WARM UP (complete in link on classroom) Unit 5: Microecononmics & Personal Finance Lesson 4: Education, Career Planning, & Retirement ESSENTIAL QUESTIONS (WRITE DOWN!): How does education influence my career options? What steps can I take to improve my retirement security? WARM UP (complete in link on classroom) (Where) Do you hope/plan to go to college? What kind of school or technical education do you want after high school? What sort of job / career do you envision for yourself? Lesson Vocabulary Investment Portfolio Correlation between education & income Stock Mutual Fund Wage 401(K) Salary Roth IRA Income Pension Entrepreneurship Social Security Profit, Revenue, Cost Health Insurance Independent Contractor Life Insurance Entitlements Investment Lesson Skills: Analyze graphs and statistical data

Unit 5: Microecononmics & Personal Finance Lesson 4: Education, Career Planning, & Retirement Class Website: www.mrggcivivcs.weebly.com DEADLINES & HOMEWORK: Lesson One: PT 5.1 - Due Thurs, April 21 Lesson Two: PT 5.2 Due Monday, April 25 Vocabulary Quiz April 26: Lessons 1-2 Lesson Three: PT 5.3 due Tues, April 26 Lesson Four: PT 5.4 due Wed. April 27 Lesson Five: PT 5.5 due Thurs, April 28 VOCAB QUIZ (Lessons 1-5): April 28 Lesson 6: PT Due Monday, May 2 REVIEW PACKET DUE: Monday, May 2nd UNIT TEST: TUESDAY, MAY 3rd Lesson 3 Performance Task: ACECES Paragraph: You work for a credit card company. Your job is to are process credit card applications. Write an explanation to each of the following applicants explaining whether they will get a high or low interest rate and why. Applicant #1: Credit Score 738 Applicant #2: Credit Score 588 Lesson 4 Performance Task: Write a paragraph or create a comic strip that shows your career goals and the level of education and training you will need to meet your goals.

Career Planning 101: Jobs vs. Careers work you do for money No special reason why the job is important to you Usually offers an hourly wage Workers are paid for the time they work A chosen profession Opportunities for growth & advancement Usually offers a salary and benefits Salary – employee is paid a set amount each year Benefits – ways that companies compensate their employees OTHER THAN salary: Health care Retirement plans Paid time off

Median Salary Predictions: How much do they make? Fast food worker Fast food manager NC Teacher Secretary Computer engineer Police officer U.S. Army Private Electrician Custodian / janitor $18,360 $26,500 $40,000 $35,200 $107,000 $52,300 $18,400 $53,800 $26,235 Paralegal Attorney University professor Veterinary assistant Teaching assistant Payroll clerk Server at a restaurant Auto mechanic $48,661 $83,600 $89,600 $28,000 $20,900 $36,000 $25,200 $35,700

Too cool for school?

Education & Income: What’s going on in this picture?

Education and Health: What’s going on in this picture?

Performance Task 5.4 Write a paragraph or create a comic strip that shows your career goals and the level of education and training you will need to meet your goals. Due in 10 minutes

WARM UP (complete in link on classroom) Unit 5: Microecononmics & Personal Finance Lesson 4: Education, Career Planning, & Retirement ESSENTIAL QUESTIONS (WRITE DOWN!): How does education influence my career options? What steps can I take to improve my retirement security? WARM UP (complete in link on classroom) Hillside has a lower student/teacher ratio than several other schools in Durham. There is a proposal to shift some teaching positions from Hillside to other schools in the district that are understaffed. Would this be fair? Why or why not? What would the opportunity cost of this decision be? Lesson Vocabulary Investment Portfolio Correlation between education & income Stock Mutual Fund Wage 401(K) Salary Roth IRA Income Pension Entrepreneurship Social Security Profit, Revenue, Cost Health Insurance Independent Contractor Life Insurance Entitlements Investment Lesson Skills: Analyze graphs and statistical data

Basic Life Planning Choices Be employed – work for another person / company Work for yourself! Entrepreneur – someone that opens their own business Benefits of entrepreneurship: Do what you love, Set your own hours, you keep your profits Risks of entrepreneurship: Most small businesses fail Takes money to get started Independent contractor – provide services to companies in exchange for payment Examples: construction, cleaning services, etc.

Entrepreneur Individual who starts a new business, introduces a new product, and improves a management technique

Different kinds of businesses Sole proprietorship Partnership Corporation

Sole proprietorship Business owned and operated by one person

Partnership Business that two or more people run

Corporation Business with its own legal status separate from an individual Usually sells stocks

Businesses compete to sell either Goods or Services Physical products we can buy and use Toothbrush Soda Glue Pants iPod Things we pay for that provide a convenience Cleaning services Restaurants Hotels Tutoring Hair stylist / manicure

Running a Business: Revenue Money you make when you sell a product If you sell 5 shirts for $10 each, the revenue is $50 Does not account for the cost of the shirts

Running a Business: Variable Costs Costs that depend on other factors The more you make, the more these costs go up More paper = more trees Hot weather, more cost to run the AC

Running a Business: Total Costs Fixed + Variable

Running a Business: Marginal Costs The additional cost of producing one more unit of output 3000 pencils= $150 3001 pencils = $150.05 Marginal cost = $.05

What is Profit?

Running a BusinessProfit PROFIT=REVENUE-COST (P=R-C) The amount of money left over after all costs are taken out

Running a Business: Break Even Point Break Even Point -- point at which a company earns enough money to cover its expenses Cost=Revenue If a company cannot reach the break even point, it will shut down because it cannot turn a profit

Entrepreneurship Practice Goals: Side 1 of Handout: Distinguish between fixed and variable costs Answer questions 1-7 to evaluate Joslin’s business plan Goal: Side 2 of Handout: Calculate the break-even point for Teddy Bear production Given the costs and prices provided, fill in the table Answer questions 1-3

Lesson Summary Quick Writes: apply at least 3 vocabulary terms in each response: What options do people have in terms of how they choose to earn a living? What methods can individuals use to plan and save for retirement? What advice would you give to someone thinking about investing in the stock market? Kahoot.it questions