Monday April 20, 2015Agenda HomeworkTalk about the BooksGo Over the QuizIntroduction to Personal

Financial Literacy (PFL)OUR LAST UNIT

BookGenerally really impressed with the work you

all did, especially on Thursday!Points were taken off if there weren’t

pictures on every pagePoints were taken off if there was a definition

but not an explanation.

MoneyMoney 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 MoneyMeasure of Value?

What affects your individual financial goals?

EducationGenerally speaking, the higher

your level of education the greater your earning potential.

Career PathEvery career has a different

pathway and different opportunities.

IncomeYour 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 EducationHigh School Drop Out $471High School Graduate- $652Enlisted Military Member-$700Trade School- $807Community College Graduate- $785College Graduate- $1,066Master’s Degree-$1,300Doctorate’s Degree- $1,624Professional Degree $1,735

Paying for EducationGrants- 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

causeNeed based (FAFSA- Free Application for Federal

Student Aid)Merit- Scholarships awarded for meeting a criteriaWork 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- $28.685 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)

Loan Need-Based?

Subsidized?

Sponsor Borrower Interest Rate

Direct Subsidized Loan  

Yes Yes Federal government

Student 3.4% (fixed)

Direct Unsubsidized Loan

No No Federal government

Student 6.8% (fixed)

Perkins Yes Yes Federal government

Student 5% (fixed)

Parent PLUS No No Federal government

Parent 7.9% (fixed)

Private (Alternative) and State

No No Banks, colleges, foundations, state agencies

Usually student with creditworthy parental cosigner

Usually higher than federal rates; variable