Career choices
What type of career did we analyze the cost of education and create a budget for?
Pediatrician
What was the most demanding cash outlay that the person in our example had to deal with?
SLP: Student Loan Payment
BONUS: Why cash outlay vs expense?
When is the best time to start saving?
Now
Who doesn't want to lend me money because I might not be alive in 20 years?
Sadie
What is the best possible credit score you can get?
850
BONUS: Identify one or two ways you can build credit now.
Name several ways to avoid a lot of student debt (at least three, NOT including having your parents pay for it).
Don't go to college, go to community college, go to a state university, work during college, earn a scholarship,
Name three of the most expensive monthly expenses facing someone just starting their career (not including paying student debt)
Rent, Food, Insurance, Transportation
How much of your income should your goal be to save?
10%
Bonus: How much do you need to save per month between now and when you retire in 50 years so that you will have $1,000,000 ?
What annual percentage rate do credit card companies typically charge for you to borrow money on the card and not pay them off each month?
23-24%
What is something you can do now to start building credit?
Work with your parents to get a debit card that builds credit and eventually becomes a credit card. Then use it, but only to the extent that you can pay it off monthly without paying interest.
What is a better decision, pursue a career that makes a lot of money or pursue what you love?
It depends. Does the answer change if you live in your parent's basement vs a nice apartment. Does it change if you are single vs married with children? Does it change if you hate your job so much that your mental health is suffering?
BONUS: How has this class changed how you look at your career decisions that you will start making in the next five years?
What are expenses you can't change each month, what are they called and what are some examples?
Fixed Expenses
Rent, Student loan payments, some utilities, some amount of food.
What are the three types of savings accounts that we discussed?
Emergency saving, Saving short to mid term for purchases, trips etc) and Retirement (Long term savings).
BONUS: What do you do if you have an emergency but don't have any savings at all, you only have debt, in fact, your $25,000 credit limit on your credit card is maxed out, and you can't borrow any more.
What is it called when you charge more interest than is legally allowed?
Usury
BONUS: What people are infamously known for doing this (hint: it is not banks)
Why do companies charge more interest to people with poor credit than with great credit.
Because the people with great credit are a lower risk.
BONUS: Is this an unfair systemic problem of keeping the poor poor and the rich rich, or is it nothing more than fair meritocracy at work? Defend your answer.
What is a viable job you could do now to make money?
Babysit, lawncare, odd jobs, tutoring, cleaning.
BONUS: Explain why you are or aren't doing this.
What are variable expenses, and give examples?
Entertainment, travel, donations, subscriptions, clothes, food, utilities, transportation
BONUS: Name a fixed expense you have now a variable expense you have now.
If a college student borrows $100,000 to go to college and needs 200 credit hours to graduate, and each credit hour requires 10 hours of classroom time, how much did the student borrow for every hour of class they attended (whether they wasted the hour or not)?
$50 every classroom hour. Think about that.
BONUS: How might this change how you engage with your classes now?
What is the difference between credit and debt?
Credit is how much borrowing power you have, regardless of whether you actually borrow or not.
Debt is actually money you owe.
What is worse, buying something you love, and making late payments because you can't quite afford it, or not buying it at all, even though you really love it, and then regretting that you didn't get it.
It is always worse to buy something you can't afford, and you will constantly be bombarded with things to buy your entire life. Learning self control and being a smart, educator consumer are skills that will help you for a lifetime.
What were the three career professions we evaluated?
Pediatrician, Engineer, Graphic/Interior Designer
BONUS: Describe how your thoughts about college have changed since we began this Junior Achievement class on Personal Finance.
Would you rather spend $100,000 on a college education for a career that you don't particularly like but pays $75,000 per year... or for a career you love but only pays $25,000 per year? Explain.
It depends on how well you want to live vs how happy you want to be a work, and hopefully you will find a career that pays well and is one you enjoy.
BONUS: What is the highest paying job you can think of that might be one you would love, that you are certain you can do well.
Which term doesn't explain deceptive practices intended to steal information or funds?
Social Engineering, Phishing, Impersonation, or Oversharing.
BONUS: Define each
Is it better to use a debit card, write a check or get cash from an ATM to go pay for something?
No difference, they are all the same, although each has minor risks.
BONUS: What are minor risks with each?
Is it worse to help your best friend buy something they can't afford by cosigning their loan or lending them money, or is it worse to lose your best friend because you didn't help them when they asked, especially since they always help you when you ask.
They probably aren't really your best friend. Best friends don't do that.