The more you know, and the more tools you have, the better prepared you will be for life at and beyond Miami Dade College.
We want financial literacy to be a part of your life. Your overall health is important to us, and we have focused our resources on providing support and education in many areas of personal health—including financial understanding— for all students.
The more you know, and the more tools you have at your disposal, the better prepared you will be for life at and beyond Miami Dade College.
A budget, quite simply, is a plan for your money. By tracking your income and expenses, you can create a plan for your spending and saving.
Have you ever found yourself looking at your bank account balance wondering where your money went? The most common cause of financial problems is spending more than your earnings. How can you avoid over spending? Creating a flexible, sensible budget is the best way to ensure that you are in control of your money. A budget is simply a plan for how you will spend your money. It can help you restrict your spending, but it can also help you ensure that there is enough money to do the things that you want to do. You can think of it as a roadmap to help you carry out your financial objectives.
Credit is your reputation as a borrower. In order to work on having a good reputation, credit wise, you should view your credit report and know your credit score.
Credit is the lifeblood of a modern economy. If you have a credit card and take the time to learn about credit and how to manage it, you can come out of school with a stellar credit score that will make it possible for you to rent an apartment without hassle or finance a car with the most favorable terms.
A credit report is a detailed report of your credit history. It has your personal information, employment history, and a list of both open and closed credit accounts. You can get a free copy of your credit report three times per year, once from each credit reporting agency, at www.annualcreditreport.com. It’s a good idea to review your report at least once per year to ensure accuracy and check for fraud. If someone were to fraudulently open a line of credit in your name, you might not find out without checking your report.
A credit score (aka FICO score) is a snapshot of your credit risk at a point in time. It is based off of your credit report and was designed as a time saving measure to avoid lenders having to review your credit report in detail. FICO scores range from 300-850 with the majority of Americans coming in between 600-800. The higher the score, the lower the chance of a default (failure to fulfill your financial obligation).
Figuring out how to secure your financial well-being is one of the most important things you can do for yourself.
For the majority of people, the way to gain financial security is by saving and investing. As a college student, these are likely topics that are not on your radar at this moment in time. Saving is a key principle! If you make saving a habit, even if it’s a small amount, you are building a foundation for financial success.
As you get older there may be long range financial goals that you begin to save for. Below are some tips to keep in mind for when you are able to invest for your long term financial goals.
Identity theft and identity fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain. There are several types of identity theft and certain groups are more vulnerable to identity theft, such as children and seniors.
Do you need to file taxes?
Are you aware of the tax benefits for education?
Get Free Tax Help at MDCIf you are planning to work in the US, either now or in the future, then navigating the tax code is going to be a large part of your financial wellbeing. Gathered here are aspects of the tax code that deal with education and college related expenses. While the information here is a good start, it is only a broad overview and not a complete guide to filing taxes. For specific questions or additional information, you may wish to visit the IRS website or consult a tax professional.
Determining whether or not you need to file taxes depends simply on two things: how much money you earned in the prior tax year and how much tax was taken out for taxes. This is commonly referred to as withholding.
If your earned income is over a certain limit as determined by the IRS, you may be required to file taxes regardless of how much was withheld from your paycheck.
The IRS strongly suggests that you file taxes, even if you are not required to do so. By filing your taxes, you may be eligible for a refund of some or all of the income withheld.
The information provided here is intended only to introduce the potential tax benefits related to higher education. It is important to note that there are eligibility restrictions and we strongly suggest visiting the IRS website directly or consult a tax professional for the most comprehensive information about tax benefits for higher education.
If you are a student making payments on an education loan that is accruing interest, you may be able to deduct some or all of the interest you paid that year from your taxes.
Your parents may be able to deduct some or all of the interest they paid on their loans, taken on your behalf, if they still claim you as a dependent. The current limit is $2,500 per year, subject to income restrictions.
Per IRS guidelines, the expenses that you paid directly (or with a loan) for tuition, fees, and other related expenses count as qualified education expenses.
The IRS website states that the following expenses do not qualify: room, board, insurance, medical expenses (including student health fees), transportation, and personal/living/family expenses.
Credits and deductions are two different ways to reduce your tax liability.
As a general rule, you should seek out credits before deductions, since the benefit is usually larger (i.e. to your advantage).
