1. MoneyCounts: A Financial Literacy Series
Adult Learners
11-A Grange Building
University Park, PA 16802
financialliteracy.psu.edu

2. Description
Going to college directly after High school allows you to complete a college education before committing time and energy for your future life’s demands
However, you may choose to take a detour and later become an Adult Learner
Regardless of where you are in your life, continued education is easily attainable once you make a plan to meet the potential challenges head on
Managing finances is one of these challenges!

3. Learning Outcome Identify what adult learners means
Understand the real cost of education
Understand federal student aid challenges
Budget for household and education
Understand financial challenges for adult learners

4. Definition of an adult learner
If you are one of the followings, you are an adult learner! 24
veteran A
of the armed service
24 years or older
A veteran of the armed services
A returning to school after four or more years of employment, homemaking, or other activities
An individual having multiple adult roles
years or older
Returning after
of employment, homemaking, or others
An individual having multiple
4+ years
adult roles

5. Increase in loans/debt
WHY go back to college?
Education
Present
Future
Earning money
No loans/debt
Better jobs
Better career path
Increase in income
Insufficient income
No career path
Increase in loans/debt

6. Specific challenges Time to balance work, family, study
Availability of funds for education
Child care limited solutions
Support system

7. Specific limitations Full time versus part time attendance
How long will it take to graduate?
How much financial loans is needed?
How feasible is success?

8. Total Cost of Education
Hidden Cost
Total Cost of Education
Tuition & Fees
Hidden Cost

9. The real cost of education
Tuition and fees + Hidden cost
Flat tuition rate versus credit load
Depletion of federal student loans prior to completion of degree
Not eligible for a parent loan
Limited personal funds and ability to get additional private loans

10. Proper use of financial aid funds
Financial improvement
Professional development for career
Required qualification
More expensive tuition
Less loan opportunities
Your time and effort
Cost
Future return

11. Opportunity cost Education is an investment
Return on investment is measure by financial gain or career gain
Compare cost to return on investment before you commit time, money and effort

12. Aggregate amounts of student aid

13. Academic and Financial Plan!
Know your responsibilities
Know your eligibility for funds
Make an academic and financial plan
Avoid borrowing for life expenses
Allocate your funds properly
Stay in control of the amount of loans
Try grants and scholarships

14. Budget for household and education
Identify income
Identify expenses
Match money coming in and out
Compare overall money coming in and out
Increase income OR trim expenditures

15. Credit cards & debt management
List all cards
Decide how to pay
Restrain from unnecessary purchases
Choose 2-3 cards to keep
Pay off monthly bills in full
Build emergency funds

16. Emergency fund Difficult decision if no room for savings
Eliminate debts to free credit cards
Eliminate installment payments
Car, department store, electronics
Once established, regardless of amount, designate emergency only and do not use for anything else

17. Mortgage Housing is the biggest expense for adult learners
Allocate 30% of your net monthly income for mortgage or rent
Carry house or rental insurance to protect your property and belongings
Lenders will require you to carry house insurance if you are carrying a mortgage

18. Property, sales, and personal
Understanding Taxes
Federal
State
Local
Property, sales, and personal
Check deductions
Adjust W4
Aim to break even at the end of year
Maximize net pay
Take advantage of pre-tax deductions
Adjust to break even
Usually tied to your resident location
Check if you are eligible to reduce
Federal – check deductions, adjust W4, aim to break even at end of year, maximize net pay, take advantage of pre-tax deductions
State – adjust to break even
Local, county and city – usually tied to your resident location
Property, sales, and personal tax – check if you are eligible to reduce

19. Identity theft Your identity Your family’s identities
Children and minors
Electronic, computers, cell phones

20. Insurance Family health insurance
Life insurance – spouse and children protection
Disability insurance
Property insurance
Car insurance

21. Planning for retirement
Difficult decision (making ends meet)
Seek employment with retirement planning benefit
Learn to save even a small amount each paycheck

22. MoneyCounts: A Financial Literacy Series
Comments and questions
11A Grange Building
University Park, PA 16802
financialliteracy.psu.edu