Costs of College 9 th Grade Financial Readiness Strategies #1

Pre-Test 1.What does short-term spending on a postsecondary degree lead to? 2.What are the main types of college costs? 3.How much does it approximately cost to attain a Master’s degree?

Objectives Benefits of college Introduction to ways to pay for college More on this subject next week 5 main types of college costs – How much does it cost to go to college? Is it worth the money? – College Costs vs. Lifetime Earnings

Benefits of a College Short-term spending leads to – Long-term financial benefits There are also many potential personal benefits when students go to college and have a high skill career – Interesting tasks at work – Professionals with similar interests and are a positive influence – Passion for your career, pride in your work – Potential for advancement – Fitness clubs at work or reduced prices at clubs – Health benefits, more health insurance options – Give back to the community – Flexible work hours

5 Ways Ed Pays Video Watch the 5 Ways Ed Pays Video5 Ways Ed Pays – Play close attention to the financial and personal benefits

Group Activity: Rank the 5 Ways Ed Pays Rank the 5 Ways Ed Pays starting with what is most important to your group Explain your rankings – Greater Wealth – More Security – Better Health – Closer Family – Stronger Community

Building the Belief: Paying for College Before exploring the costs of college – It is important that students know that it is possible for all students and families to finance a postsecondary education Many students and families think that college is too expensive for them – We will investigate different ways students and families pay for college in this unit

How Do Families Pay For College? Financial Aid Grants National and state money to help pay for college costs Scholarships Money students are awarded for skills and accomplishments Work Study Students work at school to lower tuition costs Loans Paying Colleges Directly Savings Family Contribution

Paying for College Video Watch the Paying for College videoPaying for College – Pay special attention to the different types of financial aid available to the students – (Note: This is a Arizona State University video but the types of financial aid are available at all colleges)

Group Discussion If you were going to have a work study at the postsecondary institution you attend, what sounds most interesting? Why? – Research assistant – College guide for perspective students – Computer lab assistant – Usher at public and sporting events – Child care worker – Library assistant – Food server – Clerical staff – Other

5 Main Types of College Costs 1.Tuition and Fees 2.Room and Board Must pay for housing & food even if not in college 3.Supplies Average cost around $500 a year (varies by major) 4.Personal Expenses About the same cost as youth not in college Insurance (many students can be on parent’s policy) 5.Transportation Less expensive if attending in-state college

Pick a Partner In which five areas do you think you can help keep college costs down? 1.Tuition and Fees 2.Room and Board 3.Supplies 4.Personal Expenses 5.Transportation

Average College Costs Associate’s degree Tuition and Fees: $8,000 (2 Years) Bachelor’s degree Tuition and Fees: $60,000 (4 Years) Master’s degree Tuition and Fees: $90,000 (6 Years) Doctoral degree Tuition and Fees: $170,000 (10 Years) Professional degree Tuition and Fees: $190,000 (11 Years)

Is it Worth the Money?

Lifelong Income by Degree Source: U.S. Government Info, About.com

College Costs vs. Lifetime Earnings Associate’s degree Tuition and Fees: $8,000 (2 Years) Wage Increase from H.S. Degree: $550,000 (Lifetime) Added Lifetime Income: $542,000 Bachelor’s degree Tuition and Fees: $60,000 (4 Years) Wage Increase: $900,000 (Lifetime) Added Lifetime Income: $840,000

College Costs vs. Lifetime Earnings Master’s degree Tuition and Fees: $90,000 (6 Years) Wage Increase: $1,300,000 (Lifetime) Doctoral degree Tuition and Fees: $170,000 (10 Years) Wage Increase: $2,200,000 (Lifetime) Professional degree Tuition and Fees: $190,000 (11 Years) Wage Increase: $3,100,000 (Lifetime)

Pick a Partner What type of degree to you plan to attain? Compare the cost of that degree and the increase of earnings over a lifetime What advantages do you see in attaining that degree?

Classroom Discussion What type of degree to you plan to attain? Compare the cost of that degree and the increase of earnings over a lifetime What advantages do you see in attaining that degree?

Post-Test 1.What does short-term spending on a postsecondary degree lead to? 2.What are the main types of college costs? 3.How much does it approximately cost to attain a Master’s degree?

Review 1.Short-term spending on a postsecondary degree leads to – Long-term benefits 2.Main types of college costs – Three of the below Tuition/Costs, Room/Board, Supplies, Personal Expenses, Transportation 3.How much does it approximately cost to attain a Master’s degree? – $90,000