School Your Investment in Your Human Capital Lesson 10:

Vocabulary Financial Capital Financial Capital Physical Capital Physical Capital Human Capital Human Capital

Financial Capital stocks & bonds and other financial assets Investment in Financial Capital Investment in Financial Capital purchase of stocks and bonds and other financial assets today out of today’s income purchase of stocks and bonds and other financial assets today out of today’s income “Saving” from today’s income “Saving” from today’s income Opportunity Cost?? Opportunity Cost?? Pay-off  Earn more $$$$ in Future Pay-off  Earn more $$$$ in Future “Delayed Gratification” “Delayed Gratification”

Physical Capital Factories, Equipment & Tools Investment in Physical Capital Investment in Physical Capital purchase of factories, equipment, & tools today purchase of factories, equipment, & tools today using today’s income “opportunity cost”??? “opportunity cost”??? Pay-off  produces more goods & services Pay-off  produces more goods & services to sell in future  more $$ in future “Delayed Gratification” “Delayed Gratification”

Human Capital Skills & Knowledge Investment in Human Capital Investment in Human Capital Going to School & doing well today Going to School & doing well today “ opportunity cost”??? “ opportunity cost”??? Pay-off  Better job, higher earnings in future Pay-off  Better job, higher earnings in future “Delayed Gratification” “Delayed Gratification”

School Homework and Study Homework and Study investment in human capital investment in human capital Increasing skills and knowledge Increasing skills and knowledge Investment in Human capital Investment in Human capital increases the quantity and quality of your alternatives in the future. increases the quantity and quality of your alternatives in the future.

Richard Wright and the Library Card Why did whites want to prevent African American from learning to read? Why did whites want to prevent African American from learning to read? What can reading help people do? What can reading help people do? What can’t they do if they can’t read? What can’t they do if they can’t read? Why don’t some children want to learn things in school? Why don’t some children want to learn things in school?

Tomás and the Library Lady Migrant worker Migrant worker Writer, professor, university administrator Writer, professor, university administrator Chancellor of the University of California, Riverside Chancellor of the University of California, Riverside

More Than Anything Else Why Was Booker so eager to learn? Why Was Booker so eager to learn?

Job Application What can you do for Uncle Jed? Insert on this slide job application on page 123

Table II: SCANS 2000 (Labor) Secretary's Commission on Achieving Necessary Skills Skills Descriptions Basics Thinking Personal Interpersonal Systems Information Technology Resources Reading, writing, mathematics, listening, speaking Creative thinking, decision making, problem solving, knowing how to learn, reasoning Responsibility, self-esteem, sociability, self management, integrity Planning, organizing, monitoring, assessing, evaluating, adjusting Teamwork, teaching, serving clients/customers, leadership, negotiating, working with people of diverse cultural backgrounds Understand social, organizational and technological systems; monitor and correct systems Acquiring and evaluating, organizing and maintaining, interpreting and communicating, using computers to process information Selecting equipment and tools, applying technology to specific tasks, maintaining and troubleshooting technologies, learning new technologies

Your Personal 21 st Century Human Capital Score Score yourself 1(low)—10(high) for each of the items in each of the eight categories, (i.e., put a small number by each item), then total these to get a total for each category, then total all eight categories for a GRAND TOTAL. Score yourself 1(low)—10(high) for each of the items in each of the eight categories, (i.e., put a small number by each item), then total these to get a total for each category, then total all eight categories for a GRAND TOTAL. I will ask some of you how you “use” one or two of the skills and “where acquired.” I will ask some of you how you “use” one or two of the skills and “where acquired.”