1. Spinrad/ Global Academy
Economic Choices
Spinrad/ Global Academy

2. High school prepares you for post-graduate study
It doesn’t prepare you for a middle-class career unless you pursue post-graduate training
The trades
Technology/STEM
Military
University

3. What is middle-class?
The median household income in the Bay Area is $76,000 (2010 Census data)
That is equivalent to $38/hour
That is not enough money to buy a house in Marin County.

4. Hopefully you will enjoy your career
The work is fulfilling
It pays enough
What’s the next step?
housing
career
education

5. Housing You have to live somewhere
If you buy a house you may pay less than renting
A fixed mortgage never increases; eventually you own it
The US government pays you to buy a house
Booms and busts awaken opportunities
Houses appreciate at the rate of inflation

6. Negatives for owning a house
Repairs and upkeep
Property taxes, typically 1.5%
Liability
Credit problems if you walk away

7. Saving for problems and retirement
Good to have a few months income in case of loss of job or other problems
Take employers retirement benefits so you don’t have to work when you’re in your 70s
IRA/401K/403B plans give tax benefits
Buy assets, not liabilities