Monday April 20, 2015 Agenda Homework Talk about the Books Go Over the Quiz Introduction to Personal Financial Literacy (PFL) OUR LAST UNIT

Book Generally really impressed with the work you all did, especially on Thursday! Points were taken off if there weren’t pictures on every page Points were taken off if there was a definition but not an explanation.

Money Money 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 Money Measure of Value?

What affects your individual financial goals? Education Generally speaking, the higher your level of education the greater your earning potential. Career Path Every career has a different pathway and different opportunities. Income Your 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 Education High School Drop Out $471 High School Graduate- $652 Enlisted Military Member-$700 Trade School- $807 Community College Graduate- $785 College Graduate- $1,066 Master’s Degree-$1,300 Doctorate’s Degree- $1,624 Professional Degree $1,735

Paying for Education Grants- 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 cause Need based (FAFSA- Free Application for Federal Student Aid) Merit- Scholarships awarded for meeting a criteria Work 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- $ 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)

LoanNeed- Based ? Subsi dized ? SponsorBorrowerInterest Rate Direct Subsidized Loan Yes Federal government Student3.4% (fixed) Direct Unsubsidized Loan No Federal government Student6.8% (fixed) PerkinsYes Federal government Student5% (fixed) Parent PLUSNo Federal government Parent7.9% (fixed) Private (Alternative) and State No Banks, colleges, foundations, state agencies Usually student with creditworthy parental cosigner Usually higher than federal rates; variable