Society of Grownups Circles—Curriculum

You’re a
Grownup
(Don’t
Panic)
The Basics of
Financial Planning

© SOCIETY OF GROWNUPS02 | YOU’RE A GROWNUP (DON’T PANIC)
I KNOW HOW MUCH I EARN, SPEND, AND SAVE EVERY MONTH.
YES
How much do you earn? (after taxes)

How much do you spend?

How much do you save?

If you spend more than you earn, we need
to make some changes so that you are living
within your means!
If you aren’t saving as much as you’d like, take
a closer look at how you spend. Are there
areas you could cut back or even eliminate?
NO
Earnings
Take a look at your last paystub or how much
was deposited into your bank account over
the last month.
Spending
Use your bank, credit card statements, or
an online spending tracker to estimate your
monthly average.
Savings
Subtract your average spending from your
monthly earnings.
I HAVE ENOUGH SAVINGS TO COVER MY LIVING EXPENSES IN CASE OF AN EMERGENCY.
YES
What is this number?

Avoid tapping into your cash reserve for
non-emergencies.
NO
Set small savings goals for yourself and slowly
build up to this number. There’s no need to
save six months of living expenses all at once.
››
››
››
I HAVE CREDIT CARD DEBT, STUDENT LOANS, OR ANY OTHER TYPE OF DEBT.
YES
Make sure you know the remaining balance
of each of your debts, interest rates, and mini-
mum monthly payment.
If you have some extra cash to pay off your
debt (over and above your minimum pay-
ments), start by paying down those with the
highest interest rate first.
NO
Being debt free gives you the flexibility to
save more for other goals rather than making
debt payments!
I KNOW MY CREDIT SCORE.
YES
What is it?

Does it need improvement? Make sure you
are paying your bills on time, keeping your
credit card utilization as low as possible, and
avoid closing old credit cards!
NO
Check your credit score at creditkarma.com.
I AM SAVING FOR RETIREMENT IN MY EMPLOYER’S RETIREMENT PLAN OR AN
INDIVIDUAL RETIREMENT ACCOUNT (IRA).
YES
Great! Consider increasing your contribu-
tions slightly each year. We bet you won’t
even notice the difference.
Check how your retirement accounts are
invested and make sure they’re appropriate
for your age and the amount of risk you are
willing to take.
NO
It’s time to get started! Consider contribut-
ing at least enough to take advantage of any
match in your employer’s retirement plan, or
opening an IRA.
››
››
GROWNUP FINANCIAL PLANNING CHECKLIST

© SOCIETY OF GROWNUPS
TOP 3 FINANCIAL GOALS
1
2
3
WHAT WAS THE LAST BIG FINANCIAL DECISION YOU MADE?
WHAT WAS THE LAST PURCHASE YOU MADE THAT MADE YOU FEEL GREAT?
WHAT WAS THE LAST PURCHASE YOU MADE THAT YOU REGRETTED?
YOUR VALUES
VALUE
VALUE
VALUE
VALUE
VALUE
03 | YOU’RE A GROWNUP (DON’T PANIC)

© SOCIETY OF GROWNUPS04 | YOU’RE A GROWNUP (DON’T PANIC)
PICK ONE VALUE TO THINK ABOUT FOR A WEEK
Choose one value each week. Spend the week becoming familiar with that value. What
does it mean to you? How does it affect your actions and financial decisions each day?
DO THE EXERCISE WITH YOUR PARTNER
Do the values exercise with your partner. Have a conversation about the similarities
and differences in your values, what they mean to you, and how you would both like to
integrate them into your everyday lives.
DEFINE ONE SMALL ACTION FOR EACH VALUE
Pick something that’s simple and easy to do, but choose one bite-size action for each of
your values and promise yourself to follow through on those actions within one week.
CHECK YOUR VALUES AGAIN
Your values may change over time as your life changes and your priorities become
clearer. That’s OK! Revisit your values regularly, and don’t be afraid to change your
financial plan based on your new values.
TAKE ACTION
Any third-party resources or websites referenced above are not under our control. We cannot guarantee and are not
responsible for the accuracy of the resources, websites, or any products or services available through such resources
or websites. While we hope the information in these materials are useful, it’s only intended to provide general education.
It’s not legal, tax, or investment advice, and may not apply or be useful to your specific financial situation. If you need
recommendations geared to your personal financial situation, schedule time with a financial planner.

