Who Wants to be a Millionaire!

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Planning for the Future

Rules:

If you do not know the

answer you can:

1. ask a friend

2. ask the audience


1. What is the average

lifetime earnings of a 4 yr.

college graduate (B.A./B.S.

degree)?

• a. $642,824

• b. $817,680

• c. $1,081,520

• d. $1,780,920

• e. $2,207,374

• f. $3,604,143


2. The federal government will

give you money for continuing

your education. Money for

education can NOT be used on

which of the following items?

• a. tuition

• b. car payment

• c. books

• d. fees

• f. meals

• g. housing

• h. plane ticket home for the holidays

• i. pizza on Friday nights

• j. car insurance

• k. laptop computer


3. How much does an

average year of college

at the University of

California San Diego

cost?

a. $65,000

b. $32,000

c. $25,000

d. $ 9,000


4. Students need to report parent

income AND their own income. What

do you as a student need to do to

become “independent” and not have

to report parent information?

a. get an apartment and live on your own

b. go into the Army, Navy, or other armed service

c. not have parents claim you on their income taxes

d. pay for your own car

e. get married

f. turn 24 years old

g. have a child that you support without the help of your parents

h. other special circumstances

i. have a college degree (bachelor’s degree)


5. “Expected Family contribution”

is a term used by colleges. It

means:

a. the money a family has left over after paying for family expenses to pay for college

b. the amount of money a family tells the college they want to contribute to pay for college

c. the contribution of parent income and student income

d. families are expected, but not required to contribute money toward college expenses




Financial Aid Process

•Cost of

Attendance

•Expected Family

Contribution

•Financial Need


1. Cost of Attendance

Tuition

Room and

Board

Books & Fees

Personal Expenses

Transportation

Indirect CostsDirect Costs


2. Family Contribution

An estimate of your family’s financial

strength- how you can absorb the cost

of paying for college, based on

financial resources available

It is not an estimate of “left-over”

resources from your finances once

other responsibilities are met

Always based on previous year’s

income


Parent Income

Parent Assets +

Student Income

Student Assets

------------------------------

Expected Family

Contribution

Expected Family Contribution


Factors that Influence Family Contribution

Parent Income

Savings

Other Assets

Age

Number in College

Family Size

Middle Child Bonus!


Income:• Students can earn just over $6000

each year. You should SAVE 50% of

each dollar you earn over this amount

Savings• 20% of any savings held in your name

goes back to college the next year

Independent vs. Dependent


Family Contribution

The “Family Contribution” is a family number, not an individual number.

It is divided between the number of students in college.

The “family contribution” is a constant number.

The “Family Contribution” is a family number, not an individual number.

It is divided between the number of students in college.

The “family contribution” is a constant number.


3. Financial Need

Cost of Education

--- Family Contribution

_______________________________

Financial Need


Financial Need

Cal Poly

$30,000

$15,000

$ 15,000

$ 8,000

$22,000

Cost of Education determines Financial Aid/not EFC

Cost

EFC

Need

Need Met

You Pay

UC SD

$36,000

$15,000

$21,000

$18,000

$18,000

UOP

$65,000

$15,000

$50,000

$50,000

$15,000


Financial Aid Comes in Packages

Gift

Grants

Scholarships

“free money”


Financial Aid Comes in Packages Self- Help

Student Loans

Work Study

(does not count as income on

financial aid)

“money using

student initiative”


• FAFSA- (fafsa.ed.gov- NOT .com) - FREE

Application for Federal Student Aid

• Other state requirements- check with counselor

• Other forms as required by college

• CSS Profile

• Own forms

• Check due dates


Then what?

Receive your “SAR” - Student Aid Report

Check for your EFC- This is an IMPORTANT number to know!

Question about SAR? Talk to counselor/other in school or college

Add/subtract schools if you have more than 10 schools to apply to for financial aid


Then what?

Make a plan for paying for higher

education-(p. 35)

Tuition

Room & Board

Books

Personal ExpensesTransportation

Student

Parents

o Be Smart about your money


Why?

“All things are possible to him who believes.“

Brother Lawrence

• Think of your life as a tape measure

• The choice you make now will impact

you the rest of your life.

• Take the first step- apply for financial aid