May Week: Financial Fortitude Recap

On May 6th, the Pi Theta Chapter held a virtual event entitled Financial Fortitude in which we invited fellow Pi Theta alumna Kimberly M. Malone ‘92 to speak to current students about financial literacy. Soror Malone has an extensive background in finance, having worked for 14 years at JP Morgan Chase, a Fortune 100 firm, and as a New York state licensed insurance agent with Primerica Financial Services for 8 years.

This event was the first in Pi Theta’s May Week Series and aimed to help Dartmouth students take agency over their financial future. Soror Malone guided us on how to manage our money effectively and set ourselves up for financial stability. The presentation covered topics such as managing expenses, savings plans, interest, and investments. After the presentation, we held a Q&A where students were able to ask Soror Malone all of their remaining questions about finance.

Our Takeaways

Savings

• The three essential types of savings and what they’re used for

  • Emergency Funds: Money that is put away in case of unplanned events (ex: having to get a roof leak fixed)

  • Short-Term Savings: Money that you save for a specific, short-term goal (ex: saving up for a car)

  • Long-Term Savings and Investments: Money that you invest for long-term returns

• Pay yourself first!

  • When you get your paycheck, make sure putting money aside for savings is part of your spending plan

• Invest if you can, even if it’s starting with investment apps such as Robinhood

• Where to put your savings (there are many options and each comes with their own advantages and disadvantages)

  • Savings Products

    • Federally insured (meaning it’s low-risk)

    • Will not grow very fast on its own

    • Good for emergency funds and short-term savings

    • Examples: Savings account, money market deposit account, certificate of deposit

  • Non-Deposit Investment Products

    • Long-term savings options purchased for future income or financial benefit

    • NOT federally insured or bank guaranteed, so you could lose all the money invested

    • Can earn and grow more than a regular savings account because of the high risk

    • Examples: Stocks, bonds, mutual funds, U.S. Treasury securities

  • Retirement Investments

    • Products to help you save towards retirement

    • Options include

      • Individual retirement arrangements (IRAs)

      • 401(k): established by an employer

      • 403(b): offered to employees of public schools and certain tax-exempt organizations

Expenses

• Track your expenses

  • Helps you understand how your money is being spent and determine if it’s in line with your values and goals

  • Helps you avoid late fees, interest on unpaid balances, loss of services, etc.

• You can use budgeting and tracking apps like Mint or use the old-fashioned pen and paper method

• Be mindful of your spending habits, and remember that external influences can impact financial choices (advertisements, media, celebrities, peers/friends)

  • Create SMART goals (Specific, Measurable, Action-Oriented, Reachable, and Time-bound) to make sure that you are making sound financial decisions and sticking to your plan

  • Build in a pause: to avoid impulsive spending, pause before you buy. If you see something you want, wait a few days or even weeks before buying to see if it’s something you really need or just wanted at the time

  • Calculate the hours or days an item is worth

    • Think about your hourly wage and calculate how many hours you would have to work to pay for the item

Credit

• Establish credit as early as possible in a safe and easily manageable way (get a credit card with a low limit and use it to buy and pay off small things such as getting dinner or affordable items)

• Having no credit score (being “credit invisible”) can make life just as difficult as having a low credit score and may result in having a harder time

  • Renting an apartment 

  • Getting a favorable cell phone plan 

  • Obtaining some jobs 

  • Turning on utilities without paying a large deposit

• Your credit history does not have to be your credit future…there are ways to maintain, repair, and improve your credit

  • Review your credit reports and dispute/correct any errors

  • Pay all of your bills on time and as agreed

  • Use as little of your credit limit as possible

  • Apply for credit only if you need it

  • Negotiate different terms

  • Avoid actions or inactions that may create new entries (ex: signing up for department store credit cards at places like Macy’s or Victoria’s Secret)

Thank you to everyone who attended this event! We hope that you now know the steps you can start taking towards financial freedom. If you have further questions or would like to get in contact with our speaker, Kim Malone, you can email her at: lonebobb2003@yahoo.com

For those that couldn’t make it you can find the slideshow presentation here, and the website which Soror Malone used to gain some additional information here.