Spending
Plans: A
Better Way
To Budget
Spending on
the Things You
Care About

© SOCIETY OF GROWNUPS02 | SPENDING PLANS: A BETTER WAY TO BUDGET
WHAT ARE YOUR PRIORITIES? WHAT ARE YOU WORKING WITH?
HOW DO YOU SPEND?
WHAT WILL YOU SPEND ON?
SMALL STUFF
NEEDS
WANTS
PRIORITIES
TOTAL AVAILABLE CASH
WHAT DO YOU SPEND ON?
BIG STUFF HOW LONG IT NEEDS TO LAST
HOW MUCH? (ESTIMATE)

© SOCIETY OF GROWNUPS03 | SPENDING PLANS
THE GROWNUP BLOG - BUDGETING
societyofgrownups.com/blog/topic/budgeting
Read more about how to put together Grownup spending and savings plans.
LEVEL MONEY
levelmoney.com
This app will help you track your spending and show you how much
fun money you have left for the day, week, and month.
MINT
mint.com
This tracker gives you lots of detail on your spending habits.
RECOMMENDED RESOURCESTIPS TO KEEP SPENDING IN CHECK
1. Be mindful, not mindless. If you feel the urge to make a purchase in the moment,
distract yourself immediately and do something unrelated.
2. Be aware of decision points and external controls. Create an allowance for daily
purchases, like coffee. It will allow you to consider, reflect, and make a decision about
how important is this coffee today.
3. Get some help from your friends. Having a partner to help keep you accountable
can be helpful. Someome to praise you, but also kick you in the ass when you need it,
might just be enough to help you stay on the right track.
4. Make a wish list. This goes for everything from grocery shopping to new clothes.
Have a game plan in place before you start buying to avoid impulse or emotional
purchases.
5. Factor small indulgences into your spending plan. This can help you from splurg-
ing and getting off track! Get that manicure once a month or spring for the nice six
pack of craft beer.
6. Use credit cards wisely. Be honest with yourself. Will having access to a credit card
just be unnecessary temptation for you to overspend? If so, skip it. But if you feel
comfortable having one, charge a small amount and pay it off in full every month.
This can help you build a great credit history.

Loans &
Groans
A Student Debt
Workshop

© SOCIETY OF GROWNUPS02 | LOANS & GROANS
TYPES OF STUDENT LOANS
PRIVATE
Simply put, these are loans that don’t come from the government. Each private loan will
have its own repayment plans and interest rates. Each private lender is different, so it’s
best to work with your provider directly to discuss your options and read through your
loan agreement.
FEDERAL
These are loans made by the federal government, and usually offer borrowers lower
interest rates and more flexible repayment terms and options than private student loans.
The federal government is your lender, but loan servicers will manage your loans on
their behalf.
• PERKINS LOANS
These loans are granted based on financial need and carry a 5 percent fixed interest
rate. Perkins loans come with a nine-month grace period so that borrowers begin
repayment in the 10th month upon graduating. Perkins Loans are subsidized by the
government and interest does not begin to accrue until the borrower begins to repay
the loan. These loans are also eligible for many cancellation options.
• DIRECT OR STAFFORD LOANS
These loans carry a fixed interest rate (post-2006) depending on when you took
the loans out (it changes annually) and whether or not the loan was subsidized or
unsubsidized. Direct Loans come with a six-month grace period and are eligible
for Public Service Loan Forgiveness. Find more details about this program in the
Recommended Resources section.
> SUBSIDIZED DIRECT LOANS
On subsidized loans, the government pays the interest while you are in school,
and during periods of deferment.
> UNSUBSIDIZED DIRECT LOANS
For unsubsidized loans, the borrower is responsible for the interest payments
even during time in school or during deferment.
PRIVATE
FEDERAL
PERKINS
DIRECT
SUBSIDIZED
UNSUBSIDIZED

LET’S TALK ABOUT INTEREST
DAILY INTEREST FORMULA
We have all heard that interest is an important piece of the student loan puzzle, but let’s
take a step back and really understand how it works.
When you take on a student loan, you agree to repay the loan back over time with
interest. This interest is calculated as a percentage of the unpaid principal loan amount
and accrues daily. You can calculate how much interest you owe using the simple daily
interest formula:
INTEREST CAPITALIZATION
Remember when we distinguished between federal subsidized and unsubsidized loans?
If you have unsubsidized student loans, the government does not pay your interest while
you are in school. Let’s break down what that means in practice.
You have two choices: Pay this as it accrues or don’t. If you don’t, when you graduate
that interest will be added to your principal balance when you enter repayment and
more interest will accrue on the total amount. We call this capitalized interest. Bottom
line, you will pay more over the life of the loan.
OUTSTANDING PRINCIPAL BALANCE
×
NUMBER OF DAYS SINCE LAST PAYMENT
×
INTEREST RATE FACTOR
(INTEREST RATE DIVIDED BY THE NUMBER OF DAYS IN THE YEAR)
INTEREST AMOUNT
ON A $20,000 LOAN,
YOU WILL ACCRUE $5,700 IN INTEREST*
WHILE YOU ARE IN SCHOOL.
*Assumes an interest rate of 6.8% which accrues over four years while attending school full time.

