1. 1-2 The Economy and Your Education Learning Goals: -Describe how the economy can affect prices and income -Discuss the costs of and options for higher education and post-secondary training - Explain how to pay for college and other education programs

2. Bell Ringer  Write down at least one question you have about colleges, costs of education, or how will you pay for education.

3. What is the Economy?  The economy is the activity going on in the marketplace at one point in time. The economy sets prices and determines how resources will be used.

4. Supply and Demand within a Market Economy  A market economy sets prices based on supply and demand.  What is supply?  The quantity of goods and services that producers are willing and able to provide  What is demand?  The willingness and ability of consumers to buy goods and services  As consumers act in self-interest behavior, they create demand for good and services. Businesses are willing to provide those goods for a profit. These two forces work together to create an equilibrium price.

5. How the Ecomony Affects Income  What do you hear or read in the media?  A growing economy means people are working and spending money. People get raises and can more easily find a job.  How did the Great Depression affect people’s buying habits long after the depression was over?

6. What is the business cycle and how does it affect you as an individual?  The business cycle is the alternating periods of growth and decline in the economy.  The business cycle is the recurring ups and downs of the economy, consisting of recovery (growth), peak, recession (decline), and trough.  During economic growth, people are optimistic; new jobs are being created; it seems logical to spend money.  Prices decline during a recession, so if you have the cash to spend, you can find the best values.

7. Cost of Education: How is tuition different than fees?  Tuition represents the expense for classes and instruction.  Fees represent costs associated with programs and technology.  Money is also needed for living expenses such as food, rent, clothing, and transportation.

8. Public vs. Private Colleges and Universities  Typically, public colleges and universities are less expensive.  Likely to find smaller classes and more personalized attention at a private college.  Make sure institution is accredited – certified to meet educational quality standards.

9. Community and Technical Schools  Tuition is generally less expensive than a college or university.  Can receive an associates degree for two years of study.  Career and Technical schools teach specific skills.  Can transfer credits to a college or university.

10. Ways to Pay for Formal Education after High School  Loans – unsubsidized and subsidized  Grants  Scholarships  Work Study Programs  Working while in school

11. Subsidized and Unsubsidized Loans  Subsidized loans are guaranteed by the federal government, has a low-fixed interest rates, and interest does not start until after graduation.  Unsubsidized loans are not guaranteed, have higher interest rates, and interest begins when the loan is granted.  Both types are not repaid until after graduating from college.

12. Grants and Scholarships  A grant is money given to pay for educational expenses that does not have to be repaid. The federal government gives Pell Grants based on need.  A scholarship is a gift of money or other aid (free tuition) awarded to a student to help pay for education. Scholarships may be available to students with high grades, strong athletic skill, or high test scores.

13. Work-Study Programs  Work-study is a program where you can work as part of your financial aid package.  Also can find work at the college.

14. Working and Saving  Advantage – Working an paying as you go reduces your debt and allows you to pay it off along the way. Also gain work experience.  Disadvantage – It takes longer to obtain you degree because you are working.

15. Visit with Admissions Advisor

17. Assignments  Due Monday  Answer questions 1-22 on pg. 19  Read lesson 1-3 pg. 21-31.  Due Tuesday (Jan. 13): Go to www.bls.gov/OCO/ and print information about three careers. On one of those careers write a short report (less than 1 page) on the types of information found (job title, nature of the work, work environment, training and skills required, and job prospects).www.bls.gov/OCO/