Unit 5 Project PDF

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Introduction to Personal Finance Unit 5 Project Learning Goals:  Understand the concepts of saving and investing and how it relates to human and financial capital accumulation.  Understand how liquidity, risk, and return impact banking and investment products. 1. John is trying to decide if he should attend college or not. Part of his decision will be based on the return on investment of college. a. He estimates that the per year cost to attend Texas Tech including room and board is $24,044 per year. He also assumes costs will rise by 6% per year. How much is a 4-year degree going to cost John? N 4 I/Y 6% PV 0 PMT -$24,044 FV 105.183.27 b. John recognizes that not only will he have the costs of attending school, but he will also be giving up a salary while he attends school. He figures the average salary for those with only a high school diploma is $33,176. He assumes he would receive a 3% cost of living raise each year. Determine how much money he will forgo while attending school. N I/Y PV PMT FV

4 3 0 $24,044 $138,796.01

c. If John adds the cost of college with the salary he will forgo by attending college he finds it will cost: ___$243,979.28_______________ in total. (Keep in mind that this does not include any interest on loans needed to pay for school). d. Help John determine if it really is worth it to get a college education by comparing his ROI going to college and his ROI not going to college. After some research John discovers that for his career choice over the next 20 years he can expect to earn $1.6 million with a degree and $809,000 without one. What is John’s additional benefit (ROI) from going to college? Determine this ROI 20 years after he finishes college. N I/Y PV PMT FV

20 6.0574% $-243,079.37 0 $791,000

e. Is this a good ROI or not? List at least 3 other factors besides ROI that John should consider. 1.I think a 6.06% is a good ROI 2. I think John should consider what the cost of living is. 3. I think John should consider if one day he decides to have a

family, child care, health care, insurance, college, and compare it to what he is making now.

4. Identify at least 3 different job postings that you would be interested in using websites such as monster.com, indeed.com, careerbuilder.com, payscale.com, indeed.com, salary.com and others. Research and report on the starting salary, at least 3 of the responsibilities, and identify at least 2 qualifications for the job (degrees, certifications, etc.). Job Title Math Teacher

Starting Salary Range $53,500

3 Responsibilities

1. Prepare lessons that reflect accommodations for individual differences. 2. Develop Reasonable rules of classroom behavior 3. Establish and maintain open line of communication Substitute Teacher $200 a day 1. Ensure that district policies are observed during all activities. 2. Create a safe classroom environment that is conductive to learning. 3.Keep all children in the classroom under supervision at all times. Dental Office $45,000 1. Manager day to day Manager operation 2. overseeing the work of all office employees to ensure they work productively and meet deadlines and company standards 3. Interviewing and training new office employees and organizing their employment, paperwork Career website sources used in your search:indeed.com

2 Qualifications 1. Bachelor’s degree 2. Texas Teacher Certificate

1. High school diploma 2.GED

1. 2-3 years of dental office leadership experience 2. 2-3 dental insurance experience...