REPAYMENT PLANS
PRIVATE LOANS
Repayment plans available to you will depend entirely on your lender and the origi-
nal loan agreement. We know it’s a pain, but be sure to read this agreement through.
(Actually, read it twice!) Private lenders do not have any legal obligation to work with a
borrower who is having trouble making payments, but this does not mean they won’t. It
is always best to contact your lender directly with any issues or concerns.
FEDERAL LOANS
A number of repayment plan options are available to federal student loan borrowers, so
this is where you will see the most flexibility. If you have a combination of both federal
and private student loans, consider focusing on making the minimum payments on your
private loans first and adjusting your federal student loan repayment plan accordingly.
PLAN TYPE WHO IS IT FOR? HOW MUCH WILL
MY PAYMENT BE?
AND FOR
HOW LONG?
Standard Any borrower with eligible federal
student loans.
This plan is ideal for those who
want to pay off their student loans
as quickly as possible and pay the
least amount in interest.
Your monthly payments
are a fixed amount of at
least $50.
10 years to 30 years
depending on your
total loan amount.
Graduated Any borrower with eligible federal
student loans.
Your payments will start
out low and increase
every two years.
10 years to 30 years
depending on your
total loan amount.
Extended
Fixed
Any borrower with eligible federal
student loans.
Your monthly payments
are a fixed amount.
25 years
Extended
Graduated
Any borrower with eligible federal
student loans.
Your payments will start
out low and increase
every two years.
25 years
REPAYE Any borrower with eligible federal
student loans.
This plan is ideal for those who
want to lower their minimum pay-
ment to reflect their income but are
not eligible for new borrower plans
like PAYE.
10 percent of your dis-
cretionary income.
20 years for under-
graduate study and
25 years if any of
your loans are for
graduate or profes-
sional study.
PAYE To qualify, the payment you would
be required to make under the
PAYE plan (based on your income
and family size) must be less than
what you would pay under the
Standard Repayment Plan with a
10-year repayment period.
Also to qualify you must be a
new borrower as of October 1,
2007, and must have received a
disbursement of a Direct Loan on
or after October 1, 2011.
This plan is ideal for new borrowers
who want to lower their minimum
payment to reflect their income.
10 percent of your
discretionary income,
but never more than the
10-year Standard Repay-
ment Plan amount.
20 years

Let’s see what these payment plans look like in real life. Imagine you are graduating this
year with $50,000 of Federal Direct subsidized student loans with an interest rate of 6.8
percent. You are single, living in Massachusetts, and your first job out of school comes
with a salary of $45,000.
PLAN TYPE FIRST MONTHLY
PAYMENT
TOTAL AMOUNT
PAID
REPAYMENT PERIOD
Standard $550 $66,011 10 years
Graduated* $314 $70,266 10 years
Extended Fixed $316 $94,820 25 years
Extended Graduated* $242 $103,257 25 years
REPAYE** $145 $88,596 18 years and 2 months
PAYE** $145 $89,191 18 years and 7 months
IBR** $217 $73,391 12 years and 10 months
IBR for New Borrowers** $145 $89,191 18 years and 7 months
ICR** $387 $71,028 12 years and 10 months
Under graduated repayment plans, your monthly payment amount will increase every two years until your loan is repaid.
Under income-driven repayment plans, your monthly payment amount will increase over time as your income increases.
We have assumed that your income grows 5 percent each year.
Other Assumptions: Family size remains the same and poverty guidelines increase with inflation.
Source: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action#view-repayment-plans
*
**
PLAN TYPE WHO IS IT FOR? HOW MUCH WILL
MY PAYMENT BE?
AND FOR
HOW LONG?
IBR To qualify, the payment you would
be required to make under the IBR
plan (based on your income and
family size) must be less than what
you would pay under the Standard
Repayment Plan with a 10-year
repayment period.
15 percent of your
ment Plan amount.
25 years
IBR for New
Borrowers
To qualify, the payment you would
be required to make under the IBR
plan (based on your income and
family size) must be less than what
you would pay under the Standard
Repayment Plan with a 10-year
repayment period.
Also to qualify you must be a new
borrower on or after July 1, 2014,
and had no outstanding balance
on a Federal Direct Loan or FFEL
Loan when you received a Direct
Loan on or after July 1, 2014.
10 percent of your
ment Plan amount.
20 years
ICR Any borrower with eligible federal
student loans.
The lesser of (a) 20
percent of your discre-
tionary income or (b)
what you would pay on
a repayment plan with
a fixed payment over
the course of 12 years,
adjusted according to
your income.
26 years
REPAYMENT PLANS (CONT.)

