1. Introduction- ICAN services- FREE to students and families.

2. Pre-Test
Begin with the pre-test.

3. Defining Investment
The act of putting out money in order to gain a profit
Ask students- Do you know what an investment is? Can you give some examples of investments? Do you think of college as an investment in your future? If not- it is! Education is something that can never be taken away from you.

4. Two Definitions
Return on Investment (ROI) - A measurement of how worthwhile an investment is to you
Return on College Investment (ROCI) – A measurement of whether your investment of time, money, and effort into post-high school education that allows you to fulfill your personal financial goals.
How many of you plan to go into some kind of education training or college after high school? Why do you want to do this? To better your future? Make good money?

5. What is return on investment?
Mr. and Mrs. Johnson have a nice ranch style home. The doors and windows in their home were in very bad shape. Air was leaking through the windows and doors in the winter. They spent over $20,000 to replace all their doors and windows. Did the money that they spent make their house a more valuable house? Why? Yes – would you rather live in a house that has good windows and doors or bad windows and doors?

6. Understanding Return on Investment
The Johnsons spent the money to improve their home. If the home was worth $150,000 and they spent the $20,000 for new windows and doors, and then they later sell the home for $180,000, would that be a good deal for them?
Why?
Yes – they sold the home for $30,000 more than it was originally worth. Some of the gain was probably due to the fact that buyers liked the idea of having new windows and doors in the home. The Johnsons invested $20,000 and had a return of $30,000. That’s a pretty good deal!

7. Applying the idea of return on investment to you
How are you like a house? Is there anything that you can do to make yourself a more valuable worker?
You are a part of the economy that would be called a human resource. In other words, instead of being a physical resource like a factory, a commercial building, or a highway/railroad, you are a human resource to our economy.
You have and can develop skills that you can sell in our economy to make earnings and gain benefits for yourself. To make yourself a more valuable worker, you can invest in yourself (self-investment) to upgrade your skills and improve your income and benefits. This gain in income and benefits from the improvement of your skills would be a return on investment.

8. What are your options after high school?
Associate of Applied Science (Career and Technical Degree)
Bachelor Degree
Graduate or Professional Degree
Apprenticeship
Military
On the Job Training
Associate Degree- Generally takes 2 years
Bachelor- 4 years
Graduate- 6 years total
Appreticeship- On the job training
Military- Several options with the military
On the job training- Start working right away

9. Is your education an investment into your future?
68% of Iowa jobs by 2025 will require some form of post-high school education
Average Salaries:
High school diploma: $22,000
Associate Degree/Apprenticeship: $51,500
Bachelor Degree: $71,530
Graduate Degree: $78,000
Over HALF of the jobs will require some form of training or education beyond high school by the year What does this mean for you?

10. What will you be investing?
Money
Possible tuition
Postponing some earnings for a period of time
Effort
Time

11. Comparing Returns of Investment
19.3%
16.7%
15.3%
9.1%
5.8%
2.3%
2.1%
Interesting study- comparing typical investments such as stocks, gold, etc. to education. Education has the highest return on investment. Ask students why they think an Associates degree has the highest ROI? Answer: An associates degree generally takes less time and less money. Some students can come out making really good money at trade jobs.
0.6%
0.6%

12. Checking for Understanding
Investment = Income – Expenses True or False?
False – Devoting expenditure of money with the hope that it will produce a greater value in the future.
Return on investment is the increase or decrease of the value of an asset after investment. True or False?
True – When you spend money for investment, the result will be either negative or positive depending on the result. You invest money in the stock market and it grows by 5%, that 5% growth would be your return on investment.

13. Non-income ROCI
Post-high school education can increase your income. Are there non-income benefits to post-high school education that results in a positive ROI?
Yes!
Health Insurance
Other types of insurance: disability, dental, vision, etc.
Retirement benefits
Employability – able to get a job
Ride out the ups and downs of the economy
Personal satisfaction in doing a job you like and enjoy

14. ROCI Activity
There are two major tools we will work with in giving you a chance to explore ROCI
ROCI Tool from Iowa Student Loan
Occupational Outlook Handbook from the Bureau of Labor Statistics
Occupational Outlook Handbook has a list of the top 25 fastest growing careers in the country. Fastest growing career right now? Wind turbine technician. Kirkwood has a program for this!

