1. A Lesson on Human Capital
Investing in Yourself
A Lesson on Human Capital

2. Introduction Bee Movie Clip What was Barry’s problem?
Doing the same job every day of the year for the rest of his life
FEFE
What are the benefits of Barry’s problem?
Comfort level, always know co-workers, less stress over time, job security
What are the drawbacks of Barry’s problem?
Job may be boring, never have a day off, individual may not be challenged, may not enjoy the job

3. Why Do Some Jobs Pay More?
Greater Market for Occupation
Higher demand = higher wages
Higher skilled job
More education required
Different working conditions (safety)
Levels of responsibility
Hours worked
Different shift worked

4. Top Ten Skills Employers Seek
Verbal and written communication skills
Honesty and integrity
Interpersonal skills
Teamwork skills
Strong work ethic
Motivation and initiative
Flexibility and adaptability
Computer skills
Analytical skills
Organizational skills
Source: manpower

5. Dimes for Dollars Dimes for Dollars Activity (timer)
(from Learning, Earning and Investing, Lesson 3, Activity 1-A)
Complete the Production Report
Which students had more correct answers?
In general, which students were able to complete the problems faster?
If an employer were to hire people who needed to count dimes to pay for things, which group would the employer choose?

6. Human Capital Inherent abilities vs attained abilities
What is Human Capital?
Skills (education and on-the-job training) acquired through a process of self-investment
Why would someone invest in human capital?
With improved human capital, people are more valuable
What is the opportunity cost?
Inherent vs attained: we have certain skill sets when we are born (inherent abilities)—those skill sets may put us at the top or we may need to improve ourselves by becoming more skilled (attained abilities)

7. Education vs Earnings Potential
Note: Data are for persons age 25 and over. Earnings are for full-time wage and salary workers.
What two conclusions can you draw from the chart above?

8. Education vs Income Building a Tower – 10 minutes (timer)
fefe 2.1.1
Whose tower is taller?
Which group had to work the hardest to build the tower? Why?
Why were some groups more successful than others?
How did the education level relate to the degree of the assigned limitations?
How might a person get those “skills” needed for the opportunity to add to their occupational level and earn a higher income in real life?

9. A Human Capital Simulation
The Name Game
A Human Capital Simulation

10. My Name’s Value Todd Alan Poeschel First Name = 6 Middle Name = 4
Last Name = 15
Total Value = 25
Human Capital = $250
(Total value x 10)

11. WEEKLY SALARIES Sales Apparel = $322.50
Sales-Radio, TV, & Appliances = $517.50
Counselors-Educational & Vocational = $800
Receptionist = $385
Registered Nurse = $875
Mail Carrier = $780
Bank Tellers = $375
Family Practice Physician = $1325
Insurance Sales = $800
Electric and Electronic Operators = $780

12. A Friend From Chicago
Dwayne August Szymkowski
First Name = 17
Middle Name = 8
Last Name = 35
Total Value = 60

13. WEEKLY SALARIES Sales Apparel = $322.50
Sales-Radio, TV, & Appliances = $517.50
Counselors-Educational & Vocational = $800
Receptionist = $385
Registered Nurse = $875
Mail Carrier = $780
Bank Tellers = $375
Family Practice Physician = $1325
Insurance Sales = $800
Electric and Electronic Operators = $780

14. Your Name’s Value

15. WEEKLY SALARIES Sales Apparel = $322.50
Sales-Radio, TV, & Appliances = $517.50
Counselors-Educational & Vocational = $800
Receptionist = $385
Registered Nurse = $875
Mail Carrier = $780
Bank Tellers = $375
Family Practice Physician = $1325
Insurance Sales = $800
Electric and Electronic Operators = $780

16. YOUR JOB NOW? Plan a “NEW YOU”
Create a new first name, middle name, last name
Restrictions
must have at least one vowel in each name
maximum of 26 letters for all three names combined
may not use a consonant more than two times in any one name
an individual consonant may not be used more than four times

17. New You Value Restrictions must have at least one vowel in each name
maximum of 26 letters for all three names combined
may not use a consonant more than two times in any one name
an individual consonant may not be used more than four times

18. WEEKLY SALARIES Sales Apparel = $322.50
Sales-Radio, TV, & Appliances = $517.50
Counselors-Educational & Vocational = $800
Receptionist = $385
Registered Nurse = $875
Mail Carrier = $780
Bank Tellers = $375
Family Practice Physician = $1325
Insurance Sales = $800
Electric and Electronic Operators = $780

19. Wrap - Up What is the relationship of education to income?
What is human capital?
Given skills vs attained skills