Monday April 20, 2015Agenda HomeworkTalk about the BooksGo Over the QuizIntroduction to Personal
Financial Literacy (PFL)OUR LAST UNIT
BookGenerally really impressed with the work you
all did, especially on Thursday!Points were taken off if there weren’t
pictures on every pagePoints were taken off if there was a definition
but not an explanation.
MoneyMoney makes it to where we can trade easily.Every dollar used to be worth a certain
weight in gold.Now we have “fiat money”
Money that only has value because the government says so.
What is Money?Money is three things:
Medium of Exchange
What is Money?Store of Value
What is MoneyMeasure of Value?
What affects your individual financial goals?
EducationGenerally speaking, the higher
your level of education the greater your earning potential.
Career PathEvery career has a different
pathway and different opportunities.
IncomeYour income level determines
things like retirement, house size, car, etc.
Ex: Bill Gates might want to own an island, I want to own a house.
Career Path• There are two
major questions• What are your
interests?▫ Example: Mr.
Neanover likes government, running, ultimate frisbee, and music.
▫ He dislikes science, babies, science, blood and guts, and sitting still.
What is important to you? What level of
responsibility would you like to have?
What results do you want to have?
Where do you want to work/
What compensation do you desire?
What type of work/life balance do you want?
Median Weekly Earnings Based on EducationHigh School Drop Out $471High School Graduate- $652Enlisted Military Member-$700Trade School- $807Community College Graduate- $785College Graduate- $1,066Master’s Degree-$1,300Doctorate’s Degree- $1,624Professional Degree $1,735
Paying for EducationGrants- A sum of money given by an organization for
a particular purpose.Scholarships- grants awarded to support a
student’s education.Loans- money borrowed and agreed to pay back
with interest.Financial Aid- money to support a worthy person or
causeNeed based (FAFSA- Free Application for Federal
Student Aid)Merit- Scholarships awarded for meeting a criteriaWork study-school agrees to award you money and
in return you work for them.
Cost of Degrees• Community College- $2439 per year (2 years)• Trade School- varies but around the cost of
community college• State University- $7,136/year (4 years)• Out of State Public University- $19,622/year• Private University- $22,771/year• Master’s degree-$14,825/year (1-2 years)• Medical School- $28.685 public, $46,899
private year (4 years)• Law School- $20,238 public, $37,446 private
(3 years)• Ph.D. Program $20,903/ year (5 years)
Loan Need-Based?
Subsidized?
Sponsor Borrower Interest Rate
Direct Subsidized Loan
Yes Yes Federal government
Student 3.4% (fixed)
Direct Unsubsidized Loan
No No Federal government
Student 6.8% (fixed)
Perkins Yes Yes Federal government
Student 5% (fixed)
Parent PLUS No No Federal government
Parent 7.9% (fixed)
Private (Alternative) and State
No No Banks, colleges, foundations, state agencies
Usually student with creditworthy parental cosigner
Usually higher than federal rates; variable