1. W ARM UP : F RIDAY 9/13/13 SAT word of the day: Retrospect (\ ˈ re-tr ə - ˌ spekt\); n Word Root: Latin “Specere” – to look at a review of, or meditation on, past events What is human capital? http://www.econedlink.org/inter actives/index.php?iid=230&type =student http://www.econedlink.org/inter actives/index.php?iid=230&type =student

2. W ARM UP : M ONDAY 9/16/13 SAT word of the day: Nascent \ ˈ na-s ə nt\ adj: Word Root: Latin Nasci : “birth” having recently come into existence What is human capital? http://www.econedlink.org/inter actives/index.php?iid=230&type =student http://www.econedlink.org/inter actives/index.php?iid=230&type =student

3. O BJECTIVE Students will analyze choices in higher education in order to determine how those choices influence future earning potential in the workforce.

4. I S C OLLEGE WORTH IT ? The price tag of a college education keeps climbing higher every year. In fact, the price of a college education is climbing at a faster rate than the average price level of other goods and services. So, is a college education is really worth the price? In other words, do the costs outweigh the benefits? Should you invest in your own human capital?

5. THE UNEMPLOYMENT RATE FOR COLLEGE GRADUATES ( BLUE ) AND THE GRADUATION RATE FOR HIGH SCHOOL GRADUATES ( RED ) What is the relationship between level of education and average unemployment rate?

6. D ATA FROM THE B UREAU OF L ABOR S TATISTICS What is the relationship between level of education and median weekly income?

7. WAGE PREMIUM This financial return on investment in education is often described by economists as a wage premium, and is calculated as the ratio of the median wage of those with a bachelor’s degree to the wage of those who have only completed high school. average Over time the premium has risen, from a 40 premium in the late 1970s and early 1980s to about 80 percent in more recent times. This means that a current college graduate will earn, on average, about 80 more than those with only a high school diploma.

8. W AGE P REMIUM It is important to realize that 80 percent is an average, and that different college majors have different return on investment. For example: engineering majors have the highest four-year premium at 125% psychology and social work majors have the lowest premium at 40%

9. FAFSA Free Application for Federal Student Aid http://www.fafsa.ed.gov/ Printable copy of the FAFSA form Used to determine eligibility for student financial aid including grants, loans, and work study. Also determines eligibility for state aid and institutional (college or university- level) aid. The U.S. Department of Education begins accepting applications beginning January 1 of each year.

10. F INDING A C OLLEGE Some people know exactly where they would like to continue their education, while others have no idea! http://nces.ed.gov/collegenavigator/ Comparing tuition: Choose one of each of the following schools to research within the college navigator Local community college Local, public, in-state college or university Public, out-of-state college or university Private college or university (can be in or out of state)

11. C OMPARING TUITION : Choose one of each of the following schools to research within the college navigator Local community college Local, public, in-state college or university Public, out-of-state college or university Private college or university (can be in or out of state) Create a chart that compares the 4 colleges of your choice with the following criteria: Enrollment Faculty (full and part time) Institutional Accreditation Tuition, Fees and est. student prices In or Out of State (and prices) Average cost of books/supplies Room and Board (on campus)

12. SO…SO… What’s the difference between these colleges?

13. C OMPARING A MAJOR TO POTENTIAL WAGES … http://www.bls.gov/oes/current/oes_nat.htm#25-0000 One of the most important personal finance decisions you will make will be the decision regarding your education. The costs of college have been rising, but so have the benefits. You should consider the differences in costs of various types of college and universities, and the differences in income levels associated with different majors. One way to reduce the price of college is by applying for financial aid using the FAFSA form. Thinking about these decisions now can have a huge payoff in the future.

14. A SSESSMENT Read “Is a College Cap and Gown a financial ball and chain?” Use what you’ve learned today and the information in the article to answer the questions below: As college costs have risen, how have many students chosen to pay for college? Does the cost and choice of college impact the major you decide to focus on in college? Explain.