2023 MATC Scholars Program: Understanding Budgeting and Finance

Dr. Luis Vazquez, Regents Professor and Associate Vice President for Research at New Mexico State University, covers grad student funding sources, budgeting, and strategies for getting more funding.

1. Understanding Funding and Budgeting Finances Dr. Luis A. Vazquez Regents Professor Emeritus MATC Scholars Program March 15 – 18 , 2023 University of Nebraska-Lincoln

2. OUTLINE Introduction Learning Objectives Learning Outcomes Session Presentation Conclusions

3. LEARNING OBJECTIVES Present funding sources Present budgeting basics Present strategies for maintaining and increasing funding opportunities

4. LEARNING OUTCOMES Students will know what funding sources are available Students will have a strategy for managing their funds Students will know how to work with faculty to support research

5. THE CULTURE OF STUDENT FINANCIAL POVERTY Lack of financial knowledge Lack of access to affordable financial services Financial behaviors of high risk Financial stability of decisions Lack of long-term economic development for the future Lack of developing informed financial decisions for their best interest Inability to mitigate risks and income shocks Lack of increasing assets of security

6. Financial Behaviors Often Experienced by Many Low-Income Students Lack of Financial Capability, Financial Inclusion and Structural Barriers often results in risky financial decisions: Using alternative or predatory financial services “payday lenders” “Pawn Shops” “High interest credit cards” “Ponzi Schemes” “High charge check cashing outlets” “Loan Sharks” “High Priced Money Transfer Services” “Title Loans.” Buying cars/Supporting family members/Self-Sacrifices (doing without, i.e., self-care, unsafe housing, food insecurities ).

7. Learning about Financial Cultural Capability Culture matters in explaining differences in financial capabilities. Student financial programs should emphasize action taking and encourage students to avoid risky financial behavior, engage in desirable financial behavior and improve financial capability. Financial capability needs to be based on human development, individual dignity and social justice. Students need individual capabilities and social opportunities to be capable and to achieve financial well-being.

8. Financial Cultural Intelligence (FCQ) Cultural Intelligence : “A person’s capability to adapt effectively to new cultural contexts” (Early & Ang, 2003, p. 59 ). FCQ : “A person’s FINANCIAL capability to adapt effectively to new FINANCIAL Cultural contexts, i.e., higher education, new career, and life’s transitions. ” 4 Factors: Cognitive - knowledge of norms and practices in new financial cultural settings. Meta-Cognitive - financial cultural awareness in relation to financial institutions. Motivational - person’s drive to learn more about and function in different cultures of financial expectations. Behavioral - a person’s flexibility in demonstrating the appropriate actions when interacting with people from different financial cultural backgrounds and institutions.

9. WHY FUNDING IS IMPORTANT? Reduces student loan debt Limited ability to get loans Connection to faculty mentors and advisors Critical faculty advising project engagement Funding is prestigious and looks good on a resume

10. EDUCATIONAL ATTAINMENT BY RACE AND ETHNICITY AT A GLANCE: 2017

11. EDUCATIONAL ATTAINMENT BY RACE AND ETHNICITY AT A GLANCE: 2017

12. TYPES OF STUDENT LOANS OFTEN CONSIDERED

13. TOTAL ANNUAL AMOUNT BORROWED FROM: FEDERAL SUBSIDIZED, UNSUBSIDIZED, AND PLUS LOANS Source: https://research.collegeboard.org/pdf/trends-student-aid-2019-full-report.pdf

14. ANNUAL BORROWING BY TYPE OF LOAN, DEGREE PROGRAM: RACE, ETHNICITY 2015-16 Source: https://www.luminafoundation.org/wp-content/uploads/2019/03/race-and-ethnicity-in-higher-ed.pdf

15. ANNUAL BORROWING BY TYPE OF LOAN, DEGREE PROGRAM: RACE, ETHNICITY 2015-16 Source: https://www.luminafoundation.org/wp-content/uploads/2019/03/race-and-ethnicity-in-higher-ed.pdf

16. UNMANAGEABLE DEBT: WHO HAS IT? Source: U.S. Average Student Loan Debt Statistics in 2019 | Credit.com

17. STUDENT LOAN BORROWERS: AVERAGE $37,172 IN STUDENT LOAN DEBT

18. FEDERAL LOANS: 10 TO 30 YEARS AVERAGE : 21 YEARS; 36% 12 YEARS Source: U.S. Average Student Loan Debt Statistics in 2019 | Credit.com

19. WHAT ARE SOME TYPES OF FUNDING? Research and Training Grants Scholarships Fellowships Recruitment Special Needs Faculty Associated Assistantships (TA, RA, GA)

20. Scholarships are awards given to students based on academic excellence and/or talent. Students may also receive scholarships based on factors like ethnic background, field of study, or financial need. Scholarships vary in their amounts and the number of years given aid. Like a grant, students do not need to pay back the money awarded in a scholarship. Scholarships can be awarded through your school or through private sources. SCHOLARSHIPS

21. There are generally three types of fellowships: Recruitment 1 st year funding to recruit students Caution, this is only for one semester to a year Special Needs This can be associated with a college/ department/state and is also has a limited time period Faculty Associated – may be required that you work with the faculty member FELLOWSHIPS

22. Research and Training Grants are gifts that you do not need to repay. Students may receive grants from the government or through private sources of funding. Grants may require students to maintain a specific GPA throughout their academic career. In graduate school, grants can be used towards, travel, research, experiments, or projects. GRANTS

23. Duties of a TA vary, and you can expect to be responsible for one or more of the following: Running laboratory sessions Conducting study and review sessions Grading undergraduate student papers and exams Holding regular office hours and meeting with students Teaching or assisting with one or more sections of a course TEACHING ASSISTANTSHIPS

24. RESEARCH/GRADUATE ASSISTANTS Benefits for Faculty Why Become a Research Assistant? What Does a Research Assistant Do? How Do You Get Involved as a Research Assistant?

25. COMMON MISTAKES No savings for emergencies/Not meeting guidelines Incurring a lot of school debt Invest and lose all your money Not knowing the difference between funding sources/Agency program ending Changing or not changing advisors without considering funding

26. HOMEWORK/HANDOUTS: BUDGET CALCULATOR http://gradsense.org/gradsense/budget-calculator

27. Slide design © 2009, Mid-America Transportation Center. All rights reserved. Dr. Luis A. Vazquez Regents Professor Emeritus Associate Vice President for Research New Mexico State University P.O. Box 30001 Las Cruces, NM 88003 [email protected] CREDITS