15. ROCI Activity Hand out ROCI Activity Charts
Please go to:
Click on College Planning Tools – Learn More
Click on Return on College Investment – Start Now
Leave this slide up so students can go to to utilize the ROI tool.

16. ROCI Activity
To demonstrate how to use the ROCI Tool please follow my lead:
Click on the drop down menu and select business – this will give you various college majors in the area of business
Click on the drop down menu and select accounting
Walk through this example for students before they begin. *If students don’t know what you want to do…. choose business/accounting.

17. ROCI Activity
The page that comes up gives you some basic information on accounting and getting a job in the accounting area
If you click on the job title Accountants and Auditors, it will take you to the Occupational Outlook Handbook for additional information

18. ROCI Activity
Let’s walk through the first column of the ROCI Activity Chart Career 1 – Accountant Degree required? Bachelor degree Median Salary? (click on the job title and to go to the OOH) $69,350 Job Outlook? OOH – 10% faster than average
This might be helpful to leave up while students are working.

19. ROCI Activity
Now working on your own, pick out THREE careers and use the ROCI Tool from ISL and the Occupational Outlook Handbook, and fill out the ROCI chart with information that you find.

20. Reviewing the ROCI Activity
It is important that as you think about your future, you investigate what the ROCI would be for the career area you are considering. Some things to consider: How much money will you be making? Will this work for your lifestyle? Can you get a job? What is the outlook of the career you have chosen?
Ask students- Have you thought about these things before? What are you learning?

21. Debriefing the ROCI Activity
High school graduates can get jobs that will pay $7.25 to $11.00 per hour.
$7.25 an hour will be about $15,000 for a year
$11.00 an hour will be about $23,000 a year
If a career/job you examined paid $35,000 the first year, how would you figure the percent increase in comparison to $11.00 an hour job?
$35,000 - $23,000 = $12,000
Percent increase = $12,000 / $23,000 = .52 or 52% increase

22. Debriefing the ROCI Activity
Would a 52% increase in a starting salary be at least a good part of a ROCI?
Yes – you would need to figure in costs of your education, but over a period of years you will significantly increase your earnings compared to a $11.00 an hour job. You would also receive that increase over a standard 40 work career plus increases in your salary as the years go by.
What other benefits will also be a ROCI for you?
Benefits like: health insurance, retirement funds like a matching 401K, other insurance benefits, job satisfaction, etc. You could also have advancement opportunities to increase your earnings as you move to higher paying positions.

23. Checking for Understanding
Investment is an expenditure of money to hopefully increase the value of an asset. T F
True

24. Checking for Understanding
A family has a new high efficiency furnace installed in their home. In five years the savings in fuel, pays for the cost of the furnace. Was this a good return on investment?
Definitely!!! The family saved enough money in fuel costs that the furnace “paid for itself”. That is a great return on investment.

25. Checking for Understanding
What would be some reasons you should consider post-high school education?
68% of Iowa jobs in 2025 will require post-high school education
Increasing your earning power
Increasing your employability
Getting important benefits like health insurance, disability, etc.
Providing for your retirement
Enjoying what you do or are interested in
These are only a few reasons why post-high school education is important. Can you think of any others?
Increasing your earning power- Typically the more education and training you have, the more you are able to move up the career ladder.
Increase your employability- The more education/training you have, the more jobs you will be able to apply to.
Benefits- Hot topic! Benefits are huge- importance of having health insurance, retirement, etc.
Enjoying what you do- This is SO important because you are going to spend more than HALF of your life working! That is a long time…

26. Checking for Understanding
Post-high school education means only college (bachelor degree). T F
False – it also means:
Associate of Applied Science (Career and Technical Programs)
Graduate or Professional Degree
Apprenticeships
Military
On-the-Job training

27. Checking for Understanding
What are two tools you can use to research about the Return on College Investment for college programs and careers?
ROCI Tool through Iowa Student Loan
Occupational Outlook Handbook

28. Post Test
Have students complete pre-test.

29. The ICAN website is full of additional resources and information for every step in the college journey. There are many areas of the site that can help you along your journey. Check out the Students/Parents section. Under Planning Tools and Resources you’ll find quick links to the top resources on our site, including our e-newsletter, resource zone and scholarship database. You can also reach all of our social media sites from our homepage.

30. Career & College Corner Blog Social Media
Tip of the Week Video
Senior Year Alerts
Career & College Corner Blog
Social Media
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