Financial Planning

8th GradeReady Financially for Postsecondary Institutions #1

Objectives

• Connect – Expected expenses– Careers that cover those expenses– Postsecondary education needed for high skill careers

• Play the Cost of Living game– Learn more about long range financial goals

• Types of Postsecondary Financial Aid • Update Postsecondary Plan

What do you want when you are an adult?Select Answers

• Food– 1. Cook at home, 2. Combination, 3. Eat at restaurants

• Housing – 1. Small Apartment, 2. Medium-Sized House, 3. Big house

• Family – 1. No children, 2. One Child, 3. Two or More Children

• Transportation– 1. Bike, 2. Bus, 3. Car

• Technology– 1. No Cable or Internet at Home, 2. Just Cable, 3. Cable & Internet– 1. Home Phone, 2. Cell Phone, 3. Cell Phone with Internet & Text

• Entertainment– 1. Stay at Home, 2. Movies/Fun twice a month, 3. Movies/Fun 3 or more times

Total Scores and Education Needed

• Total your scores– If you score is more than 10, you will most likely need a

postsecondary education to cover those costs

• Students with only a high school diploma– Will have difficulty covering necessities– Have little money for technology, fun, transportation, etc.

Cost of Living Game

• Matches expenses with possible careers• Watch the sample student play the game– In the upcoming slides

• You can play the game at – http://mdk12.org/assessments/high_school/

prepareforhsa/students/costofliving/costs.html

Sample Student: Cost of Living Game

• Choice– Apartment: $500 (monthly expense)

– House: $900– Mansion: $1,800

• Selects: House $900• Choice– Walk: $0– Bus: $60– Car: $400

• Selects: Car $400• Notice: Expenses Per Month $1,300

Sample Student: Cost of Living Game

• Choice– Cook at Home: $200– Eat at Normal Restaurants: $400– Eat at Very Nice Places: $800

• Selects: Cook at Home $900• Choice– Hiking: $20– Movies: $40– Sports or Concert Tickets: $90

• Selects: Hiking $20• Notice: Expenses Per Month $1,520

Sample Student: Cost of Living Game

• Choice– No Kids: $0– One Kid: $350– Two Kids: $550

• Selects: Two Kids $550• Notice: Expenses Per Month $2,200• Sample Student needs at least– $2,200 dollars to cover her expenses– Notice that she did not select anything too extravagant

• Now the sample student will see what careers will cover her expenses

Sample Student Selects Careers

• Selected Bus Driver Career– Will it cover the expenses?

• No • Expenses Per Month: $2,200• Income Per Month: $1,500

• Selected Computer Programmer– Will it cover the expenses?

• Yes• Expenses Per Month: $2,200• Income Per Month: $2,922

Sample Student Selects Careers

• Selected Architect Career– Will it cover the expenses?

• Yes• Expenses Per Month: $2,200• Income Per Month: $3,215

• Selected Cashier Career– Will it cover the expenses?

• No• Expenses Per Month: $2,200• Income Per Month: $887

Sample Student Selects Careers

• If the sample student had the career – Bus driver or cashier

• She will most likely have to change her lifestyle – Or get a college education

• Notice that the big difference between the expenses and income– Expenses: $2,200, Income: $887

• This would cause many problems for the sample student

Play the Cost of Living Game

• Play the game at – http://mdk12.org/assessments/high_school/

prepareforhsa/students/costofliving/costs.html

1. Input expenses that will best fit your lifestyle2. Find careers that will cover your expected expenses

Groups Activity: Cost of Living Game

• Students will report to group– Expenses for their desired lifestyle– Careers that cover those expenses

• Groups will– Decide what education is needed for selected careers– Report to class their thoughts on what education is

needed for specific lifestyles

Long-Range Financial Goals

• Most people need a postsecondary education– In order to meet their long-term financial goals– Students need strategies to achieve these goals

• Learn how some students are paying for college– Watch the Types of Financial Aid video

• The next video is about finding scholarships that match your skills and experiences– Watch the How to Find a Scholarship video

Types of Financial Aid • Grants– Based on financial need and family income – You do not need to pay money back

• Scholarships– Money for students with specific skills and experiences

• Work Study– Jobs on campus that can help pay for college costs– Hours can be flexible in order to go to class

• Loans– Must be paid back after graduation– Has a lower interest rate

Finding Scholarships

• 5 Main Types of Scholarships– Academic– Athletic– Need-Based– Interest or Club-Based (includes company scholarships)– Culture-Based

• Create a Brag Sheet with your activities and achievements• Finding Scholarships– Search online for scholarships– Local businesses, churches and community organizations– Ask colleges of interests what scholarships they have available

Sample Types of Scholarships • Academic • African-American• Asian• Art • Athletic• Best Buy• Business• Cargill• Computer• Cosmetology• Fashion Design

• Female STEM • First Generation • Hispanic• Interracial• Left-handed• LGBT• Marble Playing • Music • Native American• Nursing• Parent’s Company

• Political• Religious• Skateboard• State• STEM Career • Study Abroad • Teaching• Technical School• Twins• Vegan• Vocational

Groups Activity: Types of Financial Aid

• Students will report to group– Financial aid types of interest• Grants, Work-Study. Scholarships, Loans

– What type of scholarship might be a good fit for them

• Groups will– Decide the most common types of financial aid and

scholarships of groups members – Report to class • Most common types of financial aid and scholarships

Keeping College Costs Lower

• Many states have reciprocity with neighboring states– Reciprocity: Pay in-state tuition in other states– Minnesota: Wisconsin, North and South Dakota

• Many private colleges have good financial packages– Some students pay less to attend private colleges

• More students are attending 2-year colleges first for financial reasons

• If you do well in school, you will most likely pay less for college– With more scholarships and other financial aid

529 Savings Plan

• Helps families pay for future college costs• State and federal tax benefits– Do not have to pay taxes on the increased dollar

amount due to interest

• If you put money into this savings plan now– The money will continue to grow until you need it

for college

What can I do now to pay for college?

• Do you best in school– Higher grades will get you more scholarships

• Get involved in different types of activities– Can get more scholarships when you have more

volunteer, extracurricular, and work experiences• Start a 529 Savings Plan

Update Postsecondary Plan

Update Your Postsecondary Plan

• What am I doing now to prepare to pay for college?

• How do families like mine typically pay for college?

• What scholarships might I be eligible for in the future?

Review

1. Know what type of career and postsecondary education is needed to cover your future expenses

2. Understand the different types of college financial aid

3. Begin preparing for ways to earn scholarships and pay for college