TAKE ACTION
1. Understand which loans you have. Log in to each of your loan servicers and identify
the type of loan, loan balance, interest rate, and minimum monthly payment.
2. Maximize your grace period upon graduation. You will not be required to make
payments during your grace period, but you may want to act like you are. “Pay your-
self” your monthly minimum and put this amount in a savings account. Not only will
you get used to making room in your budget for this payment, you will also accumu-
late a nice little cash cushion.
3. Keep up with your minimum payments. Once your grace period is over, always pay
at least your minimum payment! This will help you avoid paying extra interest or
fees, stay current on your loan, and will build your credit history.
4. Explore other repayment plans and options if you are struggling to meet your
minimum payments. This includes federal student loan repayment plans, deferment,
or forbearance.
5. Pay more when you can. If you have an extra $20 each month, a tax return check, or
a bonus from your first gig, consider putting this towards your student loans.
6. Determine if you are eligible for any loan forgiveness or cancellation. Cancella-
tion options for Perkins loans and Public Service Loan Forgiveness for direct loans
are available for a number of different professions. If you pursue a job with the
government (at any level), a nonprofit organization, or other public service provider,
you may be eligible!
STUDENTLOANS.GOV
studentloans.gov
Use this government site to manage direct student loans, change repayment plans, and
apply for a consolidation loan.
NATIONAL STUDENT LOAN DATA SYSTEM
nslds.ed.gov
You can retrieve your federal student loan information from this government website.
FEDERAL STUDENT AID REPAYMENT ESTIMATOR
studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
Compare different repayment plans with this calculator.
ANNUAL CREDIT REPORT
annualcreditreport.com
Check your credit report to make sure you’re aware of all your loans, including private
ones.
FEDERAL STUDENT AID
studentloans.gov/myDirectLoan/consolidationPaper.action
Learn about loans, take out a loan, or repay your loans at this one-stop shop.
FEDERAL STUDENT LOAN CONSOLIDATION
studentloans.gov
Visit this site for applications and information about consolidation.
TUITION.IO
tuition.io
Aggregate all your student loans, visualize those loans, and get a plan to pay off your
debt.
PUBLIC STUDENT LOAN FORGIVENESS
https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service
See if you qualify for the Public Student Loan Forgiveness Program.
RECOMMENDED RESOURCES

Can’t Get
What You
Don’t Ask
For
Negotiating Salary

© SOCIETY OF GROWNUPS02 | CAN’T GET WHAT YOU DON’T ASK FOR
WHAT’S A BATNA? (AND WHY YOU NEED ONE!)COMPETITIVE NEGOTIATION:THE 3 TO DO’S
1. BE PREPARED
• Base your expectations on real information and figures.
• Research before you begin negotiations.
• How can value be added?
2. ENGAGE
• Make a personal connection with the other party.
• If they see you as a person, or better, as a nice person or friend, it will be harder for
them to be tough on you.
• Don’t view them as your opponent, but remember to assert your value.
3. FRAME
• Negotiations aren’t personal.
• Don’t assume that there is no room for negotiation.
• Be flexible and creative.
Best Alternative To a Negotiated Agreement
• In some negotiations, the parties have two alternatives: make a deal or reach no
settlement at all. This means they have no real BATNA.
• The stronger the BATNA(s) you have, the more power you have throughout negoti-
ations.
• Stronger BATNA(s) also enhance our ability to walk away from negotiations when
the deal won’t be in our favor.
TIPS FOR SUCCESSFUL NEGOTIATORS
1. More often than not, let the other side give you a number first.
2. Never say “yes” to the first offer.
3. Make small moves (concessions) and be able to justify them — the other side should
be able to justify their concessions as well.
4. Don’t offer a range of numbers, but do offer a range of options.
5. Know what’s possible — ask!
6. Practice, practice, practice!
7. Remember: Salary negotiations involve personalities, but they aren’t personal.
8. Be willing to walk away.
GLASSDOOR.COM & PAYSCALE.COM
Use these websites to compare salaries by industry, company, and more.
GETTING TO YES: NEGOTIATING AGREEMENT WITHOUT GIVING IN
This best-selling book by Roger Fisher and William Ury provides step-by-step strategies
for negotiating.
RECOMMENDED RESOURCES
Any third party resources or websites referenced above are not under our control. We cannot guarantee and are not
recommendations geared to your personal financial situation, schedule time with one of our financial planners.

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