costs vs. earnings middle school financial literacy #1

Costs vs. Earnings

Middle SchoolFinancial Literacy #1

Pre-Test

1. What does short-term spending on a postsecondary degree lead to?

2. What is a big factor in how much money you make as an adult?

3. Approximately how much more money will you make in your lifetime if you get an associate’s degree?

Objectives

• Learn why students in the video think it is important to go to college

• How much does it cost to go to college?• Is it worth the money?• College Costs vs. Lifetime Earnings

• Interview a partner and learn if they think it is important to go to college

Going to College: Can Be Very Helpful

• Watch Video1. Why do these students want to go to college?2. Pay special attention to how students hope to make

more money

Discuss With Partner

• What do you think are the most important points of this video?

Why go to College?

• Short-term spending on a postsecondary degree leads to long-term benefits1. What are the long-term benefits of postsecondary

degree discussed in the video? 2. How do these students hope to make more money?

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 (2012)

College Costs vs. Lifetime Earnings

• Associate’s degree (subtract tuition from wage increase)• Tuition and Fees: $8,000 (2 Years)• Wage Increase from H.S. Degree: $550,000 (Lifetime) • Added Lifetime Income: $542,000

• Bachelor’s degree (subtract tuition from wage increase)• 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 (subtract tuition from wage increase)• Tuition and Fees: $90,000 (6 Years)• Wage Increase: $1,300,000 (Lifetime)

• Added Lifetime Income: $1,210,000

• Doctoral degree (subtract tuition from wage increase)• Tuition and Fees: $170,000 (10 Years)• Wage Increase: $2,200,000 (Lifetime)• Added Lifetime Income: $2,030,000

Interview a Partner

• Do you want to go to college? Why or why not? • What type of job do you think you might have if you go to

college?• What type of job do you think you might have if you do

not go to college?• If you go to college, how much more money do you think

you will make than if you just graduate from high school?

Classroom Discussion

• Do you want to go to college? Why or why not? • What type of job do you think you might have if you go to

college?• What type of job do you think you might have if you do

not go to college?• If you go to college, how much more money do you think

you will make if you just graduate from high school?

Today’s Important Points

1. Even though college costs a lot of money– You will get long-term benefits from a postsecondary degree

2. A postsecondary or college degree – Will help you make more money

3. If you get an associate’s degree– You will make around a half-million dollars more in

your lifetime than if you just get a high school degree

Post-Test

1. What does short-term spending on a postsecondary degree lead to?

2. What is a big factor in how much money you make as an adult?

3. Approximately how much more money will you make in your lifetime if you get an associate’s degree?

Review

1. Short-term spending on a postsecondary degree leads to

– Long-term benefits2. Big factor in how much money an adult makes– A postsecondary or college degree

3. More money will you make in your lifetime if you get an associate’s degree

– Around a half-million dollars