as a means by
which some
organizations and
companies determine
how much they can trust
us.

CREDIT
REPORTS
Collect:
• Consumer Information
• Consumer Statement
• Summary Information
• Account History Information
• Public Record Information
• Inquiry Information
• Creditor Information

VERY BAD
Epic Quiver
BAD
FAIR
GOOD
EXCELLENT
CREDIT
SCORE:

CREDIT:
DOs
1. Build credit: get a credit
card
Student credit union
authorized user
2. Use your card for routine
expenses
Daily coffee, groceries
3. Pay your expenses on
time and monthly

CREDIT:
DON’Ts
1. Don’t open too many
cards at the same time
Red flag for lenders
2. Don’t open another card
to pay off older cards
3. Don’t close old credit
cards
The length of your credit
history matters

SAVING 101

Millennial
stressed out
about
finances:
case study #2

Survey result #3: What surprised you
when learning about your personal
finances?
• “Setting up a 401(k)is v straightforward (*used "v" instead of very to make it sound
more hip) and I'm kicking myself that I waited until two years into my job to set one up.
But I'm still glad I did it when I was 25 instead of waiting until years down the road.”
• “More difficult than I expected: selecting which funds to allot my 401(k) savings into.”
• “How quickly 401(k)s can grow once you start putting into it!”
• “How much I spend on food and coffee. It’s insane.”

#DidYouKnow…
• 46% of all US workers have less than $10,000 saved for
retirement and 29% have less than $1,000 saved for
retirement. Time
• 63% Of Americans don't have enough savings to cover a $500
emergency. Bankrate.com

Emergency
example:

S&P 500
Index:
90 Year
Historical
Chart
http://www.macrotrends.net/2324/sp-500-historical-chart-data

The 411 on
your 401(k)
• Established companies
offer retirement plans –
your 401(k)
• Company takes $$$ out of
your paycheck and invests
it for you (you have the
option to invest more if
you choose to)
• Upon retirement, $$$ paid
back to you to help with
living expenses

Investing:
?????????????
• Timing is important
• $$$ you decide to take
out and invest on your
own
• Research your personal
investment strategy
(stocks, bonds, mutual
funds)

SAVING:
TIPS
1. Start saving early
Every dollar counts
2. Compound interest is a
beautiful thing
3. You can never predict an
emergency

PAYING BACK
STUDENT LOANS
101

#DidYouKnow…
• Only 50% of millennials with student loans were “very
confident” in their ability to pay off their student loans. Junior Achievement
• 24% of millennials believe their student loan debt will
ultimately be forgiven. Junior Achievement

Student
Loans:
3 strategies to
know
1. Deferment
Putting your loans on hold
2. Targeting
Prioritizing payments to one
loan
3. Consolidation
Packaging multiple loans into
a single loan

Pay attention to interest rates!

GAME TIME

Why financial literacy?
$1.3 trillion of student loans in the United States of which 11.8% are delinquent or in default. Forbes
39% of adults received a passing grade when asked about basic financial knowledge (mortgage
payments, investment returns). CNBC
46%
17 states
of teens do not know how to create a budget effectively. PwC
require students to take a personal finance course as a high school graduation requirement.
Council for Economic Education

QUESTIONS?

KEY
TAKEAWAYS:
1. BUDGETING
Know what you’re spending
2. CREDIT
Build it
3. SAVING
It’s never too early
4. STUDENT LOANS
Analyze and strategize

THANK YOU
THANK YOU
THANK YOU
THANK YOUHave A Nice Day!